Restore iphoto library from Time machine using external drive

I keep my iPhoto library in an external drive (iomega 1 TB) I use Time Machine (Time Capsule) for my back-up of iphoto. The external drive is failing. I have bought an new external drive and wish to restore my iPhoto library to this new drive. The steps for restoring from Time Machine require me to click on the iphoto library and then enter time machine. I cannot do this as the folder is now unreadable in the drive and I do not wish to restore it to this old drive in any event.

I have accessed the time machine drive and can see the iphoto back up is there.

What is my next step?

Robert