slobberinbear
Ursine Skald
Food drives the early game. Grab agriculture and animal husbandry and get out a worker. With two bonus settlers and Peter's land, you shouldn't have to build a settler for awhile.
City 3 could go on the marked forest/plains/hills nw of the copper, right next to Peter's borders. However, this might stretch the economy somewhat, and is a little risky - after all, Peter has established culture, we won't, thus the city might be vulnerable to flipping. However, it would snag us some copper, as well as getting us a fairly decent city location, and possibly a base of operations should Peter turn sour. It would most definitely irritate him, on the other hand, and the war might cost us.
As for the actual advice, I freely admit it's not the best idea for a city location, but it -does- deny him access to the copper (not much help if he already has some, though), and it gives me a toehold in the mainland.