Blue Lagoon Highlights Optimal Market Timing as Underground Mining Advances at Dome Mountain

Executive Summary

• Blue Lagoon Resources announced that underground mining at the fully permitted Dome Mountain Gold Project entered its second week, marking the transition from development to production.
• The company highlighted a favorable gold price environment (spot gold > US$4,000/oz) and an extended 10‑year toll‑milling agreement with Nicola Mining Inc., positioning Dome Mountain for cash‑flow generation.
• First gold concentrate shipments are targeted for Q4 2025, with plans to reinvest internally generated cash flow into near‑mine and regional exploration in H1 2026.

Key Details

• Underground mining began the week of October 2, 2025; week two is now underway.
• The project is fully permitted – one of only nine full mining permits issued in British Columbia since 2015 (granted February 2025).
• A 10‑year toll‑milling agreement with Nicola Mining Inc. has been extended, providing a capital‑efficient path to gold concentrate sales.
• Spot gold price recently broke US$4,000 per ounce, creating a strong market backdrop for the project’s production start.
• Company aims to begin first gold shipments in Q4 2025.
• Cash flow from early production will be used to fund near‑mine and regional exploration starting H1 2026 to expand the resource base.
• President & CEO Rana Vig emphasized timing, execution, and the goal of translating market conditions into efficient operations and shareholder value without further dilution.

Notable Quotes

“Timing in the mining business is everything,” said Rana Vig, President & CEO. “With underground mining now underway and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment.”

Materiality Assessment: Material – Positive (the update signals a material operational milestone that could positively impact cash flow and shareholder value).