Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB) is preparing to launch full-scale underground gold production at its Dome Mountain project in British Columbia as early as July, Chief Executive Officer Rana Vig announced in a recent interview with the Ellis Martin Report.
While some infrastructure, including a water treatment plant, still requires completion, and staffing and equipment setup are ongoing, Vig emphasized the company’s elite status. “We are among just seven companies in the last decade to receive a full mining permit for a metallic mine in British Columbia,” he said. “That alone puts us in elite company, and now we’re ready to produce.”
Blue Lagoon plans to initially process 55,000 tons annually, targeting a recovery of 15,000 ounces of gold per year. The operation benefits from strong ore grades averaging 9 grams per ton and an expected 95% recovery rate, promising robust profit margins as production ramps up. The timing aligns favorably with a bullish gold market, with Blue Lagoon’s stock already among the top performers in 2025.
The company aims for first gold sales by August, according to its corporate presentation. Blue Lagoon holds a long-term milling profit-share agreement with Nicola Mining Inc. for up to 75,000 tons of mill feed annually and an offtake agreement with Ocean Partners USA Inc. to purchase concentrate from Dome Mountain.
Currently, Blue Lagoon’s gold resource stands at 218,000 ounces from a single vein, with 15 other high-grade veins identified and 90% of its 21,541-hectare property still unexplored. The Boulder vein system remains open in all directions, and further discoveries from ongoing drilling are planned to be funded solely by expected cash flow.
“Our initial mine plan is based on the current resource, but the upside here is extraordinary,” Vig stated.
At the recent 121 Mining Conference in New York City, Blue Lagoon earned top honors in a “Shark Tank”-style pitch event, distinguishing itself as a near-term producer amid exploration-stage competitors and drawing investor interest in cash-generating projects.
Founded in 2019, Blue Lagoon emerged after CEO Vig reviewed over 200 projects, selecting Dome Mountain for its near-term production potential and long-term growth prospects. The company recently closed a CA$4.87 million private placement, supported by strategic investors including Crescat Capital and Nicola Mining.
Gold Market Outlook and Sector Growth
The global gold market is projected to grow at a 6.51% compound annual growth rate through 2030, reaching an estimated US$400 billion from US$292 billion in 2024, driven by demand in environmental controls, oil and gas exploration, and technological advancements.
Gold prices faced a slight dip on June 18, settling at US$3,394 an ounce after the U.S. Federal Reserve maintained interest rates in the 4.25–4.50% range. Market analysts suggest that a reclaim of the US$3,400 level is critical for bullish momentum to strengthen.
Technical analysts remain optimistic about gold’s trajectory. Ron Struthers of Struthers Resource Stock Report likens the current market environment to the late 1960s and 1970s when precious metals surged, while George Milling-Stanley, State Street Global Advisors’ chief gold strategist, forecasts gold could break records again in 2025 due to geopolitical and economic uncertainties.
Conversely, Citi recently lowered its 6- to 12-month gold price forecast to US$2,800 per ounce, citing potential weakening investment demand and political factors in the U.S.
Longer-term bullish forecasts from firms like Incrementum see gold potentially reaching US$4,800 by 2030, with an upside scenario approaching US$8,900 due to inflation, central bank policies, and global economic uncertainty.
Blue Lagoon Stock Performance and Ownership
Technical analyst Clive Maund highlighted Blue Lagoon’s recent stock breakout above CA$0.75, predicting a sharp upward move with CA$2.10 as an initial target. The stock closed at CA$0.77 on June 18, maintaining a strong uptrend since February.
The company’s ownership structure includes 14% held by founders and insiders, 8% by Crescat Capital, 6% by Nicola Mining Inc., and 6% by Phoenix Gold Fund, with retail investors owning 66%. Blue Lagoon currently has 140.78 million shares outstanding and a market capitalization of CA$59.13 million, trading within a 52-week range of CA$0.08 to CA$0.87 per share.
