Blue Agate stone has originated from volcanoes, and you can say it is a volcanic rock. Basically, Blue agate is formed when lava transforms into drops of melaphyre in the presence of rainwater, silica, and minerals such as iron and chromium. One thing that you must always remember is the pattern and bands of agate depend on the chalcedony that composes it. The first mine of agate was found in Sicily, Italy. Currently, agates are found all over the world, but the finest varieties of blue agate are found in countries such as Morocco, China, Iceland, Russia, and India. The most exploited mines of blue agate where agate used to be found in abundance in earlier times are located in Uruguay, Southern Brazil, Mexico, and Madagascar.