This write up had several innaccuracies. The first step is not at 1, it is at zone in. The second step is at 1, not 2. The final is at 2, not 3, and the ground spawn loot is not in lava, it is on the ramp that you take to get out of lava. I can't say for sure, but maybe that ground spawn pops when you kill a basalisk (there is 1 outside of lava and 3 inside).