Recently, with the help of very high resolution satellite images, weathering crust mapping and boreholes, a medium- sized ion adsorption type (medium—heavy) REE deposit has been identified within the granite weathering crust of Panzhihua—Xichang (Panxi) area, Sichuan Province. The preliminary estimate of potential resources (ore) is more than 30 million tons. About 64% of the resources are medium—heavy rare earth as the main part, which has great potential economic value. This newly- found REE deposit is the first ion adsorption- type REE deposit discovered in Sichuan Province. It is a newly discovered ion adsorption type (medium—heavy) REE deposit under the conditions of the oldest known parent rocks, the highest altitude and the most complex regional geomorphology (middle mountain areas). Based on the recent metallogenic prospective investigation, target priority and verification of the whole Panxi area, it is considered that the Panxi area in Sichuan has broad prospects for finding the same type of deposits under similar topography conditions.