1. Talk to Oziach in Al Kharid. He is located just north of the bank.
2. Travel to Pollnivneach, south-east of Al Kharid. Go down the ladder.
3. Walk west from the ladder and talk to one of the Camel Drivers. Ask him for a ride to Sophanem, and he will take you there for free.
4. Walk north west from the Sophanem entrance, and go through the western building to find yourself in the Shantay Pass.
5. Walk north towards the snake charmers, and use your silver sickle on a snake nearby. You should get a snake hide. If you don't, try again.
6. Use your snake hide on your silver sickle to make an ornamented sickle.
7. Walk north past the snake charmers and into the desert. There is a large snake, and you should use the ornamented sickle on it.
8. You should get a Snake's Visor.
9. Put on your Snake's Visor.
10. Continue north past the snake, and through a gap in the wall. You should find yourself in the Desert Mining Camp.
11. Talk to one of the Miners inside the camp, near the mine entrance on the west side of the camp. Ask them for a pickaxe.
12. Walk over to the rock formations on the north-west side of the camp, and mine them using the pickaxe.
13. You should get 1x soft clay, 1x gold ore, and 1x silver ore.
14. Drop your ornamented sickle and pickaxe.
15. Walk down the path on the west side of the mining camp, and go through the cave.
16. Walk over the stepping stones in the next area.
17. Head north until you come to a building with a metal door. Enter the building.
18. Speak to the NPC within.
19. After speaking to him, return to Oziach in Al Kharid to claim your Azure Flute.
Method 2:
1. Purchase a soft clay from the Grand Exchange.
2. Go to the Al Kharid palace, located north-east of the Al Kharid bank.
3. Go down the stairs to find yourself in the Treasure Room.
4. Talk to the guard and ask for him to make you an Azure Flute.
5. Pay him 500 gold and give him the soft clay.
6. Wait approximately 1** minute, and he will have made the Azure Flute.