Blue Lagoon’s High Grade Gold Deposit Steals the Spotlight of Recent Discussion

There’s nothing quite like global chaos to ignite gold investment. Driven by elevated inflation and talks of rising interest rates to combat, gold prices currently find themselves flirting with $2000 and could very well find itself breaking the $3000 barrier by the end of the year, according to some analysts. This is exceptional news for junior mining companies looking to direct the attention of investors towards their efforts, especially when considering that the world’s major gold reserves have been in decline for the past decade.

The probability of transforming a mining expedition into an ounce bearing mine are slim, relying heavily on continued investments to fund countless geological assessment and drill programs in hopes of striking mineralization relevant enough to pave the path to success. With a need to uncover additional gold reserves to sustain demand, investors continue to seek hidden gems that harness the potential to be named the next big gold mine. Crescat Capital seems to believe without hesitation that they have discovered a champion in Blue Lagoon and its flagship Dome Mountain Gold Project.

Crescat Capital is a global macro asset management firm that targets tactical investment themes based on proprietary value-driven equity and macro models. Headquartered out of Denver, Colorado, its mission is to grow and protect long term wealth through a mix of asset classes and strategies that assist its clients’ needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metal funds.

Dr. Quinton Hennigh, the Geological and Technical Director of Crescat Capital, is a globally renowned exploration geologist with an astonishing 30+ years of precious metals mining experience under his belt, and spent his early years working for several major gold mining companies such as Homestake Mining (now Barrick Gold Corp.), Newcrest Mining, and Newmont Corp. Dr. Hennigh has played a crucial role to many global discoveries such as Novo’s Pilbara assets in Western Australia, First Mining Gold’s Springpole gold deposit in Ontario, Kirkland Lake Gold’s Fosterville mine in Australia, the Rattlesnake Hills gold deposit in Wyoming, and Lion One’s Tuvatu gold project in Fiji, to name a few.

Having realized the potential of Blue Lagoon, Dr. Hennigh and Crescat Capital made a strategic investment of $1.5 million in an extremely oversubscribed private placement in Blue Lagoon, which represented more than 18% of the total financing. The financing, which closed in July of 2021, resulted in an astounding 48% over subscription and raised proceeds of $8,130,908.31. In addition, Crescat requested and secured participation rights that provide for an option to participate in all future financings. Under the agreement, Dr. Hennigh entered into a strategic shareholders agreement with Blue Lagoon to provide expertise regarding its exploration and development strategy, amongst other geological and technical matters.

Dr. Hennigh goes on to state “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,"

During a recent interview, Dr. Hennigh provided a highly anticipated update on Blue Lagoon and its exceptional drilling results from the newly discovered Chance Zone. He reassures viewers that the carbonate deposit is very similar to Buritica Gold Mine in Columbia, which is owned and operated by Xijin Mining of China with reserves of more than $10 million ounces, an extremely positive catalyst for Blue Lagoon when considering that Dome Mountain is a larger property that remains largely unexplored.

Its intoxicating to watch Dr. Hennigh’s enthusiasm as he goes on to discuss the brand-new high-grade discovery and continues to reassure viewers that upcoming results should continue to impress. Watch the video here.

Blue Lagoon Resources Inc. (CNSX:BLLG.CN) is a mineral exploration company focused on its past producing high-grade gold project, Dome Mountain Mine. The mine is located withing driving distance from the town of Smithers, British Columbia, granting year-round access to a robust local workforce. The Dome Mountain Gold Project, considered to be Blue Lagoon’s flagship project, is a year-round accessible mine that holds both an Environmental Management Act Permit (EMA) and a Mining Permit allowing up to 75,000 tonnes production annually. The 22,000-hectare property already boasts 15 known high grade gold veins even though it remains relatively unexplored.

Since the start of the year, Blue Lagoon’s share price has surged nearly 100%, but when considering the ongoing drill program and the confidence that Dr. Hennigh and Crescat Capital reserve for its results, the current market cap of roughly $56 million appears to have considerable room for growth.

For those who wish to learn more about the geology of Blue Lagoon from Dr Hennigh himself, we highly recommend watching this video.

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