Go to the mines, they are behind the woods

you don't?

Once you equip it, that's it. That's where it'll remain, if you don't want to equip it, you can just hold it like any other weapon or box and carry it around, setting it down, etc

afaik at least, I didn't actually try and see if it still had physics

You can also press 4 to put it away. To bring it back, press 4 again. 

Why are you commenting in such an old post? But anyway you can't un-equip anything in slots 1, 2 and 3 except for exchanging them for better tools. To un-equip and re-equip slot 4, just press 4 (default controls).

Press and Hold the Alt Button, this will allow you to rotate items that you are holding.

also what does the "sliding bar minigame " do?

i do know about it being for quality but what does the quality change? for example on a pick does it change the chances of getting more ores in veins?

finally, what do you do with rare wood logs? 

Must be a small axe head.

Can be equipped to a 2h or 1h grip, but must be small axe head, I usually use 2h myself to make it, in my mind, the most like a fire axe or woodcutter's axe kinda deal.

2 ingots.

If you have no axe equipped, you should be able to just equip it while on any slot, but if you do have one equipped, you need to select the corresponding tool's slot to equip a corresponding tool (said this way as it applies to all tools and their upgrades)

Try updating the game

are you using a polarm? because i think you should be able to make it with a two handed grip a guard and a great sword blade 

maybe you used two ingots instead of three