YLIL has the DZ about 1nm from the rwy on the upwind side of the circuit. Seems to work well.
It's a
lot closer than that (about 300 metres from 18L/36R) - but it's to the east and all circuits are to the west at YLIL (in daylight), so not really a problem. Anyone using the airfield should be well aware of the drop zone anyway.
You just need to monitor CTAF for the drop, particularly if you're heading upwind on the dead side for a crosswind join - but even then you're OK.