Once the Tribe of the Cat arrived in Safehills, they built a small village at what is now known as Oretoun. Once they started exploring the general area, they found deposits of various ores, which they then mined. As they moved closer to the mountains, they found richer ore deposits and differing ore types. Ultimately, they started mining at the base of the mountains, with the mines leading further under the mountains.
During this period, the family-based clans started replacing the original tribal-based society.
The clan of Dramer broke through into a huge natural cavern that, over time, became Dwarvenhelm. They remained secretive regarding what they had found and, over time, moved their entire clan into this cavern. Once settled, they started inviting other clans to join them.
The coastal dwarves, the dwarves living in the surrounding hills, and the dwarves living under the mountain started diverging into what is now known as the City Dwarves, the Hill Dwarves and the Mountain Dwarves. Each subrace has abilities in common and unique skills to their subrace. Dwarves, on average, are more vital than humans and can see in low light, which is far superior to humans.
One anomaly that later historians could not understand was why the Town Dwarves developed the same essential characteristics as the Mountain Dwarves. It was theorised that these essential characteristics resulted from the first wave of mutations that swept the world and solidified the Dwarven race into its current state.