yea that staff is easy to miss because it's not labeled as a Ceremonial Item.
When i got there i had so much gold and wasn't using staves that i didn't even bother to pick up the staff which required something like Lvl4 to Identify. Probably would've wandered aroudn forever if i didn't pay a visit to these forums because i assumed Josephine took the 3rd artifact to wherever she disappear to.