This is a new mission in the Samhain 2013 event. It's a side mission started in Red's Bait and Tackle in Savage Coast. This mission awards you with Kyra's spooky story which is one of the 10 stories needed to complete the Spooky Stories of Solomon Island mission. This mission is listed under Blue Mountain when completed.
In order to help Danny with his book of ghost stories, Kyra has written down a story from her tribe. Read her story and test its authenticity.
Reward: 74,800 XP, Kyra's spooky story, 10,000 Pax Romana, Sack of Penny Dreadfuls
Read the story, then head to Blue Mountain and into the old Wabanaki village up the stairs from the trailer park.
Look for the hut which is straight ahead from you when you enter from the stairs. You will see Lore #3 inside. Enter the hut to trigger the Hermit to appear, then defeat him.