strategy - use ranged weapons until level4, instead of trying to reverse directions, reverse order of march.

Treasures:

  1. Mulahey: Mulahey's Holy Symbol; Ring of Holiness; Boots of Grounding
  2. Mulahey's Chest: Moonblade; Short Sword +1; 2 Letters; 790 gold; Armor Scroll; Infravision Scroll; Charm Person Scroll; Sleep Scroll; Identify Scroll; Web Scroll; Subquests:
  3. Kylee's Dagger; Joseph the Miner

LEVEL 1

On level 1 of the mine, talk to Miner Dink. He'll ask you to return a dagger to Kylee who is located on level 2 of the mine.

LEVEL 2

Returning the dagger to Kylee nets you 200 xp. Proceed down into the lower levels of the mines until level 3.

LEVELS 3

 

 

Becareful here, you will find traps, a Kobold Commando, Spiders and a Ghoul. After dispatching these foes you may wish to save and then rest until you are fully healed.

LEVEL 4

On the level 4 you will find another Kobold Commando and two Kobold archers guarding the entrance to your target, the headquarters of the fool who has been poisoning the iron from the mine. If you sneak around the bandit camp and attack from the north, you can take them by surprise Dispatch them. You may also want to kill a ghoul and two gray ooze around the perimeter for experience. When you are ready and fully healed, enter the headquarters.

Inside you will find some kobolds off to your right. Kill them but don't enter the cavern to the southeast. When the Kobolds are all dead, you may wish to talk to Xan in the Northeast cavern. He is a Mage. Good parties will want to include him, evil parties can leave him here if desired. Next you need to deal with Mulahey, the head honcho here. Convince him that someone named Tazok sent you, and then dispatch him and his summoned guards. Because he definitely will be calling for reinforcements, make certain that your melee fighters are closest to the door and your ranged combatants are further into the room before you talk to Mulahey.
Once he and his hordes are dead, search both his body and his trunk for helpful goodies and incriminating documents. The notes you will find, though, may raise more questions than they answer.

Talk to him and he will summon Skeletons and Kobolds to help him. Kill them and him and then loot his chest for a goodly bit of stuff. Give the sword to Xan, only he can use it. Picking up the scrolls in the chest here will send you to chapter 3.