VANCOUVER, BC / ACCESSWIRE / December 24, 2020 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased toannounce that it has filed an updated technical report on the Company's Dome Mountain Gold Mine Project entitled "NI 43-101 Technical Report, Dome Mountain Mine, British Columbia, Canada" dated December 21, 2020" (the "Technical Report"). The Technical Report was prepared pursuant to the form required under National Instrument 43-101 by Roughstock Mining Services LLC. The report is available at www.sedar.com.
The Technical Report discloses a mineral resource of 70,418 oz Au and 341,784 oz Ag in the indicated category and 109,160 oz Au and 473,890 oz Ag in the inferred category, based on 398 drill holes (39,398 meters) completed at the Dome Project over the period from 1985 to 2016. The following parameters were used for the resource estimation:
- Cut-off grade 3.42 g/t
- US$1300/oz Au
- 2.25-meter cut and fill minimum width.
- All veins were estimated using ordinary kriging.
- Effective Date of resource estimate of December 21, 2020.
| INDICATED RESOURCE |
| | AU CUTOFF GRADE 3.42 g/tonne | AG g/tonne |
| MINIMUM MINING WIDTH (2.25m) | Tonnes | Gold Grade | Gold Grams | Gold Ounces | Silver Grade | Silver Ounces |
| Boulder Vein | 166,511 | 12.12 | 2,017,497 | 64,864 | 60.30 | 322,790 |
| Boulder East Vein | 9,470 | 18.24 | 172,749 | 5,554 | 62.39 | 18,994 |
| TOTAL | 175,980 | 12.45 | 2,190,246 | 70,418 | 60.41 | 341,784 |
| | | | | | | |
| INFERRED RESOURCE |
| | AU CUTOFF GRADE 3.42 g/tonne | AG g/tonne |
| MINIMUM MINING WIDTH (2.25m) | Tonnes | Gold Grade | Gold Grams | Gold Ounces | Silver Grade | Silver Ounces |
| Boulder Vein | 151,831 | 8.45 | 1,283,393 | 41,262 | 46.43 | 226,630 |
| Boulder East Vein | 142,289 | 7.08 | 1,007,753 | 32,400 | 20.29 | 92,830 |
| Argillite Vein | 72,694 | 11.20 | 814,290 | 26,180 | 58.18 | 135,970 |
| Boulder HW Vein | 41,292 | 7.02 | 289,822 | 9,318 | 13.91 | 18,460 |
| TOTAL | 408,105 | 8.32 | 3,395,258 | 109,160 | 36.12 | 473,890 |
The Technical Report updates and replaces the mineral resource estimates disclosed in the prior technical report filed by the Company entitled "Preliminary Economic Assessment Dome Mountain Mine British Columba, Canada" dated July 13, 2020 (the "Prior Report"), which was retracted by news release dated September 22, 2020 following a technical disclosure review by the BCSC. The Prior Report disclosed an indicated resource of 78,260 oz Au and 405,783 oz Ag and an inferred resource of 128,173 oz Au and 472,554 oz Ag. Differences in resources between the Technical Report and the Prior Report are due primarily to applying a cut-off grade of 3.42 g/t Au to both the gold and silver resource blocks, applying only the cut and fill resource model and, reducing the Boulder and Boulder East grade cap from 89.69 to 69.38 gold g/t.
The Technical Report was prepared by Rough Stock Mining Services (Montana) and authored by Steve Cutler CPG, Jennifer Evans CPG, and Jill Pardoe P. Geo.
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.
For further information, please contact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766