Your rod may be damaged. I was losing a huge ammount of mining goods when my axe had finally 'broken'. Try tossing your rod and buy a fresh one, and let us know if this helps.
The damage rating on these beginner goods show up as ???/number, so it's hard to know when it finally breaks. Thye sell back for 200g and are bought for around 600g so its not too hard to just buy a fresh one.
Edited, Sep 6th 2010 12:59pm by RattyBatty
Minecraft : My anti-MMO
Terraria : My anti-Minecraft