First Gold Revenue Locked In as Precious Metals Surpass Milestones

1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blue Lagoon Resources.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB; 7BL:FSE) and Nicola Mining Inc. (NIM:TSX.V; HUSIF:OTCQB; HLIA:FSE) announced they had completed the sale of US$1 million worth of gold and silver to Ocean Partners UK Ltd. The transaction marked the first payment received under a long-term partnership between the two companies and follows the commencement of gold and silver mill feed hauling, which began on December 1, 2025.

Blue Lagoon has been supplying mineralized material for toll milling through its agreement with Nicola Mining. Under this arrangement, material extracted from Blue Lagoon's Dome Mountain Gold Mine is processed at Nicola's facility. The partnership builds on a previous offtake agreement with Ocean Partners, which also purchased concentrate following a 2021 bulk sample program. According to Nicola CEO Peter Espig in the announcement, "Nicola is very excited to work closely with Blue Lagoon as the two companies mutually ramp up production and revenues, amidst strong precious metal prices."

The Dome Mountain project, located near Smithers, British Columbia, was fully permitted for underground mining in February 2025. Initial production is expected to reach 55,000 tonnes per year, with an estimated recovery of approximately 15,000 ounces of gold annually. The mine is accessible year-round via maintained roads and has the support of the local Indigenous community, specifically the Lake Babine Nation. 

Gold and Silver Markets Respond to Macro Pressures and Industrial Shifts

In a January 6 article, Nick Giambruno of The International Man framed silver as a highly responsive asset during periods of inflation and monetary instability. He described silver as "an industrial metal with a call option on inflation and monetary chaos," pointing out its relatively small market size compared to gold. According to Giambruno, this structural characteristic made silver susceptible to sharp price spikes when investors sought alternatives to fiat currency. He stated, "Silver's monetary demand tends to soar during periods of high inflation. As money floods in, the price surges." Giambruno emphasized that while gold's value is driven by monetary demand, silver's price is typically influenced by industrial usage — until inflationary or crisis conditions cause a shift in investor behavior.

On January 7, Dominic Frisby wrote that gold continued its upward trend from the prior year and surpassed US$5,000 per ounce. He attributed this movement to persistent macroeconomic uncertainty, observing that "gold doesn't quite have the year it had in 2025, but it has a good year nonetheless and rises above US$5,000/oz." Frisby positioned gold as a safe haven amid ongoing concerns about government spending and inflation, reinforcing its role as a store of value during unstable economic conditions.

The silver market also faced pressures from industrial consumers reacting to elevated prices. On the same day, a report from GoldFix highlighted that LONGi Green Energy Technology Co., Ltd. (601012.SS), one of China's largest solar manufacturers, planned to begin using base metals instead of silver in its solar cells to reduce costs. The move followed a significant price surge in silver and was expected to begin implementation in the second quarter of 2026. According to the report, this substitution aimed to "further lower the costs of solar modules," as silver had become a major cost component, accounting for more than 17% of the per-watt cost of solar modules when prices approached US$50 per ounce in October.

Despite these cost-cutting measures, long-term industrial demand for silver remained strong. A September 2025 study from Ghent University and Engie Laborelec projected that the solar sector could consume up to 14,000 tonnes of silver annually by 2030, representing approximately 40% of global supply. The research called for urgent attention to this potential supply-demand imbalance, noting, "Our work highlights the role of new c-Si designs such as TOPCon and SHJ in driving up silver demand."

Shared Infrastructure, Shared Upside

Blue Lagoon has positioned itself as an emerging gold producer in British Columbia by leveraging partnerships and existing infrastructure. According to its June 2025 corporate presentation, the company secured a toll milling agreement with Nicola Mining and an offtake arrangement with Ocean Partners to limit upfront capital expenditures and streamline production.

The Dome Mountain Gold Mine remains the company's flagship asset, hosting a high-grade quartz-carbonate vein system over a 20-kilometer strike length. As of early 2025, the project was fully permitted for mining, and activities such as equipment installation and water treatment plant construction were nearing completion. The property has seen more than 48,000 meters of drilling since late 2020, with resource estimates focused on the Boulder Vein, which reported a combined 218,000 ounces of measured and indicated gold at grades exceeding 8 grams per tonne, plus 16,000 ounces in the inferred category. 

With the mill and offtake agreements in place, Blue Lagoon and Nicola aim to maintain steady processing and concentrate sales throughout 2026. The companies' collaboration provides exposure to gold and silver production while reducing risk through shared facilities and established processing infrastructure.

Third-Party Analysis Highlights Operational Strength and Expansion Potential

According to a July 22 research report from Fundamental Research Corp., analyst Sid Rajeev reaffirmed a Buy rating on Blue Lagoon Resources Inc. and maintained a fair value target of CA$1.11 per share. At the time of the report, the company's shares were trading near CA$0.64, representing a 73% potential return to target. At the time of this article, it is trading around CA$0.98, seemingly inching toward the target.

Rajeev visited the company's Dome Mountain Gold Mine during its reopening event and stated, "Overall, we came away more confident in our recommendation and valuation of the Dome Mountain project." He noted that strong local support from the Lake Babine First Nation was a "key advantage" and praised the quality of the infrastructure, including a high-capacity water treatment plant. Rajeev estimated Blue Lagoon's year-one net cash flow could reach US$21 million, supported by projected cash costs of US$1,300 per ounce and gold trading above US$3,000 per ounce. He added that "Blue Lagoon's model is feasible" due to its high-grade material (9 g/t) despite the 900-kilometer haul to Nicola Mining's processing facility, and emphasized that "Nicola has an equity interest in Blue Lagoon," which reduced the risk profile of the toll milling agreement.

On August 5, Tyson Halsey of Income Growth Advisors provided a detailed assessment following his on-site participation in Blue Lagoon"s Dome Mountain reopening. Halsey reported that his confidence in the project increased after "extensive conversations with various contractors and staff members," and concluded that Blue Lagoon possessed "a highly qualified and seasoned team capable of transforming the Dome Mountain Gold project into a rapidly expanding, cash-generating gold resource." Halsey indicated that Income Growth Advisors had acquired multiple million shares in the company and referenced investment support from Crescat Capital and Nicola Mining. He projected full-year 2026 gold production of 15,000 ounces and modeled annualized gross revenue of US$117.9 million by 2027, assuming a US$4,000 gold price and 29,466 ounces of production.

Halsey also discussed internal cash flow allocation plans, noting that Blue Lagoon intended to direct 25% of revenue to infill drilling and another 25% to exploration drilling. He cited expert estimates from Quinton Hennigh and Yannis Tsitos, who believed the company's holdings may contain 2 to 3 million ounces of gold. Halsey further reported that Blue Lagoon aimed to expand production capacity from 55,000 to 75,000 tonnes annually, with Argillite vein development expected to increase gold grades from 9 grams per tonne to potentially 11 grams per tonne. At the projected 2027 net cash flow of US$55.8 million, Halsey calculated a share price target of US$2.42 using a 7x multiple and a fully diluted share count of approximately 161 million.

Ownership and Share Structure¹

4.05% of Blue Lagoon Resources is owned by management and insiders, with Rana Vig holding 3.23%, and the institution Crescat Capital owns 8.3%.

The rest is retail.

Blue Lagoon has about 143.9 million shares issued and outstanding and a market capitalization of approximately CA$101.6 million, with a 52‑week range of CA$0.10 to CA$0.87 per share.