Blue Lagoon Resources
| Type |
|---|
| Public |
| Traded as |
| OTC: BLAGF |
| Industry |
| Mineral Exploration |
| Founded |
| 2017 |
| Key People |
| Bill Cronk (Chief Geologist) |
| Headquarters |
| Vancouver, Canada |
| Notable Projects |
Blue Lagoon Resources is a mineral exploration company listed on the Canadian Stock Exchange (CSE: BLLG) that is focused on its high-grade gold project – the past-producing Dome Mountain Mine. The drive to the mine site is accessible year-round and is just a short 50-minute drive from the town of Smithers, located in northwestern British Columbia.
The company also owns 100% of the Big Onion porphyry copper project, also located near the town of Smithers (20-minute drive) in northwest British Columbia.
Additionally, the company owns 100% of the Pellaire gold property located 160 km southwest of William's Lake in the Chilcotin range of south-central British Columbia. The Pellaire project covers over 4,400 hectares and is known to have 10 gold-bearing veins on the property.
History
Blue Lagoon Resources launched on the Canadian Securities Exchange (CSE) on July 4, 2019. Over the next 10 months, the company made three acquisitions and quickly gained investor support, becoming one of the best-performing stocks of 2019.
On January 15, 2020, Blue Lagoon’s CEO, Rana Vig, was invited by the Canadian Stock Exchange to start the trading day by ringing the opening bell.[1]
In March 2020, Blue Lagoon’s CEO, Rana Vig, was one of four industry leaders featured on the cover of Public Entrepreneur, a leading industry magazine published by the Canadian Stock Exchange (CSE).[2]
On March 27, 2020, Blue Lagoon acquired the past-producing Dome Mountain Gold mine. The project has a mining permit that allows for the mining of up to 75,000 tonnes annually. There are also 15 known high-grade gold veins on the property. As of August 2020, of the nearly 12,000 hectares controlled by Blue Lagoon, 90% remained unexplored.
In May 2020, the company formed its Strategic Advisory Board and appointed 30-year mining veteran, Yannis Tsitos, as the initial member of the board.[3]
In July 2020, Blue Lagoon released its Pre-Economic Assessment (PEA). The PEA considers the economics of a 100-tonne-per-day mining operation (about 36,000 tonnes annually), which is half the tonnage provided for under the existing permit.[4]
Over the 12-year planned mine life, the PEA projects that 85,000 payable ounces are recoverable, with the first five years' recovery to be 45,000 payable ounces, at a per-ounce cash cost of $987 (U.S.) and selling price of $1,450 (U.S.) per ounce of gold, providing on average $2.32 million per year after-tax free cash flow, using a discount rate of 5 per cent, during that initial five-year period.
The fact that this project has extensive existing development and infrastructure results in the additional projected capital cost to resume mining operations being only $1.46 million, primarily for completing items under three required amendments to the existing mine permit. These items include the completion of the water treatment plant, underground bolting and vent raise, and the completion of the mine reclamation and closure plan. This low capital cost results in an internal rate of return of 277 per cent using a 5-per-cent discount.
In August 2020, Blue Lagoon closed a major financing of $7.52 million.[5]
Management
Rana Vig – Chief Executive Officer & Director
Mr. Vig has over 30 years of business experience during which time he has helped to launch five business ventures in private industry. He has been involved in several publicly traded companies since 2010, serving first as an executive at an industry-leading algorithmic securities trading systems company and then at an award-winning automated referral marketing solutions company that powered loyalty and referral marketing programs across 39 countries for brands including AT&T, Sprint, Telus, Envision Financial and others.[6]
From 2011 to 2016 Mr. Vig served as President of Musgrove Minerals, an Idaho-focused gold and copper mining exploration company, and from 2013 to 2016, he was the Chairman and CEO of Continental Precious Minerals Inc., a TSX senior board exploration company with a focus on advancing one of the largest uranium projects in the world, located in Sweden.
Mr. Vig is a former chair of the BC Open Learning Agency, and serves on several public company boards and committees. He is active in many charitable and community organizations, acting as director or advisor.
In November 2017, he was invited to the Canadian Senate to receive the Senate 150th Anniversary Medal – which were awarded to top Canadians actively involved in their communities who, through generosity, dedication, and hard work, make their hometowns and communities a better place to live.[7]
Bill Cronk – Chief Geologist
Bill Cronk has over 25 years of experience as a geologist and manager of exploration programs for precious and base metal deposits. Mr. Cronk has worked in Africa, Europe, as well as North and South America, with expertise that ranges from grassroots reconnaissance up to advanced-stage and pre-feasibility work.
Mr. Cronk worked for mining industry leaders such as Dundee Precious Metals, and Northern Empire – which was acquired by NY-listed Coeur Mining (NYSE: CDE), where he gained invaluable management experience and honed his skills in business development, project generation, program design, budget implementation, and project management.
Norman Brewster – Director
Mr. Brewster is the President, Director, and CEO of Cadillac Ventures Inc., with development projects in Ontario (copper) and New Brunswick (tungsten). Mr. Brewster has served on many public and private company boards over his career in the mineral industry.
Prior to joining Cadillac Ventures Inc., Mr. Brewster was the interim President and Executive Chairman of Iberian Minerals Corp., successfully financing, developing, and putting into production the Aguas Tenidas Mine in Andalucia, Spain, which became the region’s largest employer. During his tenure, Mr. Brewster led negotiations for the purchase of the Condestable Mine in Peru by Iberian Minerals Corp., and as a final duty, Mr. Brewster led a committee in reviewing the successful bid by Trafigura Group Pte. Ltd. (revenue in 2015 of 97 Bn) to acquire Iberian Minerals Corp., in an all-cash takeover.
Mr. Brewster also sat on a committee, as a Director of Spider Resources Inc., which reviewed the successful all-cash acquisition of Spider Resources Inc. by Cliffs Natural Resources Inc. Mr. Brewster holds a Bachelor of Science and Education Degrees from Acadia University and was approved as a Member of the Association of Geoscientists of Ontario.
Gurdeep Bains – Director
Mr. Bains is a Chartered Professional Accountant (CPA, CA) who in 2003 received his Chartered Accountant Designation from the Institute of Chartered Accountants of BC and in 2004 graduated from Simon Fraser University with a Bachelor of Business Administration. From 2000 to 2005, he was a Senior Auditor, Assurance Services at KPMG.
From 2005 to 2014, Mr. Bains was with Canaccord Genuity as Vice President, internal audit, and financial analysis where he was involved in the company’s global expansion by performing the due diligence and integration of $850M in acquisitions in Canada, the US, UK, Australia, and China.
From June 2014 to October 2017, he was the CFO at OK Tire Stores Inc., an automotive company with over 330 locations across Canada. From October 2017 to March 2019, Mr. Bains was CFO at Zenabis Ltd., contributing in both finance and business development roles.
Carmello Marrelli – Chief Financial Officer
Mr. Marrelli is a Chartered Professional Accountant (CPA, CA, CGA) and a member of the Institute of Chartered Secretaries and Administrators, a professional body that certifies corporate secretaries. He has a Bachelor of Commerce degree from the University of Toronto and has over 17 years of experience offering regulatory compliance services to listed companies on the Toronto Stock Exchange, TSX Venture Exchange, and the Canadian Securities Exchange.
Projects
Dome Mountain Gold Mine
The Dome Mountain Gold Mine project is located in a safe and politically stable jurisdiction with a long tradition of gold mining. The mine consists of 42 contiguous claims and one mining lease totaling 10,970 hectares. The mine is located approximately 38 kilometers east of the town of Smithers in northwest British Columbia.
The project holds a Mining Permit and Environmental Management Act Permit (EMA) that provides for up to 75,000 tonnes production annually, plus a long-term Milling and Mining Profit Share Agreement with Nicola Mining Inc., which operates a modern mill facility located near Merritt, BC.[8]
Dome Mountain Mine has a large and detailed database as a result of $28M spent in the last 12 years on exploration, engineering, environmental studies, and mine infrastructure construction on the project. During that period, exploration drilling and resource modeling, geotechnical drilling and modeling, bulk mining, and test milling provided a large data set to the project team.
The Phase One planned drilling program began operation on July 23, 2020.[9]
Pellaire Gold
Blue Lagoon owns 100% of the Pellaire gold property located 160 km southwest of William's Lake in the Chilcotin range of south-central British Columbia. The Pellaire project covers over 4,400 hectares and is known to have 10 gold-bearing veins on the property. The Pellaire project consists of 22 claims totaling 7829 ha. Long-term plans for the project include exploration drilling on identified quartz veins and the monetization of 25,000 tonnes of stockpiled mineralized material available to be processed in the near future. To date, 10 different high-grade gold-silver-telluride veins have been identified on the property.
Big Onion Porphyry Copper
The company owns 100% of the Big Onion porphyry copper project, located near the town of Smithers in northwest British Columbia.
The Big Onion is located 16 kilometres east of the town of Smithers and consists of 13 contiguous mineral claims comprising a total area of 4,493 hectares. Following a total of 218 drill holes totaling 41,010 meters, a NI 43-101 resource report dated May 31, 2009, was prepared by Giroux Consultants Ltd.
News Releases
"Blue Lagoon Announces Completion of $7.5 Million Private Placement" – August 12, 2020
"Blue Lagoon Kicks Off Phase One Drill Program at Its Dome Mountain Gold Project" – July 23, 2020
"Blue Lagoon Engages Canaccord Genuity as Financial Advisors" – July 17, 2020
"Blue Lagoon Announces Mobilization for Phase One Drill Program at Dome Mountain" – July 17, 2020
"Blue Lagoon Files Positive Pea for Its Dome Mountain Gold Mine Project" – July 16, 2020
External Links
Blue Lagoon Resources Official Website
Blue Lagoon Resources Official Blog
Rana Vig's Official Website
References
- ↑ "Blue Lagoon Invited To Ring Opening Bell To Commence Trading Day". www.bloomberg.com. Retrieved Jan 15, 2020.
- ↑ "BLUE LAGOON RESOURCES: ONE OF 2019'S HOTTEST EXPLORATION STOCKS HAS QUITE THE ENTREPRENEUR AT ITS HELM". Official Blog of the CSE. Retrieved Mar 11, 2020.
- ↑ "Blue Lagoon Appoints Mining Veteran as First Member of its Newly Formed Strategic Advisory Board". Accesswire. Retrieved May 7, 2020.
- ↑ "Blue Lagoon Delivers Positive Pea For Its Dome Mountain Gold Mine Project". Yahoo! Finance. Retrieved May 18, 2020.
- ↑ "Blue Lagoon Resources Announces Completion Of $7.5 Million Private Placement". Junior Mining Network.
- ↑ "Management". Blue Lagoon Resources.
- ↑ "Senator Mobina Jaffer - Statement - 100 Year Journey: Rana Vig". YouTube. Retrieved Sep 28, 2017.
- ↑ "Breaking News: Blue Lagoon Highlights Phase One Program at Its Dome Mountain Gold Mine Project". Financial Buzz. Retrieved April 28, 2020.
- ↑ "Blue Lagoon Kicks Off Phase One Drill Program at its Dome Mountain Gold Project". News Break. Retrieved July 23, 2020.
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