Follow the blue LEGO Quest Studs towards the village of Bree. Enter the town square and run towards The Prancing Pony.
Use the Interaction Spot in front on the Hobbit and observe the cut-scene of the Hobbit explaining his quest. Follow the new LEGO Quest Studs to the Blacksmith.
Once inside move left and pick up the Blacksmith Design for the LEGO Mithril Trowel.
Head over to the left and use the Interaction Spot, and select the LEGO Mithril Trowel (which is automatically selected first.)
Move to the right side of the furnace and jump on the billows three times, to help make the LEGO Mithril Trowel. You must equip the Trowel before you can leave.
To do this open the Treasure Trove by pressing and holding the “Use” button and select the Treasure Chest icon (located at the bottom of the selection wheel).
This brings up the Treasure Trove Grid, where the LEGO Mithril Trowel is already highlighted.
Let go of the “Use” button to close the Grid and equip the trowel. The door will then open.
Exit the Blacksmith and return to the Hobbit in front of The Prancing Pony. Use the Interaction Spot to complete the quest and enter The Prancing Pony.