Blue Lagoon Milling Partner Nicola Mining Shifts Focus Exclusively to Blue Lagoon's Gold & Silver Mineralized Material
(TheNewswire)
January 29, 2026 – TheNewswire - Vancouver,British Columbia – Blue Lagoon ResourcesInc. (CSE: BLLG;OTCQB: BLAGF; FSE: 7BL) continues to advance underground production at its100%-owned Dome Mountain Gold & Silver Project as its millingpartner, Nicola Mining Inc. (“Nicola”), begins to shift itsmilling focus exclusively to the Company’s high-grade gold &silver mineralized material.
With no further third-party processing obligations,Nicola will now be dedicating its milling capacity to materialdelivered from Dome Mountain. This transition provides a morestreamlined processing path as Blue Lagoon continues to advanceunderground operations and delivers mineralized material under itsexisting long-term milling agreement.
As previously reported, Blue Lagoon has alreadyreceived a payment of nearly $1 million for its initial 1,000 tonnesdelivered to Nicola in December and is continuing to build itsstockpile, reflecting increasing underground output following therecent opening of multiple active mining faces. In addition to theinitial 1,000 tonnes, the Company expects that by the end of this weekapproximately 1,500 additional tonnes of high-grade mineralizedmaterial will have been delivered to Nicola, bringing the totalmaterial shipped to approximately 2,500 tonnes.
Trucks being loaded at the Dome Mountain Gold &Silver Mine
with mineralized material destined for NicolaMining
These operational advances are occurring against astrengthening gold and silver price environment, with spot gold pricesrecently surpassing US$5,500 per ounce and silver trading over US$115per ounce. While the Company remains focused ondisciplined execution and operational consistency, management believesthe current gold and silver price backdrop enhances the leverage ofnear-term production as Dome Mountain continues to ramp up.
Dome Mountain Mineralized Material currently stockpiledat Nicola
“Our focus remains on executing safely andconsistently underground while maintaining a predictable deliverycadence to our milling partner,” said Rana Vig, President and CEO ofBlue Lagoon Resources. “Having already been paid for our first DomeMountain mineralized material, we are now building inventory inadvance of scheduled milling as we continue to scale operations. Thissteady progress positions the Company well as gold and silver pricescontinue to soar.”
Blue Lagoon will continue to provide updates asunderground development advances, additional material is delivered forprocessing, and production activities progress at DomeMountain.
For further information, pleasecontact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: rana@bllg.ca
About Blue Lagoon ResourcesInc.
Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB:BLAGF) is a Canadian-based, well-funded, growth-oriented miningcompany producing from its 100% owned Dome Mountain Gold Minenear Smithers, British Columbia. Led by a teamwith deep mining and finance experience, the Company operates in oneof the world’s most attractive mining jurisdictions.
In February 2025, Blue Lagoon achieved a majormilestone with the granting of a full mining permit - one of only nineissued in British Columbia since 2015 - and has since commencedunderground mining operations. Mineralized material from Dome Mountainis processed under a long-term milling agreement with Nicola Mining.Beginning in H1 2026, the Company plans to reinvest internallygenerated cash flow into near-mine and regional exploration to furtherexpand 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 aprofitable, cash-flowing gold producer while creating lasting valuefor shareholders and stakeholders alike.
The Company is not basing its production decision atDome Mountain on a feasibility study of mineral reserves demonstratingeconomic and technical viability. The production decision is based onhaving existing mining infrastructure, past bulk sampling andprocessing activity, and the established mineral resource. TheCompany understands that there is increased uncertainty, andconsequently a higher risk of failure, when production is undertakenin advance of a feasibility study.
The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.
This news release contains forward-looking statementsand forward-looking information within the meaning of applicablesecurities laws. Forward-looking statements include, but are notlimited to, statements regarding expected deliveries of mineralizedmaterial, anticipated milling focus and capacity at Nicola MiningInc., future processing and settlement of delivered material,continued underground production, operational progress at the DomeMountain Gold & Silver Project, and the Company’s expectationsregarding gold and silver price conditions and their potential impacton operations. Forward-looking statements are based on management’sreasonable assumptions, estimates, expectations and beliefs as of thedate of this news release, including assumptions regarding undergroundmining performance, haulage and delivery schedules, millingavailability, and prevailing commodity prices. Such statements aresubject to known and unknown risks, uncertainties and other factorsthat may cause actual results or events to differ materially fromthose expressed or implied, including but not limited to operationalrisks, changes in milling schedules or capacity, variations in gradeor recoveries, changes in commodity prices, regulatory or permittingrisks, and general economic and market conditions. Readers arecautioned not to place undue reliance on forward-looking statements.The Company undertakes no obligation to update or revise anyforward-looking statements, except as required by applicablelaw.
Copyright (c) 2026 TheNewswire - All rights reserved.
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