Tiny bladed mithril salvage is a salvage item introduced with the Mining and Smithing rework. Salvage has no use other than disassembly, alchemy, or trading.
Tiny bladed mithril salvage is worth 600 coins in high level alchemy. When dropped by a monster, it can automatically be alchemised by a spring cleaner 2000 or higher at the cost of a spring (-4,399 coins profit); alternatively it can be automatically disassembled for free by a spring cleaner 3000 or higher. Because it does not use a spring, automatic disassembly does not advance the spring cleaner towards its next upgrade. Dismantle mode does not work on salvage items.
When the rework was launched, the following items on monster drop tables were replaced with tiny bladed mithril salvage:
Tiny bladed mithril salvage can also be bought from Elof for 10 mithril item tokens.
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For an exhaustive list of all known sources for this item, see here