To make an Axe, Pick axe or Hammer you will need to follow these steps.
1. Make a furnace.
2. Upgrade to level 2. See the above picture.
3. Make a crusher table.
4. Make Axe mold. It must be baked in
the Kiln before it can be used.
5. Go get ores. Ores can be found inside of caves.
Spoiler Alert- To get Iron ore, you must start in the front
of the cave and work your way all the way to the back of
the cave. Walk around, when you see Lava, you will find
Iron ore. Iron has a 300 health.
I advise to take Bed materials as you won't clear the
entire cave in 1 day cycle.
6. Take ores to your Furnace. Place in top left hole and
wait for it to smelt. After it has smelted.-
7. Take the ores to the crushing table. Here you will hit it
many times with your construction hammer until it has
changed into ingots.
8. Take your ingots (All molds require 3 ingots) Place in
top right hole. After it reaches the melting point, you
will see the liquid pour from the furnace into your mold.
Right click the Mold and you will have your item.
Tab to use nearby to see item. Hold shift & L Click to pick up.
To make more of the same, you will need to pick up
and replace your mold under the spout of your furnace
for each casting.
9. Go to your work bench and make a long handle
for axe and pick axe, short handle for hammer. When
you have the handle and axe head on you, you can
select the axe and it will be made and show in your
inventory.

**Note - You don't have to have level 2 bench to make handles.
Level 1 will also make handles.