About three miles from Charlestown on the road to Carracastle there is a fort from which an underground passage leads to the neighbouring village. It is believed that the Danes, when invading the nearby districts, built the cave in order that they might have some place to live in and keep their booty in safety. The entrance to the cave is very narrow admitting only one person to enter at a time. This plan was followed to save the occupants from attacks made by the Irish.
One day, however, some people thought of a plan to rid themselves of their enemies. Lighting several sheaves of straw and putting them at one end, they rushed to the other side of the cave and waited. The smoke from the straw went through the rooms and almost suffocated the Danes who thought it better to go out by the other side and stay outside for some time.
Being able to move very quickly, the Irish arrived at the other end before the Danes who could come out only one at a time. One by one they fell under the swords of the Irishmen. But the gold which they had taken was never found as it was hidden in some place where it could not be seen.