From Dungeons of Dredmor Wiki

An artifact is an item that has extra bonuses or penalties to damage, resistance, or statistics in addition to the normal stats of the item. Artifacts can be obtained by completing sidequests, tithing to the Lutefisk Statue, enchanting an item at an Anvil of Krong, purchased from Brax, or found randomly on the dungeon floor or in Chests of Evil or UberChests(TM).

Only melee weapons (Swords, Axes, Maces, Daggers, Polearms and Staves), Crossbows and Armour can be enchanted. Currently enchantments on Thrown Weapons do not appear to work, and Bolts and other consumables cannot be enchanted at all.

Artifacts created from common items are given a random name and title, for example, "Kromarpzar, the Setting of Taverns." Enchanting this way does not change their base attributes, item type or quality. The named items appearing on this page do not change their names when further enchanted.

Artifacts can be altered by certain Archaeology skills; they can be consumed for experience, or randomly assigned new enchantments. Artifact items of a type normally used in crafting can also be used in crafting, however, all enchantments are lost, as the new item is created without any enchantments at all.