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Valley Eilifsdalur cuts into Mt. Esja from the Whale Bay in the north to the mountain’s highest point (914m). A synonymous farm is located in its mouth.
The valley was originally settled by Eilifur, who arrived in Iceland with Helgi bjola. Eilifur’s burial mound is on top of the mountain peak Eilifstindur.
Just north of the valley is a cone shaped mound, Orrustuholl (Battle mound). According to the Saga of Kjalnesingar, the brothers Helgi and Vakur, the sons of Arngrimur of Saurbaer, chased Bui Andridarson with 12 men, but Bui only had one companion on his way to a ship on the Hrutafjordur bay. He was aware of the chase and stopped to collect stones to prepare his defence on the mound. The two men stoned their enemies and then attacked them. Bui managed to kill six and wound the others before the farmer Eilifur arrived to interfere. Bui was not wounded.
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