Blue Lagoon Provides Historical Details on Its Gordon Lake High Grade Gold Property in the Northwest Territories

VANCOUVER, BC / ACCESSWIRE / December 19, 2019 / Blue Lagoon Resources Inc. ("Blue Lagoon" or the "Company") (CSE:BLLG)(FSE:7BL)(OTC:BLAGF) is pleased to provide additional information with regards to the Company's newly optioned Gordon Lake Gold Project (the "Property") located 110 km north of Yellowknife.

The Property consists of 2 contiguous mineral leases located 110 Km northeast of the town of Yellowknife in the Northwest Territories (NWT) of Canada. Historically, this territory of Canada produced some significant gold mines in Canadian history including the following:

• Con Mine (1938 - 2003), which became the first gold mine developed in the Northwest Territories and was located just south of Yellowknife and produced over 5 million ounces of gold.
• The "Giant" mine claims which lead to the production of 7 million ounces of gold and became one of the longest continuous gold mining operations in Canadian mining history.
• The Discovery Mine (1949 - 1969) located 84 kilometers northeast of Yellowknife produced one million ounces of gold.

Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.

About the Gordon Lake Gold Property

The Gordon Lake property lies at the southern end of the Slave Structural Province within the Yellowknife Basin and is part of the Yellowknife Supergroup supracrustals (2.7 Ga) which form the bulk and core of the Yellowknife Basin and is situated along the eastern edge of a rift-like basin bounded by mafic volcanics.

The exploration target on the Gordon Lake property is shear zone hosted gold mineralization. The minimum dimensions of the mineralized zones explored to date are 140m long, from 1m to 11m in width and a minimum depth of 215m.

To date, approximately $2 million have been spent on the property and 17 zones of anomalous mineralization have been identified so far, with only three of those zones having been drilled.

Figure 1 below shows a schematic longitudinal section showing the relationship between the Main, South and Union zones on the Gordon Lake property. This section represents about 800m of strike length between the Union Zone and the Main Zone. Drilling intersected visible gold throughout, and the mineralization is open along strike and at depth.

Other areas of mineralized quartz veining and quartz stock work have been located however, exploration consisted of limited mapping and several wide spaced channel or grab samples, including a chip sample grading 13 g/t gold over 1.5 meters, and a grab sample returning 55.4 g/t gold.

Also included in Figure 1 are historical resource estimates. This figure demonstrates the highly anomalous value of those zones already drilled and the down dip potential for adding significant value near term.

Figures 2 and Table 1 below show a cross section of the South Zone (#9Vein) which shows anomalous values from drill intercepts to a depth of 215M.

Figure 1 looking west

The historical estimates in the above Figure 1 was completed for Pacific Trans-Ocean Resources Ltd. by M. Balog consulting geologist in 1989. A qualified person has not done sufficient work to classify the historical estimates as a current mineral resource as defined in National instrument 43-101. Additional analysis of data and data verification work is required, in addition to additional drilling, in order to evaluate past data utilized for historical resource estimates and to prepare a current mineral estimate. There is no current mineral resource or mineral reserve on the Gordon lake Property as such terms are defined under National instrument 43-101.

Figure 2

Table 1 Highlighted drill intercepts into the South Zone (#9Vein) include**:

**Source: NI 43-101 Report Gordon-Venn Lake Property Technical Report - Aurora Geosciences Ltd. June 29, 2011.

The above sample results are considered historic information and a qualified person has not yet verified the data disclosed on behalf of the Company, including sampling, analytical and test data underlying the historic information.

There are 54 gold showings in the Yellowknife Supergroup surrounding Gordon Lake with five past minor producers in the near vicinity of Gordon Lake including the Tracy No.1, Goodrock, DAF Vein, Camlaren Mine, and Burnt Island.

The historic Discovery Mine is located approximately 45km WSW of the Gordon Lake and represents the closest analog of significant mineralization and or production to the Gordon Lake property. One of the ore zones at the Discovery mine was 60 meters long, averaged 1.3 meters in thickness and mined to a depth of 1,525 meters (see table 1). The Discovery deposit is a classic lode gold quartz vein hosted in Burwash metasedimentary rocks like those at Gordon Lake. The Discovery Mine was developed to a depth of >1,200 m before ceasing operations following the loss of the mill complex to fire. Production from 1949 to 1969 totaled one million oz of gold produced from one million tons of ore*. The Table 2 comparison highlights how important exploring the No. 9 Vein at depth can quickly add value to the overall project.

*SRK Consulting (U.S.), Inc, 2019: NI 43-101 Technical Report Yellowknife Gold Project Northwest Territories, Canada. NI 43-101 Technical Report prepared for GoldMining Inc. Ben Parsons,) Dominic Chartier, PGeo, Eric Olin, 206 pp. Effective Date March 1, 2019; Report Date April 16, 2019.

**The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resources, and it is uncertain whether further exploration will result in the targets being delineated as a mineral resource.

Regionally, there are some similarities between Gordon Lake and the large gold deposits in the Yellowknife district including the Con and Giant mines, which combined to produce over 13 million ounces of gold at a grade of 16 g/t Au. Though these mines are hosted by volcanics within the Yellowknife district, the ore zones are found in mineralized and silicified shears (quartz veins) in discreet mineralized ore shoots measuring 1-18m in thickness, up to 180m along strike and to a maximum depth of 600m (http://nvp-pgf.org/en/canada/character/description). At Gordon Lake the minimum dimensions of the mineralized zones explored to date are 140m long, from 1m to 11m in width and a minimum depth of 215m. Mineralization is also shear zone hosted (albeit hosted in Burwash metasediments).

The Gordon Lake property remains open at depth and along strike.

"Gordon Lake presents us a great opportunity to add shareholder value as we work towards furthering this project, which to date, has only been explored on 3 of the 17 zones identified," said Rana Vig, President & CEO of Blue Lagoon Resources. "It's also interesting that the nearby Discovery Mine was drilled down to over 1500 meters whereas Gordon Lake has had limited drilling down to only 205 meters in only one of the three drilled zones. The potential to expand the known mineralized areas through drilling for deeper intersections and testing continuity of the known mineralized zones at depth. This is what made this project an attractive acquisition target for the Company exciting. And that's what junior exploration is all about" he said.

Qualified Person

William Cronk, P.Geo., a qualified person and a consultant to the Company, reviewed and approved the scientific and technical disclosure contained in this news release.

For further information, please contact:

Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: [email protected]

²Source: NI 43-101 Report Gordon-Venn Lake Property Technical Report - Aurora Geosciences Ltd. June 29, 2011.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Blue Lagoon Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration and exploitation of minerals deposits, market prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

SOURCE: Blue Lagoon Resources Inc.