Fennel follow up on the lead - go talk to the blacksmiths and wait for out wizardly friend there. Try and find otu what his grievance for the man is, and if it connects in any way to the quest - of course use my insight spell to check the truth. Even if this wizard seems to be innocent, get him to take us to the man (if still alive) and see if he can offer any assistance in potentially fightign other spellcasters later in the way of training, equiptment and advice and whatnot.