Blue Lagoon Resources Delivers Initial Mineralized Material, Processing to Begin This Week

Blue Lagoon Resources Inc. has delivered its initial 1,000 tonnes of mineralized material from its Dome Mountain gold mine to its milling partner, Nicola Mining, with processing expected to begin by the end of this week. This delivery represents a significant operational milestone in the company's transition from a pre-revenue entity to a revenue-generating gold producer, occurring within a historically strong gold market.

The commencement of processing is a pivotal step for Blue Lagoon as it moves toward generating revenue from gold production. President and CEO Rana Vig stated that delivering the initial tonnage marks a key de-risking milestone and sets the stage for processing to begin. With Dome Mountain advancing into this next phase, management's near-term priority is consistent execution—delivering mineralized material, supporting steady processing, and progressing through the early production cycle in a disciplined manner.

This development is important because it demonstrates tangible progress in the company's operational timeline, reducing uncertainty for investors and stakeholders. The transition to production has significant implications for the local economy in British Columbia and contributes to North American gold supply. The company's ability to begin processing material and target first gold sales for Q4 2025 could position it as a new cash-flowing producer in a sector where operational execution is critical to valuation.

In addition to the delivery milestone, Blue Lagoon has signed a lease for a new facility that will host its own assay laboratory, with equipment procurement already commenced. Establishing an in-house assay lab is expected to shorten assay times and provide quick, accurate information to the underground team to accelerate mining decisions. This operational enhancement could improve efficiency and decision-making as production ramps up.

The company has been focused on advancing underground development and the mine-to-mill workflow, including mineralized material handling, logistics, stockpile management, and coordinating delivery schedules. As milling begins, Blue Lagoon expects to provide the market with additional updates on operational progress, including ongoing deliveries, processing timelines, and other milestones related to the ramp-up phase. The company operates under a long-term toll milling agreement with Nicola Mining, with mineralized material from Dome Mountain being processed at their facility.

It's important to note that Blue Lagoon is not basing its production decision at Dome Mountain on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource. The company acknowledges there is increased uncertainty and consequently a higher risk of failure when production is undertaken in advance of a feasibility study. Readers can view the original release on www.newmediawire.com.

The broader impact of this development extends to the mining industry in British Columbia, where Blue Lagoon operates in what it describes as one of the world's most attractive mining jurisdictions. The company achieved a major milestone in February 2025 with the granting of a full mining permit—one of only nine issued in British Columbia since 2015—and has since commenced underground mining operations. Beginning in the first half of 2026, the company plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base.