Steel shovel wouldn't cycle through my dig options when I first crafted it, until I had an iron shovel on me and cycled through that first, then it worked just fine.
Cycled through to the "Prospect for Crystal" option, but the dialogue said that "No underground springs were found." Kept digging to see whether I'd get spring or crystal. Eventually had a spring come up, even though that option hadn't even shown up when I cycled through.