Blue Lagoon Resources Hits 100 Tonnes Per Day at Dome Mountain Mine, Doubles Crew Toward 150 Tonnes Target
Blue Lagoon Resources achieves a key operational milestone of 100 tonnes per day at its Dome Mountain gold-silver mine, doubles its production crew, and advances toward 150 tonnes per day, while also commissioning its own assay lab to accelerate milling settlements.
Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE:7BL) has announced that its Dome Mountain gold and silver mine near Smithers, British Columbia, has reached a consistent underground production rate of 100 tonnes per day, a key milestone outlined in the company's January operational update. The company also reported it has engaged a second mining contractor, doubling the underground production crew from two to four shifts, and will deploy additional mobile equipment to the site to advance toward the 150 tonnes per day target in the coming weeks.
The milestone reflects the resolution of early-stage commissioning constraints and the establishment of consistent underground production cycles, according to the company. With multiple working spaces now open across the mine, the increased crew capacity and equipment are expected to support the ramp-up to steady-state production.
To date, Blue Lagoon has completed three sales of Dome Mountain gold and silver concentrates to Ocean Partners U.K. Ltd., for a total of approximately US$4.1 million. Additional quantities of mineralized material have been processed by the company's milling partner, Nicola Mining, and are awaiting delivery and final settlement. Approximately 2,000 tonnes of mineralized material is currently stockpiled at the mine site and the Nicola mill site, with regular trucking shipments ongoing.
A significant development is the company's newly built local fire assay laboratory near Smithers, now fully operational. The lab accelerates grade-control assays, supporting mine planning and operational decision-making. It will also conduct mill production and settlement assays for Dome Mountain material processed at Nicola, a function previously performed externally. This improvement is expected to materially reduce the time between milling and final settlement with Ocean Partners.
Blue Lagoon has made additional hires across operations as the company continues to grow its operational team. Planning is underway for an exploration drill program at Dome Mountain, expected to commence in late Q3 2026 and funded from internally generated cash flow. The drilling campaign will include infill drilling and a work program targeting new areas along the property's largely unexplored 18-kilometre strike length. A site infrastructure upgrade plan is also being scoped to support ongoing production alongside an active drill program.
The company also announced the grant of 3,850,000 stock options to certain directors, officers, employees, and consultants, exercisable at $0.77 per share for five years, subject to approval by the Canadian Securities Exchange. Additionally, Blue Lagoon received a $500,000 unsecured, interest-free bridge loan from its President & CEO to support short-term working capital requirements while awaiting concentrates settlement. The loan is due March 20, 2027, and the company will issue 129,870 bonus common shares and 129,870 warrants to the lender at $0.77 per share for two years. The loan constitutes a related party transaction under MI 61-101, and the company is relying on exemptions from formal valuation and minority shareholder approval requirements.
These developments underscore Blue Lagoon's progress in advancing Dome Mountain toward steady-state production, with increased crew capacity, a new assay lab, and exploration plans aimed at expanding the resource base. The company is not basing its production decision on a feasibility study of mineral reserves, and there is increased uncertainty and risk when production is undertaken in advance of such a study.