Levels

To mine/smith:
Bronze/Tin Lvl- 0
Iron Lvl - 15
Silver Lvl - 20
Coal Lvl - 30
Gold Lvl - 40
Mithril Lvl - 50
Adamantite Lvl - 70
Gems - ANy Lvl

Dwarwen Mine Visual.

Ore
Click on yer pickaxe and then click onto the rock. If a red X appears when you click the rock, then you did it right. Here is how to make certain bars:
Steel: One iron ore and Two coals into the furnace. (smithing lvl 30)

Bronze: One Tin and One Copper into the furnace.

Iron: Iron Ore into the furnace. 50% chance that you'll get a bar back.(smithing lvl 15)

Gold: Gold Nugget into the furnace. (smithing lvl 40)

Mithril: One mithril ore and 4 coals into the furnace.

Adamantite: One Adamantite ore and 4 coals into the furnace.