Blue Lagoon Resources Inc.
Dome Mountain Mine – Site Visit Report
Published: Jul 22, 2025
Author: FRC Analysts
*Blue Lagoon Resources Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Sector: Basic Materials | Industry: Gold
Ticker Symbols: BLAGF – TSX BLLG.CN – OTC
Report Highlights
* Qualified Person: Ted Vander Wart, P.Geo., a consultant to Blue Lagoon Resources (BLLG). * BLLG covered the transportation and lodging costs associated with the site visit. * Blue Lagoon Resources Inc. has paid FRC a fee for research coverage and distribution of reports. See the last page for other important disclosures, rating, and risk definitions.
Date of Visit: July 8–9, 2025
Location: Near Smithers, British Columbia
We attended the official reopening of the Dome Mountain gold-silver mine on July 9, 2025. Our Head of Research conducted a two-day site visit, where he had the opportunity to meet with management, local stakeholders, Lake Babine First Nation representatives, and key contractors overseeing logistics and operations. The visit also included a tour of the underground mine, and a high-capacity water treatment plant, built to handle six times current usage.
The trip began with a 1.5-hour flight from Vancouver to Smithers, a small resource-driven town in northwest B.C., known for mining, tourism, and steelhead fishing. Weather conditions were mild with intermittent rain. Upon arrival, our group—consisting of approximately 30 individuals, including analysts, investors, media, and members of the BLLG team—traveled about 50 minutes by road to reach the mine site. Although slightly bumpy in parts, the road was in good condition, which is important given its intended use for long-haul ore trucking to Nicola Mining’s (TSXV: NIM) mill.
We entered the underground workings through the 1290 portal, pictured below.
On July 8, we conducted a one-hour underground tour of the mine. The site was well-maintained, and offered good access throughout. We were able to walk through a significant portion of the defined resource, which currently totals 234 Koz of gold, and 1.2 Moz of silver. Mineralization is hosted in high-grade quartz veins, primarily concentrated in the Boulder vein. This zone extends roughly 530 m along strike, and 200 m in depth. We also viewed the Argillite vein, one of 15 known veins on the property, though only six have been drill-tested. Notably, over 90% of the land package remains unexplored, offering substantial upside potential. The current resource estimate does not include drilling from the 2022 to 2023 infill drill campaigns. Several of these holes intersected the Boulder and Argillite veins.
Fundamental Research Corp. Equity Rating Scale:
Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definition of our ratings are explained below):
- Buy – Fair value is 12% above the current market price; or risk and reward is favorable
- Hold – Fair value is between 5% to 12% above the current market price
- Sell – Fair value is 5% above, or less, than the current market value; or risk and reward is unfavorable
- Suspended or Rating N/A – Coverage and ratings suspended until more information can be obtained from the company regarding recent events.
Fundamental Research Corp. – Risk Rating Scale:
- (Low Risk) – The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt.
- (Below Average Risk) – The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt.
- (Average Risk) – The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient.
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Disclaimers and Disclosure
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Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp.
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The distribution of FRC’s ratings are as follows: BUY (71%), HOLD (3%), SELL / SUSPEND (26%). Blue Lagoon Resources Inc.
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