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This piece of ice has been submitted to immense pressures and exposed to natural magics from deep beneath the world’s surface. In combination, these effects have yielded an ice that will never melt. Knowing little of these things, you resolve to bring the sample back to Dun Niffelem.
Someone there is bound to be familiar with its properties.
You are to return to Dun Niffelem and ask Calder about the piece of Everfrost.
Provided item:

You will be able to choose one of these rewards:
You will receive:
Upon completion of this quest you will gain:
Quest Giver: Item-initiated. Loot an Everfrost Chip from the ground in Storm Peaks to begin the quest.
Turn-in NPC: Calder — Dun Niffelem, Storm Peaks (near the eastern entrance)
Objective: Find an Everfrost Chip in the wild and bring it to Calder.
Quick Facts
Walkthrough
Step 1: Find an Everfrost Chip
Step 2: Loot and Inspect the Chip
Step 3: Turn in to Calder
Tips
Lore Context
Everfrost is magically compressed, never-melting ice formed by immense subterranean pressure combined with natural arcane forces deep underground. Calder describes it as “the symbol of the heart of our people,” prized by the frost giants and now extremely rare.
The jormungar, those voracious tunnel-boring worms infesting Storm Peaks’ underground caverns, have devoured nearly all of it over the ages.
The parallel to TBC’s Netherwing Eggs is widely noted by the community. Both are rare world spawns turned in for faction reputation, and both supplement daily quest grinding for players pushing toward Exalted. The key difference is that Everfrost Chips compete with an even faster alternative: Relics of Ulduar, which drop from mobs throughout the zone and can be turned in 10 at a time via Hodir’s Tribute (added in Patch 3.0.8).
This made Everfrost Chips a nice bonus rather than a primary grind method for most players.
Explore the Storm Peaks’ hidden easter eggs, lore mysteries, and connections across Warcraft history in Vikstone’s Storm Peaks Chronicles, along with the complete quest storyline.
Vikstone's War JournalI found the chip in the snow on the walk back from Frostfield Lake. A piece of ice about the size of my palm, and it did not melt in my hand, and it had not melted in the pack against my back by the time I reached Dun Niffelem either.

I took it to Calder, on the grounds that somebody in that town was bound to.
“Ahh, everfrost. The symbol of the heart of our people… Everfrost was once plentiful in this region. Over the ages, though, the jormungar have devoured nearly all of it. It is now very rare and very precious to my people. As you roam these lands, keep a lookout for more pieces of everfrost. Return to me with any that you find and we will be most grateful.”
The jormungar ate it.
The same jormungar that ate the icemaw bears out of the Hibernal Cavern down to one old female. I killed their spawnmother not long ago for coin and a king’s approval.
I told him I would watch for more, and I meant it, which surprised me somewhat.
Chips turned up maybe six at a time across the whole southeast and Calder was grateful for every one, but the frost giants had a faster way to earn their regard, and it involved hauling titan wreckage back by the armful as Hodir’s Tribute.