Quest: Hammer of Unity
Location Map:
HERE
Now that you have learned the truth about why Dakren has been sent (no! I'm not telling you. You will have to just do this quest yourself!), talk to Dargun Thunderaxe. He will inform you that he needs his old hammer that has been shattered into a million pieces (well more like 7 shards and a hilt, head, and handle). He will need you to find all these pieces and return them to him so he can use it to forge the Hammer of Unity!

So off you go on your search of the hammer pieces and shards. The Shards will drop randomly off of any dwarf you kill. A total of 7 pieces will be needed for this quest. The Handle will drop off of Beltok Goldsmith, and he will be located in the room just outside of the Royal Chambers. One handle will drop for each member of the group (provided that everyone is on this part of the quest). The Head will drop off of Temvar Runeaxe. He will be located at the far east of the dwarf area down some steps (chech location map for exact location). Again, one will drop for each member on the quest. Lastly you will need the Hilt, which can drop off of Ventor Brightstone, who is located on the far west of the dwarf area (opposite mirrored location of Temvar Runaxe's location).

Now there are some names that randomly spawn throughout the dwarven area. They are named Mortil Runeaxe, Durnis Brightstone, and Selmak Goldsmith. Each one of these names also have a chance to drop either the handle, hilt, or head. In our situation, Ventor was not dropping the Hilt, so we found Selmak and Mortil who were kind enough to give it up to us.
So now that each member of your group has all the pieces of the hammer needed, head back to Dargun Thunderaxe with all the pieces and turn them in.
NOTE: Do Not Accept the next quest! Doing so will result in starting an event that you may not be ready for.