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This cave is probably named for the several inexplicable fires lit in several portions of the cave system. It has two entrances, though only one appears on the map at any one time. The entrance nearest the Gold Road, just West of Skingrad, does not lead very deep into the cave, but the entrance just North of the one on the road allows access to the entire cave and its contents.
At early levels, it contains several Imps, some who shoot fireballs, others shooting lightning. Several are close enough together to team up and fight together. At later levels it can contain Troll, Spriggans, Ogres, and Minotaurs.
There is a river system in the middle that leads to a small treasure storeroom.
Note: On the unpatched XBox 360 Platinum Hits version of the game the location may be 'unfindable,' preventing fast travel to the area.