Broken Steel Sword Handle

The Broken Steel Sword Handle is found in Angarvunde, behind the staircase that comes up of the floor after opening the 2 doors, during either the quest Discover the Treasure of Angarvunde or Find the Source of Power in Angarvunde

The item is in a open chest with a severed skeleton hand and a ring. This Might be a reference to the first defeat of Sauron in Lord of the Rings.