For this ore. I paid the iron price! It's pretty much useless though, so given what the iron price is. I'd say you got ripped off. Smelt the thing into some useful shapes!
You can mine iron ore by breaking down the stone it is in using a stone pickaxe or by placing a mine next to the node (which will not destroy the node and allow you to keep getting ore out of it.
Ore is found in large stones around the map and looks like small colored flecks (Black= coal, Gray=Iron, Silver= Silver). right click on the rock to see what kind of node it it.