Blue Lagoon marks year after receiving Dome Mtn permit

Executive Summary

• Blue Lagoon Resources Inc. marks the one-year anniversary of receiving its mining permit for the Dome Mountain gold and silver project in British Columbia, transitioning from permitting to active underground production.
• The company has achieved significant operational milestones, including the completion of a wastewater treatment system, scaling of the workforce, and the initiation of underground mining with multiple active faces.
• Blue Lagoon has begun delivering mineralized material to Nicola Mining under a 10-year milling agreement and received its first production payment of approximately $1 million, validating its near-term cash flow model.

Key Details

• Project Status: Transitioned from permitting mode to an operating company; one of only nine mining projects permitted in British Columbia over the past decade.
• Operational Milestones:
  • Completion of a critical year-round waste water treatment system prior to mining start.
  • Scaling up mining workforce despite tight labor supply.
  • Initiation of underground mining and development of multiple active mining faces.
  • Weekly delivery of mineralized material to Nicola Mining.
• Financial/Commercial Terms:
  • Long-term milling agreement with Nicola Mining (10-year term).
  • Receipt of first production payment of approximately $1 million.
  • Strategy to reinvest internally generated cash flow into near-mine and regional exploration starting in the first half of 2026.
• Market Context:
  • Gold price forecasts have risen sharply; median consensus forecast for 2026 is $4,746.50/oz (Reuters poll).
  • Goldman Sachs raised year-end gold forecast to $5,400/oz.
  • Company cites persistent inflation, geopolitical instability, and central bank accumulation as drivers for higher gold/silver prices.
• Community & Regulatory:
  • Strong support from Lake Babine First Nation (LBN), nominated by the LBN Chief for the 2026 PDAC Sustainability Award.
  • PDAC Sustainability Award highlights environmental stewardship and indigenous partnership model.
  • Established First Nations support reduces permitting and execution risk in BC's evolving regulatory environment.
• Production Basis:
  • Production decision based on existing infrastructure, past bulk sampling, and established mineral resource.
  • Note: Production is not based on a feasibility study of mineral reserves, carrying increased uncertainty and risk of failure.

Notable Quotes

• "Gold is increasingly being viewed not just as a hedge against inflation, but as a strategic asset amid geopolitical tensions, elevated government debt and central bank diversification," [Analysts cited in Reuters/Bloomberg].
• "Our focus over the past year has been on execution... In just one year, we've moved Dome Mountain from a newly permitted project to an operating mine at a time when the fundamentals for gold continue to strengthen materially." — Rana Vig, President and CEO.