The invention provides alloy powder for a mining exploration and collection tool, and a preparation method of the alloy powder. The alloy powder comprises the following components of, by mass percentage, 68-86% of Fe, 13-25% of Cu, 1-7% of Sn, and the balance unavoidable impurities. The preparation method of the alloy powder comprises the following steps that the Fe and Cu in a raw material are smelted under inert gas shielding and are heated to scheduled heating temperature, heat preservation is carried out within a certain period of time, then the Sn in the raw material is added, stirring iscarried out, and an alloy molten mass is obtained; the alloy molten mass is poured, the falling alloy molten mass is crushed by a high-pressure water flow under the inert gas shielding, and atomizedpowder is obtained after cooling; and the atomized powder is sequentially subjected to reduction, drying and pulverizing operation, and the alloy powder is obtained. The categories of metal elements contained in the alloy powder prepared by the preparation method are less, the proportion is easy to control, the property is stable, components and structures of the alloy powder are more uniform, impurities are less, and the particle diameter is less, so that the material property of the alloy powder is more stable.