Blue Lagoon Resources Inc. (OTCQB: BLAGF) (CSE: BLLG) is pleased to announce that it has initiated a Preliminary Economic Assessment (“PEA”) for its Dome Mountain Gold Mine Project (“Dome Mountain Mine”) which holds a 75,000 tonne per year mine permit. In addition, the Company holds a long term Milling and Mining Profit Share Agreement with Nicola Mining Inc. (“Nicola”), which operates a modern mill facility located near Merritt, BC. Under the terms of the Agreement, Nicola will process material from the Company’s high-grade gold Dome Mountain Mine.
Roughstock Mining Services LLC (“Roughstock “) of Bozeman, MT. has been engaged to complete the PEA, which expects to analyze and present the economics of an underground mine utilizing an offsite milling facility. The PEA will include the following key elements:
- Outline a mine plan for the Dome Mountain Gold Mine Project.
- Identify mine CapEx and OpEx including economics of off-site milling, smelting, and refining.
- Recommendations for a 2020 definition drilling program focused on upgrading existing inferred resources to the indicated category.
- Provide a current NI 43-101 mineral resource estimate that incorporates data from exploration completed during the Company’s 2016 exploration program.
“The Roughstock team is comprised of experts in underground mine design. It’s also clear that from past technical reviews of the project, their team has an excellent understanding of the existing underground development and exploration data at the Dome Mountain Mine,” said Rana Vig, President and CEO of Blue Lagoon Resources.
“This PEA will also provide for a current mineral resource estimate by incorporating results from a 7,210 meter infill drill program that took place in 2016 where four new veins were discovered within the Boulder Vein System. That drill program added 330 meters of strike length to the Boulder Vein which remains open along strike to the west, east and at depth. Past historical mineral resource estimates didn’t include that extensive additional drill data. The 2016 drill data also adds considerably to the understanding of the delineation of the mineralization,” he said.
The PEA technical report is expected to be filed within the next 8 weeks, and Blue Lagoon anticipates announcing a summary of the key results much sooner.
The Company has not made a production decision with respect to the Dome Mountain Gold Mine Project.
The scientific and technical data contained in this news release was prepared and reviewed by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.