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It's supposed to be a tier 4 (just like Marble was supposed to be tier 2), but they messed up stone placements and tiers. In theory, you should have Marble forge = tier 2 marble + tier 2 iron + tier 3 tungsten; Amaranthine forge = tier 3 Amaranthine + tier 3 tungsten + tier 4 cobalt; Alabaster forge = tier 4 Alabaster + tier 4 cobalt + tier 5 mithril.Yeah, I've heard a few people have found it, but can't prove it. No screenshots, so it's probably just really terrible trolls. That won't stop me keeping a eye out for strange patchs to whack at while I look for rubies/sapphires/obsidian and alabaster. =)
Seems strange to me that Alabaster is in game, and that's a T5 stone.
(and normally, you'd get a Stone forge = tier 1 worked stone + tier 1 copper + tier 2 iron and we'd start with a Brick forge, but they skipped it and made it tier 0)