Blazing Peak refers both to an active volcano in the Highlands of Uln as well as the ruined Tellurian city below this peak.
The city was originally founded as the second Tellurian city, it's location chosen precisely because of the active nature of the volcano, the Tellurian founders seeking to exploit it for increasing their knowledge of forging. Immediately upon its founding, the settlers met with problems. Due to the volcano's activity, they had problems digging into its sides, with tunnels collapsing due to quakes or flooding with suddenly emerging lava. Even so, the Tellurians endured, patiently digging and creating a small city.
The city survived the first few eruptions of the volcano, as they were well prepared for the event. However, after that several of the clans moved away to found the city of Minfort . As the city of Minfort grew, Blazing Peak, being more distant from Evermine then Minfort, became less important, other clans also slowly moving away. Tellurian iron workers on the other hand experienced setback after setback as the violent nature of the Volcano proved far too difficult to handle. This did not help the situation and caused the city to gain a reputation for bad fortune.
Finally, after surviving several eruptions of the volcano, one particular violent eruption breached the central hallway of the city, flooding it with lava and making it nearly impossible to get anywhere in the city. The, by then, small population finally chose to abandon the city, after about 200 years of struggling.