Located inside Mtharnaz dungeon, western Craglorn.
You can approach Mtharnaz entrance from west. Due to its unique grey color, ancient fortress look, and the fact that it is coming out of the rocky mountains, you can spot it from afar easily. Collectible is found in the southeast corner of the first larger room of Mtharnaz. There are a couple of Dwemer constructs defending it. One of the easiest shards to obtain in Craglorn.
Find and enter Mtharnaz.
Mtharnaz Entrance Map Location.
Shard is in the corner of the first larger room.
Mtharnaz shard Map Location.