This item is fished from the fountain in Dalaran.
Archmage Vargoth was a member of the Kirin Tor who went through the Dark Portal as part of the Alliance Expedition. He and his people set up Kirin'Var Village, which was destroyed by Kael'thas Sunstrider and his Blood Elves. Captain Sanders can be found in Old Hillsbrad Foothills going to seek his treasure, and there is a quest chain to find his treasure in Westfall. The context of the coin suggests he also had some cargo for Vargoth when he crashed.
- Patch 3.0.2 (2008-10-14): Added.