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Snapchip Shatter is found near the golden chest in the Icy Cellar, a dungeon area below the Ancients' Way. He's not connected to any quest, but when combined with the golden chest in the high level area, he can be part of a profitable item run. Like all Frozen Horrors, Snapchip shatters upon death, and is therefore untouchable by any corpse skills, including Find Item.