Blue Lagoon Resources Inc. continues to advance underground production at its 100%-owned Dome Mountain Gold & Silver Project as its milling partner, Nicola Mining Inc., begins to shift its milling focus exclusively to the company's high-grade gold and silver mineralized material. With no further third-party processing obligations, Nicola will now dedicate its milling capacity to material delivered from Dome Mountain, providing a more streamlined processing path as Blue Lagoon advances underground operations under its existing long-term milling agreement.
This operational shift comes as Blue Lagoon has already received a payment of nearly $1 million for its initial 1,000 tonnes delivered to Nicola in December and is continuing to build its stockpile, reflecting increasing underground output following the recent opening of multiple active mining faces. In addition to the initial 1,000 tonnes, the company expects that by the end of this week approximately 1,500 additional tonnes of high-grade mineralized material will have been delivered to Nicola, bringing the total material shipped to approximately 2,500 tonnes.
These developments are occurring against a strengthening gold and silver price environment, with spot gold prices recently surpassing US$5,500 per ounce and silver trading over US$115 per ounce. While the company remains focused on disciplined execution and operational consistency, management believes the current gold and silver price backdrop enhances the leverage of near-term production as Dome Mountain continues to ramp up.
"Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner," said Rana Vig, President and CEO of Blue Lagoon Resources. "Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations. This steady progress positions the company well as gold and silver prices continue to soar."
The exclusive milling arrangement represents a significant operational milestone for Blue Lagoon, eliminating potential processing bottlenecks and creating a more efficient supply chain for its Dome Mountain production. The company's production decision at Dome Mountain is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource, rather than a feasibility study of mineral reserves demonstrating economic and technical viability.
Blue Lagoon will continue to provide updates as underground development advances, additional material is delivered for processing, and production activities progress at Dome Mountain. The company's operational progress can be followed through its regulatory filings and announcements available on the Canadian Securities Exchange website at https://thecse.com.
