Click a tool, then click a gnome. Blocker stops others. "Dig ↓" (digger) tunnels straight down. "Dig →" (miner) tunnels horizontally through rock in the direction the gnome is facing. Builder lays a staircase up. Parachute lets one gnome float down safely from any height.
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Level 3 — mind the drop
Gnomes cannot survive a long fall. Use the builder to lay a bridge or staircase across the gaps so they never drop too far.