1) The Shilens Stone Statue stands at the top of a ramp in the SE corner of the island. It is very near the 3rd pillar of stone you visited in the past 2 quests, the one named Chuta Kaimu.
2) You tell the statue about how to find the Grazkh fragments as they are inside the dinosaurs and so it sends you off to collect them. You must kill Velociraptors or Pterosaurs(mini boss) to get 30 of the quest items.
3) After you get 30 of the fragments, you return the Shilen Statue so that the axe can be reforged and you can use it to face Sailren.
4) The quest ends here and you are awarded with the Quest-Item Grazkh which can be used to raid the boss Sailren Sealed Evil Power if you so choose, through the Shilens Stone Statue.