Dynamite

Dynamite is the strongest of all Explosive Consumables, destroying a great area when thrown. Dynamite can destroy almost any known block, exceptions being Dungeon Bricks and Hellstone, and as of version 1.01, Obsidian.

Dynamite may be found in chests or bought from the Demolitionist.

Mining meteorites
Dynamite works exceptionally well for mining metorites. 1-3 dynamite strategically placed will mine 80-90%, if not all, of the metorite and instantly stop more Meteor heads from spawning allowing you to safely mine the remaining ore with your pickaxe.