Khazad-dûm in the First Age
OK, I just got The Atlas of Middle Earth, but I can't find the answer to this question. Khazad-dûm was founded in the First Age in Beleriand, right? Now I thought the only part of Beleriand to survive its destruction were parts of the Blue Mountains and Ossiriand, which became the western-most parts of Middle Earth in the Second and Third Age.
So where exactly was Khazad-dûm, how did it survive the sinking, and how did it wind up in the middle of Middle Earth?
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