Council member spoiler, click here, pleaseThis spoiler ONLY makes sense,
1. if you've been in the castle,
2. survived Iona's dungeon
3. freed Zandalor
4. have already gathered
4 council members.
Then you're ready for the Stone Axe quest (Dwarven council member)and may enter the 2nd lvl of the Dwarven mines
Kiya