Metalworking is a tradeskill in Land of the Rair, defined by it's ability to create item molds, ore ingots, and upgrade items. To do metalworking, find any smith. You must be a warrior to do metalworking.
When you get to 50 ore, you can make an Ingot. These have multiple uses, which span from enchanting an item to creating an entirely new one.
You can create entirely new items by making a mold of that item and using an ingot. To make an armor mold, you first need to have a valid combination of items, which will generally consist of a scalemail + reagent or a breastplate + reagent. Crafting a weapon is the same. You'll need a valid base item and a reagent.
Once you've got a mold, you can take the mold and an ingot to a smith (both of these are not bound, so they can be given to someone else) and say
smi, forge while holding an ingot in your left and the mold in your right. The base item always has the same stats, but it is augmented by the ingot you use. A copper ingot will increase strength or dex for weapon or armor respectively. Silver will increase armor class (or weapon armor class), and a gold ingot will increase agi or hp for weapon or armor repsectively.
You can also use ingots (or furs) in combination with any weapon, shield, or main slot armor (fur, fullplate, breastplate, tunic) to enchant them, increasing their stats based on the type of item you use. If you use a fur, it will transfer its ice and fire protective capabilities to the armor in question. If you use a copper ingot, it will increase your damage or damage reduction. Silver will increase your or your weapons armor class. Gold will increase your hp or your weapons offensive capabilities.
Items are hard-capped at +5 (this limit is shared with enchantment; you cannot enchant to +5 and metalwork to +5), and every few metalworking skills will increase your success chance.