Blue Lagoon Resources (CSE: BLLG; US-OTC: BLAGF) has won the Prospectors & Developers Association of Canada’s 2026 Sustainability Award for its partnership with the Lake Babine Nation at the Dome Mountain gold-silver project near Smithers, British Columbia.
The award comes as Blue Lagoon starts making money from Dome by mining underground and hauling ore to a third-party mill owned by Nicola Mining (TSXV: NIM), sidestepping the cost and footprint of building its own processing plant.
“Our partnership with Blue Lagoon Resources is built on respect for our Yintah and a shared commitment to protecting the land while creating meaningful opportunities for our people,” Lake Babine Nation Chief Wilfred Adam said this week in a press release.
The PDAC presented the award March 3 at its Awards Celebration & Nite Cap gala during the annual industry convention in Toronto. Blue Lagoon CEO Rana Vig accepted it with chief geologist and project manager Bill Cronk. Chief Adam and Deputy Chief Bessie West travelled to Toronto for the ceremony.
Blue Lagoon shares have gained 225% over the past 12 months to 91¢ on Friday. The company has a market capitalization of $136 million.
Toll-milling agreement
Blue Lagoon has set initial production at 55,000 tonnes a year and forecast about 15,000 oz. gold recovered in the first year, with a goal of moving to 20,000 oz. in the next 12 months.
Blue Lagoon fired its first blast on Sept. 25 last year, began trucking ore in November and collected about $1 million (US$734,363) from its first gold and silver sales on Dec. 30.
To date, the company has shipped 1,300 tonnes under the toll-milling and profit-share deal with Nicola Mining. It extended the agreement in September for 10 years. The deal covers up to 75,000 tonnes a year of mill feed.
A 5,000-tonne bulk sample processed in 2021 ran about 9 grams gold per tonne and returned 95% gold recovery and about 90% silver recovery.
High grades
Dome Mountain’s mineral titles cover 215 sq. km and about 20 km of strike length, with 15 veins identified on the property. Since the fall of 2020, Blue Lagoon has drilled 48,937 metres and collected 7,027 soil samples while stepping out to target areas it calls the Chance structural zone and the Federal zone.
Dome Mountain hosts 136,000 measured tonnes grading 10.32 grams gold per tonne and 57.31 grams silver for contained metal of 45,000 oz. gold and 250,000 oz. silver, according to a 2022 resource estimate. Indicated tonnes are pegged at 662,000, grading 8.15 grams gold and 41.19 grams silver for 173,000 oz. gold and 876,000 oz silver of contained metal. The deposit also has 85,000 tonnes inferred at 6.02 grams gold and 26.13 grams silver for 16,000 oz gold and 71,000 oz. silver.
Blue Lagoon bought Dome Mountain in March 2020 through the all-share acquisition of Metal Mountain Resources. The company says it has spent more than $40 million since 2019 on drilling, underground development, a mine access road and a water treatment plant.
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