The invention discloses a blasting method for reducing ore loss and dilution. The blasting method comprises the following steps that a, hole arrangement is achieved: a plurality of rows of main blast holes are arranged after determining a blasting section; b, punching is conducted, specifically, punching is conducted through a punching machine; c, charging is achieved: a main blast hole is charged with powder, and then the blast hole is plugged; and d, blasting is achieved: blasting is achieved from a main blast hole close to a free surface; the punching machine in the step b comprises a base, a motor, a storage bin, a fixing sleeve, a fixing barrel, a rotating roller, a linkage device, a drill bit and a stone discharging device. According to the blasting method for reducing ore loss and dilution, by means of blasting in the mode, stope ore loss caused by roof collapse is effectively prevented, and the recovery rate is increased; roof barren rock mixing is reduced, and the ore dilution rate is reduced; through the linkage device, intermittent progressing can be achieved during blast hole drilling, and the strength of the drill bit can be protected; and stone powder can be removed in time during punching through the stone discharging device, and the punching effect is improved.