Here is a video showing what can be done with the #Transvoxel terrain and the #FluidSimulation.
Nothing related to actual gameplay, I'm just using a debug tool to dig spherical holes (it's actually possible to dig/add matter in other shapes, making planar walls, etc.)
In the game I'm imagining, digging with manual tools would be very slow (only useful to recover small quantities of materials), and the player would need to design and use machines for larger earthworks.

