Blue Lagoon Resources Inc. continues to advance underground production at its Dome Mountain Gold & Silver Project as milling partner Nicola Mining Inc. shifts its milling focus exclusively to the company's high-grade gold and silver mineralized material. This transition eliminates third-party processing obligations and provides a more streamlined processing path as Blue Lagoon advances underground operations under its existing long-term milling agreement.
The operational significance of this exclusive arrangement lies in its timing and market context. Gold prices recently surpassed US$5,500 per ounce while silver traded over US$115 per ounce, creating favorable conditions for near-term production. Management believes this price environment enhances the leverage of Dome Mountain's increasing output as the project continues its operational ramp-up.
Blue Lagoon has already received a payment of nearly $1 million for its initial 1,000 tonnes delivered to Nicola in December and is building its stockpile with increasing underground output. The company expects approximately 1,500 additional tonnes will have been delivered by the end of this week, bringing total material shipped to approximately 2,500 tonnes. This steady progress occurs following the recent opening of multiple active mining faces at the underground operation.
"Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner," said Rana Vig, President and CEO of Blue Lagoon Resources. "Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations."
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 H1 2026, Blue Lagoon plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base.
This development matters because it represents a consolidation of processing capacity during a period of historically high precious metal prices. The exclusive milling arrangement reduces operational complexity and potential bottlenecks, allowing Blue Lagoon to focus on production scaling while Nicola dedicates its entire processing capacity to Dome Mountain material. For investors and industry observers, this signals operational maturity and the transition from development to sustained production.
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 feasibility study of mineral reserves demonstrating economic and technical viability. This approach carries increased uncertainty and consequently a higher risk of failure when production is undertaken in advance of a feasibility study.
Blue Lagoon will continue to provide updates as underground development advances, additional material is delivered for processing, and production activities progress at Dome Mountain. The original release can be viewed on www.newmediawire.com.
