For the gold explorer and prospective gold producer Blue Lagoon Resources (CSE BLLG / WKN A2PNJ8) 2021 could be a transformative year. Not only is a comprehensive drilling program underway to highlight the Blue Sky potential of the Dome Mountain property, it is also expected that approval to begin mining will be submitted by mid-year!
First of all, Blue Lagoon has sent the crew and rig to the Dome Mountain project in British Columbia so that the new drill program can commence shortly, which is expected to include around 20,000 meters of core drilling. In the first phase of the exploration and development campaign, the Company is focused on demonstrating the potential for further gold mineralization at depth and potential extensions of the mineralization east of the Boulder Vein. This is based on the positive results of the recently completed 2020 drill program, which indicated this potential. Blue Lagoon sees this as an opportunity to “short-term” expand its existing resources by discovering additional high-grade gold and silver mineralization.
Aside from the potential of the bouldering addition, Blue Lagoon Resources Chief Geologist Bill Cronk is excited to be able to tackle the fifteen high-grade, drill-ready targets on Dome Mountain, gold veins, and previous development targets in 2021. The company had identified these with airborne geophysical surveys as well as soil sampling and prospecting work last year. According to Cronk, these are “further opportunities for expanding resources”.
Blue Lagoon completed airborne geophysical work at Dome Mountain in 2020 that detailed numerous targets for further development and a unique magnetic signature associated with additional potential on strike east of the Boulder vein. (We reported.)
CEO Rana Vig stated that his company had recently reached a number of significant milestones in a short period of time, but considers the most important results that Blue Lagoon discovered five new prospective targets with the first property-wide airborne geophysical survey on Dome Mountain, so that one can immediately once staked 7,646 hectares of claims. This almost doubled the size of the property to around 19,000 hectares!
As Blue Lagoons CEO further stated, the first results from the drilling started today are expected in early March. Drilling results should then be submitted repeatedly until autumn 2021. Blue Lagoon is well funded for these tasks, has nearly $ 6 million left in its pocket, according to Mr. Vig, and is debt free. In addition, according to the company director, there are still warrants and options outstanding to the value of approx. 5 million dollars, which are “in the money” and could provide more capital this year if necessary.
In our opinion, Blue Lagoon could finally flip the switch in 2021, as we said at the beginning, since the work planned for the current year includes the largest drilling program in the project’s history and could thus – if successful, of course – ensure lasting positive news. Firstly, in terms of increasing the known resources of the boulder vein, and secondly, of new, ready-to-drill targets that offer the potential for new discoveries.
In addition, there is an aggressive soil sampling program covering the entire property, which should include the taking of at least 4,000 samples and should also ensure an exciting news flow. The drilling results from last year as well as the data from the next drilling (phase 1) are also to be incorporated into a new resource estimate, which we believe could also provide momentum.
Start of mining in the middle of the year?
At the same time, Blue Lagoon is working flat out to start mining on the Dome Mountain project! The schedule stipulates that you have completed the remaining work by the middle of the year and then you can apply for approval:
– Completion of the water treatment plant (February 2021).
– Underground installation of a secondary emergency exit and ventilation shaft (February 2021).
– Removal and processing of on-site high-grade crushed ore (March 2021).
– Completion of recultivation and closure plans for the mine (April 2021).
– Submission of all supplementary documents to the Ministry for approval to start mining (June 2021).
When all permit requirements are met, Blue Lagoon will then make a production decision. However, we would like to point out that a decision to start mining would be made before a feasibility study with mineral reserves was carried out, which would be associated with increased uncertainty and an increased risk of failure …
Blue Lagoon Resources is facing an extremely exciting and, in our opinion, very promising year. A 20,000 meter drill program, the first phase of which has now started, and numerous other exploration activities give hope for a strong, positive news flow. In addition, mining approval on Dome Mountain could also be granted this year, potentially triggering a stock revaluation. In any case, we will keep a very close eye on Blue Lagoon and report whether the company’s activities are successful! Nonetheless, it is a risky speculation. Investors should always be aware of this.
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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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