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I've just started playing towns, and I haven't been able to progress beyond bone armour and stone weapons because I haven't found iron.

I assume that the mineshaft building will produce iron, but it looks like it needs at least one iron to be built.

I've been down to level -5.

Where should I look for a good source for iron?

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up vote 5 down vote accepted

Iron is more common the deeper you dig. Sometimes it can be found on the surface, but only in very rare cases. Keep digging down to deeper levels and make sure you explore the dungeon, eventually you will find iron.

Mineshafts will only generate resources when placed on a 2x2 square of the same resource. So even if you manage to get iron from a caravan you will still need to dig for a source to be able to take advantage of mineshafts.

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Also, once you have a decent supply of dead monster stuff, copper becomes more useful than iron - most of the ITE forge items need copper and (monster)ite. –  Shadur Nov 16 '12 at 11:16

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