Blue Lagoon Milling Partner Nicola Mining Shifts Focus Exclusively to Blue Lagoon's Gold & Silver Mineralized Material

Executive Summary

• Blue Lagoon Resources’ milling partner, Nicola Mining Inc., is shifting its entire milling capacity to process only Dome Mountain’s high‑grade gold and silver material.
• The company has already received nearly $1 M for the first 1,000 t of material delivered in December and expects total deliveries of ~2,500 t by the end of the week.
• Strong spot gold (> US$5,500/oz) and silver (> US$115/oz) prices are enhancing near‑term production leverage as underground mining ramps up.

Key Details

• Milling Focus Shift: Nicola Mining will no longer process third‑party material and will dedicate 100 % of its milling capacity to Blue Lagoon’s Dome Mountain output under the existing long‑term agreement.
• Delivered Material & Payments:
• Initial delivery of 1,000 t in December generated a payment of ~US$1 M.
• Additional ~1,500 t expected by week‑end, bringing cumulative shipments to ≈2,5 00 t.
• Underground Production Progress: Multiple active mining faces have been opened, building a growing stockpile for continuous feed to Nicola.
• Commodity Price Environment: Spot gold has recently surpassed US$5,500 per ounce; silver is trading above US$115 per ounce, providing favorable price leverage for the project.
• Management Commentary: President & CEO Rana Vig emphasized safe, consistent underground execution and a predictable delivery cadence to the milling partner, noting that paid deliveries enable inventory buildup ahead of scheduled milling.
• Future Outlook: Blue Lagoon will provide further updates on underground development, additional material deliveries, and production activities at Dome Mountain.

Notable Quotes

“Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner,” – Rana Vig, President & CEO, Blue Lagoon Resources.