Expects To Generate First Cash From Sale Of Gold And Silver Concentrate At Dome Mountain
Blue Lagoon Resources Inc. (CSE:BLLG/OTCQB:BLAGF) has revealed that the first shipment of material is ready to be shipped to the mill on its Dome Mountain Gold / Silver Project in Smithers, British Columbia.
The company holds both an Environmental Management Act Permit (EMA) and a Mining Permit providing for up to 75,000 tonnes production annually for the project which has 15 known high grade gold veins with 90% of the nearly 19,000 hectare property yet to be explored.
With the last underground mining at Dome Mountain taking place in 1992, the company estimates that there is more than 6,000 tonnes of high-grade mineralised material that was never removed and remained stored underground.
Having completed all the needed health and safety requirements outlined by the Ministry of Mines, including extensive underground bolting, and with a favourable trucking contract secured, the company is ready to start removing this valuable material from its presently stored location underground and ship it to its toll milling partner, Nicola Mining, that has a state-of-the-art milling facility located in Merritt BC.
“We’re very excited to be in a position to remove this high-grade material from the mine and ship it for processing and monetisation,” said Rana Vig, President and CEO of Blue Lagoon Resources.
“The sale of this material will not only add cash to our treasury but will also give a clear signal to our current and potential shareholders that we are continuing to hit on our key milestones as we execute on a carefully thought-out plan that continues to move the company forward towards its goal of completing the three key amendments required before getting the green light to recommence gold and silver mining production,” he added.
The company has started to remove the mineralised material from its underground mine and will begin to accumulate and store it in its newly constructed ore storage building.
Once the final snow melts, the yearly spring break-up complete, and weight limits removed from the local roads, trucks will immediately begin transporting the material to Nicola Mining. This is currently scheduled to begin during the week of June 14th, 2021.
Meanwhile, toll milling partner, Nicola Mining, has signed an agreement with Ocean Partners UK Limited to buy the concentrate generated from the Dome mineralised material. Ocean Partners, a leading European based commodities trading company with offices in six countries around the world, will buy the processed material in the form of concentrate and pay Nicola Mining and the company based on receiving every 50 tonnes of concentrate material.
