This is at the base of the large landslide on the north side of the Katherine Valley.  The dip in the mountains just to the left of center is Henry Saddle.  The muddy section of dead trees, through which the track passes, is in the foreground just to the right of the saddle.

The dip in the mountains on the right side of the picture is valley down to the sound.  The track crosses the slip and re-enters the forest at the very right of the picture.  Once you're here, it means that Lake Katherine is not far off.