You have to make all magic weapons - there no longer a random drop  (in relation to force power ruin etc)

To make magic weapons you need 10 virtue stones - you get these by converting any type of gems at the jewelers (look for a tool on the table)

You also need a smiths hammer and be next to an anvil (including clubs and bows)

Have your smiths hammer equipped have a plain longsword or whatever item you wish for in your pack and doubleclick the virtue stones.  A skill menu comes up and you select the item you wish to make.

 

What you get back (ruin --> Vanq ) depends on your skill and also luck.  A non GM blacksmithy will never make a vanq weapon in fact they will only make it around 1 in 50 goes.

This script does look at a combination of armslore and blacksmithy/bowcraft/carpentry depending on what your making