The Pegmont deposit is a stratiform Pb-Zn sulphide body occurring in a thin, iron-rich metasedimentary unit situated near the top of the Kuridala Formation, a part of the Mary Kathleen Group of the Middle Proterozoic"Eastern Geosyncline" succession of the Mount Isa-Cloncurry district. The deposit appears to have developed in a shallow basin or depression on a sea or lake floor.Detailed chemical and mineralogical study of seven diamond drill cores through the ore horizon shows that in addition to galena and sphalerite the orebody contains a large range of iron-rich silicates and aluminosilicates.Further, five drill cores selected to represent a section from basin centre to basin edge exhibit clear and systematic chemical and mineralogical changes in the ore horizon in both a vertical and, most importantly, ill a lateral sense.Reconstruction of the sedimentary environment of the ore horizon as a whole shows this to be a silicate facies of a phosphatic, manganiferous iron formation or, more accurately, of "ironstone" in the sense of James (1966, U.S. Geol. Surv. Prof. Paper 440, chapter W).On the basis of both mineralogy and chemistry this silicate facies may be subdivided into three microfacies according to the dominant iron silicates characteristic of each: a fayalite microfacies, a hornblende-clinopyroxenemicrofacies, and a garnet microfacies. Significant Pb-Zn sulphide concentrations are confined almost entirely to the fayalite microfacies.