Blue Lagoon Advances Underground Mining at Dome Mountain Amid Record Gold Prices

Blue Lagoon Resources Inc. has entered its second week of underground mining operations at the fully permitted Dome Mountain Gold Project near Smithers, British Columbia, as gold prices reach unprecedented levels. The transition from development to production comes at what company leadership describes as an optimal market moment, with spot gold breaking above US$4,000 per ounce according to recent market reports.

Rana Vig, President and CEO of Blue Lagoon Resources, emphasized the significance of timing in the mining industry. "With underground mining now underway and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment," Vig stated. "Our strategy has always been to move Dome Mountain into production efficiently and responsibly - and today, those efforts are aligning with market conditions."

The company's operations are unfolding against a backdrop of robust precious metals demand driven by multiple global factors. As reported by Reuters on October 8, 2025, in the article "Gold set to extend record-breaking run on global anxieties" by Polina Devitt, persistent geopolitical and economic risks, continued central-bank purchases, and strong investor demand have created conditions that analysts believe will sustain gold's record-breaking performance into 2026.

Blue Lagoon has established a capital-efficient path to production through its milling agreement with Nicola Mining Inc., recently extended to a 10-year term. In the coming weeks, mined mineralized material will be transported under this agreement, providing a fully permitted route to gold concentrate sales once shipments begin. This partnership eliminates the need for Blue Lagoon to construct its own processing facility, significantly reducing capital requirements.

The company's production decision at Dome Mountain is based on existing mining infrastructure, past bulk sampling and processing activity, and established mineral resources rather than a formal feasibility study. This approach carries increased uncertainty but allows for faster entry into production during favorable market conditions.

"This is a favourable environment, and while we don't control the gold price, we can control readiness and execution," added Vig. "Our goal is to translate this backdrop into efficient operations and disciplined progress toward cash flow thereby increasing shareholder value without further dilution."

The timing of Blue Lagoon's production commencement holds significance for both the company and the broader mining sector. With gold maintaining its position as a safe-haven asset during periods of global uncertainty, the ability to bring new production online during price peaks can substantially impact company valuation and investor returns. The Dome Mountain project's advancement also demonstrates the continued viability of British Columbia as a mining jurisdiction, where Blue Lagoon secured one of only nine full mining permits issued since 2015.

As underground operations progress, the company plans to begin reinvesting internally generated cash flow into near-mine and regional exploration starting in the first half of 2026, aiming to expand its resource base while maintaining production. The combination of operational execution during strong market conditions and planned exploration expansion represents a strategic approach to building sustainable mining operations in Canada's established mining regions.