Blue Lagoon Resources Inc. is advancing its 100%-owned Dome Mountain gold project toward production

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Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB; 7BL:FSE) is advancing its 100%-owned Dome Mountain gold project toward production, following the receipt of a full mining permit in February 2025. The company is targeting an initial annual output of 15,000 ounces of gold and anticipates beginning production in the third quarter of 2025.

The Dome Mountain project, located near Smithers, British Columbia, is one of only nine projects in the province to receive a mining permit since 2015. Blue Lagoon has invested over US$38 million to date, with an additional US$3 million needed to complete a water treatment plant and fund early operational costs. Ore from the site will be toll milled through Nicola Mining’s Merritt Mill, under a profit-sharing agreement.

The current resource includes 218,000 ounces of gold at 9 grams per tonne (g/t) from the Boulder vein, with 15 additional high-grade veins identified on the property. Over 90% of the 22,000-hectare land package remains unexplored. Since 2020, Blue Lagoon has drilled approximately 50,000 meters, with plans to reinvest a portion of future cash flow into both infill and exploration drilling.

A final tranche of private placement financing was announced in April 2025, bringing the total raised to US$4.4 million. The financing was supported by strategic shareholders including Crescat Capital, Nicola Mining, and Phoenix Gold Fund, and will be used primarily to complete construction of the water treatment plant and support the transition into production.

The company’s production plan is centered on processing 55,000 tonnes of ore in the first year, scaling to 75,000 tonnes annually by the second year. Gold recoveries have been reported at 95%, with grades of 9 g/t based on prior bulk sampling.

Analyst Coverage and Outlook

Blue Lagoon has received favorable coverage from several independent research firms and investment strategists.

Fundamental Research Corp. (FRC) issued a “Buy” rating with a fair value estimate of CA$1.11 per share in its July 2025 update. The firm conducted a site visit and reported confidence in Blue Lagoon’s infrastructure and operational readiness. FRC estimates that the company could generate approximately US$21 million in net cash flow in the first year of operations

John Newell of John Newell & Associates also rated the company a “Speculative Buy,” citing its fully permitted status, First Nations engagement, and near-term production potential. He pointed to technical indicators suggesting a breakout and described Dome Mountain as a renovation of a high-grade past-producing mine positioned for a new gold cycle.

Income Growth Advisors, LLC, which has accumulated a significant shareholding in Blue Lagoon since 2024, expressed confidence in the company’s management and development team. The firm cited commentary from geologists and mining professionals suggesting the Dome Mountain property could potentially host 2 to 3 million ounces of gold. Income Growth Advisors anticipates a valuation re-rating as Blue Lagoon transitions from a development-stage resource company to a producing gold miner.

Nicola Mining, which operates the toll milling facility, maintains a close operational and financial relationship with Blue Lagoon. Nicola has processed previous ore samples from Dome Mountain and provided a line of credit and equity investment.

A site visit report published by FRC in July 2025 described the project as having strong local support, particularly from the Lake Babine First Nation, and highlighted the strategic alignment with Nicola Mining. FRC’s report also noted that while the company is not basing its production decision on a feasibility study, it has existing infrastructure, prior processing data, and an established resource.

As Blue Lagoon prepares to begin ore shipments and revenue generation, analysts continue to monitor key milestones including the completion of the water treatment plant, initial blasting, and ramp-up of daily production rates.

Key Developments Driving Blue Lagoon’s Strategic Momentum

As outlined in its investor presentation, Blue Lagoon Resources is progressing through several operational and strategic milestones that may be of interest to investors tracking the company's transition from explorer to producer at its 100%-owned Dome Mountain Gold Mine in British Columbia.

The company secured full mining and discharge permits in February 2025, a rare accomplishment in the region, allowing it to proceed with underground operations. Production is expected to begin in the second half of 2025 at a rate of 55,000 tonnes per year, with targeted gold recovery of approximately 15,000 ounces annually. A profit-sharing toll milling agreement with Nicola Mining supports this launch, with ore to be processed at Nicola’s Merritt Mill.

Preparatory activities are nearing completion, including final installation of a water treatment facility designed with six times the required processing capacity. The treatment plant, expected to be operational within three months, is the final major component before mine start-up.

Operational readiness includes established infrastructure, secured transportation and milling logistics, and a team of experienced mining professionals. Blue Lagoon’s underground development plans include an initial ramp-up to 100 tonnes per day, with an eventual increase to 150 tonnes per day once operations stabilize.

Beyond production, Blue Lagoon continues to emphasize exploration potential. The company controls a 22,000-hectare land package, of which over 90% remains underexplored. Since 2020, more than 48,000 meters have been drilled, and several new zones—such as the Chance and Federal structures—have been identified. Infill drilling and further exploration are planned as part of a multi-year effort to expand the existing resource and support long-term growth.

The Dome Mountain site benefits from its location within an established mining district, year-round road access, and strong support from the Lake Babine First Nation. Environmental management remains a focus, with 15 plans completed as part of the permitting process.

With high gold recoveries reported from prior test milling, experienced partners in place, and low capital requirements due to pre-existing infrastructure, Blue Lagoon’s near-term production strategy is positioned within one of Canada’s most attractive mining jurisdictions.

Ownership and Share Structure

According to Blue Lagoon Resources's Investor Presentation, founders and insiders own 14% of the company. There are three strategic investors, Crescat Capital with 8%, Nicola Mining Inc. with 6% and Phoenix Gold Fund with 6%.

The remaining 66% of Blue Lagoon is in retail.

The soon-to-be-gold producer has 140.78 million issued and outstanding shares. Its market cap is CA$96.2 million. Its 52-week range is CA$0.10–0.87 per share.