Blacksmithing

Blacksmithing and Mining share skill levels. As you gain levels in blacksmithing, you can mine new ores and craft different pieces of gear. You need different tools for different steps of the process. You use a pickaxe to mines ores, a forge to melt ore to get ingots, and a smith's hammer to craft equipment.

The quality of the material decides its damage/armor. The special effects that ores provide are additional resistances and work no matter what item is made with it, as long as it is equipped by the player.