Blue Lagoon Resources Inc. has announced that its milling partner, Nicola Mining Inc., has processed approximately 2,954 dry tonnes of high-grade mineralized material from the Dome Mountain underground mine. The material, processed at Nicola's facility in Merritt, B.C., had a weighted average feed grade of 9.7 grams per tonne gold and approximately 35.6 grams per tonne silver.
This processing has yielded over 210 dry tonnes of gold and silver flotation concentrate, which is being prepared for sale and shipment to Ocean Partners. The operation achieved an excellent gold recovery rate of 93.4% in Nicola's flotation mill. Of the 210 tonnes produced, 188 tonnes have been physically bagged, with approximately 22 tonnes currently held in circuit stock tanks as in-process inventory.
The significance of this production milestone extends beyond the immediate financial implications for Blue Lagoon Resources. As of March 17, 2026, an estimated 1,828 tonnes of unprocessed mineralized material remains on stockpiles at the Nicola facility, ensuring continued production in the coming weeks. The company's ability to generate consistent cash flow from operations represents a critical development for a mining company operating without a completed feasibility study.
Rana Vig, President and CEO of Blue Lagoon Resources, stated that the company is encouraged by the consistent production results and excellent gold recovery from Dome Mountain material. With nearly 3,000 tonnes now processed, the company continues to build cash flow. The remaining stockpile at the mill, along with continuing trucking from Dome Mountain, ensures production will continue over the weeks ahead.
The operational update carries broader implications for the mining industry in British Columbia, where Blue Lagoon achieved a significant milestone in February 2025 with the granting of a full mining permit—one of only nine issued in the province since 2015. The company's production decision at Dome Mountain is based on existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource, rather than a completed feasibility study of mineral reserves demonstrating economic and technical viability.
Technical oversight for the project comes from qualified personnel, with the scientific and technical data contained in the news release approved by Ted VanderWart, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the company. All tonnage and grade figures were provided to Blue Lagoon by Nicola Mining Inc., with concentrate assays completed at Base Met Labs, an accredited metallurgical testing facility located in Kamloops, B.C.
The company's operational success comes with acknowledged risks, as detailed in their forward-looking statements available on www.newmediawire.com. These include potential delays in milling or processing, variations in grade and recovery rates, operational risks associated with underground mining, and risks related to third-party milling arrangements. Despite these uncertainties, the current production results demonstrate tangible progress in bringing the Dome Mountain project to operational status.
For the mining sector in British Columbia, successful operations like these contribute to the province's reputation as an attractive mining jurisdiction. Blue Lagoon's plan to reinvest internally generated cash flow into near-mine and regional exploration in the second half of 2026 could potentially expand the resource base on its extensive property, creating longer-term value for stakeholders.
