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You gonna need 5 of the ores and a coal. And one quartz and a coal.
After making a furnace, if you have 1 coal and 5 ore ( you get ore from a blacksmith or mine ) in your inventory you can click on the furnace with the ore selected in your hotbar and it will place them in the furnace.
After a few moments ( taking longer for each higher teir of ore ) it will convert the materials into a bar.
Having multiple furnaces can make this process a lot faster, since you can smelt many at a time.
Copper ore can be found between floors 1-40 in the mine, and iron 40 floors after that, gold 40 after that. Or randomly from geodes / certain monsters as well.