Blue Lagoon Resources: Near Term Gold Producer With Big Exploration Potential

0:12 Hi, everyone. Thank you for joining Blue Lagoon Resources Live Investment Summit today, hosted by 6, near-term gold producer with big exploration potential. I'm pleased to introduce our speakers today. We've got Rana Vig, CEO and Director, and Bill Propp, Chief Geologist. Rana is going to walk you through a company presentation and short video, and then after that, both Rana and Bill is going to be available to take questions. As a reminder, you can always submit your questions in a Q&A panel on the right-hand

0:42 side of the screen at any point during the presentation. We also have a few recent news releases you can download in the handouts tab today. Without further ado, we're going to hand it over to Rana to kick things off. Well thanks Jane, I really appreciate you setting all this up for us. Welcome everyone, I'm excited to share our information with you today. Before we get started, of course, it's my duty to point you to the forward-looking statement. I won't go through it right now. I'm sure most of you who are on this call have seen this many times. So, you know, take a minute at some point, perhaps later, to take a look at it and review it. I'd like to just, before I get started, I want to give you a little bit of history so that you have a context of this, of how we acquired this. Blue Goon Resources, we started from scratch just 2 years ago and started acquiring various projects.

1:40 And 7 months ago, we brought in this main project called the Dome Mountain, which we acquired 7 months ago. And it's very interesting how we acquired it, because what we liked about it was that it was basically a two-fold play. Number 1, it had a full mine permit to be able to mine 75,000 tons a year and had the environmental permits in place, which was fascinating. My predecessors had spent $28 million on mine development, infrastructure, and permitting. Unfortunately for them, though, they ran out of time. Age literally caught up to them, and they just couldn't get it to the to the to across the finish line. And it only needed 3 things to be done.

2:26 Finish a water treatment facility, do some bolting, underground bolting, and update the mine reclamation and closure plans. Only about 1 million and a half dollar budget and we would get the permission to recommence mining. So we found that very interesting And we are well on our way on doing that currently. We're over 50% complete on that process. It's about a six-month process. And it's our assessment that we will be done that by April. And we believe that we will be in a position to make a production decision by summer. So that was fascinating and that's one side of it. But the real exciting part of it, the blue sky that this property presented.

3:13 And the property is in northern British Columbia, just outside the town of Smithers, a small 15,000, 20,000 person town. And what's interesting is that the property is very accessible very quickly. We have also on the screen, you can see we have 2 properties. We actually acquired what's called the Big Onion also with this transaction. And that's a big copper porphyry. We're not intending to go in there at this time. However, at some point, copper, of course, yesterday again, I think it had a new seven-year high. At some point, we're going to be able to monetize this property, and it's only a short 20-minute drive from the town of Smithers.

4:01 So that's very, very exciting for us. And then if you continue on to our main property, the Boulder, the Dome Mountain property, that is a short 45-minute drive away from the town of Smithers and it can be accessed all year round. If we look at the topography here, you can see that the road is coming right through our property right here, and this is maintained by the main, the forest services companies. And all we have to do is maintain a short distance, about a 4 kilometer road right here that leads right to our main area. So What's interesting about this is that our predecessors focused all their efforts were focused right here in this little area, which is where the mine is and where our main boulder vein is. And they completely ignored 90% of this property. All of this area had never been explored. And I'm going to show you in a minute why we're very excited about it after we flew the first airborne really ever that was flown property wide on this property.

5:13 So if we focus now on just this area here, which is where the mine is and where the main boulder vein is. I'm going to give you a little more details. Now, this is going to be a little bit difficult for you to see because it's small on the screen, I'm sure. This is in our deck. So if you go to our website, bluelagoonresources.com, and take a look at download our deck, you'll be able to get a little closer look at it. But for high level purposes right now, I'm going to share with you here that this here is the where the main portal is this little black dot. That's where the main mine portal is. For scale, by the way, this is about 4km wide by about this diagram that I'm showing you is about 4km wide by about 5km high, north-south.

6:00 So that's our main portal. Then if we look at what we have currently, which is the Boulder vein, that's the solid line that you'll see right here. That's the main Boulder vein. Currently, we have on this Boulder vein about 250,000oz of inferred and indicated grading at around 15 grams a ton. So this is a high grade property and those are very nice grades. And we run roughly a 1 to 4 ratio of gold to silver. So for every ounce of gold, we have approximately a little over 4 ounces of silver. So we're running about 250,000 ounces of gold, as I mentioned, and we have about 1 million ounces of silver, which of course is getting very interesting and exciting as silver prices also start to move up and are expected to go much, much higher.

6:47 The low hanging fruit on this property immediately that we're excited about is this area to the west. This dotted line here, this is 800m. And what's interesting about this is that it's all mineralized. In 2016, There was a bunch of drilling done at that at that in that 800 meters area and We know from our data and I'll show you right here We know from our data that it is all mineralized. You can see to the left of this area, to the left of this diagram, that's all area that is mineralized and that's what I'm referring to when I'm referring to this dotted line here, this 800-meter extension. So we have a very high degree of confidence. The only reason that that's not in any inferred or any kind of category is because it hasn't been drilled enough. So we can go in there and drill it and we have a very high degree of confidence that we can double the resource by simply doing that and get to approximately 500,000 ounces. And then the second part that's very interesting is the boulder vein here, it was never drilled deep. Most of the drilling that was done is 170,180,190m maximum.

7:59 So we know that these steeply dipping systems can go on for hundreds of meters. And we know from data that the handful of holes that were drilled deeper, and you can see them here on this slide, you can see that to the right here, some of these deeper holes, they are all mineralized. And the little Gold dots that you see, these are planned drilling coming up next year to go deeper. If you look at the color chart on the left and the deeper holes, you can see that it is all high grade and mineralized. We also just news released a couple of days ago the results of the first hole, the deepest hole so far on the Boulder vein, a little over 300 meters, all mineralized and very nice grades. And you can actually download that news release in one of the areas on this presentation here if you like, or you can go to our website and take a look at it over there. So with the 800m extension, as well as the drilling deeper on this Boulder vein, we have a very high degree of confidence that we can, you know, once again, potentially double the resource. And that's why we believe that on the Boulder vein in this area here, we believe that we can get to 1Moz plus relatively easy. So that's the Boulder.

9:25 If we go to the North and we look at the other veins, we have 15 other high-grade veins on this property. If we look at the North up here, that's Free Gold. Free Gold is, again, very interesting to us. And if we look at this here, I'll show you, this is again, it'll be difficult for you to see, but hopefully you can zoom in a little bit. This is 300m from the top to the bottom here. This is 300 metres to give you scale. What's interesting is that these numbers in here are all in ounces. These are not grams. OK, there is here is, for example, 1.2 ounces over 112 feet. Right. Here's a Here's 3.25 ounces over 90 feet. So all these are just extraordinary, extraordinary numbers. And what's really got us excited is as we moved, as we did our first airborne, and again, this is all news release and you can have a look at the news releases for more detail. Here's a diagram of the airborne that we got back and it was very interesting because it identified 5 new targets you can see them here 1234 and 5 And number 5 here is what I just showed you, the Free Gold.

10:39 And if we zoom in a little more to Free Gold, you can see the vein right in the center here is the vein. Here's Boulder vein to give you perspective. And what's interesting is, you know, our technical team is very excited about this because this here is a classic porphyry signature. And we're looking at 1.5km long by 300m wide. So that right there is a complete game changer. If we are able to go in there and do some more work, that's a company builder on its own right there. So What I love about our project is that we have certainty with our ability to take a fully permitted mine and move inch by inch.

11:27 And really it's yard by yard now. We're getting there very close and get this to production, potentially have a production decision by summer. And then, of course, we have the already known high-grade veins like this Free Gold, so that gives us a certainty. And then there's tremendous blue sky with the porphyry targets like the free gold one here or the other ones that we were able to identify through the mag. Then what was very, very exciting to us is this is the claim map. And again, for reference, this is the road that I showed you earlier that runs through the through the property. Here is the free gold that we just that we just talked about. And down here is the boulder vein. So just to give you perspective, here is our claim boundary right here. So that morning when we flew the when the when the data came back when we flew the the north part of this this property it was quite exciting because we we got the data back in the evening and I immediately you know we immediately saw that the anomaly was budding right up against our claim block. I immediately called our team and I said, guys, we've got to stake all this immediately.

12:41 We'd wasted no time and that evening we staked everything. The next day, we flew the South area here and again, we saw the anomalies budding up right against our claim block. And you know what? I said, you know what? Let's just stake the whole thing. So we went in there and we staked everything. And you know what? Thank goodness, because about a week later, we got the EM back. And look at this. I mean, the whole thing just lit up and it just got us very, very excited. So what it's showing us here is that there is tremendous blue sky along with the certainty. We know we have the boulder, but we have then these other zones that are showing up, you know, with our, with the, because of the data and because the first time that this property has ever, you know, been flown. So that gets us very excited and that's what makes us jump out of bed every morning. We did do some soils. We did do some work. You can see here, you know, these are the soil lines.

13:40 We did almost 1,200 samples. We're still waiting for results on those. As most of you probably know on this call, the labs are extremely busy. The mining markets are finally turning around. So everybody's super busy. So we never got to the new area yet, but we will be. That's the only thing that we can't do on this property during the winter. We can't do the soil sampling and we can't do IP, but everything else we can do. We can drill all year round and we can work underground on the mine all year round. So that's the soils. Here's another diagram of the soils on the EM. And again, you can look at the closer visuals of this on our website so you have a better understanding.

14:27 Then just going back again to this original diagram. So we've talked about the Boulder. We've talked about the Boulder here. We've talked about Freegold. But then what about the other veins? We have other veins. We have 500m south of the Boulder. We have the Forks in the 9800 zone. Again, very interesting, very perspective. Naranda was at the forks in the 80s. So we have a historical

14:51 resource of 20,000 tons that's grating 23.6 grams a ton. So again, beautiful numbers and we're excited about getting in there starting in January. And then to the left here, to the northwest, we have the other veins. And again, most of these, all of these have had some work on them. Some had a couple of holes, some have underground workings, but they were never exploited to the full potential. So which is, again, a fantastic opportunity for us. And what's really interesting is that it's not just single veins. So if you look at this here, right, again, for perspective on the left here is where the Free Gold is.

15:38 Here in the center to the right is where the Boulder is. And then to the left up here at the top here, this is where the other veins are. And you can see that these veins, you know, they're not just a single veins, right? They're actually a swarm of veins that are shooting out of somewhere. And you know what, maybe this is where it's shooting out of. And so we're very excited about that. Maybe that's the mother load. Maybe that's what we're never been tested. So, you know, our team is very excited. By the way, this was flown, this is the only part of the property that was ever flown and it was flown in 1987 by the government. Just that, just a small little area, but you can clearly see the 2 anomalies that are just screaming, it's to say, come and test me. So that's our intention to go in there starting in January and start the work to see what else we've got there.

16:27 This diagram here is our drill plan. We have submitted a 100-hole plan to the permitting office and it's about a 90-day process. We're about 6 weeks into that, 7 weeks into that process, and we fully expect to have that approved by the middle to end of January. However, the nice thing is that we don't have to wait for the permit because we have

16:54 a big lease area down here that we don't have to, we don't require any permitting. All we need to do is give the permitting office a notice, a 10-day notice that we're going to start the program and we can drill. So we have lots of work planned down here as we wait for the rest of the permits to kick in. And what you're looking at here is, and again for perspective, you've got Freegold up here, you've got Boulder here, and you've got the other veins that I was showing you up here. So the plan here is to do at least 20,000m.

17:26 These little red dots that you're seeing here, these are all the drill pads that our team has designed. And we plan to do at least 2 holes per pad there for over 100 holes. And our expectation is that we'll do at least 20,000m, which is scheduled to start on January 11th. So that's our drilling. Here's a quick slide on the current resource. As it sits, you can see all the density of drilling in here. The dark lines, these dark lines are what we just did. And if you've been following our news, the results have been exceptional. We just newsed a release 2 days ago, the latest results, which were 53.6 grams Gold over 2.2 meters and another

18:18 17.69 grams over 3.13 metres. So we've had anywhere from 25, 30, 35, 45 grams a tonne going over about a metre and a half to the ones I just told you. So again, it's proving and confirming everything that we already know about the Boulder vein. And then, I want to show you a little bit, talk a little bit about the mine itself. It's quite amazing When we flew up there to do our due diligence, we were absolutely blown away with the quality. You can see me and Bill standing here in front of the mine portal, and I'll tell you, I've never seen a mine portal like this. It looks like a ski chalet.

19:03 And the reason that is because, you know, our predecessors really took a lot of pride in all the work that they did. So everything from, you know, current equipment from generators to buildings to the mine, we have nearly 1000 meters of development underground, mechanic shops. And I want to show you a little bit of that. We have a very short video. It's about 2 minutes and about 9 or 10 seconds. I'd like to share that with you so that you can get a first-hand look at the property and exactly how much money has gone in to the development and how modern and efficient it is. And I think you'll see that. So Let's play that video. Hope you enjoyed that.

22:20 And if it was difficult to see, it is on our website. So please go to bluelagoonresources.com and under the video section, you can view that at your own leisure. So that's about it for the Dome Mountain. I'll very quickly also tell you a couple of things that what other things add value to our property. So this is the big onion. It's a Copper porphyry

22:48 that has a historical resource. The red area that you see outlined, that's the current resource. It's got roughly 680Mlbs of copper. And there are 2 other anomalies that are untested and ready for drilling. So, you know, as I mentioned at the beginning, it's our intention as with copper prices, you know, getting to new highs. It's our intention to figure out how we can monetize this. And we believe that we'll be able to get a very, very good value for the company and our shareholders by monetizing that property. And then we have this property called the Pallier property. This is near Williams Lake. And it's a very interesting property.

23:33 Here you can see a 20-man camp, so you can see some of the work that's been done there in the past. This is the 10 high-grade veins. It's a drive-to property. Here on the left, you can see the road that allows us to drive up to the property. And what's exciting about it is, beyond the 10 high-grade veins, is this slide here. This gets me excited because this is a low-hanging fruit. This doesn't look like much, but it's more than 25,000t of mineralized material. And the beauty of this is that we need no permits to truck that out. It was our intention to do that this summer, this past summer. However, because of COVID, it slowed things down a little bit.

24:21 And we got really busy with DoMount and we want to stay focused with that. So this gets us very, very excited because we need no permits and we can truck this out. It's our intention to truck that out this summer and get that to the mill. We've already in discussions with the mill and get that monetized. So that's going to bring some nice cash also into the Treasury. And speaking of cash, last thoughts on it, and then we can open up for some questions, is we are fully cashed up. We still have over $6M in Treasury. We have no debt. I'm very, very careful and prudent of how I spend my money and even more careful how I spend shareholders' money. So we have no debt. We're cashed up. We have all the money we need to execute on our 2021 plan. We also have roughly $5M in warrants that are in the money. So at some point, those can come into the company.

25:14 So

25:15 We are very excited about where we sit and we're very excited about getting to work starting January 11th on what will be the largest drill program ever on this property. And that's going to start on January 11th. So 2021 is going to be an extremely busy year and I believe it's going to change the face of this company. So we have tremendous

25:37 upside coming in 2021 is our belief. So I'll pause there and I'm happy to take any questions. And of course, Bill Kronk, our Chief Geologist is also here with us And anything, any technical questions that I'm not able to handle, he can field them for sure.

25:59 Great, thank you very much for the presentation, Rana. It does sound like there's a lot of stuff going on. I'd like to welcome back Bill as well for the Q&A period. Without further ado, let's dig into some of the questions that have come in. Our first question is for Rana. The question says, as everything is very positive about Blue Lagoon. Can you talk a little bit about why you think the stock price is still undervalued and when you expect it to rise? Yeah, I mean, look, the market gyrations, right? I mean, you can't control those. For example, last week, gold started to drop a little bit. So immediately, all companies get affected. But you know what?

26:42 Most of my peers are quite envious. They're calling me and saying, wow, your price is actually holding on pretty good. You know, we also have, you know, we did really 2 major financing in this company. We did $2.1 million last year where I personally participated $300,000 of that at a dollar. And we did some more and a lot of that, the rest of it was a lot of it was my family and a handful of very close associates. And that was all done between a dollar and dollar 50. You know, we're not concerned, we're not worried because you know, when you look at, If you're an investor, if you're a trader, I'd be worried because you have to come in and out of a stock or a position. But if you're an investor, you take a little bit of a longer term horizon. You look at generally at least a year to 3 years. I was reading the other day, Rob McEwen, the founder of Goldcorp. It took him 19 years to build Goldcorp. But you know what his investors got? About a 32% year-over-year compounded return.

27:39 So it's a long answer to your short question. I think the ins and outs, the ebbs and flows

27:46 of the markets are dictated by the CNBCs of the world and what happens to Gold and this and that. But long term, you're right, and when I say long term, sort of a year to 3 years, I have 0 doubt that gold is going nowhere but north, nowhere but up. And I have 0 doubt that if we are able to deliver, if we are able to execute on what we think that we have our hands on, I think that much brighter days, much shinier, brighter days are ahead for Blue Lagoon Resources.

28:19 Incredible. Our next question is from Richard. Along the same vein, can you talk a little bit about your CSE and OTC trading volumes and how you can outperform the price of gold and copper?

28:34 Well, look, I think that's just a matter of a lot of hard work, and volume is a function of new people like yourselves coming on. So, for example, in the last 3 weeks, you know, I've been working incredibly hard. Look, I learned a long time ago that I'm not that smart, okay, and so how I equalize that is I try to outwork everybody, okay, and that's number 1. Number 2, how I outdo it is I surround myself with the best and the brightest in the industry that I'm involved with. And to but to specifically to your to your question,

29:09 you know, it's all about trying to share the story with new people. So for example, last week, I one of the things that I did was signed up for Minds and Money, an international conference that normally I would attend, but because of COVID, we can't. And you know what? We did, I did 28 meetings in 2 days. On last Wednesday, I did 17 meetings in 1 day from anywhere from funds to high net worth individuals. So guess what? Out of those 28 meetings, 26 were very good, 2 were not so good. But 26 meetings, every single one of those people were a new audience and the ability to buy the stock. And many of them I followed up with and have told me that they've taken a position or continue to take a position. So that's just one example and sharing on platforms like this, that's just one example of how you create an audience and how you make sure that your stock is trading.

30:04 Great, thank you. Yeah, here's a question for Bill. The question's from Ken. First of all, congratulations to Bill and the exploration team on great drill results yesterday. But he wants to know how much money and how much time is it gonna take to get to a decent size and grade with good confidence, i.e. Proven and probable or measured and indicated? Well, our scope of work this year starting January 11th is to drill 20,000 meters. Our focus for that is to prove the proof of concept that the boulder vein extends much deeper. We also intend to prove that the Boulder vein is rich along strike.

30:49 And we also intend to drill targets within our property boundary. At a certain time in the future, depending on the market, depending on our focus, we will infill the drilling on the boulder vein to come up with a larger resource. I expect that in 2021, we'd probably come up with a larger resource. But right now, as far as cash flow, it's already significant. And let me give me a caveat that let me let me add to that. Look, my philosophy is slightly different than most people in this industry, because I'm not a geologist or I'm not an engineer. I'm an entrepreneur, and my philosophy is to deliver the maximum amount of value to our shareholders.

31:36 When we get into a production decision, and if we're God willing, we're able to get this across the finish line as we think we can next year, we'll evaluate it. I don't know how interested I am in spending all sorts of money on proving, getting into probable and indicated and all these categories that cost a lot of money. We will evaluate because what's the number 1 priority, you know, for me is to get

32:01 this thing cash flowing so that we can take that money and put it back in the ground and develop a bigger resource. The market isn't going to appreciate very much, in my opinion, the small area that we have right now, even though it's very prospective, even though it's fantastic. But all that 90%, those thousands and thousands of acres, which the Airborne is telling us is very exciting, it's going to cost a lot of money. So, what my intention is to get this thing cash flowing as quick as possible and then get that arm bill with the funds and his team that he needs to really develop this property so that we can really hit a home run.

32:48 Excellent, thank you, Rana and Bill. Our next question is from Trevor. Great video. When you make the production decision, how will ore be processed? And We have a toll mill agreement currently with the Nikola Mill. Nikola took roughly 6,600 tons of material in 2016 and spent many, many weeks refining the process. They were able to get it down to where we could recover 95% of the Gold and a little over 85% of the Silver. So that contract is already in place. I'm fully engaged with the CEO of Nikola, who has been very, very supportive of us ever since we took this project over and we're fully engaged with them and ready to, they're waiting anxiously for our materials. So we have all that in place.

33:42 Excellent. Our next question is from RJ. This is for Bill. Will any drilling take place from underground?

33:51 Not this year, no. We have, like I said before, we're gonna be focused on extending the boulder vein at depth. You know, we had high grade intercepts at depth. In fact, our last hole drilled hit the boulder vein deeper than it's ever been drilled before. The drill rig is sitting on that collar. We will prove that up and then we'll move to hit it deeper. And our whole initial goal with the Boulder vein is to prove it exists at depth at high grade. It was a mesothermal vein after all, and a long strike. So, and we have an existing five-year mine plan and a 12-year mine plan with the resource we already have. So once the production decision is made this year, and depending on what market evaluates us, we probably won't drill underground for another year or 2.

34:42 Great, thank you. Next question is from Amit. When do you expect to start exploring or drilling free gold?

34:52 This year, free gold will be drilled as part of 2021's 20,000 metre drill program. Now what we're waiting for is The road to free gold is actually part of our mine permit, but most of the drilling we wanna do at free gold is part of our MX application that is under review by the ministry right now. We expect a mid January to end of January decision on that. Once we have it, we will be drilling a free gold. You know, those high grade gold assays that Rana outlined were actually outcropping. I verified the outcrops, resampled it this year. So it's a high grade extensional system within the porphyry system. We'll drill it shallow and we'll drill it deep and we'll drill it a lot in 2021.

35:42 Excellent. Thank you for that. Switching gears a little bit, our next question is from Richard. Can you talk a little bit about the ownership profile, management, cornerstone investors, free float? Sure. Currently, we have approximately 70 million shares out. We, myself and my family and a handful of early investors, so you know, real basically loyal and dedicated shareholders, have about 25% of the company. And then we have the Metal Mountain shareholders. The acquisition was approximately 13 and 500,000 shares. So, you know, that's about a little over 20 percent that that group owns. And that, by the way, spread out over 1200 shareholders.

36:33 It was incredible. I've never been involved in a transaction where a private company had more than 1200 shareholders. So that's nicely spread out. And it's also escrowed over 30 months with the first 10% release coming out this coming April. And then we have a lot of European investors. We have approximately 15% of the total float sitting in Europe. And those are wonderful shareholders. I really, really like German and the surrounding area because they are true investors. They're not traders. They don't come in and out. They have a longer term horizon. And that is demonstrated by where you see not a lot of pressure on the stock in Europe. So we have that. And the balance is spread out, spread out through retail and high net worth individuals.

37:27 Great. Our next question is from Ken. How much cash flowing is expected if the project's permitted to start next year?

37:35 Well, that's a tricky question, Ken, because unfortunately, we're not allowed to talk about that. You have, there's a lot of rules and regulations around projections and cash flow. So unfortunately, my hands are tied on that and we can't talk about that outside, you know, after unless we do a full-scale study. We have, let me say it this way though, that obviously we have internal numbers. We have run, you know, a number of, you know, different scenarios And our costs are in line with most mining companies here in North America. And you can see that at US$18, US$18.50, US$1,900 Gold, it's going to be a very nice operation. The other thing I like about this operation is some people get concerned, say that, well, it's a small operation. Well, that is the opportunity.

38:27 We're not trying to be a barrack here, right? That's the opportunity to take that nice, small, manageable operation at 75,000 tons a year, which will potentially cash flow very nicely and put it back into the ground without having shareholders suffer any further dilution, and really expand the big picture and really expand what is the potential of this of this property can be. Thank you. And this question is from Mohsen. Would you ever think about raising some funds for the copper perspective you mentioned, considering how hot copper is at the moment? Yeah, that's a great question. You know, that's something that we're starting to think about.

39:12 You know, we may, but that may not be the best value because you know to go into that copper porphyry it can cost a lot of money so I'd have to really carefully evaluate the dilution that the shareholders will suffer so we have options you know we could possibly spin that property out. We could JV it, we could sell it. We haven't made any decisions yet, but we have prepared a very nice state of the art data room. And, you know, people are gonna be starting, but they already are actually. We've got, so yeah, there's conversations going on and there will be definitely a lot more with Copper price. But one thing is for sure, we will absolutely monetize that property to give value to our company.

39:58 I'd like to add there, Ron, also that we did move, we staked more ground this year. So the big onion claims are contiguous with the Dome Mountain, so we can spread our assessment costs and keep very easily keep the big onion in good standing. That's a very important point because, you know, I've seen too many companies that have all sorts of properties and they have to make all sorts of payments and they're just burning money. And that was something that was very, very important for us strategically, because when we did it, Copper had not started moving like this. And the idea was, again, you remember, you know, I'm an entrepreneur first, so I wanted to make sure the costs are contained. And that was that allowed us to so whatever work we do now on any end of the property goes for the whole property. So we can hold on to Big Onion for a long time without it costing us almost anything.

40:51 Great. George actually has a follow-up question on the Big Onion property. Is there gold potential there as well? Bill? Well, it is a porphyry copper. It's polymetallic. It's more a copper moly project. Now, it has a lot of openness on strike and at depth. The mineralization could easily change. There are gold numbers. There are silver numbers associated with it. They would not be economical by themselves, but part of the recovery process, which we haven't really gone into the metallurgy and that stuff, it could be part of the equation. But right now, the big onion is a copper moly project. Got it. Thanks, Bill. All right. Let's move on to Tom's question.

41:38 First of all, great presentation, Rana. He says that a lot of miners are looking to sell right production. So do you have any intentions to sell royalties, et cetera, for example, to Metalla, EMX, et cetera? No, not currently. We'll evaluate sort of my style of management and is to kind of evaluate as the time comes. So I think we're a little bit early on that. And I don't know if we need to do the royalties, frankly, because generally you need that to fund the operation. And I don't think that we're going to need that. So we'll have a better idea and a decision as we get closer, probably mid next year.

42:28 Great, thank you very much. I don't think that there are any more questions from the audience right now. So here's a question that I have. Can you talk a little bit about what the news flow might look like in the next 6 months? Yeah, we expect a tremendous amount of news, which goes back to a question that was posed earlier about volume and activity in the company. So, we are going to start on January 11th with 1 drill rig, which actually is sitting on site right now, pick up right where we left off. And it's our intention and our likelihood to add a second drill there as well. So there'll be tremendous amount of news starting from January the 11th, not only from the drilling perspective, because we will be expecting lots of results, but there will be lots of news that we'll be expecting through the mine development as we move closer and closer to finishing our water treatment facility, et cetera. So the first 6 months in particular, I think are gonna see a lot of news.

43:38 I could also add that we're expecting results, hopefully this December from 1200 surface samples. There'll be a lot of analysis with that. We've targeted surface expressions of mineralization and pure prospecting. So that data will be very interesting coming up. And then as we start drilling January 11th, hopefully it'll be a faster turnaround than it was this summer for assay results. The next 6 months we'll be constantly updating drill results from those holes. Great. Thanks, Bill. Our next question is from Mohsen. What are we budgeting for drilling costs? Currently our all-in drilling costs are approximately $200 a meter. And in fact, we were just speaking about this, reviewing this earlier, we expect as we put some more efficiencies into place, we expect that to drop down to approximately $175 a meter.

44:37 Great. Thanks for that. Our next question is from Ahmed. What's the CapEx to start production? Well, this is what's amazing. And you know, I start smiling when people ask me this because it's people have a hard time understanding and believing that the CapEx is less than $2 million. And the reason it's that that's the case is because $28 million has already been spent on this property in the last dozen years, which was all on mine development, infrastructure, and permitting. So all we have to do is these last 3 things, other than a couple of minor things, many of which we've already done, just to finish the water treatment facility, which is about $400,000 and 4 or 5 months work that's underway already. We expect to have that finished by February and start full-scale testing, about $450,000 to do some bolting underground.

45:32 And that was about roughly about 80 days work. And that is going to be finished next week. So that's going to be complete. And we're going to check off another box. And the last piece is updating the mine reclamation and closure plans, which are about 40% done and is doing that. And we expect to have that done up, finished about 90 days after the water treatment facilities done because they need some data from there. So less than 2 million, it's 1.5 million with a little contingency that I put in for, so less than $2 million to get this thing into a position to make a decision to go to production. I also might add that on both levels that have been developed, the 1290 level and the 1370 level at the Dome Mountain Mine, The exposed mineralized face is on both levels.

46:20 There is no exploration, there's no waste. We just go right to mining the ore. Brilliant. Next question is from Ken. Can you talk about how much cash flow is expected if the production is permitted next year? That goes back to the earlier question. Unfortunately, we're not allowed to comment on that because of all the rules around rules and regulations. So unfortunately, we're not allowed to comment on that unless you have a full scale pre-fees or feasibility study. So unfortunately, I can't. But listen, bottom line is, take a look at some of our disclosure and you can do the math. Most mines, our costs are within line with most mines in the jurisdiction.

47:08 It's well known that a lot of most miners cost somewhere around $1,000. And look at the price of gold. So do a little number crunching and I think you'll come to a conclusion. Awesome. Thanks, Rana. Our next question is from Jochem. Jochem says, is an update to the PEA, which is from May 19th of this year, is an update to the PEA plan for Dome Mountain. And in what improvements do you anticipate? No, I don't anticipate necessarily doing an update to the PEA. And the reason is because I think we'll already be in a production decision. Normally you do a PEA when you need to finance a company or you need to show some economics. We already have a mine. We have almost 1,000m of underground development.

47:57 And we kind of embarked on that road because mining still wasn't quite in vogue here when we started that sort of process a few months ago. Gold still hadn't moved up. But now everything's changed, right? Everything's changed. We're cashed up. And so we'll make that decision if we feel it's required and it's necessary. We'll definitely do it. But at this point, we really don't feel that it's necessary to spend the time and the energy and the money required to do that. Gotcha. Here's another question from Emmett. Can you talk about what the estimated annual production is going to be in ounces? Again, we're not allowed to comment on that because you have to have, you know, economic studies to be able to comment on that. But I would encourage you, you know, we have a lot of disclosure and some of your questions can be answered that you're asking by going to our CDAR profile and there's many reports there.

48:56 There are many releases there that I think will answer many of the questions that you're asking. So, unfortunately, it will require a little bit of time and homework on your part, but it'll be well worth it because you'll get your questions answered. Got it. Thank you very much, Rana. Next question is from Brian. Is there any tax loss carried forward as a function of the predecessor company? Yes, great question. We have millions in tax losses that we can use, you know, and I'm excited about that because in my previous companies, you know, that had all sorts of losses and we turned them into, you know, non-mining companies. And unfortunately, the government doesn't allow you to, if you change your business, you can't take the tax loss. So in this company, finally, I can utilize the tax losses. And that's gonna be a, that's a great question. We're gonna, that's gonna give a very positive impact to the bottom line for us, for sure.

49:48 Amazing. I believe this is our last question. It's from John. John's saying that the last email he received, it stated that we increased from 11,000 hectares of land and acquired another 8,000, but Bill also mentioned we have 24,000 hectares. So can you talk a little bit about where the extra land acquisitions came from? And that 24,000, I included Big Onion. I see. Well, there you go, John. Because the properties are side by side and that's why maybe the confusion came. Side by side and contiguous. Great. I do believe those are all the questions that I'm seeing. I saw 1 a bit ago here, I answered it in the forum, but it was a direct question to Rana asking if he was 100% focused on this project.

50:39 That's a great question. Absolutely, I am. You know, I'm a big believer of focus. And this is, you know, I've come off of a couple of very big wins in a different industry. And 2 years ago, I decided this was it. This is mining was about to take off. And I'm a big believer of gold and precious metals, and I really see what's happening around the world in the big picture. I don't think anyone has ever seen in our lifetimes ever seen it, what's happening in the United States with the Trump and Biden and all the unrest with the elections and what's happening with all the riots and the demonstrations, not just in the United States. That's the other interesting thing. It's happening all over the world, worldwide.

51:26 Never seen this situation before. And on top of that, add to it a world pandemic. I mean, you couldn't have, who could have thought of this? It's like the perfect trifactor. So yes, because of those reasons, I am laser beam focused on this company and building it and fully expected to turn into my next big win. Incredible, thank you Rana. Well, I do believe that's all the questions we have today from the audience and we are coming to the end of the hour and our time together. Thank you very much Rana and Bill for taking us through the presentation and answering all of our questions. Everyone in the audience, thank you for your questions. If you think of anything additional that you'd like to ask about, if you require more information, please stick around. We have a short survey. You feel free to leave your details so that the Blue Lagoon Resources team can reach out to you and follow up with you directly. You can also find more information on their website at www.bluelagoonresources.com.

52:28 Now, Rana, I'll hand it back over to you for the final word. Well, thanks very much. It's been a pleasure. I hope the audience got some value out of this. Look, parting thoughts. We're very bullish on this. We believe that we have a very unique opportunity here where we have a potential near term, a true near term opportunity to put the to put this into production in what I believe is the first inning of the Gold market. I believe that we're about to enter the super cycle, the precious metals super cycle. And so that's the production side. And then, of course, the big opportunity, the blue sky. We are very, very fortunate that we have 15 already known high-grade veins and we have this vast area that had never been flown before.

53:16 And after receiving that airborne survey, boy, I'm telling you, we are just super excited. 2021 is going to be a game-changing year for the positive for this company. And I'd like to invite you to come along for the ride. All right. Until next time everyone, bye now.