Muddy checks out Blue Lagoon $BLLG
Blue Lagoon's Dome Mountain Mine
Anyone who follows me on Twitter knows I love my speculative miner plays, but that doesn't mean I only like explorers. After all, diversity is essential even while speculating. So today, I am looking at Blue Lagoon Resources (CSE: BLLG) (OTCQB: BLAGF). This British Columbia gold and silver company has two projects in the province, the Pellaire Gold project and their flagship Dome Mountain project. So, let's look and see if BLLG fits into the low risk/high rewards this speculator likes.
Blue Lagoon has plenty going for it. First, there is plenty of cash on hand ($4.0m) with roughly $11.0m in options and warrants to fund future work. Second, the drill results have been impressive (Go check them out!), with plenty more drill holes and assays coming. Third, more geophysics will be ongoing, meaning more drill targets likely throughout the summer.
Dome Mountain covers 21,541 hectares, located 60km E of Smithers BC. Year-round access to the property with workers getting the pleasure of sleeping in their own beds every night makes for happy workers and cheaper operating costs. Dome Mountain has had over $30.0m spent in the last 14 years on permitting, mine development and infrastructure, with another $10.0+m in exploration and drilling. So far, exploration on 10% of the Dome has discovered 17 veins and counting, leaving plenty of room for more discoveries, which Blue Lagoon did twice in 2021 with the Chance and Federal mineralization zones.
On Jan 26, 2022, BLLG announced the start of a minimum 20,000m drill program, with phase one focus being drill targets on the Chance and Federal mineralization zones. In the first week of February, BLLG added a second rig to work on a planned 5-6 holes to explore for a deeper extent of the Boulder Vein. With the potential down-dip mineralization extending below the 1000-meter level, Blue Lagoon's geologic team is confident that there is substantial upside to expand the Boulder Vein and perhaps find other veins nearby.
The Blue Lagoon team was jam-packed throughout 2021. On Feb 03, 2022, they released an updated 43-101 resource estimate, which saw the contained gold ounces increase by 30% and silver ounces by 46%. The indicated resource saw the most significant gain of 102,582 gold ounces - amounting to an increase of 145%.
Does BLLG fit into my low-risk, high-reward speculation portfolio? You bet! Blue Lagoon is fully funded, permitted and has two rigs working right now. The current trend of great drill results and the potential to add meters down-dip at Boulder all look highly bullish for the remainder of 2022.
Twitter: @MuddysMoney
Disclaimer: This is not investment advice. I have no formal training for investment or geology. I plan to or may currently hold shares of the company mentioned in this article. This article is for entertainment purposes only.