Blue Lagoon Resources Inc. has delivered its initial 1,000 tonnes of mineralized material from its Dome Mountain gold mine to its milling partner, Nicola Mining, with processing expected to begin by the end of this week. This delivery represents a significant operational milestone in the company's transition from a pre-revenue entity to a revenue-generating gold producer. The company's President and CEO, Rana Vig, described the delivery as a key de-risking milestone that sets the stage for processing to commence, emphasizing the transition occurring against a backdrop of a historically strong gold market.
The company has been advancing underground development and refining its mine-to-mill workflow, which includes mineralized material handling, logistics, stockpile management, and coordinating delivery schedules to support ongoing processing. As milling operations begin, Blue Lagoon plans to provide additional updates on operational progress, including ongoing deliveries, processing timelines, and other milestones related to the ramp-up phase. Commencing processing is a pivotal step toward generating revenue from gold production, with management's near-term priority focused on consistent execution in delivering mineralized material, supporting steady processing, and progressing through the early production cycle in a disciplined manner.
In a related development, the company has signed a lease for a new facility to host its own assay laboratory and has commenced the procurement process for equipment. Establishing an in-house assay lab is expected to shorten assay times and provide quick, accurate information to the underground team to accelerate mining decisions. This initiative aligns with the company's broader operational strategy to enhance efficiency as it moves toward production. The company achieved a major milestone in February 2025 with the granting of a full mining permit—one of only nine issued in British Columbia since 2015—and has since commenced underground mining operations.
Mineralized material from Dome Mountain will be processed under a long-term toll milling agreement with Nicola Mining, with first gold sales targeted for the fourth quarter of 2025. Beginning in the first half of 2026, the company plans to reinvest internally generated cash flow into near-mine and regional exploration to further 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, which carries increased uncertainty and a higher risk of failure. For further details, the original release can be viewed on www.newmediawire.com.
