Blue Lagoon Resources Commences Underground Mining Operations at Dome Mountain Gold Project

Blue Lagoon Resources Inc. has achieved a major operational milestone with the commencement of underground mining activities at its Dome Mountain Gold Project near Smithers, British Columbia. The company received its first delivery of blasting material on site and completed its initial underground blast, officially transitioning the project into active mining operations.

This development represents one of only nine mining projects in British Columbia to receive a mining permit since 2015, highlighting the significance of this achievement within the province's mining sector. Rana Vig, President and CEO of Blue Lagoon Resources, described the event as historic for the company and its stakeholders, noting that it culminates years of collaborative work with partners and local communities.

The commencement of mining operations positions Blue Lagoon to generate near-term cash flow while continuing exploration of what the company describes as Dome Mountain's district-scale potential. This operational start occurs without requiring further dilution to shareholders, according to company statements. Initial underground development will focus on accessing high-grade zones previously identified through drilling and sampling activities.

Mined material will be transported to Nicola Mining Inc. under an existing toll milling agreement, providing an efficient pathway to gold concentrate sales. This strategic partnership ensures quick processing turnaround as the company moves toward revenue generation. The mining commencement follows recent commissioning of Dome Mountain's water treatment plant, which meets all regulatory discharge standards and can treat up to 400 liters per minute—more than six times current required capacity.

Blue Lagoon Resources acknowledges that its production decision is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Instead, the decision relies on existing mining infrastructure, past bulk sampling and processing activity, and established mineral resources. The company recognizes this approach carries increased uncertainty and higher risk of failure compared to projects proceeding after completed feasibility studies.

The Dome Mountain Gold Project operates within what the company describes as a prime mining jurisdiction in British Columbia. With the full mining permit granted in February 2025, Blue Lagoon's primary objective remains becoming a cash-flowing mining company that delivers tangible value to shareholders and local communities. The company's leadership emphasizes safe and secure mine opening procedures as gold production begins.

For additional information about the company's operations and regulatory filings, investors can access corporate documents through the Canadian Securities Exchange website at https://thecse.com. The company's forward-looking statements caution that actual results may differ materially from projections due to factors including exploration results, precious metal price volatility, development delays, financing availability, and general economic conditions.