The Lost Axe quest in Aion starts from an item named old scroll that drops from mobs.

Bellow is The Lost Axe quest guide:

1. Hunt White Foot Daru to get quest item named Old Scroll (right click on it).
2. Find the Iron Axe in the Daru Spring.
3. Answer Gunghelm's question correctly to get full reward.

The location of the iron axe is in the south side of the pond, near a big tree. After you get the axe, an old man will ask you three question. The answers are:

Gold Axe - Not yours.
Silver Axe - Not yours.
Iron Axe - Yes, its yours.

Full reward is 830 XP + Gold Axe + Silver Axe + Iron Axe.
Partial reward is 830 XP + Iron Axe. (If you dont answer correctly).