If it is wool, I would make a shawl with it. I might wash a piece of it and see how it reacts. If all goes well, I might cut large squares of it to go between applique blocks. I would sew it with 1/2 seam allowances in case it is loose weave like homespun. In the applique squares I would do the black Scottie dog pattern with a little tartan bow from the fabric.