Blue Lagoon nears final commissioning at Dome Mountain

Executive Summary

• Blue Lagoon Resources is nearing the final commissioning of its Moving Bed Biofilm Reactor (MBBR) water treatment system at the Dome Mountain gold project, which is the final prerequisite for commencing blasting and mining operations.
• The company expects the MBBR to be fully activated within 7–10 days, after which drilling and blasting will begin immediately at the rollover and incline.
• To support the transition to production, the company has appointed two key operational leaders: an Underground Mine Supervisor and an Environmental Manager.

Key Details

• MBBR Commissioning Status: The moving bed biofilm reactor water treatment system is in the final stages of commissioning; full activation is expected within the next 7 to 10 days.
• Mining Timeline: Blasting and drilling are scheduled to commence immediately following MBBR commissioning at both the rollover and the incline (development work).
• Underground Preparation Activities: Work commenced this week to ensure operational readiness, including:
  • Establishing emergency egress exit points and securing ladders.
  • Conducting bolt testing on approximately 10% of bolting per the ground control management plan.
  • Re-establishing the ventilation system (moving/wiring fans and ducts).
  • Clearing and fortifying underground magazine storage units and purchasing explosives.
  • Moving small waste piles to improve efficiency.
  • Cleaning the underground sump.
  • Drilling at the rollover to establish the first exposed ore face.
• Management Appointments:
  • Michael Kendall (Underground Mine Supervisor): Brings 30+ years of experience, including roles at Eskay Creek, Rice Lake, Myra Falls, Red Chris, and Minto. Former underground mine manager at Fortis Mining and supervisor at Barminco. Recognized mine rescue captain.
  • Dr. Francis Salifu (Environmental Manager): Holds a PhD in environmental science with 15+ years of experience. Formerly with Conuma Resources, PwC, and the Alberta Energy Regulator. Expertise in ML/ARD mitigation, water quality modeling, and biochemical reactor systems.
• Production Outlook: The company targets the third quarter of 2025 as the start of gold production. The production decision is based on existing infrastructure, past bulk sampling, and established mineral resources, rather than a completed feasibility study.

Notable Quotes

• "We are now extremely close to begin mining... The MBBR commissioning at Dome Mountain is the last remaining step before blasting can commence, and our crews are already underground preparing for operations. We expect to transition quickly into production and near-term cash flow once the system is on-line." — Rana Vig, President and CEO
• "As we prepare for mining and near-term cash flow, building the right team is critical... These hires reinforce our commitment to safety, environmental stewardship and efficient execution at Dome Mountain." — Rana Vig, President and CEO