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Blue Lagoon Resources Inc
Symbol BLLG
Shares Issued 69,500,347
Close 2020-11-10 C$ 0.90
Market Cap C$ 62,550,312
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Blue Lagoon drills 4.52m of 25g/t Au, 169g/t Ag at Dome

2020-11-10 05:56 ET - News Release

Mr. William Cronk reports

BLUE LAGOON HITS 25.92 G/T GOLD AND 169.46 G/T SILVER OVER 4.52 METERS

Blue Lagoon Resources Inc. has provided the following update on its Dome Mountain gold project, an all-year-accessible property located a short 50-minute drive from Smithers, B.C., which holds both an Environmental Management Act permit (EMA) and a mining permit providing for up to 75,000 tonnes of production annually.

The results within this release are part of the previously announced 3,700-metre work program at the Dome Mountain gold project that was designed to focus on upgrading a significant portion of the inferred mineral resource to the indicated category by infill drilling and drilling the upper and eastern margins of the Boulder vein system on the Dome Mountain gold project.

Blue Lagoon Resources chief geologist William Cronk said: "The results from hole DM-20-132 are highly encouraging and continue to highlight the potential for grade and thickness of the Boulder vein along strike and at depth. We can see now that we cut off holes DM-20-131 and DM-20-133 too early, which were drilled from the same drill pad. This will be remedied during our upcoming 2021 drill program and we look forward to undercutting the significant 4.52 m intercept in hole DM-20-132 and follow it to depth."

The recent results include assays for holes DM-20-131, 132 and 133. Significant highlights are shown in the associated table.

        SELECT DRILL HOLE INTERCEPTS FROM HOLES DM-20-131 AND DM-20-132

Hole ID             From            To      Interval            Au            Ag
                     (m)           (m)           (m)         (g/t)         (g/t)

DM-20-131          59.65         60.30          0.65          45.5           243
DM-20-132          24.22         25.64          1.42          27.1            61
DM-20-132         126.83        127.06          0.23          54.4           203
DM-20-132         131.75        132.11          0.36          45.6           555
DM-20-132         132.11        132.67          0.56         0.077             2
DM-20-132         132.67        132.97          0.30          43.7           119
DM-20-132         132.97        133.54          0.57          37.8           373
DM-20-132         133.54        134.60          1.06          39.9           204
DM-20-132         134.60        135.80          1.20         3.754             8
DM-20-132         135.80        136.27          0.47          33.3            40

DM-20-132 cut a significantly thick intercept from 131.75 metres to 136.27 m that runs 25.92 grams per tonne gold and 169.46 g/t silver over 4.52 metres. This intercept cuts the vein at a high degree to the core axis and consists of typical Boulder vein characteristics, namely, quartz-carbonate and semi-massive to massive sulphide dominated by pyrite with lesser sphalerite, chalcopyrite and galena. Locally, chalcopyrite is greater than pyrite. This hole is one of three drilled from the same pad during the phase 1 drill program and included holes DM-20-131 and DM-20-133. Hole DM-20-131 hit 45.5 g/t Au and 243 g/t Ag over 0.65 m from 59.65 metres to 60.3 m depth and was not drilled deep enough to intercept the deeper intercept hit in DM-20-132.

This will be a high-priority target for the upcoming phase 2 drill program scheduled to begin in early January, 2021.

Mine infrastructure improvement update

The company is also pleased to announce that construction of an ore storage building, capable of handling and storing up to 200 tonnes of mineralized material per day, has started and is expected to be completed in the next two weeks.

The company will evaluate a production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

Quality assurance and control

All core analyses were completed by Bureau Veritas out of Vancouver. Core selected for sampling was cut with a core saw in half with one-half bagged for shipping. Strict chain-of-custody storing and shipping protocols were maintained. Core was crushed, split and pulverized with 250 grams passing 200 mesh. Each sample was analyzed by MA370 four-acid digestion ICP (inductively coupled plasma) with ES (emission spectrometry) finish and FA 150 fire assay with ICP-MS (inductively coupled plasma mass spectrometry) finish, and all Au overlimits greater than one part per million were analyzed with FA 550 fire assay and gravimetric finish. Standards and blanks were inserted by company staff. The sampling program was undertaken by company personnel by and under the direction of Dr. Mathias Westphal, PGeo.

The scientific and technical data contained in this news release were approved by William Cronk, PGeo, a qualified person as defined in National Instrument 43-101 and a consultant to the company.

We seek Safe Harbor.

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