It seems as if Lulu Belle and Scotty Wiseman may've done this version first, but the lyrics posted above by Sorcha match the performance of Arthur Smith, as sung by Tommy Fell, from their album The Arthur Smith Show Live -- On Stage From King's Mountain (Starday Records SLP 241, 1963) with the a spoken interlude between the first stanza and the second stanza (with no chorus yet) as follows:

In the mountains of North Carolina, near Linville, there exists a strange phenomenon called the Brown Mountain Lights. On a clear night, this light will appear and move about in a ghost-like manner on the mountain-top, and down in the valley. This light has been observed since the early days of the covered wagon, and to this day no one can explain this mystery. Even scientists who have come from various parts of the world can offer no solution. Uncle Fate Wiseman, who spent his entire 80 years in these mountains, used to tell this story, which to me could be as true as any other tale related about the Brown Mountain Lights: