Dwarven Digging

There are dwarves preparing a dig site to the northwest. They think secrets lie in the earth, and that is true, but hollowing and defiling the land is no way to earn its teachings.$B$BCollect the dwarven tools of digging, smash them, and return to me with the dwarves' broken tools.$B$BYou can smash the tools at a forge. You will find one in Thunder Bluff, but any forge -- even a forge at the dwarven camp -- will suffice.