TSX:JAG
TORONTO, Jan. 5, 2017 /CNW/ -Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX: JAG) is pleased to announce
the successful recommissioning of Mill #3 at its Turmalina Gold
Mine ("Turmalina"), in Minas Gerais, Brazil.
The reconstruction of Mill #3 commenced in April 2016, at a total estimated capital cost of
US$1.34 million (approximately
R$5.09 million), funded from
operating cash flow. Mill #3 was fully commissioned on December 28, 2016 with an estimated installed
capacity of 1,600 tonnes per day or 580,000 tonnes per year.
Turmalina is expected to process 533,000 tonnes of ore in 2017.
Using only Mill #3, Turmalina will be able to achieve the entire
through-put capacity of the plant with a lower operating cost,
through electricity consumption savings, compared to using both
Mill #1 and Mill #2 in 2016. Currently Mill #1 and Mill #2 at
Turmalina have been taken off-line for maintenance and will be kept
on standby mode. The reconstruction of Mill #3 will allow the
processing plant to be run at a full capacity of 2,000 tonnes per
day or approximately 720,000 tonnes per year in future years using
a combination of mills.
Rodney Lamond, President and
Chief Executive Officer of Jaguar, stated: "Jaguar has
achieved another significant milestone with
the recommissioning of Mill #3, which will increase daily
processing capacity of the plant to 2,000 tonnes per
day. We expect that the increase
in process tonnage and lower operating costs for
Mill #3 will positively impact Turmalina's unitary costs. Mill
#1 and Mill #2 are being reviewed for maintenance and will be kept
on stand-by as a part
of Turmalina's long-term, organic
growth strategy, and other opportunities in the Iron
Quadrangle."
The Iron Quadrangle
The Iron Quadrangle has been an
area of mineral exploration for centuries, dating back to the 16th
century. The discovery in 1699-1701 of black gold contaminated with
iron and platinum-group metals in the southeastern corner of the
Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle
contains world-class multi-million ounce gold deposits such as
Morro Velho, Cuiabá and São Bento. Jaguar holds the second largest
gold land position in the Iron Quadrangle with just over 25,000
hectares.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a
Canadian-listed junior gold mining, development, and exploration
company operating in Brazil with
three gold mining complexes, and a large land package with
significant upside exploration potential from mineral claims
covering an area of approximately 191,000 hectares. The Company's
principal operating assets are located in the Iron Quadrangle, a
prolific greenstone belt in the state of Minas Gerais and include
the Turmalina Gold Mine Complex ("Mineração Turmalina Ltda" or
"MTL") and Caeté Gold Mine Complex ("Mineracao Serras do Oeste
Ltda" or "MSOL") which combined produce more than 90,000 ounces of
gold annually. The Company also owns the Paciência Gold Mine
Complex, which has been on care and maintenance since 2012.
Additional information is available on the Company's website at
www.jaguarmining.com.
FORWARD-LOOKING STATEMENTS
Certain
statements in this press release constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation. Forward-looking information contained in
forward-looking statements can be identified by the use of words
such as "are expected", "is forecast", "is targeted",
"approximately", "plans", "anticipates" "projects", "anticipates",
"continue", "estimate", "believe" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will" be taken, occur or be
achieved. This press release contains forward-looking information
regarding the operations at Turmalina. The Company has made
numerous assumptions with respect to forward-looking information
contained herein, including, among other things, assumptions about
the expected production at Turmalina during 2017 and in
future years and cash operating costs.
Forward-looking information involves a number of known and
unknown risks and uncertainties, which, if incorrect, may cause
actual results to differ materially from those anticipated by the
Company and described herein. Accordingly, readers should not place
undue reliance on forward-looking information.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking information
made in this press release, see the Company's most recent annual
information form and management's discussion and analysis, as well
as other public disclosure documents that can be accessed under the
issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com.
The forward-looking information set forth herein reflects the
Company's reasonable expectations as at the date of this press
release and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. The forward-looking information contained in this press
release is expressly qualified by this cautionary
statement.
SOURCE Jaguar Mining Inc.