You need to go to Edron, to the dragon lair cave.
You must down the hole, up again in north (only way), then walk a bit north and down the hole like in the photo.
Part of the reward you can find in the southwest of the meeting room, in the boxes.
-Finally, you have to use exactly here a "pick", it’s hidden by a fire field so you need to use a "destroy field" first.
Down and use the skeleton corpse found there and you will get your Fire Axe .
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