The Dome Mountain Gold Project is an all-year road accessible project located a short 50-minute drive from Smithers B.C. The project holds both an Environmental Management Act Permit (EMA) and a Mining Permit providing for up to 75,000 tonnes of production annually.

In addition, the property has 15 known high grade gold veins with 90% of the nearly 22,000-hectare property yet to be explored.

Figure 1

Location:                                66 Km East of Smithers, B.C. on maintained gravel road

Size:                                        21,541 ha.; 26 claims

Ownership:                            100% Blue Lagoon

Targets tested to Date:         2 of the 15 known gold veins and two airborne magnetic targets have been tested. New airborne coverage highlights new targets. New targets generated by collection of 4,000+ soils.

Status:

  • Mine Effluent Permit in Place
  • Mine Permit 237 in Place
  • Updated 2021 Resource on Boulder Vein
  • Drill ready on the Boulder Vein with current resource in place. Open at depth and along strike
  • Drill ready on 15 high grade gold veins. High grade mineralization drilled on Freegold, Boulder East and two new discoveries in the Chance Structural Zone and Federal Zone and including Forks with historic Noranda gold resource.
  • 90% of Dome Mountain Land package has not been explored to date:
  • New airborne coverage flown in 2020 shows high Mag contrast and anomalous conductors for follow-up work including soils, prospecting, and mapping.
  • Blue Lagoon Drilled 26 holes for 3,786 meters in 2020 and 80 holes for 22,691 meters in 2021.
  • New 2022, 20,000 Meter drill program underway.

 

New 43-10 Technical Report

NI 43-101 Technical Report, Mineral Resource Estimate for the Dome Mountain Gold Project, Smithers, British Columbia, Canada” dated January 31, 2022

The Technical Report discloses a mineral resource of 45,000 Au and 250,000 Ag in the measured category, 173,000 oz Au and 876,000 oz Ag in the indicated category and 16,000 oz Au and 71,000 oz Ag in the inferred category. Comparison to 2010 resource, limited infill drilling in 2020 and early 2021 increased the contained gold ounces by 30% and silver ounces by 46%, gold was increased in the Indicated resource by 102,582 gold ounces (an increase of 145%).

Furthermore, 45,000 gold ounces have been upgraded to the Measured category, a first for this project.

 

Total Drilling:                         458 drill holes (including 32 underground) for 51,186 meters total. 26,477 meters since 2020

Average depth of Holes:       ~125 meters

Mineralization Style:             Carbonate Hosted Base Metal Rich Gold System (Alkali Gold)

Mineralized Host:                  Jurassic Andesitic Pyroclastic flows and tuffs and amygdaloidal Basalt.; Local Intrusions

Blue Sky Potential:                Five Million plus Ounce Au+Ag

 

The Dome Mountain Gold Project offers huge potential for growth.

A production decision is expected in late Q3, 2022 based on the current indicated and inferred resource on the Boulder Vein System. The resource was updated in 2021 with limited infill drilling in late 2020 and early 2021. Late 2020 drilling in hole DM-20-139 hit the boulder vein at the 1010-meter level which is a 200 meter down dip extension of the current resource. Figure 3 shows plotted grade (Au) x Thickness for pierce points in the Boulder resource and, the hole 139 intercept. Current drilling (2022 Phase 1) is targeting along strike to the hole 139 intercept as well as the down dip extent of the Boulder Vein to the 800-meter level.

 

The company has not made a decision to proceed to production at this time and will evaluate its production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

Figure 2

Drill hole DM-20-139 hit high grade gold mineralization 200 meters deeper than any intercept to date. Given that the average depth of the resource is 200 meters, this intercept in Hole DM-20-139 shows significant blue-sky potential to increase the resource at depth.

Property

The property includes the past producing mine on tenures consisting of 26 contiguous mining claims and one mining lease totaling 21,541 hectares, located approximately 66 kilometres east of the town of Smithers in northwest British Columbia. The Dome Mountain area has a long history of exploration that resulted in the discovery of numerous gold bearing quartz-carbonate veins.

15 known gold bearing veins, multiple geophysically derived and geochemically highlighted (soils) targets are located on the Dome Property and ready for drill targeting prioritization.

2 new discoveries during 2021 drilling (Chance and Federal) waiting for results and additional drilling in 2022.

Figure 3

Gold mineralization was first located on the property in the late 1800’s and considerable surface and underground work was done in 1923-24. Resumption of exploration in the 1980’s 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 totalled in excess of $68 million, $28 Million of which was spent by Gavin in the past 12 years before Blue Lagoon Took over in April 2020. Mine permitting and significant infrastructure construction and underground development was completed on the mine between 2010 and 2012, including 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

Figure 4

Bolting on the 1290 level as part of the Underground Development Management Plan

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.

Figure 5
Figure 6
Figure 7

Since taking over the property in 2020 Blue Lagoon as spent over $2 million underground and the design and testing of the new water treatment plant. Additionally, Blue Lagoon has spent over $10 million on exploration and drilling. Key accomplishments include:

  1. 900 Meters of Underground Bolting completed
  2. Installation of underground rescue station
  3. Installation of underground secondary emergency egress from 1290 to 1370 level
  4. Completion of Ground Control Management Plan
  5. Seven management plans completed for updated Reclamation and Closure Plan
  6. PD and IRT submitted to Ministry
  7. First Nations consultation on-going
  8. Initiate Water quality sampling
  9. Water Treatment Plant design completed and successfully tested
  10. 26,477 meters of drilling completed since fall 2020
  11. Property Wide airborne Mag and EM survey completed in fall of 2020.
  12. 2022 Phase One drilling underway
  13. Receipt of Dome Mountain Mines Act MX-796
  14. Transport of underground broken ore to Nicola Mill in Merritt BC
  15. 4,216 soils collected
  16. 15km of grid cut and ready for Deep IP and CSAMT
  17. Ongoing training including First Aid and Mine Rescue Training

 

Figure 8

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 within 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 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. These cut 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) or Buritica in Columbia.

The 2020 heliborne airborne survey at 100-meter line spacing highlighted a very strong northwest trending mag signature (figure 9) which shows high contrast to surrounding rocks and abundant targets for further prospecting and drilling. There is very little outcrop available along this 12-kilometer trend and prospecting and soil sampling will be used to define priority drill targets. Off sets and linear show high potential for defining structural controlled type gold targets. In addition, five high priority targets were defined as potential copper porphyry targets (1-5) and are considered near drill ready (figure 10).

Figure 9

Two Targets; AO1 and AO2 have been drilled in 2021. The AO1 target is the Federal Zone discovery consisting of tens to up to two hundred of meters of sulfide mineralization cutting all lithologies and, sulfide rich quartz veins including Pyrite, Sphalerite, Galena, Arsenopyrite and Chalcopyrite.

Figure 10
Figure 11

The AO2 target (figure 9) drilling encountered quartz carbonate veins with sulfide in the Freegold Structural Zone off the south end of the Freegold Intrusion (Monzonite). These intercepts correlated with high grade veins sampled at the surface 300 meters ‘up strike’ and are steeply dipping and correlated with high gold in soils cluster sampled to date. Freegold is a showing that has been of interest since the early 1900’s. Here high-grade gold veins cut both the Freegold Intrusion (Monzanite) and the hosting Volcanoclastic rocks.

Grab samples from exposed veins collected in 20201:

  • 53.2 g/t Au and 59 g/t Ag,
  • 14.1 g/t Au and 61.5 g/t Ag
  • 90.6 g/t Au and 129 g/t Ag

 

1 February 24, 2021 news release

 

Historic underground work has assay out very high-grade gold along tens of meters along drift including:

  • 1.2 oz/t Au over 112 feet
  • 0.6 oz/t Au over 120 feet
  • 3.25 oz/t Au over 95 feet
  • 1.8 oz/t Au over 100 feet
Figure 12

2021 Phase Two drilling has intercepted the Freegold Zone 300 meters down strike from the exposed veins and at depth and include:

  • 2 g/t Au over 1.28m3
  • 05 g/t Au over 1.37m3
  • 7.71 g/t Au over 3.55m3
  • 09 g/t Au over 0.65m3
  • 30 g/t Au over 0.75m2
  • 05 g/t Au over .55 m2
  • 50 g/t Au over 1.50m2

 

Phase Two drilling in 2022 will include follow-up on both these targets.

 

2 September 22, 2021 ,3 December 07,2021 news releases

Figure 13

Federal Zone showing 2021 drilling and sulfide zone on MAG

Figure 14

Significant assays from 2020 drilling over 9 grams/t Au.

Hole ID From To Interval Au (g/t) Ag (g/t)
DM-20-1141 66.9 67.07 0.17 173.4 1017
DM-20-1272 14.32 14.37 0.05 89 129
DM-20-1262 12.68 13.25 0.57 84.5 305
DM-20-1394 12.4 12.6 0.2 61.1 38
DM-20-1272 39.6 39.8 0.2 59.7 287
DM-20-1323 126.83 127.06 0.23 54.4 203
DM-20-1354 79.7 81.9 2.2 53.76 22.7
DM-20-1141 69.84 70.55 0.71 48.7 159
DM-20-1323 131.75 132.11 0.36 45.6 555
DM-20-1313 59.65 60.3 0.65 45.5 243
DM-20-1262 12.68 13.25 0.57 45.2 184
DM-20-1272 39.6 39.8 0.2 44.1 467
DM-20-1323 132.67 132.97 0.3 43.7 119
DM-20-1262 12.34 12.68 0.34 40.4 344
DM-20-1323 133.54 134.6 1.06 39.9 204
DM-20-1262 19.85 20 0.15 37.8 84
DM-20-1323 132.97 133.54 0.57 37.8 373
DM-20-1323 135.8 136.27 0.47 33.3 40
DM-20-1344 93.77 94.18 0.41 33 86
DM-20-1394 10.67 10.8 0.13 27.7 496
DM-20-1323 24.22 25.64 1.42 27.1 61
DM-20-1272 34.4 34.9 0.5 24.2 187
DM-20-1384 91.82 92.35 0.53 21.2 72
DM-20-1272 35.93 37.17 1.24 20.6 108
DM-20-1242 118.2 118.68 0.48 18.8 87
DM-20-1394 335.47 338.6 3.13 17.69 70.4
DM-20-1202 159.88 160.28 0.4 16 85
DM-20-1384 35.05 35.9 0.85 12.8 40
DM-20-1232 119.93 120.43 0.5 12.7 34
DM-20-1242 117.87 118.2 0.33 12.1 61
DM-20-1262 11.93 12.34 0.41 11.1 182
DM-20-1272 39.8 40.3 0.5 11 51
DM-20-1344 101.4 102.11 0.71 10.6 63
DM-20-1262 49.9 50.04 0.14 9.7 30
DM-20-1272 38.59 39.6 1.01 9.7 72
DM-20-1151 51.17 51.4 0.23 9.1 47

 

1September 20, 2020, 2NR October 21, 2020, 3NR November 10, 2020, 4NR December 9,2020 news releases

Figure 15

Significant assays from 2021 drilling over 9 grams/t Au (23 holes assays outstanding).

HOLE_ID FROM_M TO_M LENGTH_M Au_gpt Ag_gpt
DM-21-1601 89.5 90 0.5 67.1 155
DM-21-2245 383 384.1 1.1 62.6 302
DM-21-1571 13 14 1.0 49.8 61
DM-21-1886 26.98 27.3 0.32 49.4 56.867
DM-21-2245 381.2 381.6 0.4 47.3 86.8
DM-21-1773 239.95 240.45 0.5 41.6 168
DM-21-1773 45.65 46.3 0.65 40.0 441
DM-21-1642 158.75 159.73 0.98 36.7 580
DM-21-1601 88.5 89 0.5 34.5 73
DM-21-1763 86.7 87.25 0.55 33.3 15
DM-21-2006 77.5 78.9 1.4 33.08 72.3
DM-21-2245 387.93 388.51 0.58 31.5 57.8
DM-21-2245 443.52 444.56 1.04 26.9 157
DM-21-1682 66.31 67.76 1.45 26.1 74
DM-21-188 34.85 35.04 0.19 25.9 100.8
DM-21-1652 136.2 137.57 1.37 22.9 42
DM-21-1431 24.65 25.16 0.51 22.8 28
DM-21-1864 122 122.6 0.6 22.8 60
DM-21-1571 39 40.28 1.28 20.4 69
DM-21-1864 29.18 29.55 0.37 20.0 16
DM-21-1773 524.9 525.23 0.33 19.2 52
DM-21-1773 247.85 248.6 0.75 18.7 21
DM-21-1601 89 89.5 0.5 18.5 236
DM-21-1763 458.15 458.48 0.33 17.9 162
DM-21-1451 109.46 110.28 0.82 17.1 66
DM-21-1482 255 255.18 0.18 17.0 12
DM-21-1764 145 145.12 0.12 16.8 17
DM-21-1542 97.5 99 1.5 15.4 26
DM-21-1672 174.7 175.12 0.42 14.8 4
DM-21-1462 230.77 231.62 0.85 14.2 40
DM-21-1611 213 214 1.0 14.2 54
DM-21-1733 45.57 45.71 0.14 13.8 332
DM-21-1482 258 258.32 0.32 13.4 5
DM-21-1864 25.3 25.45 0.15 13.4 11
DM-21-1784 98.9 100.18 1.28 12.6 71
DM-21-1784 132.35 133 0.65 10.6 32
DM-21-1814 18.28 18.44 0.16 9.878 18
DM-21-1502 212 214 2.0 9.795 8
DM-21-1784 124.95 125.45 0.5 9.709 1012
DM-21-1451 34.75 35.8 1.05 9.29 17

 

1March 25, 2021, 2 NR May 13, 2021, 3 NR September 22, 2021, 4 NR December 7, 2021, 5 NR february 7, 2022, 6 March 17,2022 news release

Figure 16