Mr. Rana Vig reports

BLUE LAGOON ENCOUNTERS ADDITIONAL SIGNIFICANT INTERSECTIONS FROM DRILLING ALONG STRIKE EAST OF THE BOULDER VEIN RESOURCE

Blue Lagoon Resources Inc. has released final results from the 2022 phase II drilling program on its year-round, road-accessible Dome Mountain gold project, located a short 50-minute drive from Smithers, B.C.

Drilling in this area was designed to follow up the high-grade vein intersection cut in drill hole DM-21-224. This hole, collared from the Chance structural area, was drilled back toward the Boulder East zone. Drill hole DM-21-224 intersected two significant gold-silver veins:

• 14.80 grams per tonne gold and 68.6 grams per tonne silver over 7.31 metres (381.20 metres to 388.51 metres), including 62.60 grams per tonne gold and 302.0 grams per tonne silver over 1.10 metres;
• 26.90 grams per tonne gold and 157.0 grams per tonne silver over 1.04 metres (443.52 metres to 444.56 metres).

Drilling in 2022 set up on a new drill pad, closer to the vein structure. The first hole (DM-22-232) was planned to target very close to the DM-21-224 intercept. Subsequent holes (DM-22-234) tested down dip of hole DM-22-224 while drill holes DM-22-235 and DM-22-238 tested along strike by approximately 50 metres in each direction. (Drill hole DM-22-237 was abandoned due to technical issues and was redrilled as hole DM-22-238.)

Drilling this area intersected the typical lithologies comprising a surface screen of mixed argillites, underlain by lithic tuffs. Both are overprinted by moderate clay plus or minus pyrite/quartz and chlorite and extensively fractured and faulted. These are underlain by a thick package of dominantly of feldspar-phyric crystal tuffs with interbedded lithic/lapilli tuffs.

The targeted quartz-carbonate-sulphide mineralization was intersected in DM-22-232. The vein zone occurs from 284.75 to 293.20 metres, consisting of sheared quartz-carbonate-sulphide veins with approximately 10 per cent pyrite and minor chalcopyrite and arsenopyrite concentrated in patchy blebs within the veins and disseminated pyrite within the altered tuffaceous host wallrock.

DM-22-234 was planned to test up dip of the DM-22-224 and DM-22-232 intersections while DM-22-235 and DM-22-238 targeted to test 50 metres along strike to the east and west, respectively.

DM-22-234 did not intersect any comparable mineralization at the anticipated depth. Several small (less than one metre) intersections grading greater than one gram per tonne gold were found but do not appear related to the main veining. A best of 10.40 grams per tonne gold and 32.2 grams per tonne silver over 0.60 metre was intersected well up hole (144.80 metres to 145.50 metres) from 10-centimetre-to-20-centimetre veins with up to 20 per cent pyrite. It appears the vein here is dipping away from the hole azimuth and the hole stayed in the footwall of the vein.

In DM-22-235, strong mineralized intercepts were found at depths of 160.50 metres to 170 metres as faulted and blocky core bearing pyrite, from 293 metres to 301 metres as moderately fractured core bearing disseminated pyrite and from 316 metres to 324 metres as frequent alteration surrounding one-centimetre veinlets bearing weak to moderate mineralization. The lowest mineralization likely represents the eastern strike extension of the mineralization, although grades are lower here (0.84 gram per tonne gold over 0.50 metre). The best grades in this hole come from a 25-centimetre pyrite-dominant vein at approximately 246 metres depth, returning 26.90 grams per tonne gold and 99.0 grams per tonne silver over 0.68 metre.

DM-22-238 intersected two zones of precious-metal-bearing veins. Both may be related to the Boulder East structure even though they are separated over 40 metres of core length. Faulting within the structure as well as a sinuous vein within the host structure may have resulted in multiple intersections. Alternatively, the upper mineralization could be related to the Boulder East footwall structure. The upper intersection, from 265.00 metres to 268.00 metres, grades 4.03 grams per tonne gold and 68.3 grams per tonne silver over 3.00 metres. The lower intersection, from 316.12 metres to 316.65 metres, grades 7.57 grams per tonne gold and 22.0 grams per tonne silver over 0.53 metre.

Additional drilling will be needed to properly characterize the vein in this area. It may be that there is a steeply raking ore shoot within the complex structural environment. Drilling should be carried out from south to north to afford a better intercept angle on the vein and hosting structures.

Quality assurance/quality control

Core selected for sampling was cut in half with a core saw or split with a hydraulic splitter, with one-half bagged for shipping. Strict chain-of-custody storing and shipping protocol was maintained. All core preparation and analyses were completed by Activation Laboratories Ltd. located in Kamloops, B.C. Core was crushed, split and pulverized, with 250 grams passing 200 mesh. Each sample was analyzed for gold by fire assay with ICP-OES finish (ActLabs Code 1A2-ICP) and for multielements by four-acid total digestion ICP with OES finish (ActLabs Code 1F2). Any gold overlimits (greater than 30 parts per million gold) were analyzed by gravimetric fire assay. Standards and blanks were inserted by company staff. The drilling and sampling program was undertaken by company personnel and under the direction of Ted Vanderwart, PGeo.

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

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