Dragonwilds:Valerius
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Valreius is part of the Black Knight Fortress quest.
Dig location: turn around and head back up the spiral stairs with fire, leave west out of the building and cross the bridge towards the blue dragon. Defeat the dragon and continue west through the stone arch. Dig (with spade) in front of the golden glowing imp statue.
Alternatively you can head north east from the Menagerie nodestone along the path. Turn around when you get to the stone arch and dig in front of the imp statue.