Armory Mining Regains Control of Argentine Lithium Project with Advanced Extraction Technology

Armory Mining Corp has reasserted control over the Candela II lithium project located in the Incahuasi Salar, Argentina, following American Salars' relinquishment of its development option. The 3,000-hectare project contains an estimated 457,000 tonnes of lithium carbonate in-situ according to a resource estimate completed by WSP Australia. This strategic acquisition coincides with robust lithium carbonate pricing, currently at $10,070 per tonne for 99.5% battery grade material, creating favorable economic conditions for project development.

The project's potential is enhanced by its proximity to major industry players, including Ganfeng Lithium, which operates a production well approximately 9.8 kilometers from the Candela II concession. A significant technological advancement for the project involves Armory's licensing of the Ekosolve™ lithium Solvent Exchange Extraction process, which offers substantial efficiency and environmental benefits. This innovative process can extract 93% of lithium from brine samples while reclaiming 99.7% of its biodegradable solvent, representing a major improvement over traditional extraction methods.

Preliminary testing conducted on a 200-litre brine sample collected in September 2022 demonstrated promising results, with lithium content ranging from 140 to 169 parts per million. Ekosolve Inc., specialists in direct lithium extraction technology, performed the initial analysis and extraction tests. The project's geological context is strengthened by the presence of major mining companies in the region, including Rio Tinto and Power Minerals, indicating the area's mineral potential.

Infrastructure development at Candela II includes five reverse circulation wells already drilled, complemented by comprehensive geophysical and geochemical surveys supporting the project's advancement. At current market prices, Ekosolve estimates that a 10,000-tonne processing plant could potentially yield a 250% operating margin, highlighting the project's strong economic potential. The extraction process eliminates the need for traditional lithium extraction ponds, offering a more sustainable approach to mineral extraction that reduces environmental impact and land use requirements.

The technical foundation of the Candela II project is supported by a National Instrument 43-101 Technical Report dated September 18, 2023, prepared by independent experts from WSP. This comprehensive report provides detailed analysis of the project's geological characteristics and development potential, ensuring regulatory compliance and technical credibility. The combination of advanced extraction technology, favorable market conditions, and established technical documentation positions the Candela II project as a significant contributor to the global lithium supply chain with improved environmental performance.