Paleozoic rocks in the Wadi El Sahu area are affected by many major faults in different directions. A reverse fault trending NE‐SW is exposed for about 300 m of its length as it cuts through the Abu Hamata and Adedia formations on the south side of Wadi El Sahu. A secondary ascending hydrothermal solution carrying heavy metals and radioactive minerals passed through the fault plain and the surrounding fractures, forming mineralized and radioactive zone. The mineralized zone thickness ranges from 60 cm to 200 cm along the fault plain. These rocks were analyzed radiometrically using a portable gamma‐ray spectrometer, chemically by employing ICP‐ES and ICP‐MS, as well as mineralogically by both binocular and Environmental Scanning Electron microscope. Gold content was also determined by fire assay. REE and U contents reached up to 2682 and 1216 ppm, respectively. Mineralogical investigations indicated the presence of uraninite, torbernite, autunite, sklodowskite, kasolite as uranium minerals, thorite as a thorium mineral, monazite, allanite and xenotime as REE‐bearing minerals, zircon and columbite as accessory minerals, gold and nickel as precious and base metals, in addition to cassiterite, chalcopyrite, chalcocite and chrysocolla. High REE and U contents are attributed to the circulation of epigenetic U and REE‐bearing hydrothermal solutions along the fault plain and its surrounding fractures. Hydrothermal alteration processes could then be confirmed by the presence of the M‐type tetrad effect in the REE‐patterns of the ferruginous sandstone. The non‐chondritic ratio of Nb/Ta, Zr/Hf and Y/Ho in the studied sandstone may be attributed to the tetrad effect. The Ce and Eu anomaly with unusual REE‐patterns was represented by the presence of conjugated M‐W tetrad effects, indicating either the dual effect of hydrothermal solutions or groundwater with seawater. The results clarify that the tetrad‐effects could be used as evidence for the environment of deposition and as an indication for gold mineralization. [ABSTRACT FROM AUTHOR]