Armory Mining Regains Control of Candela II Lithium Project with Advanced Extraction Technology

Armory Mining Corp has reasserted control over the Candela II lithium project located in the Incahuasi Salar, Argentina, after American Salars relinquished its development option. The project spans 3,000 hectares and contains an estimated 457,000 tonnes of lithium carbonate in-situ, according to a resource estimate completed by WSP Australia. This strategic acquisition comes at a time of robust lithium carbonate pricing, currently standing at $10,070 per tonne for 99.5% battery grade material, positioning the company to capitalize on favorable market conditions.

The project's potential is significantly enhanced by Armory's licensing of the Ekosolve™ lithium Solvent Exchange Extraction process, which offers remarkable technological advantages over traditional methods. This innovative process can extract 93% of lithium from brine samples while reclaiming 99.7% of its biodegradable solvent, presenting a highly efficient and environmentally friendly extraction method that eliminates the need for traditional lithium extraction ponds. Preliminary testing of a 200-litre brine sample collected in September 2022 demonstrated promising results, with lithium content ranging from 140 to 169 parts per million, validating the project's technical viability.

The Candela II project benefits from its strategic location in a well-established lithium district, with proximity to significant industry players including Ganfeng Lithium, which operates a production well approximately 9.8 kilometers from the concession. The project's geological context is further strengthened by the presence of major mining companies in the region, including Rio Tinto and Power Minerals, indicating the area's proven mineral potential. Substantial exploration work has already been completed, including five reverse circulation wells and comprehensive geophysical and geochemical surveys, providing a solid foundation for project development.

Economic analysis reveals compelling potential for the Candela II project. At current market prices, Ekosolve estimates that a 10,000-tonne processing plant could potentially yield a 250% operating margin, underscoring the project's significant economic attractiveness. The technical details of the project are supported by a National Instrument 43-101 Technical Report dated September 18, 2023, prepared by independent experts from WSP, which provides comprehensive validation of the project's geological characteristics and development potential. This combination of advanced technology, established resource base, and favorable market conditions positions the Candela II project as a significant development in the global lithium supply chain.