Blue Lagoon Resources
Nicola continues to work closely with BlueLagoon Resources ("Blue Lagoon") and has participated in all tranches of the latter's recent private placement. In a previous capital round, BlueLagoon announced that Nicola had subscribed for 7,142,857 shares. The Company will participate in Blue Lagoon's official opening of the latter's Dome Mountain Mine on July 9th, 2025, and is completing final preparations to accept Dome's high-grade gold / silver ore, thereafter.
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streetwisereports.com
Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB) is finishing preparations for the start of full-scale underground gold production at its Dome Mountain gold project in British Columbia, which could happen as early as July, Chief Executive Officer Rana Vig told the Ellis Martin Report in a recent radio interview. Some infrastructure still needs to be completed, such as the water treatment plant, as well as some staffing and getting the equipment ready.
"We are among just seven companies in the last decade to receive a full mining permit for a metallic mine in British Columbia," said Vig. "That alone puts us in elite company, and now we're ready to produce." Vig is a veteran entrepreneur with 35-plus years of business leadership experience, including successful financings for and exits from resource and cannabis ventures.
Blue Lagoon's plan for the Dome Mountain mining operation is to process initially 55,000 tons (55 Kt) per year for recovery of 15,000 ounces of gold annually then ramp up. The strong grades, averaging 9 grams per ton, and 95% recovery, are expected to generate robust margins once production begins, the Ellis Martin Report wrote in a release. Further, Blue Lagoon is commencing production during a bullish gold market.
"This was five years in the making, and the timing couldn't be better," Vig said. "The stock is already one of the top performers in 2025, and we're just getting started."
According to Blue Lagoon's Corporate Presentation, the company is targeting first gold sales in August. It has a long-term milling profit share agreement in place with Nicola Mining Inc. (NIM:TSX.V; HUSIF:OTCQB; HLIA:FSE) for up to 75 Kt of mill feed per year mined from Dome Mountain. Also, Blue Lagoon has an offtake agreement with Ocean Partners USA Inc. for it to purchase concentrate from the Vancouver-based miner.
Blue Lagoon's existing gold resource is 218,000 ounces, all from a single vein. In addition, there are 15 other known high-grade gold veins, and 90% of the 21,541-hectare property remains unexplored. Mineralization in the Boulder vein system still is open in all directions. Already the company has made additional discoveries through drilling and plans to drill further, funded solely by cash flow on the horizon.
"Our initial mine plan is based on the current resource, but the upside here is extraordinary," said Vig.
Blue Lagoon won top honors at a "Shark Tank"-style pitch event during the recent 121 Mining Conference in New York City, the Ellis Martin Report noted. Vying against copper, gold and uranium exploration-stage companies, Blue Lagoon stood out as the only near-term producer, and thus, garnered attention from investors looking for cash-generating projects.
"People are tired of dilution-heavy stories," Ellis Martin said during the broadcast. "When I was asked which company was about to produce gold, Blue Lagoon was my first recommendation."
Vig founded Blue Lagoon in 2019 with the goal of building a profitable mining company, noted the Ellis Martin Report. He reviewed more than 200 projects before singling out Dome Mountain as being well-positioned for near-term production and long-term growth.
In April, Blue Lagoon completed the final and fourth tranche of its private placement, generating total gross proceeds of about CA$4.87 million (CA$4.87M), Streetwise Reports reported. The final tranche was subscribed for entirely by existing shareholders and strategic investors, including Crescat Capital and Nicola Mining. |
