After you've defeated the Divine Dragon, Ashina Castle and Outskirts are filled to the brim with Inner Ministry red armored enemies that give you great Sen and drop rates on their respective materials. In particular, this is where it's possible to encounter and farm rifle and flamethrower red soldiers, who much like the Okami Warriors drop the mid and high tier of their materials pool (yellow gunpowder and fulminated mercury).

This is easily a higher mercury drop rate than any of the Gun Fort faction enemies, so this has been the favored farm spot for mercury.

Technically you can farm one flamethrower on the steps leading up to Ashina Castle, but that's slow. Go to the Ashina Outskirts Stairway idol and clear out the fire drunkard miniboss, and you've got a farm spot with three riflemen and a flamethrower in close proximity, plus two more riflemen a little up ahead.

After you backstab the third rifleman and reach the stairs, you'll encounter the flamethrower and his swordsman partner. You'll want to use your backstab opportunity on the swordsman, since the flamethrower is defenseless and much faster to kill in a head-on fight.

After you kill the flamethrower, you have the option of resetting the area now or heading forward to hit up two more riflemen for drops.

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