Blue Lagoon adds second shift at Dome Mountain mine

Executive Summary

• Blue Lagoon Resources has added a second underground production shift at its Dome Mountain gold mine to accelerate output and development activities.
• The company is increasing shipment volumes to its toll milling partner, Nicola Mining, with volumes expected to double starting next week as underground mining rates rise.
• The company engaged mining consultant Tom Rannelli to optimize development and enhance underground productivity as it moves into a higher-throughput operational phase.

Key Details

• Operational Expansion: Addition of a second underground production shift effective this week.
• Production Impact: Expected increase in output across multiple active mining faces, supported by additional underground equipment arriving last week.
• Milling & Logistics:
  • Six trucks scheduled to leave for toll milling partner Nicola Mining this week.
  • Shipment volumes expected to double starting next week.
  • Additional mining faces expected to come online by month-end to support a steady production and delivery cadence.
• Consulting Engagement: Mining consultant Tom Rannelli of TK Mining and Construction was on-site last week to work with the site team on optimizing development and enhancing underground productivity.
• Strategic Context: The company is moving into a "higher-throughput phase" following the granting of a full mining permit in February 2025.
• Future Plans: Plans to reinvest internally generated cash flow into near-mine and regional exploration beginning 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 mineral resources, carrying increased uncertainty and risk.

Notable Quotes

• "As we move into a higher-throughput phase of operations, we are bringing in experienced underground specialists to help refine mine planning and execution. These orderly steps are already translating into increased productivity across multiple faces and are positioning Dome Mountain for a consistent and sustainable production profile." — Rana Vig, President and CEO