Every guide out there will tell you he's in a bandit camp on top of the hill giant mountain but since the zone revamp he's in the bandit camp on top of the mountain closest to the lake rathe zone in, the mountain with the upraised stone arms, which is now home to lizardmen.
Sidenote: There's like 4 mobs in different zones who will spawn the lesser spirit but you need to go to rathe mountains to kill tabien the goodly and glaron the wicked so might as well get a 3 for 1. The 3 other options are out of the way (OOT, Butcher block and FOB) and you can pre-farm the rathe mountain items so blinde makes the most sense in my opinion.