Yeah, it's in the middle of the Terror/Soldier Wasp swarm right before you get to the water, on the other side of the big rock. Here's a map to help find it.
(map credit to Edward Edgemenace)
New map
Code:
Queen's Nest on Isla Perdida (POTCO)
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| Other dig spot "North" entrance ---> ..*. |
| | water ...... |
| .|.. fall ........|
| .T...*.... r ......... ........ |
| ..........*bridge........... ....... |
| .......rrrrrrrrrrrrr*............... .... .... ......... |
| .... rrrrrrrr........\-----/.................................T.. |
| ....rrr.................................................... |
| T...rrrr..........hT.................**Big*.T............. |
| T...rrrr......rr..h.h................**ROCK**........T . |
| .....rrrrr...rrrrrrrrrrr.hh.h...T............T.....T.. |
| ........rrrrrrrrrrrrrrrrrrr..T.. .T...X.........T.. |
| ..................rrrT T.....T\.T..h.h... |
| .................h.hhrr ...hh...\..... . |
|...............**...h...rr ...T....\ |
| ............***...hT.rr .... \ |
| ............***.......r \ |
| ...........**........T \ |
| ...T............T X marks the new dig spot |
| ......... |
| .T...... |
| ......T. r = river |
| .*..... <--- Scary Mary h = hive |
| ........ T = tree |
| ....... |
| ....... |
| ...*.. <--- "South" entrance |
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