Blue Lagoon Resources Inc. has announced that it has surpassed C$10 million in revenue from gold and silver sales at its 100% owned Dome Mountain Gold and Silver Mine, located near Smithers, British Columbia. This notable achievement is coupled with a consistent increase in underground mining production, now reaching 125 tonnes per day.
Commercial production at Dome Mountain was declared on May 19, 2026, following a successful period where the company maintained an average underground mining rate of over 90 tonnes per day for 30 consecutive days. The latest production figures represent a 40% increase since this milestone, as the operation steadily approaches its permitted production limit of 150 tonnes per day.
Since commencing operations, Blue Lagoon has recorded significant revenue within just seven months, reflecting the effectiveness of its operational strategies. The revenue includes provisional payments for concentrate sales, which are subject to final adjustments upon smelting and content analysis. A substantial portion of the cash flow generated has been reinvested into the mine, enhancing underground development, water treatment, and environmental systems.
The company is preparing for an upcoming drilling program aimed at expanding the Dome Mountain site. Quotes have already been received for contractor services to facilitate this work, which will accommodate the increased operational workforce. Alongside this, Blue Lagoon has also entered into an option agreement for the Big Onion project, stipulating a cash payment of $500,000 over two years and the issuance of 2,000,000 shares, contingent upon certain conditions being met.
While the company celebrates its achievements, it remains aware of the challenges that accompany rapid production ramp-up. Notably, Blue Lagoon has not conducted a feasibility study to verify economic viability, adding a level of uncertainty to its operations. Managerial focus continues to be on sustainable production growth despite inherent operational risks, fluctuations in commodity prices, and regulatory complexities.
Blue Lagoon Resources Inc. has received over C$10 million in revenue from gold and silver sales at its Dome Mountain Gold and Silver Mine.
The Dome Mountain mine is currently producing at a rate of 125 tonnes per day, which reflects a significant increase from the average of 90 tonnes per day when commercial production was declared on May 19, 2026.
Blue Lagoon declared commercial production on May 19, 2026, and has since reached over C$10 million in revenue within seven months of operations, reflecting the company's advancements in production efficiency.
The company has reinvested a substantial amount of cash flow generated from operations back into the mine, focusing on the development of new working faces and improvements in infrastructure to support long-term production sustainability.
Blue Lagoon Resources plans to expand the Dome Mountain site to accommodate an upcoming drill programme and has received quotes from contractors for this work.
Blue Lagoon has entered into an option to purchase agreement for the Big Onion project, requiring a payment of $500,000 in cash over two years and the issuance of 2,000,000 shares over three years, along with at least $2 million in exploration expenditures over four years.
The company acknowledges that it has not based its production decision on a feasibility study, which increases the risk of failure due to various uncertainties, including fluctuating commodity prices and operational challenges.
Technical information in the company's news releases is approved by Ted VanderWart, P.Geo, a senior geologist with the company who is a qualified person under NI43-101.