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Mining requires a pickaxe which can be obtained by either waiting for one to appear in stock at a general goods store, or searching for one in one of the many mines in Skyrim where they are literally everywhere. The next step requires located an Ore Vein and using the pickaxe to extract the Ore.
Each ore vein typically yields three pieces of ore (after nine "picks") and a 10% chance of obtaining a levelled gem.