“Blue Lagoon has recently managed to receive a mine permit in British Columbia. This is a very positive step for the Company. With this in hand, this is one of a precious few small-scale mines in Canada that has the ability to fast track to production. Given the fact that Blue Lagoon has access to Nicola Mining’s mill, there is a relatively low risk path to free cash flow. The high grades of the Dome project and existing underground access make for a compelling story. The recent addition of a well-seasoned production advisory team is a welcome addition.

Although the Company has been hamstrung to drill over the past couple years due to limited capital, high-grade vein intercepts reported between 2021-2023 clearly show that the exploration potential of this deposit is very good. Dome has the classic hallmarks of a deeply rooted intermediate sulfidation vein system. A direct analogue is K92’s Kainantu gold deposit in PNG. Should Blue Lagoon utilize a portion of its free cash flow toward exploration of the rest of its vein system as did K92, the Company could find itself becoming one of the more compelling production /exploration stories of this incipient gold cycle.”

Quinton Hennigh, PhD
Crescat Capital