in the scenario, there are several red chests near some of the more powerful "boss" monsters. don't know if there are any in the sandbox game.
i also tend to use a fast (high init) weapon on mages if i can't find a good staff, but if you find something with +10 spell mastery or +10% spell damage, that's usually better than a little init. losing the shield isn't such a big issue IMO. shields are a huge bonus when you're in def stance, but mages rarely are, since they have to cast spells to be useful. the few points of armor the shield provides passively isn't such a big deal, really (well, in my opinion)