Banded iron formations (BIFs) are chemical sedimentary rocks comprising alternating layers of iron-rich and silica-rich minerals that have been used to infer the composition of the early Precambrian ocean and ancient microbial processes. However, the identity of the original sediments and their formation is a contentious issue due to postdepositional overprinting and the absence of modern analogues. Petrographic examination of the ca. 2.5 Ga Dales Gorge Member of the Brockman Iron Formation (Hamersley Group), Western Australia, reveals the presence of abundant silt-sized microgranules composed of stilpnomelane. The microgranules are most common in the least-altered BIF where they define sedimentary laminations, implying a depositional origin. We suggest that the precursor mineral was an iron-rich silicate that formed either in the water column or on the seafloor. The microgranular texture may have developed due to clumping of amorphous mud, forming silt-sized floccules. The microgranules were resedimented by dilute density currents and deposited in lamina sets comprising a basal microgranular-rich lamina overlain by amorphous mud with dispersed microgranules. The lamina sets collectively define plane-lamination structure, probably of the lower flow regime. The microgranular textures are preserved only where early diagenetic silica prevented the compaction of lamina sets. Episodic resedimentation of iron silicates alternating with periods of nondeposition and seafloor silicification provides an explanation for some of the characteristic banding in BIF. We propose that for most of the early Precambrian, the persistence of ferruginous oceans with elevated silica concentrations favored the widespread growth of iron silicate minerals, which in environments starved of continental sediments formed extensive deposits of the precursor sediment to iron formation.