How about a town near a volcano and a legendary blacksmith in a cave near or even inside a volcano and you have to do a quest for him to teach you how to use his forge with real magma flowing into it? LOL call it magma town!
That whole volcano thing sounds like a great idea! The suggestion I would make is have a nice area to camp in a river bed that has a chance of a flash flooding.
https://www.facebook.com/photo.php?fbid=1115504421800122&set=pb.100000217248243.-2207520000.1432297864.&type=3&theaterAn image that I just drew of how I imagine the jungle