This seems a bit harsh for a quest item, I was disarmed and a scavenger mob swept it up, then I killed him, and it went up in flames? Perhaps up the limit considerable??

civilized <41%hp 16%m 99%mv 5208tnl (17.33%) 5 PM>

A smuggler lookout's slice injures you.
A smuggler lookout's slice injures you.
A massive thug's pound hits you.
You parry a massive thug's pound.
You parry a massive thug's pound.
Your blazing slash maims a smuggler lookout!
A smuggler lookout is DEAD!!
You receive 387 experience points (40% bonus).
A clump of a smuggler lookout's hair is ripped from his head.
A silver-shod mallet marked with an angel is engulfed in chromatic flame.
You get 6 copper coins from the burnt corpse of a smuggler lookout.
The gods give you 8 copper coins for your sacrifice of the burnt corpse of a smuggler lookout.

civilized <28%hp 16%m 99%mv 4821tnl (23.48%) 5 PM>