Blue Lagoon's Underground Production Ramps Up

Core Viewpoint - Blue Lagoon Resources Inc. is making significant progress towards consistent mine production and regular deliveries of mineralized material to its milling partner, Nicola Mining Inc. [1] Operational Progress - Dome Mountain has resumed production activities post-holiday, with expectations to achieve consistent production of approximately 100 tonnes per day by the end of the month, aiming for a fully permitted production level of 150 tonnes per day [2][7] - The early stages of ramping up underground mining faced timing delays and operational constraints, which have now been largely resolved, allowing for increased underground activities [3][4] Production and Revenue Generation - In December, the company shipped approximately 1,300 tonnes of mineralized material to Nicola Mining, receiving its first payment for about 1,000 tonnes, with 300 tonnes still pending processing [4] - Approximately 150 tonnes of mineralized material is stockpiled at Dome Mountain, ready for shipment, with trucking expected to commence shortly [4] Financial Developments - The company has issued 116,884 common shares to several senior employees, pending approval from the Canadian Securities Exchange [5] - An unsecured, interest-free loan of $500,000 was received from the President to address short-term working capital needs, with an agreement to issue 151,515 bonus common shares to the lender [6] Future Plans and Enhancements - A second production shift is expected to enhance productivity and operational efficiency, with consistent production of 100 tonnes per day anticipated by month-end [7] - A fire assay laboratory facility is under construction, expected to process a minimum of 40 samples per day, aiding in rapid assay results for operational decision-making [7] - Underground surveying capabilities have been improved with the addition of a LiDAR unit, enhancing accuracy and mine planning [7] Company Background - Blue Lagoon Resources Inc. is a Canadian-based mining company operating the Dome Mountain Gold Mine, with a focus on sustainable practices and community engagement [8][10] - The company achieved a significant milestone in February 2025 with the granting of a full mining permit and has commenced underground mining operations [9]