The Eye can be found if you go to Romany, then face towards the lava pit there. Run towards the lava pit and get as close as you can where you can still see Romany from a distance. Here's a link that gives dig spot.
http://www.piratesonlineforums.com/f...st.php?p=61053
Credit goes to Dr. Zeppers for creating it.
Note: You want the dig spot where romany bev is in the background.