BC Co. About to Become Gold Producer

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Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB) is finishing preparations for the start of full-scale underground gold production at its Dome Mountain gold project in British Columbia, which could happen as early as July, Chief Executive Officer Rana Vig told the Ellis Martin Report in a recent radio interview. Some infrastructure still needs to be completed, such as the water treatment plant, as well as some staffing and getting the equipment ready.

"We are among just seven companies in the last decade to receive a full mining permit for a metallic mine in British Columbia," said Vig. "That alone puts us in elite company, and now we're ready to produce." Vig is a veteran entrepreneur with 35-plus years of business leadership experience, including successful financings for and exits from resource and cannabis ventures.

Blue Lagoon's plan for the Dome Mountain mining operation is to process initially 55,000 tons (55 Kt) per year for recovery of 15,000 ounces of gold annually then ramp up. The strong grades, averaging 9 grams per ton, and 95% recovery, are expected to generate robust margins once production begins, the Ellis Martin Report wrote in a release. Further, Blue Lagoon is commencing production during a bullish gold market.

"This was five years in the making, and the timing couldn't be better," Vig said. "The stock is already one of the top performers in 2025, and we're just getting started."

According to Blue Lagoon's Corporate Presentation, the company is targeting first gold sales in August. It has a long-term milling profit share agreement in place with Nicola Mining Inc. (NIM:TSX.V; HUSIF:OTCQB; HLIA:FSE) for up to 75 Kt of mill feed per year mined from Dome Mountain. Also, Blue Lagoon has an offtake agreement with Ocean Partners USA Inc. for it to purchase concentrate from the Vancouver-based miner.

Blue Lagoon's existing gold resource is 218,000 ounces, all from a single vein. In addition, there are 15 other known high-grade gold veins, and 90% of the 21,541-hectare property remains unexplored. Mineralization in the Boulder vein system still is open in all directions. Already the company has made additional discoveries through drilling and plans to drill further, funded solely by cash flow on the horizon.

"Our initial mine plan is based on the current resource, but the upside here is extraordinary," said Vig.

Blue Lagoon won top honors at a "Shark Tank"-style pitch event during the recent 121 Mining Conference in New York City, the Ellis Martin Report noted. Vying against copper, gold and uranium exploration-stage companies, Blue Lagoon stood out as the only near-term producer, and thus, garnered attention from investors looking for cash-generating projects.

"People are tired of dilution-heavy stories," Ellis Martin said during the broadcast. "When I was asked which company was about to produce gold, Blue Lagoon was my first recommendation."

Vig founded Blue Lagoon in 2019 with the goal of building a profitable mining company, noted the Ellis Martin Report. He reviewed more than 200 projects before singling out Dome Mountain as being well-positioned for near-term production and long-term growth.

In April, Blue Lagoon completed the final and fourth tranche of its private placement, generating total gross proceeds of about CA$4.87 million (CA$4.87M), Streetwise Reports reported. The final tranche was subscribed for entirely by existing shareholders and strategic investors, including Crescat Capital and Nicola Mining.

Growth Forecasted for Sector

The global gold market is forecasted to expand at a 6.51% compound annual growth rate between 2025 and 2030, according to Virtue Market Research. It is expected to reach US$400 billion (US$400B) in size by year-end 2030 from US$292B in 2024. Market growth will be fueled primarily by environmental control, oil and gas exploration and technological advancements in materials for seals.

The gold price fell Wednesday after the U.S. Federal Reserve maintained interest rates in the same, 4.25–4.50%, range, reported Reuters on June 18. At the end of the day's trading, the gold price had fallen to US$3,394 an ounce (US$3,394/oz).

"Gold needs to reclaim US$3,400 for bulls to take firm control," Tai Wong, an independent metals trader, told Reuters.

"We should see dramatic acceleration to the upside," Technical Analyst Clive Maund said. 

Barry Dawes with MP Securities shared a similar thought on June 18, writing that gold is "still vulnerable" and pointing out that two months have passed since its price peaked. "Are we still in a bull market for now?" he queried.

Yes, and gold is headed higher, asserted Ron Struthers in the Struthers Resource Stock Report on June 18. Stocks are getting close to the end of their long-term bull market, creating a scenario like the one in the late 1960s and 1970s when gold and silver soared.

"Gold has already confirmed its breakout from a 13-year cup and handle pattern, and once the stock market finally rolls over, we can expect an explosive move in gold," he added.

Likewise, Garrett Goggin, Golden Portfolio lead analyst, purported on June 16 that the current gold uptrend is not a typical short-term lift. Rather, "it's a long-term, widespread sea change in the currency markets."

George Milling-Stanley, chief gold strategist at State Street Global Advisors, predicted, in a June 3 "Money Life with Chuck Jaffe" interview, that gold will keeping breaking through record prices throughout the rest of 2025. He attributed these future climbs to ongoing geopolitical turbulence, and both macroeconomic and interest rate uncertainty.

"Our bullish case suggests that we could actually take out whatever resistance is available at the US$3,500 area, and possibly even trade as high as US$3,900," Milling-Stanley noted.

Citi, however, is less optimistic, having just lowered its six- to 12-month gold price target to US$2,800/oz from US$3,000/oz, Reuters reported on June 17. Gold could drop to US$2,500–2,700/oz by H2/26, the bank noted.

"We see investment demand for gold abating in late 2025 and 2026, as ultimately, we see the President Trump popularity and U.S. growth 'put' kicking in, especially as the U.S. midterms come into focus," Citi wrote in a note, according to Reuters.

Longer term, Incrementum in Liechtenstein, bullish, sees gold reaching US$4,800/oz by 2030, its base case scenario in a recent report, noted Trade Brains on June 1. Conceivably, though, Incrementum wrote, gold could reach US$8,900/oz by 2030, due to inflation, central bank policies, worldwide economic uncertainty and under-allocation of gold in investment portfolios.

Stock Breaks Through Resistance

In an exclusive to Streetwise Reports, Technical Analyst Clive Maund wrote earlier this week that once Blue Lagoon Resources' stock surpassed resistance at CA$0.75, "we should see dramatic acceleration to the upside." Since the analyst's assertion, BLLG broke through this level; its share price was CA$0.77 at the close of trading on June 18.

"It is thought likely that [the price] will race towards the early 2020 highs, with CA$2.10 as an initial objective," added the analyst.

He explained that the stock was in a strong, steady uptrend since early February, at which time it had broken out of a low pan base.

Ownership and Share Structure

According to Blue Lagoon Resources' Investor Presentation, founders and insiders own 14% of the company. There are three strategic investors, Crescat Capital with 8%, Nicola Mining Inc. with 6% and Phoenix Gold Fund with 6%.

The remaining 66% of Blue Lagoon is in retail.

The soon-to-be-gold producer has 140.78 million issued and outstanding shares. Its market cap is CA$59.13M. Its 52-week range is CA$0.08–0.87 per share.