en.Wedoany.com Report, Blue Lake Resources has restarted the Dome Mountain gold mine near Smithers, British Columbia, without building its own processing plant. Through a 10-year toll-milling agreement, ore will be shipped to Nicola Mining (TSXV: NIM), with first-year gold recovery estimated at approximately 15,000 ounces.

Nicola Mining possesses established ore processing capabilities, providing critical technical support for Blue Lake Resources. Under the agreement, all ore from Blue Lake Resources will be processed at this facility, avoiding a capital investment of $50 to $70 million for a proprietary plant. Blue Lake Resources CEO Rana Vig stated that if they built their own plant, the permitting process could take up to 10 years.

The Dome Mountain gold mine, located near Smithers, has been in underground production for approximately three months. Daily production is approaching the initial target of 100 tonnes and will be increased to the permitted 150 tonnes in the future. Ore is trucked to Nicola Mining for processing. The company also offers a secondary application scenario capable of processing various minerals.

While Blue Lake Resources opted for outsourced processing to avoid capital expenditure and permitting risks, it maintains deep collaboration with Lake Babine Nation. This cooperation led to the company winning the PDAC 2026 Sustainability Award, demonstrating its strategic approach to community relations.

Blue Lake Resources completed its first gold and silver sale on December 30, generating revenue of approximately $1 million ($718,000), and a second sale on February 20 for $1.4 million. First-year gold recovery is projected to be around 15,000 ounces, laying the groundwork for subsequent production ramp-up.

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