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Found In Soft Dirt By Daggers Skyshard

Guide:
In western Stonefalls, just North of Davenas Farm (eye farm), East of The Lover Shrine, Northwest of Ashen Road Wayshrine, inside Softloam Cavern – public dungeon (torch icon).

If you are far away from this area, use teleport that takes you to the Ashen Road Waysrhine. It is the closest Wayshrine. From there head Northwest. Climb towards the top of a mountain. On the west side of the mountain top you can find the entrance to Softloam Cavern – public dungeon.
The dungeon’s main prize is found in the largest cave room. This is the one with the huge lava flow. If you rush toward this item, all the groups from the tunnels you have pulled will go back.

Heading North of Davenas Farm leads you to the public dungeon entrance.

Map Location of Softloam Cavern’s Entrance.

More accurate location of the collectible you are looking for.

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