Blue Lagoon Resources Delivers Initial Mineralized Material, Processing to Begin This Week

Blue Lagoon Resources Inc. has delivered its initial 1,000 tonnes of mineralized material from its Dome Mountain gold mine to its milling partner, Nicola Mining, with processing expected to begin by the end of this week. This delivery represents a significant operational milestone in the company's transition to production, moving Blue Lagoon closer to becoming a revenue-generating gold producer.

According to President and CEO Rana Vig, this achievement marks a key de-risking milestone for the company. "We are now on the doorsteps of a major transition - from a pre-revenue company to a revenue-generating gold producer, all against the backdrop of a historically strong gold market," Vig stated. The commencement of processing is subject to normal mill scheduling and planned maintenance activities at Nicola Mining's facility.

The company has been advancing underground development and refining its mine-to-mill workflow, including mineralized material handling, logistics, stockpile management, and delivery coordination. As milling operations begin, Blue Lagoon expects to provide additional updates on operational progress, including ongoing deliveries, processing timelines, and other milestones related to the production ramp-up phase.

In a parallel development, Blue Lagoon has signed a lease for a new facility to host its own assay laboratory and has commenced the equipment procurement process. Establishing an in-house assay lab is expected to shorten assay times and provide quicker, more accurate information to the underground mining team, potentially accelerating mining decisions and operational efficiency.

Commencing processing represents a pivotal step for Blue Lagoon as it moves toward generating revenue from gold production. With Dome Mountain advancing into this next phase, management's near-term priority focuses on consistent execution - delivering mineralized material, supporting steady processing, and progressing through the early production cycle in a disciplined manner. The company operates under a long-term toll milling agreement with Nicola Mining, with first gold sales targeted for the fourth quarter of 2025.

This operational progress follows the company's achievement in February 2025 of receiving a full mining permit for Dome Mountain - one of only nine such permits issued in British Columbia since 2015. 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 company notes that its production decision at Dome Mountain is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource.

For additional information about the company's operations and forward-looking statements regarding processing timelines and operational plans, readers can view the original release on www.newmediawire.com.