Interesting. The peninsula is a peninsula of mountain (foothills, actually) that sticks out into the water south of the pirate encampment. On the north side of that foothill is a small valley, and the circle is at the end of the valley.

Thanks for all the other posts. Aquementas was a little tougher than I had planned and he killed my 51 Druid just before I would have killed him but the transformation worked anyway, once I had reclaimed my corpse. Before that, tne quest registered complete but I couldn't find the totem. After rezzing, it was there.