From the Silmarillion, it would seem that Angband was mostly subterranean, and probably dug pretty deep - maybe even including some biotopes for nameless, gnawing things of its own (Morgoth's pampered pets?). So who's to say Durin's Bane didn't travel all the way underground? It could have wandered through the entrails of the Earth for millennia until it finally found a cosy nook to settle down, entirely unaware that there were Dwarves living on top of it. I guess it was pretty annoyed when they broke into its attics.
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Und aus dem Erebos kamen viele seelen herauf der abgeschiedenen toten.- Homer, Odyssey, Canto XI
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