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After reading Svarig's journal during the quest Balance of Power, you are given a miscellaneous quest to learn more about the gang's mysterious benefactor. Following the quest marker directs you to a camp east of Svarig's camp. Under one of the tents you'll find a knapsack containing the Bandit's Note on Hidden Treasure, which points you to Crystaldrift Cave.
Upon entering the cave, you'll find the body of Gadnor on a stone bier, along with a small campsite. Next to the campsite is a makeshift altar to Kynareth, some minor loot, and the journal Gadnor's Last Wishes. The journal explains that, according to his wishes, a friend of Gadnor placed him here and placed an illusion over his beloved warhammer Nerveshatter. In order to reveal the hammer, one must place 1x amber and 1x madness ore on the fire near Gadnor's bier.
Doing so will reveal Nerveshatter and you can claim your prize. When you do so, Seducer bandits will show up and attack you.