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Quick answer: the Bloodhoof Village forge and anvil is at the stable on the south side of the village, around 47, 60 - near the inn and mailbox in the center of town, by the shore of Stonebull Lake.

All three forge options near Bloodhoof

ForgeCoordsBest for
Bloodhoof Village stable47, 60Everyday smithing while questing in Mulgore
Dwarven digsite camp31, 48Breaking the picks for the Dwarven Digging quest - the forge is at the back of the camp
Venture Co. MineEast of the villageWhen you're already questing there - a forge and anvil sit outside the mine

If you're on Dwarven Digging

  1. 1
    Kill the dwarves

    Bael'dun Diggers and Appraisers at the digsite northwest of Bloodhoof (31-34, 46-48) drop Prospector's Picks.

  2. 2
    Use the camp forge

    The forge sits at the back-left of the same camp - put the picks on your action bar and click them next to it to break them.

  3. 3
    Or go to Thunder Bluff

    Any forge works - Karn's Smithy on the lower rise of Thunder Bluff is the city's only forge and anvil.

Thunder Bluff backup

If the village forge is busy or you're already flying: Karn's Smithy on the lower rise of Thunder Bluff is the only forge and anvil in the city - run by Karn Stonehoof near the pond on the lower level. Any guard can point you to the blacksmith trainer, which puts you next to it.

FAQ

Is the forge inside a building?

No - it sits at the stable, open-air, on the south side of the village near the inn.

Can I smelt ore there too?

Yes - a forge handles smelting and most blacksmithing/engineering crafts; only some high-end recipes need special anvils.

Where's the blacksmithing trainer?

Bloodhoof has profession trainers in the village; the full blacksmithing trainer is Karn Stonehoof at Karn's Smithy in Thunder Bluff.