Blue Lagoon Surpasses $10 Million In Revenue As Dome Mountain Production Rises To 125 Tonnes Per Day

Rhea-AI Summary

Blue Lagoon Resources (OTCQB:BLAGF) reports receiving more than C$10 million in revenue from gold and silver sales at its 100%-owned Dome Mountain mine near Smithers, BC, since first sales in December 2025. Payments to date from Ocean Partners are provisional and remain subject to final settlement after smelting and assay.

Commercial production was declared on May 19, 2026, after sustaining underground mining rates above 90 tonnes per day for over 30 days. Production has since increased to a consistent 125 tonnes per day, about 40% higher, as the operation advances toward its permitted limit of 150 tonnes per day. The company states that a substantial portion of cash flow has been reinvested into underground development, water treatment, environmental systems and site infrastructure to support long-term production.

Blue Lagoon is preparing a fall 2026 drill program at Dome Mountain and planning site expansion to host drilling crews. It also granted an option on its Big Onion project to a private BC company, in return for up to $500,000 cash over two years, 2,000,000 shares over three years (contingent on a going-public transaction), and at least $2 million of exploration spending within four years, while retaining a 1.125% NSR royalty. The company notes its production decision at Dome Mountain was made without a feasibility study, which it says increases project risk.

Positive

• More than C$10 million in gold and silver revenue in just over seven months of operations
• Underground mining production increased to 125 tonnes per day from >90 tpd at commercial production declaration
• Advancing toward Dome Mountain’s permitted limit of 150 tonnes per day
• Big Onion option could deliver $500,000 cash, 2,000,000 shares and $2 million in exploration spending
• Retention of a 1.125% net smelter returns royalty on the Big Onion property
• Full mining permit for Dome Mountain granted in February 2025 and commercial production declared May 19, 2026

Negative

• Current Dome Mountain revenue consists of provisional payments subject to final settlement after smelting and assay
• Production decision at Dome Mountain was made without a feasibility study, which the company states increases uncertainty and risk of failure
• Big Onion option consideration depends on the option holder completing a going public transaction and meeting spending commitments

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VANCOUVER, BC / ACCESS Newswire / July 17, 2026 / 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: rana@bllg.ca

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.

SOURCE: Blue Lagoon Resources Inc.

View the original press release on ACCESS Newswire

FAQ

How much revenue has Blue Lagoon Resources (BLAGF) generated from Dome Mountain as of July 17, 2026?

Blue Lagoon reports receiving more than C$10 million in revenue from gold and silver sales at Dome Mountain. According to Blue Lagoon, this revenue was generated in just over seven months since first sales began in December 2025, based on provisional payments from Ocean Partners.

What is the current production rate at Blue Lagoon’s Dome Mountain mine (BLAGF)?

Blue Lagoon reports that Dome Mountain underground production has risen to a consistent 125 tonnes per day. According to Blue Lagoon, this is about a 40% increase from the more than 90 tonnes per day achieved when commercial production was declared on May 19, 2026, and approaches the 150 tpd permit limit.

When did Blue Lagoon (BLAGF) declare commercial production at Dome Mountain?

Blue Lagoon declared commercial production at Dome Mountain on May 19, 2026. According to Blue Lagoon, that decision followed more than 30 consecutive days of underground mining rates above 90 tonnes per day, and production has since increased to a consistent 125 tonnes per day.

What are the key terms of Blue Lagoon’s Big Onion project option announced in 2026?

Blue Lagoon granted an option on Big Onion to a private BC company for up to $500,000 cash over two years and 2,000,000 shares over three years. According to Blue Lagoon, the holder must also spend at least $2 million on exploration and complete a going-public transaction to exercise the option.

What royalty interest does Blue Lagoon (BLAGF) retain on the Big Onion property?

Blue Lagoon retains a 1.125% net smelter returns royalty on the Big Onion property. According to Blue Lagoon, this NSR may be reduced by the option holder at a rate of $250,000 for each 0.25% of royalty bought down, providing potential future cash inflows.

What risks does Blue Lagoon highlight about Dome Mountain’s production decision without a feasibility study?

Blue Lagoon states that Dome Mountain’s production decision was not based on a feasibility study of mineral reserves. According to Blue Lagoon, this approach increases uncertainty and results in a higher risk of project failure compared with operations supported by full feasibility studies demonstrating economic and technical viability.