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I'm guessing that I'm looking for a sword to place in the statues hand? The sign reads:
The second most precious thing to a seafaring captain is his sword, because without it he cannot command his crew. Thus, upon losing his weapon somewhere on Shipwreck Beech, he lost what was more important to him: the respect of his crew.
After you get the key and open the gate where there's a crate containing a hint and a shovel, head back to the crystal and dig where the treasure chest is on this map below. After that, drag and drop it on the statue and the door will open. You can then pick the sword back up!

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Developer Spotlight: Sean HoganSoundtracks can be one of the largest components of a game that the player takes with them after they complete it. Those songs can remind us of the things we experienced while playing, and they're all such wonderful memories.
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