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The Arcane Compass is a tool you can craft to help you find portals when navigating the islands. When you have the compass in hand an onscreen arrow points North. This can help you stay oriented. When you reselect the compass you activate it's magic powers! Your character will be surrounded by a directional aura that points to unopened portals. In this example the aura is yellow, so we know the portal will be yellow.
The red arrow just points north while the animated cubes indicate the direction to an unopened portal. The Aura in the image below is pointing down, as seen by the shadows below the yellow cubes. If it were pointing up the shadows would go in the opposite direction. The aura indicates the direction, distance and depth of the unopened portal. When the portal is nearby, the aura almost completely surrounds you. If you were right on top of the portal, the aura would be perfectly circular, and you would know you just need to dig down.
|8x||Blue Portal Stone Shard|