The official GemStone IV encyclopedia.
This very short creature resembles, if anything, a misshapen dwarf. Whereas dwarves carry themselves upright, the cave gnome scampers about in a hunched over fashion, peering malignantly up at intruders through bulging purple eyes set on a head seemingly a few sizes too big for the associated body. Do not mistake their size as a limitation, though. The cave gnome regularly bounces high enough in combat to strike giantmen square in the head.
Cave gnomes under Icemule carry only a cudgel with no shield or armor.
Cave gnomes under Wehnimer's Landing carry handaxes and a wooden shield.
Cave gnomes in the gnoll/gnome mines, through the Upper Dragonclaw Forest, carry short swords, wooden shields, and leather breastplates. They are harder to kill than their kin due to their scale armor. The creatures in the gnoll/gnome mines can spawn at a fast rate with only 2 or 3 adventurers in the area.
Cave gnomes often carry gems and boxes, giving young and older adventurers alike and easy target for cash hunting.