Blue Lagoon Completes Acquisition Of Metal Mountain Resources
FSE: 7BL
CSE: BLLG
OTCQB: BLAGF
BLUE LAGOON COMPLETES ACQUISITION OF
METAL MOUNTAIN RESOURCES INC.
March 31, 2020 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (the “Company”) (CSE: BLLG;
FSE: 7BL; OTCQB: BLAGF) is pleased to announce that it has completed the acquisition of Metal Mountain
Resources Inc. in exchange for 12,151,220 common shares of the Company (the “Transaction”). Concurrently
with the Transaction, Blue Lagoon issued 1,372,000 common shares of the Company to acquire 27.44% of Gavin
Mines Inc.
Following the transactions, the Company will hold, through its ownership of Metal Mountain, a 78.28% interest in
Gavin Mines Inc. and a100% interest of Lloyd Minerals Inc. Gavin Mines owns the Dome Mountain mine, a high-
grade gold project located in northwest British Columbia. Lloyd Minerals Inc. (“Lloyd Minerals”), holds the Big
Onion property, a porphyry copper project also located in northwest British Columbia.
The Blue Lagoon shares issued pursuant to both transactions will be subject to an initial hold period of 12 months
from closing, and thereafter the hold period will expire in installments over a period of 30 months.
“In a very short time, management’s focus has lead Blue Lagoon from being a newly listed junior mining
exploration company to one that just acquired a very promising high grade gold property in British Columbia that
holds both a Mining Permit for up to 75,000 tonnes annually and an Environmental Management Act Permit” said
Rana Vig, President and CEO of Blue Lagoon Resources.
Bill Cronk, the Company’s chief geologist added “this is a very exciting and pivotal moment for the company that
will take it one step closer towards transforming into a development stage gold company in a time when gold is
maintaining near 5 year highs during unprecedented times of economic turmoil.”
The Company notes that no decision to proceed to production has been made at this time, and a future production
decision will be based on a full technical and economic review of the project.
DOME MOUNTAIN PROJECT INFO & HISTORICAL ESTIMATES
The Dome Mountain Project is the subject of a NI 43-101 technical report entitled Technical Report on the Dome
Mountain Gold-Silver Project dated April 2010, prepared by Gary Giroux, P. Eng., Giroux Consultants Ltd. for
Gavin Mines. The technical report provides the following historical resource estimate for the Boulder Vein System
based on 285 surface diamond drill holes and 37 underground diamond drill holes (the “2010 Historical Resource
Estimate”):
Historical Indicated Resource within the Mineralized Veins
Au
Cut-off
(g/t)
Tonnes >
Cut-off (tonnes)
Grade>Cut-off Contained Metal
Au (g/t) Ag (g/t) Au (ozs) Ag (ozs)
5.00 138,000 15.10 73.93 67,000 328,000
Historical Inferred Resource within the Mineralized Veins
Au Cut-off
(g/t)
Tonnes > Cut-off
(tonnes)
Grade>Cut-off Contained Metal
Au (g/t) Ag (g/t) Au (ozs) Ag (ozs)
5.00 154,000 13.42 60.63 66,500 300,200
This resource occurs principally at and above the 1290 level and has been adjusted to remove the volumes previously
mined. The 2010 Historical Resource Estimate is considered historical in nature by the Company, is provided for
background information purposes only, and is not a current resource estimate due to significant addit ional
exploration work conducted subsequent to the date of the report. A qualified person (as defined in NI 43-101) has
not done sufficient work to classify the historical estimate as a current mineral resource. The Company is not
treating the historical estimate as a current mineral resource.
Subsequent to the 2010 Historical Resource Estimate, Gavin Mines conducted 7,210 meters of infill drilling in 2016
to upgrade the inferred resource. Four new veins were discovered within the Boulder Vein System during the 2016
drill program. The 2016 drilling program added 330 meters of strike length to the Boulder Vein which remains
open along strike to the west, east and at depth.
Gavin Mines engaged Roughstock Mining Services LLC of Bozeman, MT to prepare an internal estimate based on
the additional data from the 2016 drill program, as follows (the “2016 Historical Resource Estimate”):
Historical Dome Mountain Mine Indicated Resource at 3.42 g/t Cut-off (undiluted) as at December 30, 2017
Tonnes Grade (g/t) Grams Ounces
Boulder Vein 164,735 12.76 2,102,654 67,601
Boulder East Vein 8,736 22.22 194,137 6,241
TOTAL 173,471 13.24 2,296,791 73,843
Historical Dome Mountain Mine Inferred Resource at 3.42 g/t Cut-off (undiluted) as at December 30, 3017
Tonnes Grade (g/t) Grams Ounces
Boulder Vein 171,611 8.96 1,538,017 49,448
Boulder East Vein 166,852 8.17 1,362,590 43,808
Argillite Vein 75,486 12.97 979,050 31,477
Boulder HW Vein 46,079 7.62 351,222 11,292
TOTAL 480,028 9.20 4,230,879 136,025
Blue Lagoon does not consider the 2016 Historical Resource Estimate to be a current resource as defined in NI 43-
101. While Blue Lagoon believes the information to be generally reliable, Blue Lagoon has conducted only
preliminary technical due diligence on the Dome Mountain Mine, and has not conducted the work necessary to
independently verify the resource estimate, and specifically has not conducted a comprehensive review of the drill
sample data used in the estimate, or other analysis necessary to confirm the cut-off grade and other factors used in
calculating the resource, including the method of calculation of the resource. Readers should not treat the 2016
Historical Resource Estimate as a current mineral resource. The historical estimate does not use the categories or
procedures required by CIM Best Practice Guidelines for Mineral Resources and Mineral Reserves or CIM
definitions for mineral resources.
THE DOME MOUNTAIN MINE
The Dome Mountain Mine includes a past producing mine on tenures consisting of 41 contiguous mining claims
and one mining lease totaling 10,970 hectares, located approximately 38 kilometers east of the town of Smithers in
northwest British Columbia. The Dome Mountain area has a long history of exploration that resulted in the
discovery of numerous gold bearing quartz-carbonate veins. Gold mineralization was first located on the property
in the late 1800s and considerable surface and underground work was done in 1923-24. Resumption of exploration
in the 1980s led to the discovery of the Boulder Vein system in 1985. Underground mining was initiated in August
1991 by Timmins Nickel Inc. and its joint venture partner, Habsburg Resources Inc. and ceased in May 1 993.
During this period 43,900 tonnes at an average grade of 12.0 grams per tonne gold were reportedly mined from
shrinkage stopes accessed from trackless drift developments on the 1290 and 1370 levels.
Expenditures on the mine by past operators, including Gavin Mines, Timmins and Noranda, have totaled in excess
of $68 million, $28 Million of which was spent by Gavin in the past 12 years. Mine permitting and significant
infrastructure construction and underground development was completed on the mine between 2010 and 2012,
including about 75% of the planned underground development necessary for commencing production from the site.
The Dome Mountain Project holds a Mining Permit and Environmental Management Act Permit (EMA) providing
for up to 75,000 tonnes annually.
The infrastructure and underground development completed during that period includes:
• Mine dry/office building
• Electrocoagulation water treatment plant
• Water and sewer for all surface facilities
• Pipelines system for mine water
• Mechanics shop
• Electrical work into the mine
• Fuel storage and distribution system
• Major earthwork projects completed
• Underground development
•
The scientific and technical data contained in this news release was prepared and reviewed by William Cronk,
P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.
For further information, please contact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: [email protected]
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than statements of historical facts, that address
events or developments that Blue Lagoon Resources Inc. (the "Company") expects to occur, are forward-looking
statements. Forward-looking statements are statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward -looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual results may differ
materially from those in the forward-looking statements. Factors that could cause the actual results to differ
materially from those in forward-looking statements include results of exploration activities may not show quality
and quantity necessary for further exploration and exploitation of minerals deposits, market prices, and continued
availability of capital and financing, permitting and other approvals, and general economic, market or business
conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual
results or developments may differ materially from those projected in the forward-looking statements. Forward-
looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the
statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to
update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other
factors, should change.