Blue Lagoon Resources Inc. (BLLG:CSE; BLAGF:OTCQB; 7BL:FSE) announced that Nicola Mining Inc. (NIM:TSX.V; HUSIF:OTCQB; HLIA:FSE), its milling partner, is shifting its focus exclusively to processing high-grade gold and silver mineralized material from Blue Lagoon’s 100%-owned Dome Mountain project. With no further third-party processing obligations, Nicola is now dedicating its milling capacity to material delivered under the existing long-term milling agreement with Blue Lagoon.
This development comes as Blue Lagoon continues to advance underground operations at Dome Mountain. The company reported a payment of nearly CA$1 million for an initial 1,000 tonnes delivered to Nicola in December. It expects to have delivered approximately 2,500 tonnes of mineralized material in total by the end of last week, including an additional 1,500 tonnes. These shipments reflect an increase in underground output following the recent opening of multiple active mining faces.
Spot prices for gold and silver have recently surpassed US$5,500 per ounce and US$115 per ounce, respectively. Commenting on operational progress, Rana Vig, president and chief executive officer of Blue Lagoon Resources, stated, “Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner. Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations.”
The company confirmed it will continue to provide updates as development, delivery, and production activities progress.
Macroeconomic Crosscurrents Shape Gold and Silver Sentiment
John Rubino wrote on January 29 that gold and silver experienced sharp declines during a broader market downturn, noting that “equity flash crashes that pull precious metals down happen every once in a while (most recently in 2020 and 2008), and they’re not pretty.” Despite gains in overnight trading, the metals reversed course when the NASDAQ opened with a steep loss. Rubino emphasized that these drops were typically short-lived when underlying macro conditions remained in place, particularly rising debt and geopolitical instability.
According to a January 30 report from Bloomberg Intelligence, gold held a unique role among global central banks, having become the second largest reserve “currency” behind only the U.S. dollar since March 2024. Bloomberg stated that “physical gold tends to be the most credible and reliable store of value amid extreme geopolitical events such as wars,” surpassing even the dollar in its ability to “circumvent sanctions and asset freezing.” The report also noted that while most of the recent increase in central bank holdings reflected price appreciation rather than volume growth, “scope for further accumulation” remained if de-dollarization pressures continued.
Leede Financial, also writing on January 30, contrasted the volatility of silver with gold’s relative stability. They explained that silver’s price surge in 2025 was driven in part by its growing share in solar panel production, which had risen from 3.4% in 2023 to 29%. However, this rapid increase raised “real concerns about demand destruction” as manufacturers sought cheaper substitutes. Leede also cited the White House’s Section 232 order, which avoided tariffs on silver and encouraged the release of stockpiled inventory, slightly easing tight supply conditions. They concluded that, due to evolving industrial and geopolitical factors, silver could be “a riskier and less reliable option compared to gold.”
John Newell & Associates Technical Commentary on Blue Lagoon
In a January 12 equity research report, Fundamental Research Corp. assessed Blue Lagoon Resources Inc. following its transition into production. The firm stated that the company “has officially transitioned to producer status at Dome Mountain in B.C.” and noted that it “recently completed its first gold and silver sale, receiving US$1M for 1,000 tonnes of mineralized material delivered to its milling partner, Nicola Mining, for processing.”
Fundamental Research Corp. wrote that “the transition from exploration and development to producer supports a higher market valuation, as the market typically assigns a premium to producers,” adding that “with regular trucking of mineralized material underway, visibility into production and revenue is improving.” The firm also stated that “Nicola’s mill now operates exclusively as the processing facility for Dome Mountain, materially de-risking the mine.”
Regarding valuation, Fundamental Research Corp. stated that it was “reiterating our BUY rating, and adjusting our fair value estimate from CA$1.11 to CA$1.74/share (the average of our DCF and comparables valuations).” The report added that “BLLG’s transition to producer status, first gold sale, and secured toll-milling, position the company for near-term revenue and cash flow growth.”
1In a January 23 contributed technical analyst opinion, John Newell of John Newell & Associates provided an update on Blue Lagoon Resources Inc. He stated that the company “is now a producing gold company with a unique advantage; it generates cash flow while retaining significant exploration upside.”
Describing the Dome Mountain Gold Project, Newell wrote that it is “a fully permitted, past-producing high-grade underground mine with strong infrastructure, including year-round road access and a 10-year long-term milling agreement in place.” He added that “the main high-grade (~9g/t) Boulder vein remains open at depth and along strike.”
From a technical analysis perspective, Newell reported that Blue Lagoon “recently completed a confirmed breakout above long-standing resistance near the CA$0.55–CA$0.60 level, validating its first price target.” He listed specific price objectives: “First Target: (Met): CA$0.55,” followed by “Second Target: CA$1.10,” “Third Target: CA$1.50,” and “Big Picture Target: CA$3.10.” He concluded the report by stating, “We believe the shares are a Speculative Buy at current levels of CA ~$0.95 cents.”
Operational Ramp-Up, Milling, and Expansion Plans in Motion
Blue Lagoon has undertaken a number of activities aimed at scaling operations at Dome Mountain, as outlined in its investor presentation. The company began underground production in September 2025, with trucking of mineralized material to Nicola starting in November 2025. Its water treatment plant was completed and tested in advance of production. The company received its first payment from gold and silver sales, totaling approximately CA$1 million, on December 30, 2025.
The toll milling agreement with Nicola Mining was extended to a ten-year term in September 2025, supporting a maximum of 75,000 tonnes of mill feed per year. Blue Lagoon has also initiated underground development of new stopes and is targeting a production ramp-up from 100 tonnes per day to 150 tonnes per day in early 2026. The company plans to submit an application for an expansion to 200 tonnes per day and add a second operating shift.
On the exploration front, self-financed drilling is planned for both infill and expansion at the Boulder and Argillite Veins, as well as for regional targets. An updated NI 43-101 Mineral Resource Estimate is also scheduled.
Ownership and Share Structure2
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 149 million shares issued and outstanding and a market capitalization of approximately CA$148 million, with a 52‑week range of CA$0.10 to CA$1.06 per share.
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1 Disclosure for the quote from the John Newell article published on January 23, 2026
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it’s advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.
2. 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.
