So when you first asked about the missing treasure ("missing" doesn't mean anything really: the treasure's whereabouts could be widely known), did the person tell you something like "Last I heard it was held by Urist McHilldwarf"? If so, look around for said Urist (you probably won't be able to get specific info on his location, like what house he lives in); when you find him he'll have the artifact in his possession.

If, on the other hand, you were told "Last I heard it was in these hillocks here," then the artifact will possibly be found lying in some random spot somewhere in the hillocks (the entire hillock site, not just in or near the houses). The only way to find it is to look around.

As far as I know no one will give you more specific info on artifact locations, only where they are and/or who holds them. Note also that such info can be wrong - the artifact could have been recovered and taken away by another adventurer before you.

thanks for the reply, i wish the rumor system was more fleshed out but i guess the game is still in alpha.

Just ask for the whereabouts of that person they point you to, which will bring you to their location. Then ask while in that town about said person, and their whereabouts and you will generally get more specific information.