Blue Lagoon Resources Inc.: Blue Lagoon sees potential for over a million ounces of gold along Cliff Road (2023)

Resource potential near mines in Flat Chance and Forks-9800 Zone
Alpine's high quality shaft target is now ready for drilling

VANCOUVER, BC / ACCESSWIRE / 24 de maio de 2023 r. / Blue Lagoon Resources Inc.("Business") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to provide an in-depth interpretation of the exploration results of recent work from the 100% owned Mountain Dome Project, 50 minutes' drive from Smithers , UK Columbia and available all year round.

The potential of the Dome Mountain project

Interpretation of the latest Dome Mountain exploration results by the company's geology team suggests the following:

There is great potential to set over a million ounces of gold along the Boulder vein through systematic infill drilling.

The newly discovered Flat Chance vein system and historic Forks 9800 zone offer potential opportunities to significantly replenish resources close to the mine.

Historical analyzes of the alpine area indicate good prospects for the discovery of new high-quality veins.

Projeto Dome Mountain

The Dome Mountain project includes a historic precious metal lode area centered around the former Dome Gold and Silver Mine that mined Boulder's main lode (1989-1992). The project area is predominantly covered by the Lower to Middle Jurassic Hazelton Group Arctic Ensemble. The Telkwa Formation, at the base of the Hazelton Group, is the densest and most extensive formation. The Nilkitkwa Formation overlaps coincidentally or inconsistently with the Telkwa Formation and is an important host of mineral deposits.

Since 1985, almost 90,000 meters have been drilled in 596 wells on the Property. Since 2020, the company has drilled 48,974 meters in 187 wells).

Boulder Vein System Resources

The master vein, as well as its subsidiary veins (Fig. 2), are characterized by quartz with less carbonate and sulfur mineralization. Previous deposit models considered mesothermal veins, but some features of the depositional style suggest that the pattern of gold-silver veins, rich in quartz-carbonate, is rich in base metals. Sulfide-free quartz carbonate veins are generally sterile for gold and silver. Quartz occurs both as white and solid, and transparent and translucent, and associated with higher grades of gold. Carbonate minerals (ankerite, siderite and calcite) occur as cream to beige crystals. Small folds in the veins attest to the constant movement after their formation. The sulphide minerals in a stone vein make up about 10% of the mineralogy of the vein, but can be as much as 50%. The sulphide minerals are pyrite (6%), sphalerite (2.5%), chalcopyrite (1%) and galena-tetrahedrite-arsenopyrite (<1%), in decreasing order of abundance. Pyrite occurs as fine euhedral cubic crystals scattered throughout the wallstone alternation and in quartz veins in the form of bubbles, stringers and massive edges. At the top of the Boulder Main Vein, gold values ​​correlate well with zinc and/or galena. Recent deep recordings also show increased copper content. The total carbonate content can reach 30% and forms the basis of the unit as a natural pH buffer and acid free system (NAG).

So far in 2020, the company has drilled 94 wells (25,275 meters) in the Boulder Vein System. Current resource estimates include wells from the 2020 and 2021 Phase 1 filling campaigns (Table 1) as well as historic wells.

Table 1: Summary of Boulder Vein System drillings performed by the Company since 2020.

Thanks to initial infill drilling programs, the Company was able to increase the total number of ounces of gold in the specified category by 145% or 102,582 ounces. Additionally, 45,000 ounces of gold were moved to the measured category, a first for the project. The current Statement of Mineral Resources † (see press release dated February 3, 2022) discloses Mineral Resources:

Table 2: List of mineral resources at the 3.5 g/t limit, Dome Mountain Project, British Columbia, October 15, 2021†

1) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
(2) Valuation of mineral resources can be significantly affected by environmental, licensing, legal, title, tax, socio-political, marketing or other relevant issues.
(3) Mineral resources assumed in this estimate have a confidence level lower than the confidence level used for measured and indicated mineral resources and cannot be converted into mineral resources. It can reasonably be expected that most of the Inferred Mineral Resource could be upgraded to the level of the Indicated Mineral Resource as exploration continues.
(4) The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Definitions of Reserves and adopted by the CIM Council .
† Arseneau, G. 2022. Mineral resource estimate for the Dome Mountain Gold Project, Smithers, British Columbia, Canada, prepared for Blue Lagoon Resources Inc. by Arseneau Consulting Services, effective date 15 October 2021, reporting date 31 January 2022.

The company's two main goals for the Boulder Vein System are:

to complete an exercise on a pre-reported inferred resource to advance the defined resource to the specified category and/or measure and;

to explore further boulder-like mineralizations in the impact and decline of the resource and to outline the potential of the Blue Sky resource of more than 1 million ounces.

Both objectives were achieved.

Potential size of Boulder's vena cava

The Boulder Main Vein feature has an attack length of 530 meters and 200 meters downstream. Drilling to date has tested the attack in both directions and an additional 200 meter dive and has successfully demonstrated that rock vein mineralization continues for at least another 550 meters along the course (over 200 meters west and over 350 meters east) and more than 200 meters below. While not enough backfill wells have yet been completed to define a much larger resource, company geologists have concluded that the wells have the potential for at least 1 million ounces of gold and more than 4 million ounces of silver. Furthermore, deep holes at depth, such as DM-22-273, show the increasing importance of copper mineralization (5.73 g/t Au, 80.9 g/t Ag and 1.21% Cu at a depth of 16 .55 m; including 5.65 m of return 11.02 g/t Au, 115.8 g/t Ag and 2.31% Cu (see press release dated January 16, 2023).

Drilling in the next phase(s) will focus on further expanding the known mineralization along the direction and at depth. The identification of zones with wide and well mineralized veins in all directions indicates the possibility of even faster growth of the resource (Fig. 3, yellow). Successful drilling and diving in the next phase(s) would indicate an additional resource potential of over 1 million ounces of Au, bringing the total reservoir potential to 2 million ounces of Au. Follow-up drilling will begin and will be paid for with funds from Rock Vein Production (currently licensed) to update resource estimates.

Through systematic drilling, the company will demonstrate that the rock vein resource can be successfully upgraded to a world-class gold resource (Figure 3).

The Flat Chance Vein system provides an opportunity to expand resources close to the mine

The flat chance vein was discovered in the Chance structural zone. This area is less than a kilometer north of the Dome mine (see Figure 1). Drilling to date has defined a shallow submerged gold (± silver) structure with veins approximately 100 meters below the surface (see September 19, 2022 press release). The attack length of 400 meters and the descent area of ​​400 meters were determined by drilling (44 holes, 8519 meters). The thickness of the grain and frame zone can vary from < 1 meter to more than 5 meters. Gold grades typically range from 1 to 3 g/t Au across the width, but high grade intersections have been reported in many wells (for example, visible gold was observed in well DM-21-206. The flat vein remains open to the west and north.

Within this area, in well DM-22-247, another vein with a different orientation crossed at a shallow depth (<20 m). This vein returned very high gold grades of 126 g/t Au and 404 g/t Ag, over 0.41 meters (Fig. 4). Additional drilling suggests that the vein extends at least 50 meters below the surface.

Rejected drilling and flat chance infill drilling plans

Additional drilling is required in this area to fully assess the resource potential of the Flat Chance vein as well as additional veins in the area. A series of relatively short holes can extend and fill the area at intervals of at least 50 meters, testing the continuation of mineralization under impact (Figure 5).

The Forks-9800 zone offers additional opportunities for resource growth

The Forks Vein was the first mineralization identified in the Dome Mountain area and was explored and mined using one shaft and several drifts (ca. 1923). Noranda drilling in 1985 set a historic resource of 20,000 tonnes at 23.6 g/t Au (EMPR Fieldwork 1986, page 212). Mineralization in Zone 9800 showed strong gold and silver grades and was briefly mined with 50.8 tonnes of ore shipped containing 30.17 g/t Au and 771.4 g/t Ag. These prospects are approximately 500 meters southwest of the 1290 Dome mine gate (see Fig. 1).

Drilling throughout the area, both historic and contemporary, indicates a flat and relatively shallow horizon enriched in precious and base metals occurring at the same stratigraphic level in the lower limestone mudstone of the Nilkitkwa Formation (Fig. 6). This horizon is recognized by a minimum of 250 meters in length and 200 meters in width. The horizon is of variable thickness with mineralized intersections ranging from 0.25 m to 5 m. The mineralization appears to be related to the Forks mineralization, which occurs in a large breccia up to 12 m thick that dips shallow to the northeast. The mineralogy and lithology of the sulfides are also comparable to the claystone vein, a break in the main boulder vein, although a direct correlation between these phenomena has yet to be established.

Drilling plans in the Forks-9800 area

More drilling is needed in this area to fully assess resource potential. A series of short holes (<50 meters) can expand and fill the area at least 50 meters apart (Figure 7). This drilling can be done using core drilling or reverse circulation drilling in the grid. Drilling is currently proposed on the southeast side of Federal Creek, but may be extended to the northwest side as historical drilling indicates continued mineralization.

alpine vein measurement

In the alpine area northwest of the Dome mine, several veins were identified in the early 20th century that were mined by prospectors, but limited to surface work or shallow galleries. (see figure 8). These veins are parallel or non-parallel to each other and reach a north-northwest direction with a moderate to steep dip to the west. The veins are mostly quartz or quartz carbonate veins found in Hazelton volcanic clasts mineralized with pyrite and variable assemblages of arsenopyrite, chalcopyrite, galena and sphalerite. No perforations have been reported in any of these veins except Hawk's vein. Many high quality surface rock samples and excavation samples taken along the vein area were reported.

The Ptarmigan and Gem veins were tracked to the surface at over 300 and 400 meters, respectively. Sampling of grouse vein chips produced gold grades from 1 to 111 g/t Au of pyrite in a width of 0.08 to 0.50 meters. The extracted sample also yielded 119 g/t of Au. Sampling of bud fragments yielded 4.30 to 47.10 g/t Au in samples 0.25 to 1.20 meters wide. The sample taken from the vein yielded 185 g/t Au and 408 g/t Ag.

Further south, on the immediate north slope of Mountain Dome, the Raven Vein was traced for about 200 meters. This vein is narrower than other veins, from 0.10 to 0.15 meters. Chip sampling steps returned up to 15 g/t Au.

No historical results found for Eagle Vein.

Hawk's vein was punctured with limited success. From the surface, the vein exposure narrows with depth to a series of smaller quartz veins containing sulphides and stringers. Surface sampling of sulphide-rich vein material (5% to 35%) with 27.1 g/t Au and 43.2 g/t Ag. Drilling in 1987 showed that the best interception was 13.95 g/t Au over a length of 0.30 meters. In the fall of 2022, the company drilled a series of short holes, primarily to test the use of a handheld drill. A 1.00 meter wire cut yielded 11.60 g/t Au.

About 12 kilometers northwest of the Dome mine, the McKendrick Vein was traced over 500 meters by surface excavation and rock sampling. Drilling in 1991 crossed 2.50 m at 11.64 g/t Au and 36.9 g/t Ag. The company has yet to reach that goal.

Table 3: Historical results of superficial vein sampling. All samples collected by Norand geologists (1985).

Drilling plans here will require helicopter access, which is added to the drilling permit. The gem vein is the most interesting target because it is a pair of closely spaced veins, both well mineralized. Two to three drill sites distributed along a known influence, testing 50 and 100 meters downstream will quickly determine the viability of these veins. A similar plan is proposed for the partridge year. Raven and Eagle veins should be examined in the field to determine suitability for examination with a drill.

The scientific and technical disclosure in this press release has been approved by William Cronk,P.Geo, a Qualified Person as defined in NI 43-101 and a Company Consultant.

For more information, please contact:

wound wig
President and CEO
Phone: 604-218-4766
E-mail: rana@ranavig.com

CSE has not reviewed and assumes no responsibility for the adequacy or accuracy of these communications.

Forward-looking Statements: This press release contains certain statements that may be considered "forward-looking statements". All statements contained in this release, other than statements of historical fact, refer to events or occurrences that Blue Lagoon Resources Inc. wait to happen. (the "Company") are forward-looking statements. Forward-looking statements are statements that are not historical facts and are usually, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects". ”, “potential” and similar expressions, or that events or conditions “will”, “may”, “might”, “could” or “should” occur. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future results and actual results could differ materially from those contained in such forward-looking statements. Factors that could cause actual results to differ materially from forward-looking statements include: results from exploration activities may not be of the quality and quantity necessary for further exploration or future development of mineral resources, the volatility of gold and silver prices and the continued availability of capital and financing, authorizations and other approvals and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and that actual results or developments could differ materially from those anticipated in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of management of the company as of the date of the statements. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions change or otherwise.

SOURCE:Blue Lagoon Resources Inc.

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