I've found them in several ruins. Generally they are under metallic cages that require you to push a button to reveal them. I didn't actually know you could use them to recharge magical weapons though, I thought they were just junk like the smaller blue ones that are everywhere (and worth about ten times less). So far I've only found one artifact, but probably...oh... four varla stones. In one ruin I actually found two.
I just sell them. Don't bother with magical recharge items because they're a pain in the buttocks and my armourer skill is only 38 at the moment, so I can't repair them anyway. Much better to use my glass longsword to knock skulls, and the odd fireball to roast ghosts.
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I hate the mice from Bagpuss. Never trust rodents with DIY skills.
"We will fix it, we will fix, we will stick it with glue, glue, glue, we will stickle it, every little bit of it, we will fix it like new, new new."
::SQUISH::
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