Crypto’s memorable Nov. 2021 run had bulls calling for a $100,000 Bitcoin by the end of the year. Had the prediction materialized, BTC’s market cap would have crossed the $3 trillion threshold.
However, the music abruptly stopped for the seemingly relentless bull run on Nov. 10, when both Bitcoin and Ethereum touched all-time highs and reversed, closing at a lower level than they had on the previous session.
It seemed like another day at the exchange for crypto pundits, who saw the price action as no more than a profit-taking opportunity while expecting the rally to continue. Little did they know, neither of the top cryptos would look that far back up anytime soon.
Both tokens fell steadfastly through December and January. Last week, they kept dropping below the lowest levels they had recorded in the month, as selling kept raging on in the stock market as well.
Several analysts called BTC and ETH “inflation hedges” in Q4 2021, as they kept rising along with consumer and product price indices. Some even went as far as calling gold a “dead asset class” – on its way to be replaced by the rapidly growing crypto sector.
However, it was not meant to be. Gold has been sparkling in early 2022 – and cryptos continue to lose luster. After years of underperforming, gold has taken the lead on performance over cryptos.
Will the trend hold? It’s still early to say – but gold has an important historical advantage in stability and is backed by powerful players in the private banking and government sectors.
This flip of the performance script is excellent news for advanced gold exploration companies, which endured the uncertainty that these narratives peppered the market with.
A standout example of such an exploration company that’s ready for takeoff, bolstered by the revitalization of the sector, is Canada’s Blue Lagoon Resources, now in prime position to ride the yellow metal market’s surge as it sets its sights on becoming a producer in 2022*.
A Junior With History
Vancouver-based Blue Lagoon Resources Inc. (CSE: BLLG.CN) is a rare company that has both an advanced exploration and production play with an Environmental Management Act Permit and a Mining Permit for up to 75,000 tonnes/year. Their flagship is the past-producing Dome Mountain Gold Mine, a year-round road accessible project just a short 50 minute drive from the town of Smithers, BC.
Beyond the permits, which typically average 14+ years to secure in BC, the Dome Mountain Gold Project boasts 15 known high-grade gold veins ready for drill targeting and 20km of geological strike on a vast and highly prospective 22,000-hectare land package – 90% of which is yet to be explored.
Prior to their incursion, the project already received considerable investment over the last 3 decades, with $28m invested by Gavin Mines on permitting, development and infrastructure over the last 12 years.
$28 Million invested – nearly 1100 meters of underground tunnel development, mining equipment, on-site generators, mechanic shop and support staff buildings
This in addition to the $40m other previous operators such as Timmins and Noranda historically put into the project. The latter reportedly mined 43,900 tonnes at an average grade of 12.0 g/t Au. Altogether, development needed for underground production was 75% complete at the time of BLLG’s takeover.
After acquiring the project in March 2020, BLLG spent nearly $2 million to finish the balance of the work and now is ready to submit its final application to the Ministry of Mines to get the green light to production*. In anticipation of this, they recently shipped 5,000 tonnes of mineralized material to their toll milling partner – netting BLLG nearly $1 million so far. Additionally, there’s another $500,000+ to come from two pending shipments.
Bags full of gold and silver concentrate made from Dome Mountain mineralized material are readied and await shipping at Nicola’s milling facility in Merritt, B.C
Awakening the Giant
In July of last year, world renowned geologist, Dr. Quinton Hennigh, a technical advisor to large US precious metals fund, Crescat Capital, came to know of Blue Lagoon – and he couldn’t believe he had never heard of the Dome Mountain Gold project. After careful review, he advised the fund to invest in BLLG. Crescat gave BLLG a $1.5 million lead order and secured future financing participation rights.
Dr. Hennigh commented on the project as part of a July 2021 press release: “Blue Lagoon’s Dome Mountain project displays characteristics of a certain type of intermediate sulfidation system called a carbonate-base metal-gold deposit. Examples of such deposits around the world include Kelian in Indonesia, Buritica in Colombia and Highland Valley in Papua New Guinea.”
“Although Dome Mountain has seen virtually no modern exploration, the property hosts a number of high-grade gold veins, in places quite closely spaced such as at the Freegold target. Blue Lagoon has already encountered multiple high-grade intercepts in some of their first drill holes on the project. Crescat is very excited to help fund a very aggressive drill program at Dome Mountain this year, one that could result in the recognition of Dome Mountain as a potentially large, high-grade gold system.”
In short, one of the leading geologists in the world sees potential for a huge deposit at Dome Mountain.
To go after this potentially massive gold system that Dr. Hennigh is referring to, BLLG currently has 2 drill rigs operating on-site as part of their aggressive 20,000-meter 2022 drill program. Phase 1 is expected to cover 10,000 meters and will run until mid to late March of this year.
Making the Grade
Much of the Phase One drilling will follow up on already-drilled holes that were started as part of the 2021 program. Major lab backlogs of 10+ weeks have led to most of their corresponding assays to remain pending up to this point, but their technical team has seen enough visual mineralization to keep the drill rigs turning.
BLLG Chief Geologist Bill Cronk shared some thoughts on the ongoing program as part of a recent press release: “The 2022 drilling at Dome Mountain will be a game changer for us. We have drill targets that build on the newly defined mineralized zones at Chance and Federal as well as targets over the Freegold Intrusion.”
“In addition, anomalous soils from the 2020 program have not been fully followed up and several new zones identified by soils in 2021 will provide new drill targets. Also, the Boulder Vein will be targeted for deep vein intercepts that is expected to add significantly to resource expansion there.” he concluded.
Early Mover’s Advantage
A young, dynamic corporation with over 100 years of experience and proven leadership, an enviable share structure and a supremely prospective project trading at a discount is what any value investor hopes to kick the year off with. Blue Lagoon fits the bill perfectly, trading at a sub-$0.50c level – for now.
About BLLG
Blue Lagoon Resources Inc. (CSE: BLLG.CN) is a Canadian advanced gold exploration company that is focused on its flagship property – the Dome Mountain Gold Project, an all-year road accessible project located a short 50-minute drive from Smithers B.C., that holds both an Environmental Management Act Permit (EMA) and a Mining Permit providing for up to 75,000 tonnes production annually. In addition, the property has 15 known high grade gold veins with 90% of the 22,000 hectare property yet to be explored.
* Blue Lagoon 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.
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