|“||This iron key used to belong to Conlan, a blacksmith from Kuldahar.||”|
It unlocks the chest at the back of Conlan's home, which contains Conlan's Hammer, a quite powerful war hammer +2.
The chest can also be used to store excess items to lighten you inventory.
Warning: The chest is self-closing! If you place the key itself inside the chest, and walk away from it, you won't be able to open the chest again and you will lose access to all items stored inside it!