According to the books provided by Tinkers Construct, adding a diamond modifier to your tool should change the mining level to 3. To wit, you can mine everything a diamond pickaxe can mine. There's just one problem. It doesn't work. I made a Hammer (2 iron plates, 1 tough iron rod, and a stone hammer head), and then modified it with a Diamond, and the level did not change. To my understanding that is not intended behavior. Durability increased by 500, but the mining level was unchanged.
I went through the config and found the following options, which explain the change. Code: B:"Enable Auto-Smelt and Fortune interaction"=false B:"Modifiers increase Mining Level"=false If this was intended as a balance change, please reconsider.
This time around, I was really careful about things that could be overpowered or exploitable. When I set it to this (together with the Smeltery not doubling ores), I was probably being a bit too careful. Will throw this in the group. It would have been nice if the book actually changed its text depending on the configs so that it actually told the truth. Oh well. Tinkers' Construct's code is messier and uglier than any other opensource mod I have seen.