Blue Lagoon Resources Advances Underground Mining at Dome Mountain Amid Record Gold Prices

Blue Lagoon Resources Inc. has entered the second week of underground mining operations at its fully permitted Dome Mountain Gold Project near Smithers, British Columbia. This development milestone coincides with one of the strongest gold price environments in history, creating optimal conditions for the company's transition from development to production.

The initiation of underground operations represents a significant strategic advancement for Blue Lagoon, occurring as gold prices reach unprecedented levels and global investor interest in precious metals intensifies. Company President and CEO Rana Vig emphasized the importance of timing in the mining industry, noting that with underground mining now underway and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment.

In the coming weeks, mined mineralized material will be transported under the company's milling agreement with Nicola Mining Inc., providing a fully permitted and capital-efficient pathway to gold concentrate sales once shipments commence. The agreement was recently extended to a 10-year term, further strengthening the long-term partnership between the two companies as detailed in the September 29, 2025 news release available at https://www.bluelagoonresources.com/news.

The current market backdrop strongly supports Blue Lagoon's operational timing. As reported by Reuters on October 8, 2025 in the article "Gold set to extend record-breaking run on global anxieties" by Polina Devitt, spot gold broke above US$4,000 per ounce. Analysts cited persistent geopolitical and economic risks, continued central-bank purchases, and robust investor demand as factors that leave little to halt gold's record-breaking run into 2026, with other precious metals also benefiting from the momentum.

This favorable market environment positions Blue Lagoon to translate current conditions into efficient operations and disciplined progress toward cash flow generation. The company's strategy focuses on increasing shareholder value without further dilution, leveraging the combination of operational readiness and exceptional market timing. The Dome Mountain Gold Project achieved a significant regulatory milestone in February 2025 with the granting of a full mining permit, one of only nine issued in British Columbia since 2015.

The commencement of underground mining operations represents the culmination of extensive development work and strategic planning. With first gold sales targeted for the fourth quarter of 2025, the company is positioned to begin generating revenue during what analysts project to be a sustained period of strong precious metal prices. Beginning in the first half of 2026, Blue Lagoon plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base.

The convergence of operational milestones with record market conditions creates a unique opportunity for Blue Lagoon to establish itself as a cash-flowing gold producer. The company's approach combines responsible mining practices with strategic market positioning, aiming to create lasting value for shareholders while operating in one of the world's most attractive mining jurisdictions.