Blue Lagoon Files Updated Resource Report on Its Dome Mountain Gold Project

Rhea-AI Summary

Blue Lagoon Resources Inc. announced a significant update on its Dome Mountain Gold Project, revealing a 145% increase in indicated gold resources. The new technical report estimates an addition of 102,582 gold ounces, resulting in a total of 173,000 ounces. The report demonstrates a 30% increase in contained gold and a 46% increase in silver ounces. The upgrade to measured resources also marks a milestone with 45,000 ounces now classified as measured. This update positions the company for potential future exploration success.

Positive

• 145% increase in indicated gold resources.
• Addition of 102,582 gold ounces to total indicated resources.
• 30% increase in contained gold and 46% increase in silver ounces.
• First-time upgrade of 45,000 gold ounces to the measured category.

Negative

• None.

Limited New Drilling Leads To 145% Increase of Gold in Indicated Category

VANCOUVER, BC / ACCESSWIRE / February 3, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG; FSE:7BL; OTCQB:BLAGF) is pleased to announce that it has filed a technical report on the Company's Dome Mountain Gold Project entitled "Mineral Resource Estimate for the Dome Mountain Gold Project, Smithers, British Columbia, Canada" (the "Technical Report"). The Technical Report was prepared pursuant to the form required under National Instrument 43-101 by Arseneau Consulting Services Inc.

"The significance of this new resource at Dome Mountain cannot be understated as our goal was to demonstrate that a limited amount of in-fill drilling would move ounces to a higher category, which was a complete success," said William Cronk, Chief Geologist for Blue Lagoon Resources. "While the new resource increases the contained gold ounces by 30% and silver ounces by 46%, more importantly, limited amount of new drilling since Blue Lagoon acquired the project in 2020 allowed us to increase the indicated resource by 102,582 gold ounces - amounting to an increase of 145%. In addition, 45,000 gold ounces have been upgraded to the Measured category, a first for this project," he added.

The resource model is limited to the mineralization around the Boulder Vein, which is defined by 42,869 metres of drilling from 355 drill holes drilled from 1985 to 2016 and 26 infill holes from 8 drill pads totalling 3,786 metres drilled in 2020 and 13 infill holes totalling 3,005 metres drilled in 2021. Further information on the mineral resource estimate can be found in the Technical Report available at www.sedar.com and on the Company's website.

The following table provides a summary of the updated mineral resource:

Class	Tonnes	Au cap (g/t)	Ag Cap (g/t)	Au Oz	Ag Oz
Measured	136,000	10.32	57.31	45,000	250,000
Indicated	662,000	8.15	41.19	173,000	876,000
Inferred	85,000	6.02	26.13	16,000	71,000

"People, such as world-renowned geologist Dr. Quinton Hennigh, who have carefully looked at the potential of Dome Mountain understand that this project is much more than just the Boulder Vein, which has primarily been the historical focus of past operators and the basis of this Technical Report," said Rana Vig, President and CEO of Blue Lagoon Resources. "And although this report is an important milestone for the project that illustrates with greater certainty that the Company has a reported resource of gold and silver, the bigger story will continue to unfold with the potential of a ‘grand discovery by exploration', which based on good science, so far has led to numerous newly identified zones on the project that are of great interest," he added.

The Technical Report was authored by Dr. Gilles Arseneau, P.Geo., of Arseneau Consulting Services Inc.

The scientific and technical disclosure in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.

For further information, please contact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: rana@ranavig.com

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Blue Lagoon Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration or future exploitation of minerals deposits, volatility of gold and silver prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

SOURCE: Blue Lagoon Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/687115/Blue-Lagoon-Files-Updated-Resource-Report-on-Its-Dome-Mountain-Gold-Project

FAQ

What does the recent press release from Blue Lagoon Resources (BLAGF) indicate?

The press release indicates a 145% increase in indicated gold resources at the Dome Mountain Gold Project.

What are the key figures reported in the Technical Report for Dome Mountain Gold Project?

The Technical Report reveals an addition of 102,582 gold ounces, leading to a total of 173,000 indicated ounces.

When was the Technical Report on the Dome Mountain Gold Project filed?

The Technical Report was filed on February 3, 2022.

How much gold and silver has been upgraded in the new resource estimate for BLAGF?

The new estimate shows a 30% increase in contained gold and a 46% increase in silver ounces.

Who prepared the technical report for Blue Lagoon Resources?

The Technical Report was prepared by Arseneau Consulting Services Inc.