Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) has officially attained commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, the company announced. The milestone was declared after the company maintained underground mining rates exceeding an average of 100 tonnes per day for more than 30 consecutive days, surpassing the industry threshold for commercial production status. Under its current mining permit, Dome Mountain is allowed to mine up to 55,000 tonnes annually, with commercial production generally recognized at 60% of permitted throughput, or approximately 90 tonnes per day.
This achievement marks a transformational moment for Blue Lagoon as it transitions from a development-stage company to a producing gold company. Dome Mountain is now among a very small number of newly permitted mining projects in British Columbia to successfully move into active production in recent years. The company’s next target is consistent production of 150 tonnes per day.
In further validation, Blue Lagoon announced that its offtake partner, Ocean Partners Holdings Ltd., is making a strategic equity investment of C$3 million at C$0.90 per common share, equal to the closing market price on May 15, 2026, with no discount and no warrants. The investment aligns Ocean Partners’ interests with Blue Lagoon and its shareholders. Blue Lagoon’s milling partner, Nicola Mining Inc., already holds an equity position and previously provided a C$2 million unsecured line of credit, which remains undrawn.
“This is a defining milestone for Blue Lagoon,” said Rana Vig, President and CEO. “Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation. To reach this point in British Columbia – one of the most challenging permitting jurisdictions in the world – is a major accomplishment.” Vig added that Ocean Partners’ decision to become an equity shareholder at market price without warrant incentive reflects confidence in the project’s quality and the company’s long-term potential.
The company reports a strong treasury, ongoing cash flow from gold and silver concentrate sales, approximately C$2.5 million in in-the-money warrants, and access to the C$2 million undrawn line of credit. This financial foundation positions Blue Lagoon to continue ramping up production and advancing exploration at Dome Mountain.
Operationally, underground mining is progressing with two crews operating concurrently, and additional equipment has arrived to boost productivity. Regular shipments are being made to Nicola Mining’s Merritt Mill under a toll milling agreement, with invoices submitted to Ocean Partners for gold and silver sales. The water treatment facility is performing well, and the site is managing seasonal snow melt while remaining in full compliance with environmental permits. Infrastructure upgrades are underway to support the expanded crew and prepare for drilling crews anticipated in Q3 2026.
The company’s production decision is not based on a feasibility study of mineral reserves, but on existing infrastructure, past bulk sampling, and established mineral resources. The company acknowledges increased uncertainty and higher risk of failure when production is undertaken without a feasibility study.
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