Usually the source item will be consumed as described in detail underline. However, there is a certain chance of having “stroke of luck” where it might happen that item will not be consumed when forge is successful.
There are two ways of ranking Tier- but in both cases and either succeed or fail source item will be consumed/destroyed. Only in option 1 (see below) the target item can be destroyed or tier rank reduced by one. You basically fuse two items into one if succesfull, or the weapon is destroyed in the process. However, when fusing items with tier zero and adding option of “Tier loss” reduction, we have chance of the item surviving unsuccessful fusion.
From Tibia website:
1. The first one requires two of the same items to be fused, in addition to a sum of gold (higher tiers demand higher prices), and 100 dust. Success of a fusion is not guaranteed – there is a possibility that the second item will be either reduced by one tier, or, in case it was a tier 0 item, it will be destroyed. Using exalted cores, the success of the operation can be increased, however, and the risk of losing a tier gets reduced, should the fusion fail.
2. The other way to increase an item's tier is by transferring a tier from another item of the same class. The target item, which is to receive the tier, has to be tier 0, while the source item, from which the tier is transferred, has to be at least tier 2. This process requires 100 dust, one exalted core, and a sum of gold. The transfer is guaranteed to succeed. The target item receives the source item's tier by a reduction of one tier, while the source item itself will be destroyed during the transfer.
Source:
https://www.tibia.com/news/?subtopic=newsarchive&id=6435&fbegind=2&fbeginm=11&fbeginy=2021&fendd=2&fendm=12&fendy=2021&flist=11111111