Lyrium

Lyrium is a valuable mineral formed underneath the surface of Panaria.  

Lyrium has the unique property of being a naturally occurring store of magical energy.  This property makes it a invaluable material for the crafting of magical runes and other magical items.

History & Usage

Everyday use

Lyrium is primarly used for in the crafting of magical items. The refined metal is shaped into the magical runes that adorn magical weapons and armor.
Magic wands and staves have lyrium cores to store the magical energy used by their users. Magical scrolls often have ink made with lyrium in order to store the magical energy required to cast the spells stored on them.  Some have speculated that lyrium laced inks could also be used in the crafting of magical tattoos but this use is still theoretical in nature. 
Lyrium is also a key component and in many alchemical formulas for its ability to hold magical energy for a seemingly unlimited amount of time.

Refinement

Lyrium in its raw ore form is not able to absorb magical energy, in fact if hit with enough magical energy some lyrium veins are known to explode. The process of refining lyrium into a form suitable form for magical crafting is a closely guarded secret of dwarven crafters.
In its refined form lyrium becomes a smooth, slightly iridescent, silvery liquid (similar to mercury).  In this form it is able to absorb

Hazards

In its raw form Lyrium can be highly volatile when exposed to destructive magical energy (usually spells form the school of evocation).  For this reason magic can not be used in mining or refining process (although the dwarven methods of refining lyrium are a closely guarded secret and may involve some unknown magic). 
In its refined form this hazard is eliminated, however if too much magical energy is absorbed (or the wrong kind of magical energy) by refined lyrium the material can "break" it will no longer be able to store magical energy. However broken lyrium is not a explosion hazard.

Type

Ore/Mineral