So in our exploration, we finally come upon the personal forge of Dagmar Barrakurn. With Ohlo's help, we manage to figure out how to get in.
We greeted by some sort of intelligent golem, Gurm, who told us how he was built by Dagmar to be his assistant. We told him of our mission to map the place, and now that we know what it was, we can report back. Though the place has substantial defenses, we carved through most of those, and it was too dangerous to keep the forges running in case the bad guys continued to try and take this place.
So Gurm agreed we had to shut them down. Doing so would activate two huge iron golems that we'd have to defeat. It was a hard fight, and we accidentally let loose a fire elemental during it, but eventually we won. My sword was hesitant to fight them, as it had also been forged by Dagmar and it wasn't keen on fighting fellow creations.
After everything was defeated, Gurm said he could give us some boons before shutting the forges down. He could increase the enchantment on Thorgrym, which me had to take because this was prolly one of the only chances to enhance its power.