When the world was young, Dwarf holds stretched along the World's Edge Mountains from Karak Vlag in the far north near Kislev to the fabled Karak Zorn in the far south. The Dwarfs delved deep into the mountains, carving strongholds in the stone and uncovering riches of gems and ore, especially the most precious metal of all: gromril. Orcs, Goblins, and other invaders were dealt with swiftly and trade flourished throughout the Dwarf kingdoms.
During this time, the Dragon Crag was known as Karak Izril, or City of Jewels. So great were the veins of gems found in the mines that the riches were said to rival the great Dwarf city of Karaka-Karaz itself. These were the days of Dwarf pride, but they would soon come to an end.
The fall of Karak Eight Peaks in the north at the hands of the Orcs and Goblins was only the beginning. Using the Dwarf roads and trade routes, the green horde descended upon the southern holds with great ferocity. Tales of the riches of Karak Izril had been heard throughout the Old World, and even the Greenskins knew great treasure was there for the taking. In their arrogance, the Dwarfs had only lightly defended the passes to the north, thinking Karak Eight Peaks would never fall. The Orcs took advantage of this and stormed into the hold.
At the same time, the cunning Skaven decided this would be the opportune moment to strike. They had been burrowing under the Dwarf mines for years, biding their time and lusting after the Dwarf riches. When they learned of the Orc and Goblin assault, they launched an attack of their own. Faced with a battle on two fronts, the Dwarfs realized they were doomed.
Retreating into the depths, the Dwarfs made a valiant last stand to defend their hold. The carcasses of Orcs, Goblins, and Skaven were piled high at the feet of the doomed Dwarfs as they fought to the bitter end. As the last Dwarf was killed, the invaders searched for the Dwarf treasure but found none. The warriors had given their lives to protect their treasure. Whilst they were fighting and dying, the runelord Stormbeard and his engineers took the treasures and hid them in a secret vault deep within the mountain. Using Runes of Hiding, he concealed the door to the vault so only a Dwarf would be able to find it. Vowing to return, the Runelord led away what remained of the Dwarfs of Karak Izril. Preparing his entry into the Book of Grudges, he renamed the hold Karak Azgal, or Hoard Peak.
The Dwarfs did not return quickly enough to recover their treasures buried by the clever runelord. War with the Orcs and Goblins had depleted their resources and the glory of the Dwarf kingdoms was at an end. Soon after the fall of Karak Azgal, the Dragon Graug the Terrible made his home in the hold. Using his race's ability to sniff out precious stones and gold, Graug quickly found the hidden vault and made his nest there to attract a mate. It was then that Karak Azgal came to be known as the Dragon Crag.
For many years, treasure seekers and adventurers came to the crag to challenge the Dragon and loot the ruins. The Dwarfs sent countless expeditions sponsored by the Jewelsmiths' Guild to regain the gems hoarded by Graug. All of them failed until the Dwarf hero Skalf entered the ruins. He found the hidden vault and confronted Graug. After an epic battle, Skalf slew the Dragon by chopping off his head, claiming the treasures of Karak Azgal for himself.
Skalf the Dragonslayer used the riches he found in the Dragon's lair to re-build a city on the ruins of the old. Although a far cry from the beauty of Karak Izril, the new Karak Azgal is strong and well built. Still ruled by descendants of Skalf, the city has become a haven for adventurers seeking to journey into the depths in search of treasure. The Dwarfs have tried to keep tight control over what is removed from the ruins, sealing up unauthorized entry points, exacting a toll for anyone entering the ruins, and levying a tax on what is brought up.
The influx of immigrants soon became too much for the Dwarf hold to support. A shantytown grew outside the gates of the city, filled with cutthroats and adventurers looking to make their fortune in the Dragon Crag. Over time, the Dwarfs encouraged the development of this town in an effort to keep some of the riff raff of the Old World out of Skalf's Hold. The result was the formation of Deadgate, a rough and tumble place at the foot of the hill leading up to the hold. Consisting of wooden buildings, most poorly constructed and hastily built, it is the first stop for those arriving in Karak Azgal.
Today, the Dwarfs still have not reclaimed their glory days. Brave promises of a return to the greatness of the past have gone unfulfilled. They are few in number, and even the successful holds like Karak Azgal do not have the strength to clear out the encroaching Orcs and Skaven. Like hens on an egg, the Dwarfs of the Dragon Crag sit on the mines of their ancestors, content to let others delve into the depths to bring up treasures and other artefacts—all for a price, of course.