Overview
Stage | Permitting |
Mine Type | Underground |
Commodities |
|
Mining Method |
- Mechanized Cut & Fill
- Shrinkage stoping
- Longhole stoping
- Backfill
|
Processing |
|
Mine Life | 12 years (as of Jan 1, 2020) |
Blue Lagoon initiated discussions with BC Ministry of Mines on updating the existing Mining & Environmental Permits. • Mine Effluent Permit in Place • Mine Permit 237 in Place • Updated 2021 Resource on Boulder Vein • New 2022, 20,000 Meter drill program underway.
The company has not made a decision to proceed to production at this time and will evaluate its 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. |
Latest News | Blue Lagoon Continues to Hit High Grade Gold -11.78 g/t Au and 39.9 g/t Ag Over 7.7 Meters May 9, 2022 |
Source:
VANCOUVER, BC / ACCESSWIRE / July 21, 2021 / Blue Lagoon Resources Inc. (the "Company") is pleased to announce that it has consolidated its ownership of the Dome Mountain gold project and now owns 100% of the project. The Dome Mountain project is held through the Company's subsidiary, Gavin Mines Inc. Until recently the Company held 78.27% of the shares of Gavin Mines, with the remaining 21.73% being held by three arm's length parties. The Company successfully negotiated with those parties to acquire their shares of Gavin Mines, and as a result now holds 100% of the outstanding shares of Gavin Mines.
Deposit Type
- Vein / narrow vein
- Orogenic
Summary:
The mineral deposits at Dome Mountain are structure-controlled orogenic (mesothermal) quartz-carbonate-sulphide veins with associated gold and silver mineralization. Controlling structures are east-west and northwest southeast trending brittle fault zones that dip moderately to steeply south and southwest. The host rocks are Lower to Middle Jurassic subaerial volcanic flows, pyroclastic, and related volcanoclastic rocks.
The most significant gold mineralization on the Dome Mountain Project is contained within five zones of the past-producing Boulder Vein System (listed in order of importance):
- Boulder Main Vein: This zone has a strike ranging from 090° to 100° and dips ranging from 45° to 70° south. The vein has been defined over a strike length of 440 metres from section 652,800 UTME to 653,240 UTME and a down-dip extent of more than 300 metres starting at the surface. The mineralized zone within the vein has a shallow easterly plunge with an average horizontal width of 2.4 metres, ranging from less than a meter to 21.2 metres. The majority of the 43,900 tonnes of past production came from this zone.
- Argillite Vein: The Argillite Vein is a splay off the Boulder Main Vein. It strikes at 120° and dips to the southwest at angles ranging from 35° to 50° and it appears to flatten along strike to the southeast. The zone is somewhat discontinuous over the defined strike length of 240 metres and a maximum down-dip extent of 90 metres. The mineralized zone in the vein has an average horizontal thickness of 3.2 metres, ranging from less than a meter to 8.0 metres.
- Boulder Footwall Vein: This zone is sub-parallel to the Boulder Main Vein and is located at the east end of the Boulder Vein System. It has been defined by drilling over a strike length of 550 metres from 653,300 UTME to 653,850 UTME and over a down-dip extent of approximately 200 metres. The zone has an average horizontal width of 1.9 metres, ranging from less than a meter to 15.4 metres. The zone is open down-plunge to the east and down-dip. Minor past-production came from this zone.
- Boulder West Hangingwall Vein: This vein is also sub-parallel to the Boulder Main Vein. It is a somewhat discontinuous vein with an overall strike length of 100 metres located between 652,960 UTME and 653,060 UTME and a defined down-dip extent of approximately 100 metres. It has an average horizontal width of about 2.4 metres, ranging from 1.8 to 3.8 metres.
x Boulder East Hangingwall Vein: This is a thin and somewhat discontinuous vein that occurs over a strike length of about 320 metres at the east end of and sub-parallel to the Boulder Main Vein.
In addition to the past producing Boulder Vein System, gold mineralization at the Dome Mountain Project is present at twelve separate locations: Free Gold, Forks, 9800, Ptarmigan, Elk, Eagle, Gem, Raven, Hawk, Chance, Hoopes, Jane, Cabin, and Pioneer. The Free Gold and Forks zones are classified as pastproducers by the B.C. Government Minefile database while the others are listed as either prospects or showings. The Cabin Vein is considered to be the westward extension of the Boulder Vein.
The veins occur in a roughly northwest-southeast 12-kilometer trend from southeast of Dome Mountain to Mt. McKendrick. This trend may reflect the presence of a deep-seated structure. A modest amount of diamond drilling has been conducted on the various veins but to date no minerals resources have been defined.
Mining Methods
- Mechanized Cut & Fill
- Shrinkage stoping
- Longhole stoping
- Backfill
Summary:
The Dome Mountain deposit is a system of structure-controlled orogenic (mesothermal) quartz-carbonate-sulphide veins with associated gold and silver mineralization. The mining method, mechanized ramp cut and fill, is contemplated being utilized at the Dome Mountain Mine to maximize recovery of the mineral resource. The mechanized cut and fill method optimizes mineral resource extraction since this method allows for the ability to follow irregular mineralized zones quite precisely and allow greater selectivity in mining and results in a higher-grade mineralized product. Recovery for this method was planned at 95% and dilution was estimated at less than 10%. Other mining methods that could be proposed in the future may include narrow vein long hole stopes in areas where the mineralized zone is dipping at more than 45 degrees, captive slusher stopes, shrinkage stopes, or resue mining to minimize dilution where the ore zone is too narrow.
Unconsolidated rock backfill is planned to be used in all mechanized ramp cut and fill stopes after mining is completed to stabilize the ground and to provide a working platform for the next cut and fill lift (stope). This backfill is the development waste from the Dome Mountain Mine. This will reduce the overall closure costs for the operation. It is planned to carry out geotechnical studies in the future to determine if cemented rock fill (CRF) is an option for backfill. This is also depended on future permitting requirements.
Cut and fill stoping includes methods in which a single excavation pass, or a lift is completed and backfilled before another cut is made. The initial horizontal ore drifts are mined 3.0 meters in height and are mined advancing away from the stope access point with the subsequent horizontal cuts being mined 2.4 meters in height. The excavated mineral resource falls and rests on the backfill placed during the previous cut and fill cycle. As cut and fill cycles are completed, the stope is advanced upward. This means that the vein must be developed from the bottom.
For the purposes of this study, a production rate of 100 tonnes per day was utilized.
Cut and fill accesses were designed off the 1312 elevation, 1330 elevation, 1348 elevation and 1358 elevation, and a short decline off the 1370 level. Production mining is currently in progress off the 1290 level.
The accesses are designed at a size of 3.4 meters wide by 4 meters high at a maximum decline or incline of 15% off the ramp.
A transition zone from +15% to level over 3 rounds was designed for each access to allow a flat area for the transition of equipment from the ramp to the access and allow a safe area for the loading of trucks.
The accesses were designed to provide a maximum of 5 cut and fill stopes from each access with a 3 to 4.5 meter pillar between the top cut of one access and the bottom cut of the next access up the ramp being mined as a back-stope. Accesses were designed to be breasted down after the completion of each cut with the waste remaining in the access for fill as a platform to work the next cut. Transitions were designed at the top of the ramp from level to -15%, and again prior to intersecting the Boulder Vein to allow equipment a safe transition zone. A small cut-out was completed near the transition to -15% to allow utility holes to be installed from level to level.
A small decline from the 1370 level will be mined to access an area of mineralization on the west side of ramp area that cannot be accessed from the 1348 access.
The stopes will be filled with waste development muck. There will not be any processing of the development waste prior to backfilling. Typically, a minus 305 mm sizing of the waste material is preferred to optimize compacting of the fill, but most waste fill can be placed without special sizing gradation and still provide adequate wall support and working surface. However as mentioned earlier it is planned to carry out geotechnical studies in the future to determine if cemented rock fill (CRF) is an option for backfill.
The waste fill will be placed in the stope using a load-haul-dump (LHD) machine. The LHD will dump the load and push the material into place from the stope entrance to the end of the stope. Tight filling to the back of the stope is not required. Compacting of fill material will occur during the breasting operation of the next cut and fill lift. The compacting of the backfill will occur automatically as the mining equipment (jumbo and LHD) are operating on the backfill material.
Development for the mine is limited to excavation required to establish and maintain operations at an average production rate of 100 tonnes per day. The mine is accessed via the existing 1290 and 1370 levels. The 1370 level has been designated as the fresh air intake and the 1290 level has been designated the main haulage way and will provide the exhaust pathway for the ventilation system. A ramp and a ventilation raise will be excavated between the 1290 and 1370 levels to allow access to the cut and fill stopes and to provide fresh, clean air to the working headings.
Crusher / Mill Type | Model | Size | Power | Quantity |
Ball mill
|
|
6' x 12'
|
|
1
|
Summary:
Milling will be performed by a third party, Nicola Mining. The ore was crushed to minus 3/8 inches and ground in a 6.5 ft x 10 ft ball mill. The average grind of the ore was 90 microns or 75% minus 200 mesh.
Source:
Summary:
Dome Mountain mineralized material will be trucked and processed at an offsite mill owned by Nicola Mining Inc. located in Merritt, B.C. Mill recoveries were based on a scoping level metallurgical program which was conducted on muck samples from Dome Mountain Mine in 2010 and a test run of 6,690 tonnes of material that was run through the Nicola mill in 2016 at a grade of 8.75 g/t, with a 95.2% gold recovery.
The processing of ore involved crushing, grinding, conditioning, rougher, scavenger and cleaning flotation and filtering of the flotation concentrate. The ore was conditioned with reagents and floated. The rougher flotation concentrate was cleaned to produce a cleaner concentrate. The recovery in the second batch of ore was higher than the first batch primarily due to additional reagents added to the scavenger cells. The average flotation time in the mill was 88 minutes at 4 tonnes/hour. The cleaner concentrates were shipped to a smelter in China.
Recoveries & Grades:
Commodity | Parameter | Avg. LOM |
Gold
|
Head Grade, g/t
| 6.66 |
Silver
|
Head Grade, g/t
| 27.4 |
Projected Production:
Commodity | Units | LOM |
Gold
|
oz
| 85,231 |
Silver
|
oz
| ......  |
All production numbers are expressed as payable metal.
Operational Metrics:
Metrics | |
Daily ore mining rate
| ......  |
Waste tonnes, LOM
| ......  |
Ore tonnes mined, LOM
| ......  |
* According to 2020 study.
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Reserves at July 1, 2020:
Au Cut-off grade - 3.42 g/tonne.
Ag Cut-off grade - 23.94 g/tonne.
Category | Tonnage | Commodity | Grade | Contained Metal |
Indicated
|
173,471 t
|
Gold
|
15.78 g/t
|
81,017 oz
|
Indicated
|
173,471 t
|
Silver
|
71.22 g/t
|
397,463 oz
|
Inferred
|
460,028 t
|
Gold
|
10.09 g/t
|
149,240 oz
|
Inferred
|
460,028 t
|
Silver
|
45.72 g/t
|
674,656 oz
|
Corporate Filings & Presentations:
Document | Year |
...................................
|
2020
|
...................................
|
2020
|
...................................
|
2020
|
Technical Report
|
2010
|
- Subscription is required.
News:
News | Date |
Blue Lagoon Continues to Hit High Grade Gold -11.78 g/t Au and 39.9 g/t Ag Over 7.7 Meters
|
May 9, 2022
|
Blue Lagoon Resources: Additional High-Grade, Visible Gold Drilling Results From the Chance Zone at Blue Lagoon's Dome Mountain Project
|
April 20, 2022
|
Blue Lagoon Hits 14.8 g/t AU and 38.3 g/t AG over 7.3m In Newly Discovered Chance Zone
|
February 7, 2022
|
Blue Lagoon files updated resource report on its Dome Mountain gold project
|
February 3, 2022
|
Blue Lagoon Enters Into Strategic Shareholder Agreement With Crescat and Its Geologist, Dr. Quinton Hennigh
|
August 3, 2021
|
Blue Lagoon Increases its Ownership of Dome Mountain by 21.73% Now Owns 100%
|
July 21, 2021
|
Blue Lagoon’s Toll Mill Partner Starts Processing Dome Mountain Mineralized Material
|
July 7, 2021
|
Blue Lagoon Ready to Ship 6,000+ Tonnes of High-Grade Mineralized Material to Mill for Processing
|
June 7, 2021
|
Blue Lagoon Hits 36.7 G/T AU AND 580 G/T AG OVER 0.98 METERS, 22.8 G/T AU AND 42 G/T AG OVER 1.37 METERS, 25.8 G/T AU AND 74 G/T AG OVER 1.45 METERS
|
May 13, 2021
|
Blue Lagoon Continues to Discover Mineralization Hits 24.07 G/T Gold & 127.92 G/T Silver Over 3 Meters on Boulder Vein Eastern Extension
|
March 25, 2021
|
Blue Lagoon Accomplishes Important Milestone in Its Mining Permit Amendment Process – Completes Water Treatment Plant
|
March 23, 2021
|
Blue Lagoon Files Updated Technical Report
|
December 24, 2020
|
Blue Lagoon Hits 53.76 g/t Gold Over 2.2 Meters Including 83 g/t Gold Over 1.13 Meters and Hits 17.69 g/t Gold Over 3.13 Meters
|
December 9, 2020
|
Blue Lagoon Hits 25.92 g/t Gold and 169.46 g/t Silver Over 4.52 Meters
|
November 10, 2020
|
Blue Lagoon Hits 34.5 g/t Gold Over 1.53 Meters 41.86 g/t Gold Over 1.32 Meters and 15.02 g/t Gold Over 1.71 Meters
|
October 21, 2020
|
Blue Lagoon Completes Airborne Geophysical Survey - Reports Latest Drill Results
|
October 6, 2020
|
Blue Lagoon Provides First Drill Results for its Dome Mountain Gold Project - Hits 107 G/T Gold and 278.5 G/T Silver Over 1.42 Meters
|
September 28, 2020
|
Blue Lagoon Moves Forward with Mining Permit Amendment Process on its Dome Mountain Gold Project - Exploration Drilling Continues
|
September 23, 2020
|
Blue Lagoon Files Positive PEA for its Dome Mountain Gold Mine Project
|
July 16, 2020
|
Blue Lagoon Delivers Positive Pea For Its Dome Mountain Gold Mine Project
|
May 19, 2020
|
Blue Lagoon Completes Acquisition Of Metal Mountain Resources Inc.
|
March 31, 2020
|
Metal Mountain Resources Shareholders Approve Transaction With Blue Lagoon
|
March 23, 2020
|
Blue Lagoon Enters Into Definitive Business Combination Agreement With Metal Mountain Resources Inc.
|
March 10, 2020
|
Blue Lagoon Provides Update on Transaction With Metal Mountain Resources Inc.
|
March 2, 2020
|
Blue Lagoon Signs Letter of Intent to Acquire Metal Mountain Resources Inc.
|
February 25, 2020
|
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