Blue Lagoon achieves commercial production at Dome Mountain gold-silver project in BC
Blue Lagoon Resources (CSE: BLLG) has officially attained commercial production at its Dome Mountain gold and silver project in British Columbia.
In a statement on Monday, the company said it has maintained underground mining rates in excess of an average of 100 tonnes per day for more than 30 consecutive days.
Last year, Blue Lagoon reopened the Dome Mountain mine, located near Smithers in the province’s northwest, more than 30 years after the last major exploration activity. At the time, the company said it plans to pursue additional permits to mine deeper zones and expand into the nearby Argillite Vein.
Blue Lagoon acquired the project in 2020 and has since focused on drilling and developing the Boulder Vein system.
Under the company’s current mining permit, Dome Mountain is permitted to mine up to 55,000 tonnes annually. Blue Lagoon is targeting consistent production of 150 tonnes per day.
Dome Mountain is now among a small number of newly permitted mining projects in British Columbia to successfully transition into active production in recent years.
Also on Monday, Blue Lagoon announced that its offtake partner, Ocean Partners Holdings, is making an equity investment of C$3 million ($2.1 million), purchasing shares of the company at C$0.90 apiece — equal to the closing market price of the stock on May 15 and representing no discount to market.
“Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation,” Blue Lagoon CEO Rana Vig said in a news release.
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