Curated News
By: NewsRamp Editorial Staff
September 29, 2025
Blue Lagoon Secures 10-Year Milling Deal for Dome Mountain Gold Project
TLDR
- Blue Lagoon Resources secures a 10-year processing advantage with Nicola Mining, ensuring priority mill access for Dome Mountain gold production without company dilution.
- The amended agreement extends Blue Lagoon's milling partnership to 10 years, providing a reliable processing pathway for mineralized material from their permitted Dome Mountain project.
- This long-term partnership supports responsible gold production in British Columbia while creating sustainable value for shareholders and local communities through efficient operations.
- Blue Lagoon's extended milling deal with Nicola Mining includes a $2 million credit line and ensures first gold sales are targeted for Q4 2025.
Impact - Why it Matters
This extended partnership between Blue Lagoon Resources and Nicola Mining represents a significant development in the British Columbia mining sector, providing long-term operational stability for the Dome Mountain Gold Project. For investors and industry observers, the 10-year milling agreement reduces execution risk and ensures consistent processing capacity, which is crucial for gold production timelines. The strategic alignment between the companies, evidenced by Nicola's equity position and financial support, signals strong confidence in the project's viability. This news matters because secure processing arrangements are often a critical bottleneck for mining operations, and this long-term solution positions Blue Lagoon for sustained production and potential shareholder value creation as it transitions from development to cash-flow generation.
Summary
Blue Lagoon Resources Inc. has significantly strengthened its strategic partnership with Nicola Mining Inc. through a newly signed 10-year Mining and Milling Partnership agreement. This extended arrangement secures long-term processing capacity for mineralized material from Blue Lagoon's high-grade Dome Mountain Gold Project near Smithers, British Columbia. The agreement represents a critical milestone in Blue Lagoon's transition from development to production, providing reliable access to Nicola's state-of-the-art, fully permitted mill. Both companies emphasize their strategic alignment, with Nicola not only serving as mill operator but also as an equity shareholder in Blue Lagoon, demonstrating deep confidence in the partnership's success.
The strengthened relationship builds on previous collaborative efforts, including Nicola's $2 million unsecured line of credit extended to Blue Lagoon in June 2025. According to Blue Lagoon President & CEO Rana Vig, this 10-year commitment ensures Dome Mountain has an efficient pathway for processing mineralized material and concentrate sales without company dilution. Peter Espig, CEO of Nicola Mining, reinforced that as both mill operator and equity holder, Nicola is fully aligned with Blue Lagoon's success. The partnership guarantees priority access to mill capacity for Dome Mountain material even as Nicola services other clients, providing operational certainty as Blue Lagoon targets first gold sales in Q4 2025.
The amended agreement complements recent achievements at Dome Mountain, including commissioning of the water treatment plant and commencement of underground blasting and mining operations. These developments highlight Blue Lagoon's readiness for responsible production. The company also announced granting 3.5 million options to consultants and advisors, further strengthening its operational team. With a full mining permit secured in February 2025—one of only nine issued in British Columbia since 2015—Blue Lagoon is positioned to become a profitable gold producer, planning to reinvest internally generated cash flow into exploration beginning in H1 2026. Readers can view the original release on www.newmediawire.com for complete details.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, Blue Lagoon Secures 10-Year Milling Deal for Dome Mountain Gold Project
