If genuine, it appears to be the side patch from a GEBIRGSJAGER (Mountain troops) BERGMUTZE (Cap). It will be interesting to see if somebody can confirm the authenticity of this piece. I have seen copies, but they didn't seem the same as this example in that they had clear differences in form.
A nice SS GJ patch
"In all my years as a soldier, I have never seen men fight so hard." - SS Obergruppenfuhrer Wilhelm Bittrich - Arnhem