Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) announced it has reached commercial production at its wholly-owned Dome Mountain Gold and Silver Project near Smithers, British Columbia. The company also revealed a C$3 million strategic equity investment from its offtake partner, Ocean Partners Holdings Ltd., priced at C$0.90 per common share—the closing market price on May 15, 2026, with no discount and no warrants attached.
Commercial production was declared after the company maintained underground mining rates exceeding an average of 100 tonnes per day for over 30 consecutive days. Dome Mountain is permitted to mine up to 55,000 tonnes annually, and commercial production is generally recognized at 60% of permitted throughput, or about 90 tonnes per day. This milestone marks the transition from a development-stage company to a producing gold company, with the next target of consistent production at 150 tonnes per day. Dome Mountain is among a very small number of newly permitted mining projects in British Columbia to successfully transition into active production in recent years.
“This is a defining milestone for Blue Lagoon,” said Rana Vig, President and CEO. “Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation. To reach this point in British Columbia – one of the most challenging permitting jurisdictions in the world – is a major accomplishment for our team.”
The strategic investment by Ocean Partners aligns the interests of the offtake partner with Blue Lagoon and its shareholders. Blue Lagoon’s milling partner, Nicola Mining Inc., already holds an equity position and last year provided a C$2 million unsecured line of credit, which remains undrawn. With this investment, Ocean Partners becomes a shareholder, aligning incentives across the full value chain from mine to mill to market.
“Equally significant is Ocean Partners’ decision to become an equity shareholder in Blue Lagoon through a substantial investment to be completed at market price with no warrant incentive,” Vig added. “We believe this speaks volumes about their confidence in the quality of the Dome Mountain project and its mineralized material, our operational progress, and the long-term potential of the Company.”
The company reports a strong treasury, ongoing cash flow from gold and silver concentrate sales, approximately C$2.5 million in in-the-money warrants outstanding, and access to the C$2 million undrawn credit line. This financial foundation supports continued ramp-up and exploration at Dome Mountain.
Operationally, underground mining is progressing with two crews working concurrently on development and extraction. Additional equipment has arrived to boost productivity. Regular shipments are being made to Nicola Mining’s Merritt Mill under a toll milling agreement, with invoices submitted to Ocean Partners for gold and silver sales as material is processed. The water treatment facility is performing well, and the site is managing seasonal snow melt while remaining in full environmental compliance. Infrastructure upgrades are underway to support the expanded crew and prepare for drilling crews anticipated in Q3 2026.
Blue Lagoon has not based its production decision on a feasibility study of mineral reserves, understanding the increased risk of failure when production is undertaken in advance of such a study. The company plans to reinvest internally generated cash flow into near-mine and regional exploration starting in the second half of 2026.
For further information, contact Rana Vig, President and CEO, at 604-218-4766 or rana@bllg.ca. View the original release on www.newmediawire.com.
This news story relied on content distributed by NewMediaWire. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Blue Lagoon Resources Achieves Commercial Production at Dome Mountain; Ocean Partners Invests C$3 Million.