Blue Lagoon Resources Inc. continues to advance underground production at its 100%-owned Dome Mountain Gold & Silver Project as its milling partner, Nicola Mining Inc., begins to shift its milling focus exclusively to the Company's high-grade gold & silver mineralized material. With no further third-party processing obligations, Nicola will now be dedicating its milling capacity to material delivered from Dome Mountain. This transition provides a more streamlined processing path as Blue Lagoon continues to advance underground operations and delivers mineralized material under its existing long-term milling agreement.
As previously reported, Blue Lagoon has already received a payment of nearly $1 million for its initial 1,000 tonnes delivered to Nicola in December and is continuing to build its stockpile, reflecting increasing underground output following the recent opening of multiple active mining faces. In addition to the initial 1,000 tonnes, the Company expects that by the end of this week approximately 1,500 additional tonnes of high-grade mineralized material will have been delivered to Nicola, bringing the total material shipped to approximately 2,500 tonnes.
These operational advances are occurring against a strengthening gold and silver price environment, with spot gold prices recently surpassing US$5,500 per ounce and silver trading over US$115 per ounce. While the Company remains focused on disciplined execution and operational consistency, management believes the current gold and silver price backdrop enhances the leverage of near-term production as Dome Mountain continues to ramp up.
"Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner," said Rana Vig, President and CEO of Blue Lagoon Resources. "Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations. This steady progress positions the Company well as gold and silver prices continue to soar."
Blue Lagoon will continue to provide updates as underground development advances, additional material is delivered for processing, and production activities progress at Dome Mountain. The Company is not basing its production decision at Dome Mountain on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource. The Company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study.
For business and technology leaders, this exclusive milling arrangement represents a significant operational optimization that reduces complexity and potential bottlenecks in the supply chain. In the current precious metals market, where gold has surpassed US$5,500 per ounce and silver trades above US$115 per ounce, streamlined production processes become increasingly valuable. The shift allows Nicola Mining to concentrate its milling expertise on a single, high-grade source while providing Blue Lagoon with dedicated processing capacity as it scales operations.
The implications extend beyond operational efficiency to financial performance. With Blue Lagoon already receiving payment for initial deliveries and building inventory, the company demonstrates progress toward becoming a cash-flowing operation. For investors and industry observers, this development highlights how strategic partnerships can accelerate production timelines in the mining sector, particularly when aligned with favorable commodity price cycles. The exclusive focus on Dome Mountain material suggests confidence in both the quality of the resource and the sustainability of production levels, though the company acknowledges the inherent risks of proceeding without a completed feasibility study.
