There are Elves that occupy the northern shores and small settlements at the base of the Blackstone mountains, initially unknown to the Chaos Dwarves let alone the Empire far to the south.
Each year a convoy of sleek and deadly ships slips from shore, laden hulls with precious and magical gems and stones mined from the shallow quarries of the Blackstone mountains.
The Sea Elves Enclave is a defensive ring, protecting and supporting the loading site of the important mineral wealth flowing from the mountain mines. A Human city and several villages dot the base of the mountains pulling up the mineral wealth in exchange for Elven goods and access to their global trade network. These Settlements were completely unarmed and unwilling to defend themselves when the Chaos Dwarves arrived, leading to an awkward stand off between the Elves and the Chaos Dwarves. In Year 1819 the Dwarves tried to take one of the smaller Elf settlements at the base of the Blackstone mountains but were bloodily repulsed, losing more than half their numbers.
The Elven defensive ring prevents easy northern expansion of the Chaos dwarves but the Elves themselves don't have the manpower or strategic resources to wage a war of domination. The Elves are wholly unprepared for an expansionist policy and so must content themselves with sitting tight and resisting. The real danger they face however is relevance, the Human mining settlements are now under Chaos Dwarf control and the connection with the small Elvish settlements have been lost except for the occasional courier. With the flow of ores and Gems at an end and the trade fleets moving onto greener pastures, not to mention Chaos dwarf Piracy the challenge of survival and meaning is as pressing as ever for the elder race.
