Blue Lagoon partner Nicola shifts focus to Dome Mtn

Executive Summary

• Blue Lagoon Resources is advancing underground production at its 100%-owned Dome Mountain gold and silver project, with milling partner Nicola Mining shifting its focus exclusively to Blue Lagoon’s high-grade material.
• The company has received nearly $1 million for the initial 1,000 tonnes delivered in December and expects to have delivered approximately 2,500 tonnes total by the end of the current week.
• Management highlights a strengthening commodity price environment (gold >$5,500/oz, silver >$115/oz) as enhancing the leverage of near-term production while the company scales operations.

Key Details

• Milling Agreement Update: Nicola Mining Inc. is dedicating its milling capacity exclusively to Blue Lagoon’s mineralized material, eliminating third-party processing obligations and streamlining the processing path.
• Production Volumes:
  • Initial delivery: 1,000 tonnes delivered in December.
  • Expected additional delivery: ~1,500 tonnes by the end of the current week.
  • Total material shipped: Approximately 2,500 tonnes.
• Financials: Blue Lagoon received a payment of nearly $1 million for the initial 1,000 tonnes of material.
• Operational Status: Multiple active mining faces have been opened, leading to increasing underground output and stockpile building.
• Commodity Prices:
  • Spot gold recently surpassed $5,500 (U.S.) per ounce.
  • Silver trading over $115 (U.S.) per ounce.
• Regulatory Context: Blue Lagoon achieved a full mining permit in February 2025 (one of only nine issued in BC since 2015) and commenced underground mining operations.
• Future Plans: The company plans to reinvest internally generated cash flow into near-mine and regional exploration starting in H1 2026.
• Risk Disclosure: Production is not based on a feasibility study of mineral reserves; the decision relies on existing infrastructure, past bulk sampling, and established resources, carrying increased uncertainty and risk.

Notable Quotes

• "Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations. This steady progress positions the company well as gold and silver prices continue to soar."