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Goblinite refers to the metal and clothing resources that can be gathered off of bloodied goblin corpses.
It is an important ore, good for iron, copper, or bronze. Unlike other ores, goblinite is available in potentially unlimited amounts. The discovery of a large vein of goblinite is cause for celebration, a holiday known as Goblin christmas. Also, there have been some reports of small quantities of goblinite spontaneously materializing in the vicinity of armed weapon traps.
Once the mining is complete, your dwarves will carry it off to the stockpiles. To yield the precious metal, each piece of ore must be designated for melting and processed at a smelter; the yield is typically less than that of normal ores of iron and copper, but can be an important resource to avoid depleting existing metal deposits in the mountain (especially when making steel, since while pig iron can be made directly from iron bars, it must then be combined with raw hematite). Many caravans prize raw goblinite, along with its attendant wrappings.
Goblinite occurs in three main forms: weapons, armor, and clothing. Weapons can be used directly by your military (unless they are too large) or placed in weapon traps, while armor is only useful for melting. Clothing is the least useful of all - it can be traded to caravans, though it will not count as exported wealth unless you first decorate it in some way. Due to the massive quantities you will likely accumulate, it is generally best to simply toss this type of goblinite into the chasm.