Blue Lagoon partner Nicola shifts focus to Dome Mtn

The most recent news (January 29, 2026) confirms that Nicola Mining’s milling partner, Blue Lagoon Resources, has shifted its focus exclusively to Nicola’s Merritt mill for processing gold and silver mineralized material from the Dome Mountain project. Nicola received an initial payment of approximately $1.0 million for the first 1,000 tonnes delivered in December 2024. Total deliveries are expected to reach 2,500 tonnes by the end of the current week. This follows the closing of a $4.96 million private placement (January 22, 2026) intended to expand mill capacity to 500 tonnes per day (tpd).

This news is Material - Positive for several reasons: - Revenue Validation: The $1M payment for 1,000 tonnes indicates a high-value feedstock. For a company that reported only $631,921 in milling revenue for the first nine months of 2025, a single $1M payment represents a significant step-change in cash flow. - Strategic Focus: By shifting to "exclusive" focus on Blue Lagoon material, Nicola is securing a steady, high-grade pipeline for its mill, reducing the operational complexity of handling multiple small-batch third-party contracts (like the recently terminated Talisker agreement). - Expansion Readiness: The $4.96M financing closed just days prior provides the necessary capital to upgrade the mill from its current ~200 tpd toward 500 tpd, allowing Nicola to process Blue Lagoon’s material more efficiently and at a lower unit cost. - Macro Alignment: The operations are ramping up during a period of record gold (referenced at $5,500 USD/oz) and silver ($115 USD/oz) prices, significantly enhancing the economics of the partnership.

Nicola Mining is a junior mining company that operates a unique business model centered on the Merritt Mill (Craigmont Mill) in British Columbia. It is the only facility in B.C. permitted to process third-party gold and silver mill feed from across the province. - Flagship Asset: The 100%-owned Merritt Mill and the New Craigmont Copper Project. - Secondary Assets: Treasure Mountain (Permitted Silver Mine) and Dominion Creek (75% interest, Gold/Silver bulk sample). - Diversified Income: The company also operates a gravel pit and cement ready-mix plant which provides auxiliary revenue.