Blue Lagoon receives blasting material a Dome Mountain

Executive Summary

• Blue Lagoon Resources Inc. has officially commenced active underground mining operations at its Dome Mountain gold project in British Columbia, marking a major transition to production.
• The company received its first delivery of blasting material and successfully completed its first underground blast, signaling the start of active mining activities.
• Mined material will be transported to Nicola Mining Inc. under a toll milling agreement to facilitate gold concentrate sales and generate near-term cash flow without further dilution.

Key Details

• Milestone Achieved: First delivery of blasting material received on site and first underground blast completed.
• Project Status: Official commencement of mining activities at Dome Mountain, one of only nine mining projects in British Columbia to receive a mining permit since 2015.
• Operational Strategy: Underground development and blasting will initially focus on accessing high-grade zones previously defined by drilling and sampling.
• Processing Agreement: Mined material will be transported to Nicola Mining Inc. under a toll milling agreement for efficient path to gold concentrate sales.
• Infrastructure Update: Recent commissioning of a state-of-the-art water treatment plant capable of treating up to 400 litres per minute, exceeding current required capacity by more than six times.
• Financial Outlook: The company aims to generate near-term cash flow while continuing to explore district-scale potential without further dilution.
• Permit History: Full mining permit granted in February 2025.

Notable Quotes

• "Today is a historic day for Blue Lagoon and all of our stakeholders," said Rana Vig, president and chief executive officer of Blue Lagoon Resources.
• "With the arrival of our first blasting material, and the successful completion of our first underground blast, mining at Dome Mountain has officially begun. This milestone is the culmination of years of hard work by our team, our partners and the local communities, and it positions us to generate near-term cash flow while continuing to explore Dome Mountain's district-scale potential, all without further dilution."