Blue Lagoon Resources Inc. has announced the completion of its first sale of gold and silver from mineralized material extracted from its Dome Mountain project. The company expects to receive approximately C$970,000 from Ocean Partners UK Limited for this initial delivery, representing a significant milestone in the company's development timeline.
This transaction marks Blue Lagoon's transition from a pre-revenue exploration company to a revenue-generating mining operation, joining a select group of junior mining companies that have successfully advanced from development into production. The sale represents an advance payment for approximately 1,000 tonnes of mineralized material delivered to the company's milling partner, Nicola Mining Inc., with final settlement expected following processing and subject to customary adjustments based on final assays and prevailing metal prices.
President and CEO Rana Vig stated that this sale represents a significant inflection point for the company, which is now focused on continued execution of development and production activities. The company aims to increase throughput and work toward consistent, steady-state operations as it advances its Dome Mountain Gold Project in British Columbia.
Following a brief Christmas holiday break, underground development, production, and shipments of mineralized material are expected to resume in the first week of January. Further disclosure regarding the grades of the initial shipment will be provided following processing of the material by Nicola Mining. The company operates under a long-term toll milling agreement with Nicola Mining for processing mineralized material from Dome Mountain.
In a related corporate development, Blue Lagoon has granted an aggregate of 3,000,000 restricted share units and 200,000 stock options to certain directors, officers, management, and consultants pursuant to the company's omnibus equity incentive plan. The stock options are exercisable at a price of $0.66 per share and will expire five years from the date of issuance, subject to approval by the Canadian Securities Exchange.
The company achieved a significant regulatory milestone in February 2025 with the granting of a full mining permit for the Dome Mountain project, 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.
This development represents a critical validation point for junior mining companies seeking to advance from exploration to production. The successful transition to revenue generation demonstrates operational execution capability and provides a foundation for future growth through internally generated cash flow. For investors in the mining sector, this milestone suggests increased operational maturity and reduced dependency on external financing for continued development.
The company acknowledges 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. This approach carries increased uncertainty and consequently a higher risk of failure compared to production decisions based on comprehensive feasibility studies.
