Blue Lagoon continues Dome Mountain gold mining

Executive Summary

• Blue Lagoon Resources began the second week of underground mining at its fully permitted Dome Mountain gold project, marking the transition from development to production.
• The timing coincides with record‑high gold prices (spot > $4,000/oz) and a 10‑year extension of the toll‑milling agreement with Nicola Mining, positioning the company for near‑term gold concentrate sales.
• Management emphasizes that the project is moving forward without a formal feasibility study, relying on existing infrastructure, bulk sampling results, and the established mineral resource to generate cash flow and reinvest in exploration.

Key Details

• Underground mining at Dome Mountain entered its second week as of early October 2025.
• The start of underground operations follows receipt of a full mining permit in February 2025 – one of only nine such permits issued in BC since 2015.
• A toll‑milling agreement with Nicola Mining Inc. has been extended to a 10‑year term, providing a capital‑efficient path to gold concentrate sales once shipments begin (first sales targeted for Q4 2025).
• Spot gold price broke above $4,000 per ounce on Oct 8 2025, creating a favorable market backdrop for the project’s production ramp‑up.
• Management expects cash‑flow generation from underground mining to fund internal exploration in H1 2026, aiming to expand the resource base.
• The production decision was made without a formal feasibility study, based on existing infrastructure, past bulk sampling and processing data, and the current mineral resource estimate.

Notable Quotes

“Timing in the mining business is everything… With underground mining now under way and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment.” – Rana Vig, President & CEO

“This is a favourable environment, and, while we don't control the gold price, we can control readiness and execution… our goal is to translate this backdrop into efficient operations and disciplined progress toward cash flow.” – Rana Vig