"The blood won't turn you to stone but mixes real well with stuff."
Gorgon's Blood is an item found in the Golden Age Peaks (snowy area). To find it, travel to the rest stop closest to the Forge of Tethys. Go left one tile, down two tiles, and walk to the upper right corner. The blood should be on a pedestal.
In the quest "Sharp Objects and Voodoo", the player must craft a Cursed Kris by combining Gorgon's Blood and a Rusty Dagger (bought in the weapons store at Astraea's Bastion) in Theia's Forge.