You come across this metal detector and spade.
When you use it, you press and hold the 'A' button to use the metal detector. The more frequent the pulses from it are, the closer you are to something buried.
Press 'Z' to dig up goodies.
One of the things you dig up is a lever for this starter mechanism.
It starts the furnace in the previous section.
You use the furnace for smelting to make various fun things. First you place a mold on the anvil.
Then place the metal you want to make it with (dug up from the metal detecting section).
A quick smelting and one cooldown later...
And your brand new item is ready to take away!