yeah, i agree that lamness = 348723145043987% on this one.
basically there are i think 5 guards you're supposed to talk to on your way into the caves; one by the road, who directs you to one by the canyon trail, and one at the bottom of the trail, and two on the canyon floor.
i heard that it was random which guy has the sword, but it's one of them, and it was homie up by the road for me, too. otherwise this mission is cake.