Blue Lagoon Attains Commercial Production and Announces Strategic Equity Investment by Ocean Partners

Blue Lagoon announced it has achieved commercial production at its 100%-owned Dome Mountain Gold and Silver Project in British Columbia. The milestone was reached after maintaining underground mining rates of more than 100 tonnes per day for over 30 consecutive days. The company is targeting 150 tonnes per day. In a parallel move, metals trading house Ocean Partners Holdings Ltd. is making a strategic C$3 million equity investment in Blue Lagoon at C$0.90 per common share – the market price – with no warrants attached. The company already has an undrawn C$2 million unsecured line of credit from milling partner Nicola Mining and approximately C$2.5 million in outstanding in-the-money warrants. Two underground crews are operating concurrently, and drilling crews are expected on site in Q3 2026.

This release marks a formal transition from developer to producer, crystallizing the ramp‑up that has been underway since the first shipment in November 2025. The commercial production declaration is largely a confirmation of trends already seen in prior updates (100‑tpd milestone in April, consecutive revenue sales, increased shifts). However, the Ocean Partners equity investment is genuinely new and adds a layer of external validation. It is a zero‑warrant, market‑priced injection, signaling confidence from a major offtake partner. While the C$3 million amount is modest relative to the likely market capitalization, the vote of confidence and the clean structure are material positive signals that may invite a re‑rating from junior producer to established producer. The only note of caution is the production rate exceeding the nominal permit threshold of 55,000 tonnes per year (~90 tpd); this may require a permit amendment but is not flagged as an immediate risk. Overall, the news is material and positive.

Blue Lagoon Resources is a now‑producing gold‑silver company focused on its 100%‑owned Dome Mountain Project in British Columbia. The project received a full mining permit in February 2025 (one of only nine issued in the province since 2015). Ore is processed under a 10‑year toll‑milling agreement with Nicola Mining, with concentrate sold to Ocean Partners. The underground resource averages approximately 9 g/t Au, and the company holds an 18‑km strike length of largely underexplored ground, earmarked for drilling funded by internal cash flow.