The process of dwarven metalsmithing is a long-guarded secret, shrouded in mystery. Most humans would simply assume that dwarves forge their metallic implements and wonders in an understandable fashion, similar to the human method: Using a combination of known techniques such as repoussé and wax moulding.
This could not be more wrong. The real trick to forging a dwarven relic is to rely on one's armok-given tools, and nothing more. This means that to create that perfect Masterwork silver statue of a noble being crushed by a perfect masterwork silver statue in order to fulfill that pesky mandate, he must do what dwarves do best: innovate!
The first step is to heat the metal. Without heat, forging would be impossible. Let us forget for a moment, that while dwarves can in the worst case utilize charcoal as a source of energy, it is still unknown how exactly they light said charcoal, or survive the toxic fumes and oxygen sucking fire it produces, without any ventilation. This heat will optimally render the metal into a malleable, orangeish state. At this point, and it's really important to be as focused as possible, the dwarf must focus all of his/her/its energy into the process of systematically freaking the hell out and punching the living crap out of the molten metal. After a minor near-death experience, the metal will experience a life-altering event, and suddenly decide to change shape into something orderly and pleasant (or completely, idiotically random, and thusly more awesome). In order for this process to result in just the right design, the dwarf must really be dedicated, and willing to slap the crap out of the metal repeatedly until satisfaction is reached.
Well done!