Blue Lagoon Resources Inc. announced significant mineralized intercepts from the last of the 2022 Phase Two drill holes on its all year-round and road accessible Dome Mountain Gold Project, located a short 50-minute drive from Smithers, British Columbia. Drill results from diamond drill hole DM-22-273, a major step-out hole, include: 11.02 g/t Au, 115.8 g/t Ag and 2.31% Cu over 5.65 meters within 5.49 g/t Au, 80.9 g/t Ag and 1.21% Cu over 16.55 meters from the Boulder Vein. Hole DM-22-273 is an aggressive step-out hole that tested continuation of mineralization in the Boulder Vein 200 meters below surface and 250 meters along strike to the east of previous deep intercepts (DM-22-229, -231).

The altered and mineralized intercept, encountered at a down hole depth of approximately 285 meters depth and persisting over 25 meters, is interpreted to be the structural zone hosting the Boulder Vein. The most recent modelling (2021) of the Boulder Vein did not extend this far east. Significant mineralization within this zone extended over 16.55 meters returning 5.49 g/t Au, 80.9 g/t Ag and 1.21% Cu beginning at 291.45 meters and included a higher grade subinterval of 5.65 meters returning 11.02 gpt Au, 115.8 gpt Ag and 2.31% Cu beginning at 302.35 meters.

The former intercept is the thickest mineralized core intercept across the Boulder Vein out of over 40,000 meters of previous drilling. True width of the intercept has yet to be fully confirmed but is estimated at approximately 75% of core length, or 12.41 meters wide. Phase One drilling in 2023 is anticipated to encompass approximately 5,000 meters of diamond core drilling.

Recent drilling conducted by Blue Lagoon on the Boulder-Cabin Vein (the western extension of the Boulder Vein in an area historically referred to as the Cabin Vein), extends potential quartz-carbonate vein mineralization approximately 650 meters west of the current modelled resource. Historic trenching and drilling along this structure demonstrates that the mineralized structure hosting the known Boulder Vein resources does continue, however it was thought to be spotty and limited in gold grade. A surface dump of the vein material from historical trenching was also sampled during the 2022 work program.

Randomized composite grab samples from eight stations across the dump returned gold grades ranging from 1.49 to 14.50 g/t Au and 34.7 to 376 g/t Ag along with significant copper, lead and zinc concentrations. It is not known from what trench(es) this material was sourced and are only a demonstration of the expected grades from this area. Partial results have been received for drill holes completed on the western extension of the Boulder Vein.

Recent drilling targeted both near surface (50-100 meters) and at depth (up to 350 meters) in areas beyond the current resource model. Highlights from this area include shallow drill holes DM-22-263 (3.68 g/t Au and 37.4 g/t Ag over 6.44 meters and including 1.24 meters of 15.10 g/t Au and 103 g/t Ag) and DM-22-264 (7.76 g/t Au and 218.3 g/t Ag over 1.82 meters and including 0.89 meters of 13.80 g/t Au and 345 g/t Ag). Deeper drill holes thus far have demonstrated more spotty mineralization in the expected zones of mineralization.

However, drill results from this area are still outstanding at this time. Two additional drill holes were completed in the Chance Structural Zone/Flat Chance Vein area following the news release of September 19, 2022. Drill holes DM-22-254 and 255 were completed to test a preliminary IP target and the Flat Chance vein, respectively.

No significant results were obtained from hole DM-22-254, while hole -255 encountered a narrow anomalous vein at the anticipated depth of the Flat Chance vein (0.98 g/t Au over 0.30 meters). Drilling at Freegold encountered multiple significant anomalous gold intercepts within the Freegold Intrusion. Narrow gold rich quartz carbonate veins cut the intrusion.

Previous drilling in the Freegold intrusion identified the top end of a porphyry mineralized system with anomalous Mo. Further drilling was warranted along the contact between the intrusion (monzonite) and country rock (Jurassic aged epidote-magnetite altered lithic tuff). Drill holes DM-22-256 and -257 were collared on the eastern limb of the intrusion and drilled southwesterly.

Drill holes DM-22-259, -260 and -261 were sited on the eastern side of the intrusive. Hole DM-22-259 targeted surface mineralization encountered in some old exploration pits. This mineralization was intersected at depth returning 4.36 g/t Au over 2.00 metres (from 75 to 77 meters).

Drill hole DM-22-260 tested for a possible on-strike extension from DM-22-259, as well as possible up-dip extension of mineralized veins in hole DM-21-176. Drill hole DM-22-261 attempted to drill back into the intrusive but it was not encountered. No significant results were returned from core sampling in these two holes.

The Elk Vein is a quartz-carbonate sulphide vein located to the south of, and oriented parallel to sub-parallel to the Boulder Vein. Historical drilling had intersected precious metal mineralization of up to 9.83 g/t Au over 1.66 meters (drill hole RP88-22). Three drill holes were collared to test the continuity of the vein along strike.

The Elk Vein was encountered in all drill holes and returned modest gold grades (<5 g/t Au) over narrow widths (< 2 meters core length). Another parallel but narrower vein was intersected in both drill holes DM-22-269 and -270 before intersecting the Elk Vein. Gold grades and were comparable to the Elk Vein proper.

Follow-up drilling was completed in the 9800 Zone area, attempting to test the strike and dip extent of a massive sulphide and vein horizon drilled in DM-22-241 (14.20 g/t Au and 92.9 g/t Ag over 1.02 metres), from the 2022 Phase 1 campaign. Historical airborne geophysics indicated the presence of two moderate to strong linear conductors in the vicinity of the mineralization. Two drill holes (DM-22-258, and -262) were completed but no comparable mineralization was encountered in either drill hole.

Drill hole DM-22-262 did encounter anomalous mineralization near top-of-hole, related to the historical near-surface 9800 Zone mineralization. This is represented by graphitic limy sediments with pyrite, sphalerite, galena, arsenopyrite and chalcopyrite mineralization. Insufficient structural information is available to ascertain true widths.