A good treatment of the subject - Faith as mentioned seems to be a fairly common mechanism. The need for physical avatars to act is a good one.
This chasing of faith has one side effect - it essentially predisposes gods to be selfish and capitalistic in nature, which somewhat precludes truly 'good' gods. Those gods which hold to 'good' principles will , barring some major change in humanity, be at a distinct disadvantages to those gods who will do anything they can to obtain Faith.
A memorable location, though there are some nit-picky logistical details that spring out at me. I'm not sure how there could be enough fuel to burn for two years, unless it was an exposed coal seam or a tire dump :)
I'm also curious on what the goblins eat that they would thrive in such a region, where no live trees are. Did the massive deposits of ash provide fertile soil?
The fact that they have any desire to obtain ore implies they have a good source of some type of fuel, for carting firewood to smelt ore would be rather expensive. This points to the coal seam as being possible.
I cleaned out the junk, but you need to fix your browser -it is corrupted and potentially introducing malware to you - and through the added links - potentially others. Most of the links appeared to be trackers, but they could do worse.
Please fix your browser. You should also virus scan your PC. Go to Comment
A good Old School villain with lots of possibilities. She seems a little too powerful, but given its vintage (1981), it works. It certainly has far more depth than anything I would have put together at the same age. I had not started gaming yet in 1981, much less worldbuilding.
There is a lot of detail packed into this one - hints and hooks into your campaign.
I'd like to see more of this!