Blue Lagoon Resources Achieves Commercial Production at Dome Mountain, Secures $3M Equity Investment from Ocean Partners
Blue Lagoon Resources transitions to a producing gold company with commercial production at its Dome Mountain project, supported by a strategic equity investment from offtake partner Ocean Partners, signaling strong confidence in the project's quality and operational progress.
Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) has officially declared commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, marking a pivotal shift from a development-stage company to a producing gold miner. The company announced that underground mining rates have exceeded an average of 100 tonnes per day for more than 30 consecutive days, surpassing the 90-tonne-per-day threshold required for commercial production status under its current permit, which allows up to 55,000 tonnes annually.
This achievement is particularly significant given the challenging permitting environment in British Columbia, where Dome Mountain is among a small number of newly permitted mining projects to successfully enter active production in recent years. The company now sets its sights on consistent production of 150 tonnes per day, signaling further growth ambitions.
In a further validation of the project's potential, 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 share, matching the market price with no discount and no warrants attached. The investment aligns Ocean Partners' interests with those of Blue Lagoon and its shareholders, joining milling partner Nicola Mining Inc., which already holds an equity position and has provided a C$2 million undrawn line of credit.
“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. Equally significant is Ocean Partners’ decision to become an equity shareholder through a substantial investment at market price with no warrant incentive. We believe this speaks volumes about their confidence in the quality of the Dome Mountain project and its mineralized material.”
The company reports a strong financial position, with ongoing cash flow from gold and silver concentrate sales, approximately C$2.5 million in in-the-money warrants outstanding, and access to the undrawn credit line. Operationally, underground mining is progressing with two crews working concurrently, additional equipment delivered, and regular shipments to Nicola Mining's Merritt Mill under the toll milling agreement. The water treatment facility is performing well, and infrastructure upgrades are underway to support expanded operations and prepare for drilling crews anticipated in Q3 2026.
Blue Lagoon's transition to production comes with a risk disclaimer: the company has not based its production decision on a feasibility study of mineral reserves, acknowledging increased uncertainty and higher risk of failure compared to projects with established reserves. Nonetheless, the combination of commercial production and strategic investment underscores the company's momentum in a jurisdiction where new mining permits are rare.