The Ice Axe was crafted by Gobber, specifically for the player. He obtains a couple of Shivertooth teeth, and the player humanely obtains the others needed from a Helpful Shivertooth on Scuttleclaw Island.
The Ice Axe is composed of a wooden handle and a curved base onto which Shivertooth teeth are attached with what appears to be leather cord. It has "frost" ability, which means in the "Dragon-Tactics" mini-game it is powerful against poison and weak against fire.
The Ice Axe appears during the events of the expansion, "Rise of Stormheart". It is used in the mini-game "Dragon-Tactics", which is also introduced in the expansion. The player is only equipped with it during the mini-game and not elsewhere.