Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) has officially attained commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, the company announced. The milestone was declared after the company maintained underground mining rates exceeding an average of 100 tonnes per day for more than 30 consecutive days, surpassing the industry threshold of approximately 90 tonnes per day, which represents 60% of its permitted annual throughput of 55,000 tonnes.
This achievement transitions Blue Lagoon from a development-stage company to a producing gold company, a significant feat in British Columbia, which is recognized as one of the most challenging permitting jurisdictions globally. Dome Mountain is now among a small number of newly permitted mining projects in the province to successfully enter active production in recent years. The company’s next target is to reach a consistent production rate of 150 tonnes per day.
In a further validation of its strategy, Blue Lagoon announced that its offtake partner, Ocean Partners Holdings Ltd., is making a strategic equity investment of C$3 million at C$0.90 per common share, equal to the closing market price on May 15, 2026, with no discount and no warrants attached. The investment aligns Ocean Partners’ interests with those of Blue Lagoon and its shareholders, joining milling partner Nicola Mining Inc., which already holds an equity position and has provided a C$2 million unsecured line of credit that remains undrawn.
“This is a defining milestone for Blue Lagoon,” said Rana Vig, President and CEO. “Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation. Equally significant is Ocean Partners’ decision to become an equity shareholder at market price with no warrant incentive, reflecting their confidence in the project and our operational progress.”
The company reports a strong treasury, ongoing cash flow from gold and silver concentrate sales, approximately C$2.5 million in in-the-money warrants outstanding, and access to the undrawn credit line. This financial foundation supports continued ramp-up and exploration at Dome Mountain. Operationally, two underground crews are now working concurrently, with mine development and extraction advancing in parallel. Additional equipment has arrived on site, and regular shipments are being made to Nicola Mining’s Merritt Mill under the toll milling agreement, with invoices submitted to Ocean Partners for metal sales.
The Dome Mountain water treatment facility is performing well, and the site is managing seasonal snow melt while remaining in full compliance with environmental permit requirements. Infrastructure upgrades are underway to support the expanded crew and to prepare for drilling crews expected to arrive in Q3 2026. The company’s objective is to become a profitable, cash-flowing gold producer while creating value for shareholders and stakeholders.
The company cautions that its production decision at Dome Mountain was not based on a feasibility study of mineral reserves, but on existing mining infrastructure, past bulk sampling, and established mineral resources, which carries increased uncertainty and risk of failure. For more information, the original press release is available at NewMediaWire.
