Iron Repair is used to repair damaged iron items. Iron items are the things that can be created using the Iron Forging skill. Iron Repair will not work on magical iron items.
You must have a Blacksmith Hammer to repair iron items.
Double-click on the hammer, and then select the item you want to repair. After four seconds you’ll be told whether you’ve successfully repaired it or not. Repaired items get all of their damage back.
The odds of success are 50% plus 1/2 of your skill level plus 1/6 of your Dexterity, minus 1 for every 2 percent damage the item has taken. If you fail to repair the item, there is a one in (Skill Level + (Dexterity/3)) chance that the repair attempt will damage it further. If that happens, the item suffers an additional 1% to 10% damage.
You cannot repair anything until it is more than 25% damaged. An item that isn't damaged enough to repair still says "new" when you look at it. Repair attempts eventually wear out your blacksmith hammer. Single-click on the hammer to see what kind of shape it’s in: new, slightly used, worn out, etc. A new blacksmith hammer costs 200 at a Blacksmith Shop, and lasts an average of 200 uses before breaking (unless it gets repaired with the Iron Repair skill).