Yeah, I cleared the first three dungeons, the three sub dungeons of those, the one after it, and now I'm on to another one. When Silver was teh highest level Ore I had found I figured something was up.

Pro-Tip: If you are like me, you will miss this and wonder why the smurf there is no story events happening. One event it triggered by leaving the south gate, and I'd only left town anymore by warping to the place I was going to at that point.

Edit: And I'm Level 72, my character level far outshines my equipments level, as I've JUST made my level 30 Earth Gloves.