Blue Lagoon Resources Inc. has received a second advance payment of approximately CAD $1.4 million from its milling partner, Nicola Mining, for 1,000 tonnes of stockpiled mineralized material from the company's 100%-owned Dome Mountain Gold and Silver Project. To date, approximately 3,700 tonnes of Dome Mountain mineralized material have been delivered to the mill site, with the company having previously received an advance payment for another 1,000 tonnes. These advances are subject to final reconciliation following milling and settlement.
Processing of the Dome material is now underway after operational improvements at Nicola Mining's mill facility, including comprehensive plant cleanup, maintenance, and component replacements. Peter Espig, President & CEO of Nicola Mining Inc., stated that the company values its relationship with Blue Lagoon and is excited to start this next chapter in their strategic partnership. He noted that Blue Lagoon has demonstrated strong operational execution in advancing Dome Mountain to this stage, and Nicola looks forward to supporting their transition into consistent gold and silver production.
Rana Vig, President and CEO of Blue Lagoon Resources, described this as a meaningful milestone for the company. He stated that advance payments of this scale reflect growing confidence in Dome Mountain as a reliable production asset. The company is executing on its strategy of advancing production, shipping material, and building momentum. As processing continues, Blue Lagoon expects this to mark the next phase of consistent operational cash flow and continued growth. The advance payments provide working capital to support ongoing underground development and production activities as the company advances Dome Mountain.
This development follows Blue Lagoon's achievement of a major milestone in February 2025 with the granting of a full mining permit, one of only nine issued in British Columbia since 2015. The company has since commenced underground mining operations. Mineralized material from Dome Mountain is processed under a long-term milling agreement with Nicola Mining. Beginning in H2 2026, the company plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base on its extensive property.
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 further information, the original release can be viewed on www.newmediawire.com.
