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Soak in vinegar for 24 hours and see how much rust comes off,have done recently to a few Ive found at cellar holes and amazed at how they clean up.
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** just added this picture,just took out of vinegar right now to show as an example,yours is a little more heavier on the rust but give it a soak and see what happens.
Your axe has a steel insert on the cutting edge, and that helps date it, but I'm not much help, because I forget when they stopped doing that. Axe heads now are cast steel.