This fungus is called  cobalt crust or blue velvet spread, it is a saprobic crust fungus and are more commonly are green, white or brown

Normally live in hardwood forests where it is warm and damp  and appears on the undersides of fallen logs and branches of deciduous trees, this amazing fungus has been described as blue velvet on a stick. We advise you don’t lick the stick! This species was chosen as fungus of the year for 2009 by the German Mycological Society. for more info go to http://www.euromould.org/

Hyphodontia_sambuci_Eglinton.JPG By Rosser1954 Roger Griffith – Own work, Public Domain, Link