Blue Lagoon Resources Inc. has announced significant operational progress through its milling partner, Nicola Mining Inc., which has processed approximately 2,954 dry tonnes of high-grade mineralized material from the Dome Mountain underground mine. The material, processed at Nicola's facility in Merritt, B.C., had a weighted average feed grade of 9.7 grams per tonne gold and approximately 35.6 grams per tonne silver.
This processing campaign has yielded over 210 dry tonnes of gold and silver flotation concentrate, which is being prepared for sale and shipment to Ocean Partners. The operation achieved an excellent gold recovery rate of 93.4% in Nicola's flotation mill. Of the concentrate produced, 188 tonnes have been physically bagged, with approximately 22 additional tonnes currently held in circuit stock tanks as in-process inventory.
As of March 17, 2026, an estimated 1,828 tonnes of unprocessed mineralized material remains on stockpiles at the Nicola facility, ensuring continued production in the coming weeks. The mill has recently commissioned its second concentrate filter, with a second concentrate thickener expected to become operational shortly. These upgrades are designed to improve concentrate handling capacity and increase plant operating time.
"We are very encouraged by the consistent production results from Nicola's mill and the excellent gold recovery from our Dome Mountain material," said Rana Vig, President and CEO of Blue Lagoon Resources. "With nearly 3,000 tonnes now processed, we continue to build cash flow. The remaining stockpile at the mill, along with continuing trucking from Dome Mountain, ensures production will continue over the weeks ahead."
The scientific and technical data in the announcement was approved by qualified person Ted VanderWart, P.Geo., a consultant to the company. All tonnage and grade figures were provided to Blue Lagoon by Nicola Mining Inc., with concentrate assays completed at Base Met Labs, an accredited metallurgical testing facility in Kamloops, B.C.
Blue Lagoon Resources operates its 100% owned Dome Mountain Gold Mine near Smithers, British Columbia, and achieved a significant milestone in February 2025 with the granting of a full mining permit. The company processes mineralized material from Dome Mountain under a long-term milling agreement with Nicola Mining. In the second half of 2026, Blue Lagoon plans to reinvest internally generated cash flow into near-mine and regional exploration to expand its resource base.
The company notes 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 made following a completed feasibility study.
For business and technology leaders monitoring the mining sector, these results demonstrate Blue Lagoon's operational execution capabilities and its progress toward becoming a consistent cash-flowing gold producer. The high recovery rates and ongoing production suggest efficient processing technology is being effectively deployed, while the planned reinvestment of cash flow into exploration indicates a growth-oriented strategy that could create additional value if successful.
