Good prospects for the New Year: gold explorer and prospective gold producer Blue Lagoon Resources (WKN A2PNJ8 / CSE BLLG) takes stock of the 2020 drilling program and sees great potential for 2021!
Blue Lagoon believes that the recently completed drilling on the Dome Mountain Gold Project shows the potential for significant expansion of the known gold mineralization down-dip of the known resource. The Company relies on the discovery of mineralization at a greater depth than previously (hole DM-20-139) and the discovery of high-grade gold intercepts on strike to the east (hole DM-20-114). The latter discovered the most easterly mineralized section of the Boulder vein that has been identified on the project to date.
Or as Bill Cronk, Chief Geologist at Blue Lagoon put it, “The recently completed drill program has been successful in terms of more precise delineation, most notably demonstrating the concept of continuing the Boulder mineralized vein at depth and on strike to the east.” In his view According to, the high-grade intercepts in holes DM-20-139 and DM-20-114 have the potential, even in the short term, to significantly increase the total resource both at depth and on strike. In addition, Mr. Cronk stated that the new mineralization discovered in hole DM-20-114 appears to be underpinned by a separate Mag anomaly, “identified in our recently completed airborne Mag survey and [..] a clear target for further drilling on strike to the east [bietet]. “
Exploration model confirmed
Hole DM-20-139 had driven Blue Lagoon vertically to a depth of 595.88 meters, intersecting the boulder vein at 338 meters. The grades were 17.69 g / t gold and 70.40 g / t silver over 3.13 meters including 0.65 meters of 48.4 g / t gold and 95 g / t silver. This is the deepest section of mineralization in the Boulder vein system to date. The Company expects this vein, which is only one of many known on the Dome Mountain project, to have a strike length of 1,000 meters and an extension of 200 meters down dip. The high grade gold interval from this hole DM-20-139 is 150 meters below the lowest point of the previously proven boulder resource.
This, according to Blue Lagoon, proves the correctness of the exploration model, which assumes an expansion of the mineralization in the downward direction. Accordingly, the 2021 drilling program, which is scheduled to begin on January 11, will prioritize additional deep drilling.
Considerable potential for eastward expansion
Blue Lagoon sees additional potential to expand the boulder mineralization to the east. Hole DM-20-114 encountered the easternmost section of the boulder system to date with 107 g / t gold and 278.5 g / t silver over 1.42 meters, including 165.3 g / t gold and 398 g / t silver over 0.71 meters. Data from a recent airborne survey also indicated a significant magnetic anomaly associated with the intersection from the eastern portion of the vein. And this mag anomaly clearly highlights a single, fault-like structure that corresponds to the eastern end of the known Boulder vein system (and the vein segment in hole DM-20-114) – and continues for at least another kilometer in an east-west direction ! So it’s no wonder that the new drilling program is also intended to investigate the potential eastward expansion.
Significant increase in gold resources expected
Blue Lagoon filed a technical report late last year indicating that Boulder had a resource of 70,418 ounces of gold and 341,784 ounces of silver in the category and of 109,160 ounces of gold and 473,890 ounces of silver in the inferred category. However, this only includes drill holes on Dome Mountain from the period 1985 to 2016 and no data from the 2020 drill program, which again comprised 26 drill holes with a total length of 3,786 meters.
Blue Lagoon plans to submit a new resource estimate once all data from both this and the 2021 drill program has been received and analyzed. The company expects this to be the case in the second half of 2021. It is expected that the amount of resources can thus be increased significantly.
Blue Lagoon was able to convince with good drilling results from the Boulder vein system in the past year and there are indications that CEO Rana Vig is right in his conviction that there is already great potential for a considerable increase in resources here alone. If the 2021 drill program proves successful and confirms the expansion of the high-grade vein system to the east and in depth, we also see potential for a positive development in the stock.
As always with small commodity companies / exploration companies, investors should be aware of the high risk. A commitment should only make up a small part of the portfolio and investors should always hedge potential positions well.
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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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