Gold mineralization was first located on the property in the late 1800s and considerable surface and underground work was done in 1923-24. Resumption of exploration in the 1980s led to the discovery of the Boulder Vein system in 1985 by Noranda. Underground mining was initiated in August 1991 by Timmins Nickel Inc. and its joint venture partner, Habsburg Resources Inc. and ceased in May 1993. During this period 43,900 tonnes at an average grade of 12.0 grams per tonne gold were reportedly mined from shrinkage stopes accessed from trackless drift developments on the 1290 and 1370 levels.
Expenditures on the mine by past operators, including Gavin Mines, Timmins and Noranda, have totaled in excess of $68Mn, $28Mn of which was spent by Gavin in the past 12 years. Mine permitting and significant infrastructure construction and underground development was completed on the mine between 2010 and 2012, including about 75% of the planned underground development necessary for commencing production from the site.
The infrastructure and underground development completed during that period includes:
- Mine dry/office building
- Electrocoagulation water treatment plant
- Water and sewer for all surface facilities
- Pipelines system for mine water
- Mechanics shop
- Electrical work into the mine
- Fuel storage and distribution system
- Major earthwork projects completed
- Underground development
- Infrastructure also includes underground workings including several stopes ready for production and two faces (one in the Boulder Vein and one in the Argillite Vein) ready for production.
Geology
The Boulder Vein is a structurally controlled Quartz Carbonate Vein system with variable sulfide composition up to and over 20% combined Pyrite, Sphalerite, Galena and Chalcopyrite. Immediate host rock is basaltic Andesite of the Jurassic aged Telkwa Formation consisting of volcanic and volcanic fragmental flows and tuffs.. The entire sequence lies with the Babine Range which is a northwest trending horst of folded and faulted Jurassic and Cretaceous volcanic and sedimentary rocks, known as the Hazelton Group, bounded to the west and east by grabens of Late Cretaceous and younger rocks (Figure 3). Locally the Hazelton Group rocks are intruded by rocks of the Early Cretaceous Bulkley Plutonic and the Eocene Nanika Plutonic suites.
The Freegold Veins are high grade gold bearing quartz carbonate veins with up to 40% sulfide content and cross both the Volcanic rocks of the Telkwa Formation and a quartz monzonite intrusion centrally located on a MAG low within a larger circular MAG high as defined by a recently flown airborne MAG and EM survey. Recent work has shown that this system of mineralization could very well be Structurally controlled, carbonate hosted, base metal rich gold mineralization similar to Cowal Lake Gold deposit (NSW Australia) and, more locally, the Buck Project out of Huston BC (Sun Summit Minerals) one hour south of the Dome Mountain Gold Project.
Intrusions along the northwest trend are part and parcel of the Cretaceous Bulkley Plutonic Suite.
More On The Dome Mountain Project Here.
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And right now, BLAGF has 5 key potential catalysts to be aware of. Check them out:
No. 1 BLAGF Potential Catalyst - Kicking Off Drill Program At Flagship Project
Blue Lagoon Kicks Off 20,000 Meter Drill Program On Its Dome Mountain Gold Project
VANCOUVER, BC / ACCESSWIRE / January 26, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG) (FSE:7BL) (OTCQB:BLAGF) is pleased to announce that it has mobilized its crew and its first drill rig to commence its 2022 drill program, which is expected to be a minimum of 20,000 meters of diamond drilling on its all year-round, road accessible Dome Mountain Gold Project, located a short 50 minute drive from Smithers, British Columbia.
In addition to diamond drilling, the first phase of the 2022 drill program, which is expected to be approximately 10,000 meters, will consist of ground based geophysics over the Freegold Intrusion and follow up soils, once snow free conditions are met, over anomalous zones found in results of the 2021 soils program. These follow up soils will also include areas not yet covered on the 22,000 ha property and will include further prospecting and ground or drone mounted Mag for detailed coverage to assess underlying structural targets associated with the anomalous soils.
Much of the planned 2022 Phase One drilling will target follow up on previously drilled holes in 2021 with lab assay results still outstanding. To date, turnaround time for core samples sent to the labs have been exceedingly long (10 + weeks).
"The 2022 drilling at Dome Mountain will be a game changer for us," said Bill Cronk, Chief Geologist of Blue Lagoon Resources. "We have drill targets that build on the newly defined mineralized zones at Chance and Federal as well as targets over the Freegold Intrusion. In addition, anomalous soils from the 2020 program have not been fully followed up and several new zones identified by soils in 2021 will provide new drill targets. Also, the Boulder Vein will be targeted for deep vein intercepts that is expected to add significantly to resource expansion there," he said.
Ground based IP and CSAMT is planned for the Freegold area to further build on the highly anomalous rock, soils and 2021 drill intercepts there.
PHASE ONE DRILLING
The first hole of the Phase One drill program will be drilled from the same pad that ended the 2021 program. From this pad the Company drilled hole DM-21-224 and hit a 7 meter mineralized Zone striking roughly east-west in an area with some of the highest drill hole intercepts to date. This mineralized zone is hosted by a vein with anomalous sulfides present. This drill set up will test the southern end of the Chance Structural Corridor with drill holes planned with varying azimuths from the same pad. Once completed, this rig will move 100 meters southwest and test for down dip and further strike length to the vein mineralized zone hit in hole DM-21-224.
The scientific and technical disclosure in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.
Read the full article here.
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No. 2 BLAGF Potential Catalyst - Company Encounters New High-Grade Vein Intercepts At Dome Mountain
Blue Lagoon Hits 14.8 g/t AU and 38.3 g/t AG over 7.3m In Newly Discovered Chance Zone
VANCOUVER, BC / ACCESSWIRE / February 7, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to announce that recent drilling has encountered new, high-grade vein intercepts at the Company's 100% owned, year-round accessible, Dome Mountain Gold Project located a short 50-minute drive from Smithers, B.C.
Hole DM-21-224 was drilled from the most southern pad in the newly discovered Chance Structural Corridor (see news release Dec 7, 2021) and drilled at an Azimuth of 167 Degrees. The target here was the continuation of mineralization seen in the corridor where the structural trend intersected the proposed eastern continuation of the Boulder Vein. The hole encountered a new, high-grade vein running 14.8 g/t Au and 38.3 g/t Ag over 7.3m. A second high-grade vein running 26.9 g/t Au and +100.0 g/t* Ag over 1.04 meters was encountered further down hole.
[...]
"We knew we were in a good zone in the Chance Structural Corridor which has shown us multiple mineralized intercepts in previous holes," said William Cronk, Chief Geologist for Blue Lagoon Resources. "We systematically worked our way south and then drilled south-southeast into the proposed eastern extension of the Boulder Vein in anticipation of mineralization at the intersection of two strong lineaments; the Chance Structural Zone and the eastern extension of the Boulder Vein. Previously reported intercepts were high grade in this area and the expectation is that we will be able to follow this intercept with near term holes which will test for further high-grade mineralization at depth and along strike," he added.
Drilling is now being conducted from the same pad as that for DM-21-224 for east-west mineralization north of the pad. Once completed, the drill rig will move approximately 100m south and focus on this high-grade intercept.
Assay results for 28 holes remain outstanding.
[...]
Read the full article here.
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No. 3 BLAGF Potential Catalyst - Limited Drilling Leads To Increase Of Gold In Indicated Category
Blue Lagoon Files Updated Resource Report on Its Dome Mountain Gold Project
Limited New Drilling Leads To 145% Increase of Gold in Indicated Category
VANCOUVER, BC / ACCESSWIRE / February 3, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG; FSE:7BL; OTCQB:BLAGF) is pleased to announce that it has filed a technical report on the Company's Dome Mountain Gold Project entitled "Mineral Resource Estimate for the Dome Mountain Gold Project, Smithers, British Columbia, Canada" (the "Technical Report"). The Technical Report was prepared pursuant to the form required under National Instrument 43-101 by Arseneau Consulting Services Inc.
"The significance of this new resource at Dome Mountain cannot be understated as our goal was to demonstrate that a limited amount of in-fill drilling would move ounces to a higher category, which was a complete success," said William Cronk, Chief Geologist for Blue Lagoon Resources. "While the new resource increases the contained gold ounces by 30% and silver ounces by 46%, more importantly, limited amount of new drilling since Blue Lagoon acquired the project in 2020 allowed us to increase the indicated resource by 102,582 gold ounces - amounting to an increase of 145%. In addition, 45,000 gold ounces have been upgraded to the Measured category, a first for this project," he added.
[...]
Read the full article here.
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No. 4 BLAGF Potential Catalyst - Multiple Bullish Technicals
At close Tuesday, Barchart was reporting BLAGF to have multiple bullish technical indicators.
Here's a list of the triggered ones to pay close attention to:
Short Term Indicators
- 20 Day Moving Average
- 20 - 50 Day MACD Oscillator
- 20 - 100 Day MACD Oscillator
- 20 - 200 Day MACD Oscillator
Medium Term Indicators
- 50 Day Moving Average
- 50 - 100 Day MACD Oscillator
Long Term Indicators
- 100 Day Moving Average
- 150 Day Moving Average
- 200 Day Moving Average
Could these triggered technicals be signaling growing support at key levels?
On top of them, Barchart's composite "TrendSpotter" technical indicator has also been triggered.
Make sure to keep a close eye on these near term.
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No. 5 BLAGF Potential Catalyst - Toll Mill Partner To Send 4th Shipment Of Gold And Silver Concentrate
Blue Lagoon's Toll Mill Partner Ready to Send Fourth Shipment of Gold & Silver Concentrate
VANCOUVER, BC / ACCESSWIRE / February 14, 2022 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG; FSE:7BL; OTCQB:BLAGF) is pleased to report that the Company's toll milling partner, Nicola Mining ("Nicola"), is now ready to send the fourth shipment of concentrate made from the mineralized material from the Dome Mountain underground mine. The shipment of 103 dry tonnes of gold and silver concentrate grading approximately 90 g/t Au and 477 g/t Ag will be sent to Ocean Partners UK Limited, a leading European based commodities trading company with offices in six countries around the world. All concentrate assays were completed at Base Met Labs, an accredited metallurgical testing facility located in Kamloops, BC.
"So far three shipments totaling 223 dry metric tonnes of concentrate that were shipped last year have a value to the Company of more than CDN $1Mn, with some funds received and more to be received in the coming weeks," said Rana Vig, President and CEO of Blue Lagoon Resources. "This fourth shipment of concentrate is valued at more than $500k, and once received, will give a boost to an already healthy treasury with no debt, ensuring the Company has a significant runway to execute on its aggressive exploration plans on a project that's been relatively unexplored and under the radar," he added.
[...]
Read the full article here.
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BLAGF Recap - 5 Potential Breakout Catalysts To Know
No. 1 - Kicking Off Drill Program At Flagship Project
No. 2 - Company Encounters New High-Grade Vein Intercepts At Dome Mountain
No. 3 - Limited Drilling Leads To Increase Of Gold In Indicated Category
No. 4 - Multiple Bullish Technicals
No. 5 - Toll Mill Partner To Send 4th Shipment Of Gold And Silver Concentrate
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Coverage is officially initiated on BLAGF. When you have time later, do this:
