Blue Lagoon Resources Receives Second $1.4 Million Payment as Dome Mountain Processing Begins

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 material have been delivered to the mill site, with processing now underway after operational improvements were completed at Nicola’s facility.

The advance payments, which are subject to final reconciliation following milling and settlement, provide working capital to support ongoing underground development and production activities at Dome Mountain. Rana Vig, President and CEO of Blue Lagoon Resources, stated that these payments reflect growing confidence in Dome Mountain as a reliable production asset and mark a meaningful milestone for the company. Vig emphasized that as processing continues, this development is expected to initiate consistent operational cash flow and continued growth.

Processing was delayed earlier this month as Nicola Mining conducted comprehensive plant cleanup, maintenance, and component replacements to ensure the highest operational standards and recoveries. Peter Espig, President & CEO of Nicola Mining Inc., commented on the strategic partnership, noting excitement about starting this next chapter and supporting Blue Lagoon’s transition into consistent production. The company will provide updates as milling progresses and report final reconciled grades and recoveries once processing is completed.

This development follows Blue Lagoon’s achievement of a full mining permit in February 2025, one of only nine issued in British Columbia since 2015, and the commencement of underground mining operations. The company processes mineralized material under a long-term milling agreement with Nicola Mining and plans to reinvest internally generated cash flow into near-mine and regional exploration beginning in the second half of 2026. The production decision at Dome Mountain is based on existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource, rather than a feasibility study of mineral reserves demonstrating economic and technical viability.

The company acknowledges increased uncertainty and higher risk when production is undertaken in advance of a feasibility study. Forward-looking information in the release includes statements regarding ongoing and future milling operations, expected operational performance and recoveries, anticipated reconciliation of advance payments, and the expectation of consistent operational cash flow. Readers can view the original release on www.newmediawire.com.

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