I usually don't go for a hammer until I've got a basic smeltery up and running, and since that's usually my first source of ore doubling it tends to be fairly early game for me.
I currently have two hammers:
The first is my usual mining special: It started off as Iron head, Green Slime Plate, Copper Plate, and Bronze Rod. Shortly after, Iron got replaced with Obsidian, and finally Cobalt. Iron for an early-game material with decent speed. Slime is mostly for easy repairing, copper because with Well Established I get mad xp with this thing, and bronze gives a nice handle modifier and saves durability. Obsidian helps with durability, and offers a slight improvement of mining speed. Cobalt offers the best mining speed, bumps the durability high enough to make a Blue Slime rod worth it, and by that point I'm usually swimming in slime. Two rounds of haste and max luck round this one out.
My second one is a more recent deal: The blast-o-matic. Bronze, Green Slime, Obsidian, and a Blue Slime rod. One course of blasting, one course of haste, and vertical extension. It's one and only purpose? quickly and efficiently clear out rooms.
Sword...I usually have two. One is my regular sword, which one varies but I go silver for the blade, copper for the guard, and bone for the handle. Sometimes this comes from an upgraded "basic sword though (stone or flint with wood) from my pre-smelter times.
The second is my beheading cleaver. In my current playthrough I went Manayulyn blade (damage), knightslime plate (damage and easier repair since I have a farm of purple slime trees), with obsidian (durability help) and blue slime (handle modifier) for the tough rods. Two courses of beheading and one course of luck for this one (a bit of experimenting suggested that the third one being luck gave me a slightly better head drop rate).
While we're on the subject of TiCon, has anyone played around with the bows/crossbows in the latest alpha of the mod? What are your thoughts? So far, mine is "Electrum is beast on bows, and it's damn good on the crossbow if you're willing to sacrifice an easier to get repair material".