Magma
Magma appears when a blockhead reaches the center of the world. It glows slightly with a reddish tint, which allows some ores to become faintly visible before a blockhead places other light sources.
A blockhead will begin to smoke as it nears magma. This is to warn a blockhead that it will be injured if it gets too close (approximately 25 blocks). If a blockhead's health gets too low, a blockhead may die. Ice armor and ice torches can also cool a blockhead down. Despite this, blockheads can walk on magma.
Magma does not lay at a single, consistent level, but may rise or fall from left to right, often in association with the presence of mountains and oceans above. It cannot be harvested.
Water can be poured on magma in order to turn the water into basalt. If not enough water is placed, it will become steam and disappear. Starting in version 1.5, an item dropped on magma will immediately disappear.
Gold nuggets are typically found within 200 blocks of magma.
Gallery
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Magma
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Magma causes blockheads to smoke
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Magma in HD mode