Blue Lagoon Resources Inc. has received an operational update from its milling partner, Nicola Mining Inc., regarding the processing of mineralized material from the Dome Mountain underground mine. To date, Nicola has processed approximately 2,954 dry tonnes of Dome Mountain high-grade material at its milling facility in Merritt, B.C. The material had a weighted average feed grade of 9.7 grams per tonne gold and approximately 35.6 grams per tonne silver.
This processing has yielded over 210 dry tonnes of gold and silver flotation concentrate, which is bagged and readied for sale and shipment to Ocean Partners. The operation has achieved an excellent gold recovery rate of 93.4% in Nicola's flotation mill. Of the 210 dry tonnes of concentrate produced, 188 tonnes are physically bagged, with approximately 22 tonnes currently held in circuit stock tanks as in-process inventory.
As of March 17, 2026, an estimated 1,828 tonnes of unprocessed mineralized material remains on stockpiles at the Nicola facility, which will yield additional concentrate as milling continues. The mill has recently commissioned its second concentrate filter, and a second concentrate thickener is expected to be operational shortly, which will improve concentrate handling capacity and plant operating time. The scientific and technical data in the release was approved by qualified person Ted VanderWart, P.Geo., and concentrate assays were completed at Base Met Labs, an accredited metallurgical testing facility in Kamloops, B.C.
"We are very encouraged by the consistent production results from Nicola's mill and the excellent gold recovery from our Dome Mountain material," said Rana Vig, President and CEO of Blue Lagoon Resources. "With nearly 3,000 tonnes now processed, we continue to build cash flow. The remaining stockpile at the mill, along with continuing trucking from Dome Mountain, ensures production will continue over the weeks ahead." The company notes it is not basing its production decision on a feasibility study of mineral reserves, but on existing infrastructure, past activity, and established resources, which carries increased uncertainty and risk.
The processing milestone represents significant progress for Blue Lagoon, which received one of only nine full mining permits issued in British Columbia since 2015 in February 2025. The company plans to reinvest internally generated cash flow into near-mine and regional exploration in the second half of 2026 to expand its resource base. The ongoing operations demonstrate the viability of the milling partnership and the potential for sustained production from the Dome Mountain Gold Mine, located near Smithers, British Columbia.
