According to the actual conditions in Sanshandao Gold Mine, the cancelling ore pillars mining method was researched. Firstly, a series of tests for the physical and mechanical characteristics of rock mass were carried out and a quality classification system of rock mass applied in coastal metal deposit was established. Secondly, the reasonable demarcation depth of cancelling ore pillars was simulated using the finite element method, and the simulation results show that the ore pillars can be cancelled below the level of-555 m. Thirdly, a novel layer-backfill mining method of room-pillar alternation was designed to reduce the disturbance and settlement of terrain in mining area. Engineering practice shows that the new mining method enhanced the mining output and relieved rock disturbance. Furthermore, the settlement of the roof strata was small and no disaster occurred. The new mining technology effectively controlled the deformation of the terrain, indicating that the mining of the large-scale gold coastal deposit in Sanshandao Gold Mine was achieved safely, efficiently, and with a low loss rate.