Blue Lagoon fully permitted for gold mining at Dome Mountain
Blue Lagoon Resources (CSE: BLLG) is edging closer to becoming British Columbia’s next gold producer after securing all key permits required for its Dome Mountain project located 66 km east of Smithers.On Thursday, the company announced it has received both its mining and effluent/discharge permits from the corresponding BC ministries, gaining authorization for full-scale underground mining operations at Dome Mountain.Blue Lagoon said the permitting milestone “marks a transformative moment” for the company as it transitions from an exploration-focused company to a near-term producer. Once in production, which could occur as early as July, the Dome Mountain mine is expected to output 15,000 oz. of gold per year.“It is incredibly rare for a junior mining company to evolve from pure exploration into production, and today, we proudly stand on the brink of that transformation,” Blue Lagoon CEO Rana Vig commented in Thursday’s press release.Blue Lagoon’s chief geologist Bill Cronk also highlighted that this is one of only a handful of mining permits granted in BC over the last decade. “This speaks to the exceptional quality of the high-grade Dome Mountain gold project,” he added.To support the proposed mine operation, Blue Lagoon entered in 2021 a toll milling agreement with Nicola Mining and will ship the mineralized material to their milling facilities at Merritt, BC, for processing. Shares of Blue Lagoon Resources surged to a 52-week high of C$0.27 apiece on the news. At market close on Friday, it traded at C$0.26 for a market capitalization of C$30.2 million.Significant work doneThe project covers a historical area of high-grade gold-silver-bearing veins centred on the past-producing Dome Mountain mine, which exploited the Boulder Main vein between 1989-1992.However, gold mineralization on the property can be traced back as early as the 1800s, and considerable surface and underground work had already been done in 1923-1924. Resumption of exploration in the 1980s led to the discovery of the Boulder vein system in 1985 by Noranda.Underground mining occurred over a brief period under the ownership of a joint venture between Timmins Nickel and Habsburg Resources. When operations ceased in May 1993, it had reportedly produced 43,900 tonnes at an average grade of 12 grams per tonne gold.The most recent project owner was Gavin Mines, which held it for 12 years and completed a significant part of the infrastructure construction and underground development. Expenditures on the mine by past operators, including Gavin Mines, Timmins and Noranda, have totalled in excess of $68 million.Blue Lagoon took over the project in 2020 and has since been drilling the Boulder vein system. To date, it has completed 94 holes for approximately 25,275 metres.A production decision was made following a 2021 resource estimate for the Boulder vein system, which had 45,000 oz. gold and 250,000 oz. silver in the measured category (a first for the project), 173,000 oz. gold and 876,000 oz. silver in the indicated category, and 16,000 oz. gold and 71,000 oz. silver in the inferred category.Production soonWith the existing infrastructure and now the permits, the company is now focused on finishing last preparatory activities to open the Dome Mountain mine, including the required installation of the planned water treatment facility, which is expected to be completed within three months.As it transitions to production, Blue Lagoon said it will allocate funds to infill drilling the Boulder vein to expand on this resource, improve the resource classification and extend the mine life.In addition, the company noted that there are as many as 15 known high-grade gold veins identified on the Dome Mountain project. As of today, about 90% of the 210-sq.-km property remain unexplored.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
