The Dugald River Zn-Pb-Ag deposit occurs within the complexly deformed and metamorphosed sediments of the Middle Proterozoic Cloncurry Terrane, Eastern Succession, Mount Isa Inlier. The sedimentary sequence comprises a thick package of variably carbonatic argillitic and siliciclastic sediments of the Corella Formation, Lady Clayre Dolomite and Knapdale Quartzite. A slate and calc-argillite unit locally referred to as the Dugald River Slates is the host to the economically significant deposit. The deformational history of the Dugald River area involved three phases of ductile deformation. The present geometry of the Dugald River Main Lode is recognised as a strike extensive steep westerly dipping tabular sheet, within which a steep north westerly plunging zone of pronounced thickening is evident. This zone is interpreted to have formed during folding via remobilisation of the sulphides into a shoot-like body, the geometry of which was controlled by stretching associated with the folding. Further modification of the shoot and sulphide re-distribution has resulted from late phase transgressive shears. The sulphide mineralisation is characterised by three distinctive sulphide types, laminated, banded and breccia, the distribution of which define two broad zones. The northern zone is a narrow I - 5 m thick stratabound unit comprising finely laminated and banded sulphide mineralisation within a well bedded fine grained argillite sequence. This is part of the Lady Clayre Dolomite sequence and is a predeformational precursor form of mineralisation. The southern zone comprises the thickest development of mineralisation (up to 30 m) characterised by slate-sulphide breccias and veins derived from complex polyphase remobilisation of the sulphide mineralisation. It is this zone which forms a stratabound locally transgressive body within the high strain Dugald River Slates and which contains the main body of economic mineralisation. Sulphide mineralogy comprises sphalerite, pyrite, pyrrhotite, galena and traces of chalcopyrite, pyrargyrite, tetrahedrite, marcasite and arsenopyrite. The present resource for the Dugald River deposit stands at 38 Mt grading 13.0 per cent Zn, 2.1 per cent Pb and 42 g/t AS. The Dugald River Zn-Pb-Ag deposit is regarded as an example of a syndiagenetic stratabound sulphide accumulation which, as the result of polyphase deformation and upper greenschist to middle amphibolite facies metamorphism, has undergone extensive remobilisation and Rccrystallisation.