The more you use it, the higher a level the tool can be upgraded. To upgrade you also need experience w/ a tool. They range from, coal, copper, silver, gold, mysthil, a blue ore used for ultimate upgrading, and orichal, which can only be used to make jewelry.
The further you go, the more valuable the ores become. Here you can smash the rocks to get certain ores, or dig with your hoe to get coins in the ground, or stairs, that lead you down further into the mine. Ores are found in the spring mine, next to the hot springs. One, you need an ore so that a new tool can be made.
To upgrade a tool you have to have several things.
