Wait until the chief returns to the woods. Am not sure if the eyeless totem needs to be lit before this occurs. Lucky me, i lit the totem first and the chief was sitting right smack in the middle and had no problems getting the necklace to him. My assumption is that if the woods are not cleared, the villagers will not go in there. i will not spoil how you get the totem lit, at least not yet! Good luck!