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Sorry, we're not gonna reveal any story stuff or spoilers.

The black sludge can be found by defeating Shambling Mirage enemies. They can be found in the valley and the desert. 

Alright that's fair.

But at least, may i know if it will end up in auto game over or not?

Because if it is, then i have to restart my playthrough again.

It won't result in an automatic game over. We don't intend to ever make the game unwinnable. It'll always be a decision, or a failure in battle, or something like that.

Alright, thank you