Paradigm Picks Newsletter 2022/Feb/24 (BLLG)
Welcome Back!
We would like to bring your attention to one of our new holdings, Blue Lagoon Resources. Please see below for brief overview and additional updates.
We have been reaching out to the CEO’s of our investments to stay up-to date on their respective progress and initiatives. As always, due to legal reasons, CEO’s may be “tight lipped” regarding various questions, however provide a general sentiment for their projects going forward.
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Feature
Blue Lagoon Resources (CSE: BLLG)
In speaking with CEO Rana Vig, we were very impressed and compelled by Blue Lagoon Resources’ story and potential upside. We took a sizeable position at $0.35 CAD approximately one month ago. We are currently sitting at a gain of ~50%!
Please see below for company overview:
Approximately 25% insider/friends and family ownership
17% European ownership (traditionally long term holders)
Shares issued and outstanding 88,669,182
Options 2,837,500
Warrants 8,999,074
Fully diluted 100,505,756
Raises over the past two years were:
2020 - $2.2 Million raise at $1.00.
2021 - Oversubscribed $8.13 Million raise at $0.55 with a two year half-warrant at $0.75.
Current share price ($.53 CAD) is below the average of both private placements.
Waiting on 28 holes to report (huge backlog)
Excellent entry point with significant news pending.
Cash on hand: ~$4 Million in treasury.
Currently $4.5 Million of in-the-money warrants which can be exercised at $0.50.
These warrants expire in the summer of 2022. The company has the right to force conversion should it deem necessary.
No outstanding debt
Dome Mountain (Flagship Project) 21,541 hectares
Prior to current CEO Rana Vig taking over the company, $28 Million spent in the last 12 years; in addition to $40 Million previously spent by Timmins and Noranda on the Dome Mountain Project for:
Mine permitting
Infrastructure
Construction
Underground development
Exploration drilling
VTEM imaging
Management Recently completed $2 Million in required amendments in order to renew their Dome Mountain mining permit.
The amendments will be submitted shortly to the Ministry of Mines which should have (at most) a 4 month turnaround time.
Rana Vig has spoken with the Ministry on several occasions; they are very interested in seeing the mine come back online should all the amendment criteria be met.
Permit to be renewed for 75,000 tons/year (gold).
Works out to approx. 25,000 oz gold/year.
Consistent progress and communication from this company has also caught our attention. Blue Lagoon Resources hit the ground running in 2022 with the following news releases:
On January 26th 2022, BLLG commenced a 20,000 Meter drill program on their Dome Mountain project
On February 3rd 2022, BLLG added a second drill rig to the site.
In addition, BLLG filed an updated resource report resulting in:
A 145% increase of gold in the “indicated category” on the project (with limited drilling thus far).
On February 7th 2022, BLLG released gold intercepts including 14.8 g/t AU and 38 g/t AU recently discovered in the “Chance Zone” on the property.
On February 14th 2022, BLLG advised their fourth shipment of Gold and Silver Concentrate (totaling 103 Tons from the Dome Mountain project) was ready to be sent to “Ocean Partners UK Ltd.”
This shipment will provide BLLG with over $500,000 further adding to their treasury.
In 2021, 223 tons (in three installments) of concentrate were shipped providing BLLG with $1,000,000 CAD.
It is important to note:
all mineralized material was mined by BLLG’s previous ownership from the “Boulder Vein” - at the time they were unable to have the material processed.
Two First Nations bands have land on the property. Half of all BLLG’s staff are First Nations and have fantastic relations with the bands as per the CEO. No perceived mining issues currently or going forward.
The second Band has claim to a small northern portion of the property.
however ,this portion has not been worked on and is not in the queue for drilling at this time.
Dome Mountain is approximately a 45 minute drive to site from town.
Managements intention is to use Dome Mountain to generate cashflow for future drilling their other project.
With this strategy, the company hopes to limit future dilution going forward. The other project being:
Pellaire Gold project. 7,100 hectares
Which has 10 high grade known veins.
We are very excited about this particular business model in using one project to fund several others. In addition We are happy to see deposits of not only gold, but Copper and Silver as well in their portfolio.
World Quinton Hennigh considered Blue lagoon to be a “hidden gem.”
Hennigh has since advised US based fund, Crescat Captial to invest in BLLG.
Based on this recommendation, Hennigh has since been brought on to consult for the company.
Please see coverage from Quinton Hennigh On Blue Lagoon Resources for further information.
Based on the above catalysts in conjunction with the current share price of $0.54 CAD we believe BLLG will create a 2x in value from here over the next 12 months.
As always, seek professional financial advice and conduct your own due diligence prior to making any investment decisions,
Paradigm Market Research inc.
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