Mithril Ore

"Mithril! All folk desired it. It could be beaten like copper, and polished like glass; and the Dwarves could make of it a metal, light and yet harder than tempered steel. Its beauty was like to that of common silver, but the beauty of mithril did not tarnish or grow dim." (Gandalf, The Fellowship of the Ring).

Mithril is the most valuable material in Middleearth. The ore is extremly rare but the best weapons, tools and armours can be crafted out of mithril.

Occurence
Mithril ore can only be found in the Misty Mountains (not the Misty Mountain Foothills) at layer 16 or below (similar to diamond ore). It is around twice as rare as diamond ore.

Production
As mithril smithing is a technology only known by the dwarves, you need a Dwarven Forge to melt the ore. You get one mithril ingot from each ore block.