Blue Lagoon Resources Inc. has announced a significant operational milestone through its milling partner 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 concentrate production represents a substantial achievement for Blue Lagoon, with excellent gold recovery of 93.4% achieved in Nicola's flotation mill. The 210 dry tonnes of concentrate produced to date consists of 188 physically bagged tonnes, with approximately 22 additional tonnes currently held in circuit stock tanks as in-process inventory. This concentrate is prepared for sale and shipment to Ocean Partners, marking a crucial step in the company's revenue generation process.
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 enhancements are designed to improve concentrate handling capacity and increase plant operating time, potentially leading to greater production efficiency.
Rana Vig, President and CEO of Blue Lagoon Resources, expressed encouragement about the consistent production results and excellent gold recovery from the Dome Mountain material. Vig noted that with nearly 3,000 tonnes now processed, the company continues to build cash flow, and the remaining stockpile at the mill, along with continuing trucking from Dome Mountain, ensures production will continue in the weeks ahead. The company plans to reinvest internally generated cash flow into near-mine and regional exploration in the second half of 2026 to further expand its resource base.
The scientific and technical data contained in the announcement was approved by Ted VanderWart, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the company. 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 located in Kamloops, B.C. Blue Lagoon operates its 100% owned Dome Mountain Gold Mine near Smithers, British Columbia, and achieved a significant milestone in February 2025 with the granting of a full mining permit, one of only nine issued in British Columbia since 2015.
The 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. The company acknowledges increased uncertainty and consequently higher risk of failure when production is undertaken in advance of a feasibility study. The announcement contains forward-looking information regarding ongoing and future milling operations, concentrate production and shipments, expected operational performance and recoveries, and the expectation of consistent operational cash flow, all subject to various risks and uncertainties outlined in the original release available at https://www.newmediawire.com.
