Blue Lagoon Resources (CSE: BLLG; US-OTC: BLAGF) and the Lake Babine Nation have signed an agreement allowing the start of underground mining at the Dome Mountain gold mine in central British Columbia, located 66 km east of Smithers.
The agreement provides for the Dome Mountain project to move forward and outlines how the Lake Babine people will share in the benefits of the operation. The Lake Babine Nation is one of the largest Indigenous groups in the province, with a total membership of over 2,500.
“I really appreciate Blue Lagoon’s commitment to seeking Lake Babine’s consent for this project and for doing business the right way on our yintah, and I look forward to a successful and sustainable restart of Dome mine,” Lake Babine Nation Chief Murphy Abraham said.
Saying the company is honoured and humbled to be accepted by the Lake Babine Nation as a trusted partner, Rana Vig, president and CEO of Blue Lagoon, promised to meet and exceed the terms of the agreement.
Dome Mountain is accessible year-round by road. The project has both an environmental management act permit and a mining permit allowing the mining of up to 75,000 tonnes of ore annually.
There are 15 known high-grade veins on the property. They contain an estimated 135,000 measured tonnes grading 10.32 grams gold per tonne and 57.31 grams silver; 662,000 indicated tonnes grading 8.14 grams gold and 41.19 grams silver, and 85,000 inferred tonnes at 6.02 grams gold and 26.13 grams silver.
Blue Lagoon shares were up 3.33% to 16¢ apiece on Tuesday, valuing the company at $15.7 million. Its shares traded in a 52-week range of 11¢ and 37¢.
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