Blue Lagoon Resources Inc. has announced significant operational progress through its milling partnership with Nicola Mining Inc., which has processed approximately 2,954 dry tonnes of high-grade mineralized material from the Dome Mountain underground mine. The material, processed at Nicola's facility in Merritt, B.C., achieved a weighted average feed grade of 9.7 grams per tonne gold and approximately 35.6 grams per tonne silver, resulting in the production of over 210 dry tonnes of gold and silver flotation concentrate.
The importance of this development lies in the exceptional 93.4% gold recovery rate achieved through Nicola's flotation mill, demonstrating efficient extraction from the Dome Mountain material. This high recovery percentage translates directly to economic viability and reduced waste, making the operation more sustainable and profitable. The concentrate produced is being prepared for sale and shipment to Ocean Partners, establishing a revenue stream for Blue Lagoon Resources as it builds operational momentum.
As of March 17, 2026, an estimated 1,828 tonnes of unprocessed mineralized material remains on stockpiles at the Nicola facility, ensuring continued production in the coming weeks. The mill has recently commissioned its second concentrate filter, with a second concentrate thickener expected to become operational shortly. These infrastructure improvements will enhance concentrate handling capacity and increase plant operating time, potentially boosting future production efficiency.
Rana Vig, President and CEO of Blue Lagoon Resources, stated that the company is encouraged by the consistent production results and excellent gold recovery. With nearly 3,000 tonnes now processed, Blue Lagoon continues to build cash flow, supported by the remaining stockpile at the mill and ongoing trucking from Dome Mountain. The company anticipates providing further updates as shipments are completed to Ocean Partners, whose website can be found at https://www.oceanpartnersuk.com.
The scientific and technical data in the announcement was approved by Ted VanderWart, P.Geo., a qualified person as defined in NI 43-101. All tonnage and grade figures were provided to Blue Lagoon by Nicola Mining Inc., with concentrate assays completed at Base Met Labs, an accredited metallurgical testing facility in Kamloops, B.C. The original release containing this information was published on https://www.newmediawire.com.
This operational update matters because it demonstrates Blue Lagoon's transition from development to consistent production, with the Dome Mountain mine generating tangible output and revenue. The high recovery rates and continued material supply suggest operational stability in a challenging mining environment. For investors and the mining industry, these results validate the company's production decision and milling partnership approach, while contributing to British Columbia's mining sector activity and economic output.
