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once it's setup your worker should come and mine it with the drill.
As the users above have said, it is for use with a vein of some ore, like vein of stone, or vein of iron. Ore veins sparkle in the ground before you dig it up, same sparkle effect as the lost Relics you can sometimes find underground. Once you dig and expose it, it looks like a stone in the background.
If it's exposed, you can place the 2x3 hand drill in front of it and the workers should come and mine it, as players above have said.
Please update if you still have trouble.
Why do I have to come to the discussion forums to learn this info why is it not included somewhere in the game?
- in the item description / tooltip for the hand drill itself
- in the item description / tooltip of an ore vein, when you uncover it
sure, it isn't exactly clear that there is a difference between ore and ore vein, but that's mostly due to some translation issue.
imo the veins should be called "nodes" instead. makes it much clearer that special thingies are meant, and not the normal blocks
for some reason i never had any issues regarding any of the game's mechanic, and i'm playing it blind and tutorial disabled. lots of stuff you just have to experiment tho