Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) announced Tuesday that it has officially attained commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia. The milestone was reached after the company maintained underground mining rates exceeding an average of 100 tonnes per day for more than 30 consecutive days, surpassing the industry threshold for commercial production. Under its current mining permit, Dome Mountain is allowed to mine up to 55,000 tonnes annually, with commercial production generally recognized as achieving at least 60% of permitted throughput on a sustained basis, equating to roughly 90 tonnes per day.
This achievement transforms Blue Lagoon from a development-stage company into a producing gold company, a rare feat in British Columbia, which is known as one of the most challenging permitting jurisdictions globally. Dome Mountain is now among a small number of newly permitted mining projects in the province to successfully transition into active production in recent years. The company now sets its sights on its next milestone: consistent production of 150 tonnes per day.
In a further validation of the project and the company's execution strategy, Blue Lagoon also announced that its offtake partner, Ocean Partners Holdings Ltd., is making a strategic equity investment of C$3 million. The investment is priced at C$0.90 per common share, equal to the closing market price on May 15, 2026, with no discount and no warrants attached. The equity position consists solely of common shares.
“This is a defining milestone for Blue Lagoon,” said Rana Vig, President and CEO. “Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation. To reach this point in British Columbia – one of the most challenging permitting jurisdictions in the world – is a major accomplishment for our team.”
Vig added that Ocean Partners’ decision to become an equity shareholder at market price without warrant incentives speaks volumes about their confidence in the Dome Mountain project, its operational progress, and the company’s long-term potential. The investment aligns the interests of Ocean Partners with those of Blue Lagoon and its shareholders. Blue Lagoon’s milling partner, Nicola Mining Inc., already holds an equity position and has provided an undrawn C$2 million unsecured line of credit. With Ocean Partners now also a shareholder, the interests of all three parties are aligned across the full value chain from mine to mill to market.
The company reports a strong treasury, ongoing cash flow from gold and silver concentrate sales, approximately C$2.5 million in in-the-money warrants outstanding, and continued access to the C$2 million line of credit. This financial foundation positions Blue Lagoon well as it ramps up production and advances exploration at Dome Mountain.
Operationally, underground mining continues to progress. Two underground crews are now operating concurrently, with mine development and mineralized material extraction advancing in parallel. Additional equipment has arrived on site, boosting productivity. Regular shipments are being made to Nicola Mining's Merritt Mill under the toll milling agreement, with invoices submitted to Ocean Partners for gold and silver sales as material is processed. The Dome Mountain water treatment facility is performing well, and the site is managing seasonal snow melt effectively, remaining in full compliance with environmental permit requirements. Infrastructure upgrades are underway to support the expanded crew and prepare for drilling crews anticipated in Q3 2026.
For further information, contact Rana Vig, President and CEO, at 604-218-4766 or rana@bllg.ca. The original press release is available on NewMediaWire.
