Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) announced on September 29, 2026 that drilling has commenced at its 100%-owned Dome Mountain Gold Mine near Smithers, British Columbia, marking the start of a previously announced 10,000-metre Phase One exploration program. The program is designed to test high-priority targets across the company's 22,000-hectare property while pursuing opportunities to expand the existing mineral resource. Investors may be watching closely as the program represents the first phase of a multi-year exploration strategy at the company's producing gold mine.

Key Points

  • Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is a Vancouver-based gold mining company operating in British Columbia.
  • Drilling has commenced on a 10,000-metre Phase One exploration program at Dome Mountain Gold Mine near Smithers, B.C.
  • The program covers a 22,000-hectare property, targeting both regional exploration and mineral resource expansion.
  • Investors will be watching for ongoing drilling results and updates on gold production progress at Dome Mountain.

Phase One Drill Program Targets Resource Growth Across 22,000-Hectare Dome Mountain Property

The Phase One drill program, originally outlined in the company's September 8, 2026 news release, encompasses both regional exploration targets and drilling intended to support future resource expansion. The program forms the opening stage of a multi-year exploration strategy designed to systematically evaluate exploration potential across the broader Dome Mountain property. The release states that full details regarding principal targets and supporting geological information were provided in the earlier September 8 announcement. Technical information in the release was approved by Ted VanderWart, P.Geo., a senior geologist with Blue Lagoon Resources and a qualified person under NI 43-101.

Dome Mountain Gold Mine Background and British Columbia Operating Context

Blue Lagoon Resources commenced underground mining operations at Dome Mountain following the granting of a full mining permit in February 2025 — one of only nine such permits issued in British Columbia since 2015, according to the release. Mineralized material from Dome Mountain is processed under a long-term milling agreement with Nicola Mining. The company states that during the second half of 2026, it plans to continue reinvesting internally generated cash flow into near-mine and regional exploration to further expand its resource base. The company did not disclose specific production volumes or cash flow figures in this announcement.

Management Highlights Resource Expansion Potential Alongside Steady-State Production Goal

President and CEO Rana Vig stated in the release that the extensive land package surrounding the mine presents a significant opportunity to grow the resource base and potentially make new discoveries, while emphasising that the company's focus remains on achieving steady-state gold production. The company notes it has not based its production decision on a feasibility study of mineral reserves, acknowledging there is increased uncertainty and a higher risk of failure when production is undertaken in advance of such a study. The immediate share price impact was not clear from available public information.