Blue Lagoon Resources Achieves 100 Tonnes Daily Production at Dome Mountain Mine, Eyes Expansion to 150 Tonnes

Blue Lagoon Resources Inc. has achieved consistent underground production of 100 tonnes per day at its 100-percent-owned Dome Mountain gold and silver mine near Smithers, B.C., marking a key operational milestone outlined in the company’s January operational update. This production level reflects the resolution of early-stage commissioning constraints and the establishment of consistent underground production cycles, positioning the operation for further expansion toward a 150 tonnes per day target in the coming weeks.

The company has engaged a second mining contractor, effectively doubling the underground production crew from two to four shifts, with additional mobile equipment being deployed to the mine site. With multiple working spaces now open across the mine, the increased crew capacity and equipment will enable the advancement toward higher production targets. This organizational expansion comes as Blue Lagoon has made additional hires across operations, growing its team in line with expanding underground activities.

To date, Blue Lagoon has completed three sales of Dome Mountain gold and silver concentrates to Ocean Partners U.K. Ltd., generating approximately US$4.1 million in revenue. Additional quantities of mineralized material have been processed by the company’s milling partner, Nicola Mining, and are awaiting delivery and final settlement. Approximately 2,000 tonnes of mineralized material is currently stockpiled at both the mine site and the Nicola mill site, with regular trucking shipments to Nicola ongoing.

A significant operational development is the commissioning of a local fire assay laboratory near Smithers, which is now fully operational. The lab accelerates the turnaround of grade-control assays, directly supporting mine planning and operational decision-making at Dome Mountain. Additionally, the lab will now conduct mill production and settlement assays for Dome Mountain material processed at Nicola, a function previously performed externally. This improvement is expected to materially reduce the time between milling and final settlement with Ocean Partners going forward.

Planning is underway for an exploration drill program at Dome Mountain, expected to commence in late Q3 2026 and funded from internally generated cash flow. The drilling campaign is intended to include both infill drilling and a work program targeting new areas along Dome Mountain’s largely unexplored 18-kilometre strike length. To support ongoing production with an expanded workforce alongside an active drill program, a site infrastructure upgrade plan is being scoped and will be advanced in the coming months.

The company also announced the grant of an aggregate of 3,850,000 stock options to certain directors, officers, employees and consultants pursuant to its omnibus equity incentive plan. Additionally, Blue Lagoon received a $500,000 unsecured, interest-free bridge loan from its President & CEO to support short-term working capital requirements while awaiting concentrates settlement. During the start-up phase of mining operations, the cash settlement cycle from mining through to final payment by Ocean Partners was significantly extended beyond typical timelines, with this insider loan serving to bridge this transitional period.

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