The party doesn't know the location of the elf village at first. If you talk to the elf at the blacksmith of Aldlyn with Mirel in your party he'll offer you to show you the way to their village. After talking to him again in the bottom left corner of Aldlyn you're shown the way to the village and it'll appear on the worldmap.
Aldin, city map, Mirel in party, blacsmith, elf. Next go to field in left site of Aldin city and to bottom, he will stand here, talk again, he will take you to hidden willage, in that willage, blacksmith (black haired elf girl in leather brown dress), talk when katryx ore quest active, next go to mine and talk to green suit soldier, go to whitestone citadel (if I don't mess the spelling) talk with capitan in sleeping chamber (green haired with glasses) go back to soldier and enter mine, it is green ore on other site of poison lake. i hope it will help