The cave is a little tricky to find by sight. You have to follow the path to Hammerfall and turn off the road when you get to the fort and head straight east to the mountain range. You'll see a rock with a split tree kinda behind it. It's perfectly blocking the view of the narrow path leading into the mountains. You'll have to kill a couple lvl 35-37 Kobolds to get to the cave and inside the cave are stationary melee kobolds and patroling "Drywhisker Surveyors" (frost magic users). They patrol rather quickly and they have a surveyor for every stretch of the cave, so be careful if you're lvl 40 or lower because it's hard to take out 2 of them at a time.

I get stuck in that situation, I go for the Surveyor first because he does the most damage. But make sure you take out the patrollers as soon as you see them.

There are veins of Iron, Mithril, Truesilver, Gold, and of course Lesser Bloodstone. The LB veins generally give you 2 ore per vein, but I sometimes got 4. I mined 22 and got the hell out of there! I'm a lvl 40 Warrior and I could solo 3 of the melee kobolds 1 after another (not simultaneously), but those Surveyors kick my ass, so be careful. And make sure you keep them a safe distance from the others when you agro them because they do this frostblast spell that freezes you so they can step back and attack from a short distance. Sometimes when I wasn't paying attention, the guy would step back and get too close to the next kobold and agro him as well, but atleast they don't do the frostblast thing until they're down to about 20% of their health.

Hope this helps.

Cave is at 85,34 - start climbing at 80,40
You need to be able to mine or have someone with you who can mine for you in order to complete this quest.

If you are not a Miner....Check the Auction House. I bought 4 ore at 1s each on the AH.

The mine is at 81,37 exactly, the entrence to the path has a large tree with a smoothe gray big rock in front of the tree, the area is guarded by lvl 35+ kobolds when in cat form and stelthed they sensed me at about 5 yards away, I'm a lvl 37 druid and woulden't attempt it without a little help there are quite a few kobolds there.

Minimum level for mining Lesser Bloodstone ore is 75.
http://forums.worldofwarcraft.com/thread.aspx?fn=wow-professions&t=1&p=1&tmp=1#post1

Cave is located at 82,36. You can get there by entering from 81,39.

Hope that helps.

I found this quest greatly taxing.

Even with the skill to mine the stuff, at level 35 the Kobolds still posed quite a problem for me.

They begin to "run away in fear" with a little higher health than most MOBs and they are pretty close together. I commonly had to deal with three or four separate battles before a rest as they kept adding right when they were about to die. If that wasn't enough, they have Frost Mages too. So you have to deal with the Chill effect on top of everything else.

Lastly, and probibly worst of all for alliance characters, like myself, is the cave is right next to the major Horde Town in Arathi. I got ganked three times in mid combat by a rogue.

This quest is definately do-able, but unless you are just in dire need of XP, (like I was,) The rewards and annoyance simply are not worth the trouble.