Blue Lagoon Surpasses $10 Million in Revenue as Dome Mountain Production Rises to 125 Tonnes per Day
FSE: 7BL
CSE: BLLG
OTCQB: BLAGF
BLUE LAGOON SURPASSES $10 MILLION IN REVENUE
AS DOME MOUNTAIN PRODUCTION RISES TO 125 TONNES PER DAY
July 17, 2026 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB:
BLAGF; FSE: 7BL) has now received more than C$10 million in revenue from gold and silver sales
from its 100% owned Dome Mountain Gold and Silver Mine, located near Smithers, British
Columbia, and underground mining production levels have risen to a consistent 125 tonnes per day.
Revenue received to date from Ocean Partners reflects provisional payments on concentrate sales,
with certain amounts remaining subject to final settlement by the buyer once smelting is complete
and the final gold and silver content of each shipment has been assayed and tallied. Blue Lagoon
recorded its first sale of gold and silver in December 2025, meaning the Company has generated
more than $10 million in payments in just over seven months of operations – a period that also
included the declaration of commercial production on May 19, 2026.
Production continues to increase. When commercial production was declared on May 19, 2026,
underground mining rates had exceeded an average of 90 tonnes per day for more than 30
consecutive days. Production levels have since risen to 125 tonnes per day, a ~40% increase, as the
operation advances toward the mine’s permitted production limit of 150 tonnes per day.
A key driver of this progress has been the significant underground development completed since
mining began. A substantial portion of the cash flow generated at Dome Mountain thus far has been
reinvested directly back into the mine to advance development headings in order to open up
additional working faces. This is essential to increasing and sustaining production over the long
term. This reinvestment has extended beyond the underground, with continued investment in water
treatment, environmental systems, and site infrastructure, with further investment planned in the
near term. While our production ramp-up has, as expected, included both ups and downs, the
combination of expanded working faces, two crews operating concurrently, and production closing
in on a 150 tonne per day target means Dome Mountain is now achieving consistent steady-state
mining.
"Crossing $10 million in revenue is an important marker for Blue Lagoon, but what matters most to
me is how we got here," said Rana Vig, President and CEO of the Company. "Rather than simply
chasing a daily production number, we have reinvested a substantial amount of our cash flow back
into the mine – into development that opens up new working faces, into water treatment, and into
the environmental systems that allow us to operate responsibly. A ramp -up in production never
progresses in a straight line, and ours has had its share of challenges, but that reinvestment is
exactly what positions us to sustain production for years to come."
Mr. Vig continued: "With production now at 125 tonnes per day and a near term production target
of 150 tonnes per day, Dome Mountain is reaching its potential. That is the foundation everything
else is built on – and it sets the stage for the next phase of growth as we prepare to put drills back
on the ground later this fall."
Site Expansion and Upcoming Drill Program
Preparations for the Company's upcoming drill program continue to advance. Quotes have been
received from contractors for the planned expansion of the Dome Mountain site, with the work
designed to accommodate the drilling crews expected to arrive this fall in addition to the expanded
workforce already operating at the site.
Big Onion Project Option
The Company also announces that it has entered into an option to purchase agreement dated April
7, 2026 and amended June 30, 2026 whereby the Company granted an option on the Big Onion
project to a private British Columbia company . The option may be exercised in exchange for the
payment to the Company of $500,000 in cash over two years and the issuance of 2,000,000 shares
of the property option holder over three years subject to the holder completing a going public
transaction within a prescribed period of time. In addition, the holder must incur at least $2 million
of exploration expenditures on the property within four years in order to complete the exercise of
the option. The Company will retain a 1.125% net smelter returns royalty on the Big Onion
property, which may be reduced at the rate of $250,000 per 0.25%.
Technical information in this news release was approved by Ted VanderWart, P.Geo, a senior
geologist with the Company and a qualified person under NI43-101.
For further information, please contact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: [email protected]
About Blue Lagoon Resources Inc.
Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is a Canadian -based, well-
funded, growth-oriented mining company that achieved commercial production at its 100% owned
Dome Mountain Gold Mine near Smithers, British Columbia. Led by a team with deep mining and
finance experience, the Company operates in one of the world’s most attractive mining jurisdictions.
In February 2025, Blue Lagoon achieved a major milestone 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 is processed under a long-term milling
agreement with Nicola Mining. During the second half 2026, the Company plans to continue reinvesting
internally generated cash flow into near-mine and regional exploration to further expand its resource
base on its extensive property.
With a strong commitment to sustainability, community, and First Nation engagement, Blue Lagoon’s
objective is to be a profitable, cash-flowing gold producer while creating lasting value for shareholders
and stakeholders alike.
The Company has not based its production decision at Dome Mountain on a feasibility study of mineral
reserves demonstrating economic and technical viability. The production decision is based on having
existing mining infrastructure, past bulk sampling and processing activity, and the established mineral
resource. The Company understands that there is increased uncertainty, and consequently a higher risk
of failure, when production is undertaken in advance of a feasibility study.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement
This news release contains forward-looking statements and forward-looking information within the meaning of
applicable securities laws. Forward-looking statements include, but are not limited to, statements regarding
anticipated production rates and throughput levels; the continued ramp-up and expansion of operations at the
Dome Mountain Gold and Silver Project; ongoing cash flow generation from mining operations; the processing of
mineralized material under the Company’s toll milling agreement with Nicola Mining; anticipated gold and silver
sales through Ocean Partners; infrastructure upgrades and site expansion plans; planned exploration activities and
drilling programs; permitting amendments; future exploration potential; and the Company’s plans, objectives, and
expectations for future operations and growth. Forward-looking statements are based on management’s current
expectations, estimates, projections, and assumptions, including, but not limited to, assumptions regarding
commodity prices, operating conditions, availability of labour and equipment, timing of regulatory approvals,
performance of contractors and service providers, and continued support from stakeholders, including Indigenous
partners. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may
cause actual results or events to differ materially from those expressed or implied by such statements. Such risks
and uncertainties include, without limitation, fluctuations in commodity prices; operational and technical
difficulties; delays or failures in plant performance, mining operations, or transportation logistics; regulatory and
permitting risks; environmental liabilities and risks; changes in laws, regulations, or government policy; financing
risks; labour shortages; and general economic, market, and industry conditions.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date
of this news release. Except as required by applicable securities laws, the Company undertakes no obligation to
update or revise any forward-looking statements, whether as a result of new information, future events, or
otherwise.