Blue Lagoon Resources (CSE:BLLG;) (OTC:BLAGF) has received new lab results from its 2022 Phase 1 drilling at the 100% owned Dome Mountain gold project. The property is located a 50-minute drive from Smithers, B.C.
The latest assays are headlined by more high-grade vein intercepts, the latest being from hole DM-22-232, which returned 11.78 g/t gold and 39.9 g/t silver over 7.7 metres, including 15.50 g/t gold and 68.9 g/t silver over 3.1 metres and 38.61 g/t gold and 85.3 g/t silver over 1.1 metres.
DM-22-232 was designed as a follow-up hole, testing an area above a high-grade intercept of 14.8 g/t gold and 38.3 g/t silver over 7.3 metres encountered in DM-21-224, the last hole drilled in the 2021 Phase 2 drill program.
The high-grade results from DM-22-232 have confirmed and offset the above intercept encountered in DM-21-224, and represent the southernmost significant intercepts encountered within the Chance zone to date. Collectively, high-grade intercepts in holes DM-21-224 and DM-22-232 occur in an area where the eastern extension of the Boulder vein system encounters the Chance structural zone. Follow-up holes are planned to further test the area.
About the Chance zone, Quinton Hennigh, geologic-technical advisor to Crescat Capital, a strategic shareholder of Blue Lagoon, commented, "Given this structure appears to be steeply dipping, it appears that the true width of this gold rich structure is perhaps 70-75% the length of the reported drill intercept, so approximately 5.0-6.0 metres, a very impressive width," Quinton Hennigh, geologic/technical advisor to Crescat Capital, a strategic shareholder of Blue Lagoon, commented.
He said the drilling results from Dome Mountain demonstrate its potential to host a carbonate-base-metal-gold system, which are typically deep-rooted and related to underlying magmatic processes.
The Dome Mountain property has 15 known high-grade gold veins, two of which have been tested to date. A mineral resource is currently in place for the Boulder vein discovered by Noranda in 1985, for which a production decision is expected later in 2022.
According to a 2021 resource update, the project contains 136,000 measured tonnes grading 10.32 g/t gold and 57.31 g/t silver (45,000 oz. gold and 250,000 oz. silver) and 662,000 indicated tonnes grading 8.15 g/t gold and 41.19 g/t silver (173,000 oz. gold and 876,000 oz. silver).
Drilling since 2020 has led to high-grade gold mineralization at Freegold, Boulder East, and two new discoveries in the Chance structural zone and federal zone, and including Forks with the historic Noranda gold resource, demonstrating the potential to grow the resource at depth. About 90% of the 22,000-hectare property remains unexplored to date.
Details on the Dome Mountain project and its past drilling can be seen at www.bluelagoonresources.com.
April 30, 2024
April 30, 2024
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