Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) announced Tuesday that it has officially attained commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, and secured a C$3 million strategic equity investment from its offtake partner, Ocean Partners Holdings Ltd.
Commercial production was declared after the company maintained underground mining rates exceeding an average of 100 tonnes per day for more than 30 consecutive days, surpassing the industry threshold of 60% of permitted throughput. Dome Mountain is permitted to mine up to 55,000 tonnes annually, with commercial production recognized at approximately 90 tonnes per day. The achievement marks Blue Lagoon’s transition from a development-stage company to a producing gold miner, joining a small number of newly permitted mining projects in British Columbia to successfully enter active production in recent years.
Ocean Partners’ equity investment of C$3 million is priced at C$0.90 per common share, equal to the closing market price on May 15, 2026, with no discount and no warrants attached. The investment aligns Ocean Partners’ interests with those of Blue Lagoon and its shareholders, complementing the existing equity stake held by milling partner Nicola Mining Inc., which also provided a C$2 million unsecured line of credit that remains undrawn. The three parties now have aligned incentives across the full value chain from mine to mill to market.
“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. To reach this point in British Columbia – one of the most challenging permitting jurisdictions in the world – is a major accomplishment for our team.”
Mr. Vig added: “Equally significant is Ocean Partners’ decision to become an equity shareholder in Blue Lagoon through a substantial investment to be completed 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, our operational progress, and the long-term potential of the Company.”
Operationally, Blue Lagoon’s two underground crews are now working concurrently, with mine development and mineralized material extraction advancing in parallel. Additional equipment has arrived on site, and regular shipments are being made to Nicola Mining’s Merritt Mill under a toll milling agreement. The water treatment facility is performing well, and the company is in full compliance with environmental permits. Infrastructure upgrades are underway to support the expanded crew and prepare for drilling crews anticipated in Q3 2026.
Blue Lagoon has a strong treasury, 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 C$2 million line of credit. The company believes this positions it for continued ramp-up to its next milestone of consistent production at 150 tonnes per day, as well as near-mine and regional exploration funded by internally generated cash flow starting in the second half of 2026.
The company has not based its production decision on a feasibility study of mineral reserves, noting increased uncertainty and higher risk of failure when production is undertaken in advance of such a study.
