Blue Lagoon Resources Inc.
Transitions into a Revenue- Generating Gold Producer
Published: Jan 16, 2026
Author: FRC Analysts
Disclosure: 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.
Company Details
Sector – Research Report
Trading Information
Ticker & Exchange – BLLG.CN : CSE
Report Highlights
- BLLG is up 692% YoY, outperforming gold (+70%), and the VanEck Junior Gold Miners ETF (+185%). The company has officially transitioned to producer status at Dome Mountain in B.C. It recently completed its first gold and silver sale, receiving $1M for 1,000 tonnes of mineralized material delivered to its milling partner, Nicola Mining (TSXV: NIM), for processing.
- We believe the transition from exploration and development to producer supports a re-rating, as the market typically assigns a premium to producers. With regular trucking of mineralized material underway, visibility into production and revenue is improving. No additional financing is needed, and Nicola’s mill now operates exclusively as the processing facility for Dome Mountain, materially de-risking the mine.
- We believe BLLG could potentially mine and process 40,000–50,000 tonnes in its first year, producing 12–15 Koz of gold. First-year EBITDA is estimated at US$24–$30M. BLLG is trading at 2.89x forward EBITDA vs a sector average of 6.77x, a 57% discount.
- Dome Mountain hosts a high-grade underground resource that we believe could support up to ~15 years of operations. The company intends to utilize production cash flow to fund a multi-stage exploration program. We believe there is significant resource expansion potential as the deposit remains open in multiple directions (laterally and vertically), and 90% of the project area remains untested along a 18km strike length.
- With gold trading near record highs, we anticipate an increase in M&A activity over the next 12 months as larger companies target juniors. We maintain our outlook on gold, supported by US$ weakness and strong safe-haven asset demand amidst economic and geopolitical uncertainties.
- Upcoming catalysts include production ramp-up, an updated resource estimate, and additional exploration drilling.
Price and Volume (1-year)
| YTD | 12M | |
| KIDZ | 50% | 25% |
| TSXV | 13% | 15% |
Two gold and one copper project in B.C. Records first gold & silver sale
The mine is well connected, just a 50-minute drive from Smithers, B.C. Hosts high-grade veins averaging ~9 g/t, well above typical underground mine grades of 3–5 g/t A 2022 study identified a high-grade resource that we believe can support ~15 years of operations A key advantage of the project is its pre-existing underground development, and an active toll milling arrangement with Nicola Nicola’s mill is approximately 900 km from Dome Mountain. While long-distance trucking is challenging and cost-prohibitive for large operations, Dome Mountain’s relatively small-scale operation, and high-grade material, make it feasible BLLG has a 10-year milling profit share agreement with Nicola Mining for up to 75,000 tonnes per year (200 tpd)
Portfolio Summary
Source: Company
Dome Mountain Gold Project (100% interest) After commencing underground mining in September 2025, BLLG achieved a major milestone in late December 2025 , with its first gold and silver sale, generating $1 M in revenue from 1,000 tonnes of mineralized material delivered to its milling partner, Nicola Mining, for processing. This milestone marks the company’s official transition to a gold producer .
Location Map
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