The Zechengrund is located in the deeply incised valley between the two highest peaks in the Ore Mountains, the Fichtelberg (Germany) and the Keilberg (Czech Republic). It borders the spa town of Oberwiesenthal to the east. Federal Highway 95 forms the border to the north. To the west and south, it forms the border with the Czech Republic.
The area begins at the so-called Dreiländerstein (main stone no. 376, dating from around 1730),
where the possessions of the lordships of Schönburg (later Saxony), Schwarzenberg (von Tettau), and Schlackenwert (Schlick) converged. To the northwest, the Schlauderwiese follows, with an elevation of 1,160 m above sea level. The Schlauderwiese, in turn, is a source of the Pöhlbach stream, which forms the state border with the Czech Republic. From here, the Pöhlbach flows first northward, then further eastward, and closes the mining area before Oberwiesenthal at an altitude of approximately 940 m above sea level.