Promising Gold Explorer Blue Lagoon Resources Provides Update on Plans for Near-Term Production and Exploration Potential

• Blue Lagoon Resources is focused on becoming a gold producer at its Dome Mountain mine while also having significant exploration upside. The mine already has permits and infrastructure in place.
• They expect to begin production at Dome Mountain mine later this year, starting small at 200 tons per day but generating cash flow to support exploration. There is already high-grade mineralized material stockpiled underground.
• The main Boulder Vein at Dome Mountain has clear potential to prove 1M+ oz through additional drilling, starting with nearby targets and expanding step-by-step. Many other high-grade vein targets exist on the property.
• An airborne survey identified 5 new porphyry copper targets plus additional structural hosted vein targets on the 19,000 hectare land package, most of which has seen little past exploration.
• The location near town allows hiring experienced talent locally. Good community relations with First Nations bands support operations and hiring. The project has strong fundamentals.

About Blue Lagoon Resources

Blue Lagoon Resources is a mineral exploration company focused on developing its flagship Dome Mountain Gold project located in northwestern British Columbia, Canada. The 19,000-hectare property hosts both high-grade Gold veins and porphyry Copper targets. The company is led by President and CEO Rana Vig and holds over $3 million in cash with no debt.

Blue Lagoon's strategy is to leverage the existing permits at Dome Mountain to quickly reach near-term production in order to generate cash flow to fund an extensive exploration program. The property has already had over $28 million spent on infrastructure and permitting by previous owners.

Interview with Rana Vig, CEO, & Bill Cronk, Chief Geologist of Blue Lagoon Resources

Near-Term Production Potential

The Dome Mountain project already has permits in place to mine up to 75,000 tonnes per year. Blue Lagoon expects to begin production at the mine site later this year once final permit amendments are approved, which is anticipated within the next couple months.

The company has already stockpiled over 7,000 tonnes of mineralized material averaging over 5 g/t gold underground. Trucking of this material to the partner mill commenced in June, with first Gold production expected by late July/early August. At full capacity, the mine is projected to produce 27,000-28,000 ounces of Gold annually at cash costs around $1,000/oz.

This near-term cash flow will provide capital to fund exploration activities without further dilution to shareholders.

Exploration Upside

While near-term production will provide capital, Blue Lagoon's main upside lies in the extensive exploration potential at Dome Mountain. Work to date has outlined over 15 high-grade Gold vein targets on the property, though less than 10% of the large 19,000-hectare land package has been explored.

The company's first priority will be expanding and upgrading the current 200,000 ounce Gold resource at the Boulder Vein system. Blue Lagoon believes they can grow this to over 1 million ounces along strike and at depth through additional drilling.

Beyond the known veins, the first ever airborne geophysical survey conducted in 2021 generated 5 new porphyry Copper targets. Ground work will commence this summer to refine these targets in preparation for drilling.

Path to Production

Blue Lagoon has essentially picked up where the previous owners left off at Dome Mountain, as they ran out of time and money before production could start. Having already spent $2 million to complete required amendments, the company is now in the final stages of the permitting process.

Trucking of existing stockpiled mineralization will provide cash flow during the interim period while final approvals are granted. Blue Lagoon expects to receive the green light for full production before the end of 2022.

Fully Funded Exploration

The modest production scenario at Dome Mountain is not meant to be a long-term business model for Blue Lagoon. The Economics at recent Gold prices provide enough margin for the company to self-fund extensive exploration activities.

This will allow the company to aggressively drill targets without constant dilution to shareholders. Blue Lagoon has approximately 12,000 metres of drilling budgeted for 2022 to test recently identified geophysical anomalies and expand existing deposits.

Experienced Leadership

President and CEO Rana Vig provides valuable capital markets and business expertise to complement the strong technical team assembled at Blue Lagoon.

Vig intends to step aside at an appropriate time as the project transitions to the next stage of development under new leadership. This understanding of his role provides shareholders confidence in the long-term vision for the company.

Upside for Investors

In summary, Blue Lagoon offers investors upside through self-funded exploration of a large, prospective land package. The near-term catalysts of permitting, production start-up, and drill results could draw attention to this undervalued Gold exploration story. Wise investors may consider starting a position before the crowd catches on.

Conclusion

With permits in hand and near-term production on the horizon, Blue Lagoon offers investors a unique opportunity to gain exposure to potential exploration success through a self-funded model. The current valuation does not appear to fully reflect the substantial exploration upside on offer at Dome Mountain. Risk-tolerant investors may want to consider establishing a position ahead of steady news flow over the coming months.