Original
If you combine the Tarnished Axe and a store bought water, you get small peices of ore. The two small peices of ore, plus another water gets you metal bits. 
1 Rusty Axe + 1 Sharpening Stone = 1 Tarnished Axe.
1 Tarnished Axe + 1 Flask of Water = 1 Piece(s) of Ore.
I will pass on more recipes if I find any on other Rusty Weapons.
By the way, Tarnished weapons dont sell for more, but they have a smaller delay between attacks, at least on Stromm in Queynos.
Edited, Sun Jan 25 11:17:31 2004