Blue Lagoon is poised for production at B.C. gold mine
Blue Lagoon Resources Inc. [BLLG-CSE, BLAGF-OTCQB, 7BL-FSE] has released a corporate update highlighting significant progress at its Dome Mountain Project in British Columbia as it prepares to enter production in a strong gold market.
“We are fully funded, fully permitted and now entering the final stages of mine readiness – with no short-term debt, multiple successful government inspections, and a water treatment plant that has now been completed,’’ said Blue Lagoon President and CEO Rana Vig. “The confidence shown by our institutional investors, along with new strategic backing and the recently signed $2.0 million line of credit – not secured against our property – from Nicola Mining, gives us the flexibility to fund mining and development without delay,” Vig said. “We’re ready – and we’re moving towards cash flow.’’
On Monday, Blue Lagoon shares advanced on the news, rising 2.78% or $0.02 to 74 cents. The shares trade in a 52-week range of 87 cents and $0.08.
The Dome Mountain Gold Project is an all-year road accessible project located within a 50-minute drive from Smithers, B.C. The 100%-owned titles cover an area of approximately 22,000 hectares, highly fertile for both gold and porphyry mineralization, the company has said.
The historical Dome Mountain Gold Mine is located in the southern part of the property and has seen past portal/adit development and sporadic gold production from the Boulder Vein, which was originally discovered by Noranda in the mid 1985.
As of February, 2024, the mine was fully permitted to re-commence gold production and Blue Lagoon has said it is planning to achieve this transformative milestone in mid-2025. The company has previously said the first mineralized material will come out of the main Mine portal as early as July, 2025.
The mining permit provides for initially up to 55,000 tonnes mined per annum. The company has envisaged estimated recovery of 15,000 ounces of gold annually.
The property has seen more than $80 million spent since discovery by Noranda, inclusive of $30 million plus by Blue Lagoon since acquisition in 2019. The principal zone of high-grade gold-silver mineralization is known as the Boulder Vein System, consisting of Boulder, Boulder East and Argillite veins.
In 2022, an independent mineral resource estimate was prepared by Arseneau Consulting Services over the central part of the Boulder Vein system, showing 45,000 ounces of gold in the measured category at 10.32 g/t, 173,000 ounces of indicated material at 8.15 g/t and 16,000 ounces in the inferred category at 6.02 g/t. The estimate also includes 250,000 ounces of silver in the measured category at 57.31 g/t, 876,000 ounces of silver in the indicated category at 41.19 g/t and 71,000 ounces silver in the inferred category at 26.13 g/t (using a 3.5 g/t gold cut-off that applies to the Boulder vein system only).