Excellent year-end! The budding gold producer Blue Lagoon Resources (CSE BLLG / WKN A2PNJ8) once again presents extremely high grade drill results from its Dome Mountain project!
Blue Lagoon had carried out a roughly 3,700 meter drill program on Dome Mountain in 2020, with the focus on the Boulder vein, where mining is to begin in a few months – when the final work is completed.
It currently has an Indicated Resource of 81,017 ounces gold grading 15.78 g / t Au, 397,463 ounces silver grading 2.29 ounces / t Ag, and an Inferred Resource of 149,240 ounces gold grading 10.09 g / t Au and 674,656 ounces of silver at 1.47 ounces / t Ag. The primary objective of the current drilling is to improve the quality of the resource and upgrade more ounces from the Inferred Category to an Indicated Resource in order to provide a more accurate picture of potential mining.
And with this the company is extremely successful: As last time, Blue Lagoon can confirm the extremely high-grade nature of the gold and silver mineralization of the boulder vein! The highlights of the drilling targeting known mineralization were 53.76 g / t gold and 22.7 g / t silver over 2.2 meters, including 83 g / t gold and 12 g / t silver over 1.13 Meters (borehole DM-20-135)! In addition there are 12.8 g / t gold and 40 g / t silver over 0.85 meters and 21.2 g / t gold and 72 g / t silver over 0.53 meters (DM-20-138).
At the same time, the Company is also drilling holes testing the upper and eastern edges of the Boulder Vein system for possible extensions of the high grade mineralization. In particular, the last well in the 2020 program – it should continue at the beginning of January 2021 – was very interesting. Their aim was on the one hand to demonstrate that the boulder vein can still be found at greater depths and on the other hand to test the so-called forks structure.
And this hole (DM-20-139) returned a high grade interval of 17.69 grams of gold and 70.41 grams of silver per ton from a depth of 335.47 to 338.6 meters. This is the deepest mineralized section in the boulder system to date, which confirms that this is still present and mineralized at greater depths! The next drill program, which Blue Lagoon plans to initiate on January 11, 2021, will target the vein again at lower levels to test whether the assumption is correct that the gold-bearing mineralization of the vein boulder is significantly deeper than historical drilling has shown. Should it be possible to represent this, the resource potential of the boulder vein could increase considerably! The forks structure could possibly also contribute to this, but no section comparable to the historical results has yet been discovered.
In any case, at the beginning of next year, Blue Lagoon will first drill another hole from the location of the DM-20-139 hole in order to define the Boulder vein even more precisely before the drill is transported south to the Boulder vein for another 100 meters Target depth.
In our opinion, Blue Lagoon has fully met its objectives with the 2020 drill program! Not only was it possible to repeatedly identify high-grade sections within the known resources with the determination boreholes, but it was also possible to demonstrate that there is considerable potential for an expansion of the deposits at depth! We believe that given the prospect of mining commencement at Dome Mountain in a few months, the successful drilling of the Boulder System, and the Blue Sky potential of the remainder of the property, which has only been partially drill tested, we believe that Blue Lagoon will do well on the the current level is clearly underestimated. We assume that with a recovery of the gold price towards USD 2,000 per ounce – as predicted by many experts – and with continued positive newsflow, the Blue Lagoon share can also gain significant momentum again. Of course, there are still great risks, but in our opinion they also have great potential.
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In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that GOLDINVEST Consulting GmbH and / or partners, clients or employees of GOLDINVEST Consulting GmbH hold shares in Blue Lagoon Resources and that there is therefore a conflict of interest. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares in the company at any time. In addition, GOLDINVEST Consulting GmbH is remunerated by Blue Lagoon Resources for reporting on the company. This is another clear conflict of interest.
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