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 initiating active mining operations at one of only nine mining projects in British Columbia to receive a mining permit since 2015.

The start of mining operations represents the culmination of years of development work and positions Blue Lagoon to generate near-term cash flow while continuing to explore the property's district-scale potential. Company President and CEO Rana Vig characterized the event as historic for both the company and its stakeholders, emphasizing that this achievement positions the company to advance without further dilution to shareholders.

Initial underground development and blasting activities will focus on accessing high-grade zones that were previously defined through extensive drilling and sampling programs. The company has established an efficient pathway to revenue generation through its toll milling agreement with Nicola Mining Inc., which will process the mined material into gold concentrate for immediate sale.

This mining commencement follows the recent commissioning of Dome Mountain's advanced Water Treatment Plant, which was built to exceed regulatory discharge standards with a capacity of 400 liters per minute - more than six times the currently required volume. The combined operational readiness of both mining infrastructure and environmental management systems demonstrates Blue Lagoon's comprehensive approach to responsible mine development.

The Dome Mountain project operates under a full mining permit granted in February 2025, placing it among a select group of mining operations to receive such approval in British Columbia in the past decade. The company's production decision is based on existing mining infrastructure, past bulk sampling results, and established mineral resources rather than a formal feasibility study, which introduces additional operational uncertainty but allows for accelerated development timeline.

For the regional economy and mining sector, the commencement of operations at Dome Mountain represents significant investment in British Columbia's resource industry. The project's advancement contributes to local employment and economic activity while demonstrating continued confidence in the province's mining jurisdiction. The successful transition to active mining also validates Blue Lagoon's development strategy and operational capabilities.

The company's progress at Dome Mountain occurs within the context of evolving gold markets and increasing focus on responsible mining practices. Blue Lagoon's emphasis on environmental management through its water treatment infrastructure and commitment to generating cash flow without additional shareholder dilution positions it strategically within the junior mining sector. The operational milestone signals potential for sustained development and resource expansion at the property.