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An intact iron node block before being extracted.

Iron Nodes can be found embedded in rocks throughout the whole Stalactite layer and contain Iron Ore.

Iron Nodes are sometimes visible in the walls/floors/ceilings of underground caves (which often also contain lakes of healing Mineral Water), but can best be discovered by digging mineshafts yourself which requires Obsidian Mining Cells as an equipment (or better Power Cells).

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Creativerse Iron to Bar001
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Iron Ore cannot be pulled from Nodes, instead Extractors of any kind have to be placed:

Iron Ore can then be smelted to Iron Bars via a Forge (which needs Fuel as well).

Currently Nodes themselves cannot be pulled/taken nor placed (August 2016).

The older template worlds RW1-4 feature Iron Nodes on the Lava layer underground as well, while in the newest template wolds RW5-8 Iron Nodes only extend over the Stalactite layer.

For explanations about template worlds go to the official forums:http://steamcommunity.com/sharedfiles/filedetails/?id=634088783

Additionally to extracting Ore from Iron Nodes, you can also find Iron Ore occasionally in Iron Treasure Chests on the Lava layer a bit deeper underground and/or in Diamond Treasure Chests on the Corruption layer deep down.

These chests will also spawn on artificial biomes built of rocks from these underground-layers on the surface in complete darkness (either at night or when roofs and walls are added too).

A note: Excavators are completely different from Extractors, as they will only remove normal blocks and rocks and save half of them in Loot Bags, but they will leave all Ores intact. 

Super Excavators are needed to remove rocks that the Stalactite layer is made of, however they require rather rare materials to be crafted and from deeper layers too. Currently there is no Excavator that can remove Lava layer-blocks or corrupted blocks.

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