Dome Mountain Gold Mine Reopens as Blue Lagoon Shifts to Production

Blue Lagoon Reopens Dome Mountain Mine with Bold Gold Production Goals

Blue Lagoon Resources (CSE: BLLG; OTCQB: BLAGF) has officially reopened the Dome Mountain gold-silver mine in British Columbia, ending a 30-year production hiatus. Located near Smithers, the site represents a major strategic pivot for the company—from exploration to full-scale gold mining. In February 2025, Blue Lagoon secured mining and effluent discharge permits from BC regulators, joining a short list of companies approved in the province since 2015.

With production plans now in motion, the company expects to recover approximately 15,000 ounces of gold annually from 55,000 tonnes of ore. First blasting is set for August, and gold output will begin in September. The operation uses a mechanized cut-and-fill mining method on the Boulder Vein, situated above the 1290-meter level.

Blue Lagoon has already invested over $30 million into developing the project. The current ramp-up requires only an additional $3 million—well below typical industry startup costs. Ore will be processed through Nicola Mining’s toll mill under a long-term agreement, while waste material will remain underground.

Community Partnerships and Expansion Set Dome Mountain Apart

Community support has played a crucial role in reviving Dome Mountain. Four of the ten workers currently on-site are members of the Lake Babine First Nation, whose traditional territory hosts the project. The company has also launched scholarship initiatives to train Indigenous youth in underground mining, fostering local employment and skills development.

Looking forward, Blue Lagoon plans to expand operations beyond the currently permitted Boulder Vein. The company aims to secure additional permits to mine deeper zones and develop the adjacent Argillite Vein. Chief geologist Bill Cronk highlights the mine’s “blue sky” potential, noting that only 10% of the 21,000-hectare property has been explored to date.

The mine’s legacy dates back to the 1800s, with major developments occurring in the 1980s and early 1990s. Previous operators, including Noranda, Gavin Mines, and Timmins Nickel, spent over $80 million on exploration and infrastructure. Now, Blue Lagoon is leveraging that history to unlock long-term value and sustainable growth.

SuperMetalPrice Commentary:

The reopening of Dome Mountain marks a strategic moment in Canadian gold mining. Blue Lagoon’s low-capex model and debt-free financing structure enhance project viability amid market volatility. Their strong First Nation engagement offers a rare case of community-led mining revival. With exploration upside and scalable infrastructure, Dome Mountain could become one of the most productive mid-tier gold assets in British Columbia over the next decade.