I can't really help you with a pattern, I'm not much of a lace knitter. I might suggest just using really large needles to create lacy-ness.
But mostly I wanted to comment on the yarn - how interesting! I've never seen anything like it before. I wonder hoaw it feels - do you really think it's sutable for clothing items?
Mirl56 at Ravelry, too.
Learn from the mistakes of others. You canít live long enough to make them all yourself. Eleanor Roosevelt
Lady Feb Sweater
more shawlettes, socks