Armory Mining Corp Reclaims 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. The strategic acquisition comes at a time of robust lithium carbonate pricing, currently standing at $10,070 per tonne for 99.5% battery grade material.

The project's potential is further enhanced by its proximity to significant industry players, including Ganfeng Lithium, which has a production well approximately 9.8 kilometers from the Candela II concession. A key development is Armory's licensing of the Ekosolve™ lithium Solvent Exchange Extraction process, which offers remarkable technological advantages. The process can extract 93% of lithium from brine samples and reclaim 99.7% of its biodegradable solvent, presenting a highly efficient and environmentally friendly extraction method.

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. Ekosolve Inc., a specialist in direct lithium extraction, conducted 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.

Five reverse circulation wells have been drilled, and comprehensive geophysical and geochemical surveys have been completed to support the project's development. At current market prices, Ekosolve estimates that a 10,000-tonne processing plant could potentially yield a 250% operating margin, underscoring the project's economic potential. The extraction process eliminates the need for traditional lithium extraction ponds, offering a more sustainable approach to mineral extraction.

The technical details of the Candela II project are supported by a National Instrument 43-101 Technical Report dated September 18, 2023, prepared by independent experts from WSP. This report provides a comprehensive overview of the project's geological characteristics and potential. The combination of advanced extraction technology, favorable market conditions, and substantial resource base positions the Candela II project as a significant contributor to the global lithium supply chain.