Apache tears are a kind of obsidian. They formed when molten rhyolite, an igneous rock with the same composition as granite, was rapidly quenched. The molten liquid cooled so quickly that some of it couldn't make minerals and formed glass and microminerals instead. Several kinds of molten glass are formed this way, obsidian is just the most famous.
Apache tears are found as little rounded droplets inside another glassy material called perlite. Because they are naturally smooth and rounded, they look a little unusual. There are lots of folk stories in Nevada explaining how this kind of obsidian is formed.
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