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The Elder Scrolls III: Morrowind Hints
The Lost Mine
1 of 9: This quest begins with the actual discovery of the mine.
2 of 9: It's the Vassir-Didanat Cave that's a ways south of Balmora City (location 14 on the Balmora map). Note that this quest doesn't appear in the game's quest journal.
3 of 9: To be counted as discovering it, all you have to do is enter it and then exit again right away. You could stay and loot the place of raw ebony, but you'll have to face some powerful monsters to do it.
4 of 9: Once you've discovered the place, return to Balmora City and see who you can talk to about it.
5 of 9: Danar Dalomo in the Hlaalu Council Manor refers you to three people who might be interested in rewarding you for telling them where the mine is.
6 of 9: You can talk to Nileno Dorvayn, who's right nearby, about "Hlaalu councilors" to get a yellow book listing the councilors and their locations. (Don't waste 50 gold on the bribe, though.)
7 of 9: One of the councilors is Nevena Ules, whose manor is at location 19 on the Bal Ur map. However, don't tell her where the mine is -- she'll promise great rewards, but won't ever deliver.
8 of 9: Another councilor is Velanda Omani, whose manor is at location 13 on the Vivec map. She'll give you 2,000 gold for revealing the mine's location to her first.
9 of 9: However, the best reward comes from Dram Bero, who's behind a locked door in the Haunted Manor in the St. Olms Plaza in Vivec. He'll give you your choice of weapons as a reward, and they're all Daedric!