Blue Lagoon Resources (TSX-V:BLLG) reports over C$10 million ($10.21 million) in revenue from gold and silver sales at its Dome Mountain Mine in British Columbia, Canada.
The milestone was achieved within seven months of operations, with underground production reaching a consistent 125 tonnes per day.
Blue Lagoon recorded its first sale in December 2025 and declared commercial production on 19 May 2026. Production levels have increased approximately 40% since commercial production was declared, when underground mining rates exceeded an average of 90 tonnes per day for more than 30 consecutive days.
The operation is advancing toward its permitted production limit of 150 tonnes per day.
Blue Lagoon has reinvested a substantial portion of cash flow back into the mine to advance development headings, open additional working faces, and upgrade water treatment, environmental systems, and site infrastructure.
President and CEO Rana Vig says crossing C$10 million in revenue is an important marker for Blue Lagoon, “but what matters most … is how we got here”.
“Rather than simply chasing a daily production number, we have reinvested a substantial amount of our cash flow back into the mine,” Vig says.
Vig says the reinvestment positions the company to sustain production for years to come.
“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 sets the stage for the next phase of growth as we prepare to put drills back on the ground later this fall.”
The company continues preparations for its coming drill program, receiving contractor quotes for a planned expansion of the Dome Mountain site to accommodate drilling crews.
Big Onion option agreement
Blue Lagoon has also entered into an option to purchase agreement with a private British Columbia company for its Big Onion Project.
The option may be exercised for C$500,000 in cash over two years and 2 million shares over three years, subject to the holder completing a going-public transaction.
Under the terms, the holder must incur at least C$2 million of exploration expenditures within four years.
Blue Lagoon will retain a 1.125% net smelter returns royalty on Big Onion, which may be reduced at C$250,000 per 0.25%.
Blue Lagoon Resources is a Canadian mineral explorer and production company focused on its 100%-owned Dome Mountain Mine near Smithers, British Columbia.
Write to Paula Fabe at Mining.com.au
Images: Blue Lagoon Resources
