Did you keep exploring the mine to the north? There is a certain letter there the king would be interested in seeing. You could have given the axe to the king, though I don't recall if giving it to the dwarven council member will cause a problem.
The third ceremonial item was the staff Josephine dropped, though it is sometimes in the locked chest at the back of the room. Check around the area she was defeated, and move your mouse around if it was behind the ladder or a wall (the alt key will not show the description in that case).
The three Elven Ceremonial Items (70KB)
