What do I do at the Lost Dutch Oven Mine?

Solution 1:

The guy that seems a bit crazy will recover if you hand him an El Vibrato Headband. You can get headbands as random loot through the various El Vibrato caves or manufacture one in the Madness Maw mine for a small amount of El Vibrato scrap. The recovered guy will move to Dirtwater and open up a shop that sells magical themed items.

Once you go down in the pit, anything you touch builds up some sort of creepiness counter that forces you to go back upstairs. To unlock the El Vibrato teleporter, you have to make it to the rock wall at the end while touching as few of the skull piles, wall markings, etc as possible. If you do that successfully, you will have an option to use a pickaxe or 10+ in one of your main stats (thanks @dragonrage) to clear the rubble away instead of the message to leave the pit.

After clearing the rubble away, the teleporter is locked. You will need an El Vibrato keystone to unlock it. You can make an El Vibrato keystone at the Perfessor's house for 5 El Vibrato scrap.