Just goes to show you they never tried to drop it.
Wiz7, like 8, wouldn't let you drop items if you really needed them. And I always tried to drop heavy items (though I noted where I left them) so I didn't encumber my characters. I remember when I went through the Rattkin Ruins there was this 200 lb weight that I found and I immediately dropped it where I found it and when I located where it needed to be used (about two game-hours later), I went back and retrieved it so I didn't risk it weighing me down during combat.
I remember the lodestone too but I quickly decided it was just dead weight and got rid of it and never gave it another thought. Unlike Wiz8, Wiz7 did have a number of useless items you could find that served no purpose whatsoever and were total red herrings - magnetic boots, white rubber bear, etc.