Sword of Mana/Hero/Mushboom Forest

Hero
As soon as you're in Mushboom Forest, head west and use your flail on the rock on the opposite side of the creek, follow the trail to the top of the area and then head southwest into the dwarf cave, Capo the Dwarf along with several of his fellow Blacksmiths/Miners will ask you to find their friend watts, who got lost in the abandoned mine to the north.

Leave the dwarf cave and head north into the creekside area, then head north again and head west until your path comes to a close, then head north and use your flail on a rock and head north into the path to the abandoned mine.