Geophysical investigations are one of the leading efforts in any exploration project that must be performed ahead of time due to the high excavation expenditures, heavy machinery, and cost reduction. One of the essential geophysical concerns is the estimation of the physical and geometrical parameters of the reserve (geobody), which is done by exploiting the nonlinear inverse modeling of magnetic data. These parameters include depth, volume, shape factor, and type of storage. The present investigation aims to prepare and model magnetic data for proposed drilling sites in the Baba Ali Iron ore deposit in the Hamedan province of Iran. The area is covered with 1000 points of geomagnetic reading with an almost 5*10 m regularly spaces grid trending WE. The areal and depth extent of the iron ore geobody was unknown. The Bhattacharyya method by MATLAB software coding was used to minimize the target function and potential field data and create the best fit for the measured and modelled magnetic data. The residual anomaly and model graphs exhibited an excellent two-dimensional conformation in this modeling. Also, 3D modeling correctly reconstructs the properties of the productive resources of anomalies. After preparing full magnetic maps, the magnetic lenses distinguished in four anomalies of surface depths, 20, 50, and deeper than 50 meters for this zone. This magnetite lens for the first zone was estimated based on analytical signal filters applied on the entire magnetic map so that the lens's depth is trivial and almost zero. Due to specific gravity calculated as 4.77 t/m3, initial storage capacity is suggested to be about 95,400 tons of magnetite, pyrite, and hematite minerals at most in an area about 6 Km2. Finally, to complete the preliminary explorations of the specified area, exploratory drilling is suggested for three points by inverse modeling.