Blue Lagoon's Toll Mill Partner Ready to Send Fourth Shipment of Gold & Silver Concentrate

Rhea-AI Summary

Blue Lagoon Resources (OTCQB: BLAGF) is set to ship its fourth shipment of concentrate from the Dome Mountain underground mine, comprising 103 dry tonnes of gold and silver concentrate with grades of approximately 90 g/t Au and 477 g/t Ag. This shipment, valued at over $500,000, follows three previous shipments totalling 223 dry metric tonnes valued at more than CDN $1 million. The company has no debt and is progressing with a 20,000-meter drilling program targeting newly identified zones. A decision on resuming production will await further permit approvals.

Positive

• Fourth shipment valued at over $500,000 enhances treasury.
• Total of three previous shipments worth more than CDN $1 million.
• No debt, providing a solid financial foundation for exploration.
• Ongoing 20,000-meter drill program targeting high-grade mineralization.

Negative

• Production decision pending on permit approval, indicating operational uncertainty.
• Increased risk associated with proceeding to production without a feasibility study.

VANCOUVER, BC / ACCESSWIRE / February 14, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG; FSE:7BL; OTCQB:BLAGF) is pleased to report that the Company's toll milling partner, Nicola Mining ("Nicola"), is now ready to send the fourth shipment of concentrate made from the mineralized material from the Dome Mountain underground mine. The shipment of 103 dry tonnes of gold and silver concentrate grading approximately 90 g/t Au and 477 g/t Ag will be sent to Ocean Partners UK Limited, a leading European based commodities trading company with offices in six countries around the world. All concentrate assays were completed at Base Met Labs, an accredited metallurgical testing facility located in Kamloops, BC.

"So far three shipments totalling 223 dry metric tonnes of concentrate that were shipped last year have a value to the Company of more than CDN $1 million, with some funds received and more to be received in the coming weeks." said Rana Vig, President and CEO of Blue Lagoon Resources. "This fourth shipment of concentrate is valued at more than $500,000, and once received, will give a boost to an already healthy treasury with no debt, ensuring the Company has a significant runway to execute on its aggressive exploration plans on a project that's been relatively unexplored and under the radar," he added.

Bags full of gold and silver concentrate made from Dome Mountain mineralized material are readied and await shipping at Nicola's milling facility in Merritt, B.C.

Trucking of the Dome Mountain mineralized material began on June 14, 2021, with 10 to 15 trucks leaving the mine site on a weekly basis. Approximately 5000 tonnes of the Dome Mountain high-grade mineralized material were shipped and processed by Nicola. The Company has provided the Ministry of Mines with a draft of its proposed amendment application and is now awaiting comments in order to prepare its final application for submission and approval for the recommencement of mining operations.

The Company has not made a decision to proceed to production at this time and will evaluate its production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

EXPLORATION DRILLING

The Company's recently announced 20,000-meter drill program continues 24/7 with two drill rigs - one focused on the newly discovered Chance Strutural Zone ( CSZ) and the second drilling a follow up and deeper hole, to the highly successful hole DM-20-139. That hole hit 17.69 g/t Au and 70.41 g/t Ag from a depth of 335.47m to 338.6m (3.13 meters), the deepest intercept yet on the Boulder Vein, which essentially extended the down dip extent of the Boulder Vein by another 200 meters from the base of the 43-101 compliant resource (see News release Dec 9, 2020).

The scientific and technical data contained 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.

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 that may not show quality and quantity necessary for upgrading mineralization classification or for further exploration and exploitation of minerals deposits, market 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.

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FAQ

What is the latest shipment from Blue Lagoon Resources?

Blue Lagoon Resources is shipping its fourth shipment of concentrate, totaling 103 dry tonnes, valued at over $500,000.

How much have previous shipments generated for Blue Lagoon Resources?

Previous shipments have generated more than CDN $1 million for Blue Lagoon Resources.

What is the current status of Blue Lagoon's drilling program?

Blue Lagoon is conducting a 20,000-meter drill program with two rigs, focusing on newly discovered zones.

Is Blue Lagoon Resources in debt?

No, Blue Lagoon Resources has no debt, providing a strong financial position for future exploration.

What are the potential risks for Blue Lagoon Resources?

Risks include uncertainties related to production decisions and the lack of a feasibility study before proceeding to production.