you didn't apply scale location rotation in blender when you exported the pickaxe model.
to fix rotation ingame, set the parameter rotation = eulerToMatrix("x y z"); (under the image datablock) where x y z are numbers between -180 and 180 and correspond to rotation around said axes, where positive x is to the right of the player's eye vector and positive y being the players eye vector. if its in the wrong place, you can set offset = "x y z"; where x y z are any positive/negative number, and one unit is equal to two studs.
edit: fixed range on rotation numbers; ty swol for catching error
