I will assume that travel goes without event.
The knife is in a case and pewter wrap. It is protected from bare-skin touch and should hopefully be abated by the wrap.
Once he's gotten info and the dagger, Conrad and Mylbor will leave. He will help get Phryl's taunbird used to Mylbor.
Once on the road for a few minutes, Conraid will tell Mylbor the entire story. He'll start with the Duergar found in the outpost where the pitstop is. Then the ferry house and that whole conversation. Then the Duergar plan in the mountains. And now the appeal to the Battlehammer Dwarves for help.