TSX:JAG
TORONTO, June 21, 2017 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX:JAG) is pleased to announce
that it has acquired a strategic Mineral Exploration License
("License") located 4.5 km west of the Caeté mill operations
("Caeté Mill") where the Company currently processes ore from its
Pilar Gold Mine ("Pilar" or "Pilar
Mine") and its Roça Grande Gold Mine
("RG" or "RG Mine"). The Company is also pleased to provide a
Growth Exploration Update on its operations including the Pilar
Mine and the Turmalina Gold Mine ("Turmalina" or "Turmalina Mine"),
located in Minas Gerais, Brazil.
New Strategic Land Position at Roça Grande Mine
Concession
- The newly acquired License, located 4.5 km west of the Caeté
Mill, increases the total registered RG Mine concession by 1,000
hectares ("ha"). The Company believes that the expanded land
position, adds significant value to the overall RG concession area
as it is strategically located just west of the RG Mine, and
contains 7.5 km of contiguous Banded Iron Formation ("BIF") as well
as a large number of historic Portuguese workings from the late
17th and 18th centuries (refer to Figure
#1).
- The License area was originally staked in 1981, and became
publically available on May 27, 2016
when it was declared a Mineral Exploration License in the Brazilian
Official Gazette under the ordinance number 830.807/2017. It was
awarded to Jaguar on March 23, 2017
by the Departamento Nacional de Produção Mineral ("DNPM").
- Within the License area, there are strong magnetic anomalies
associated with more than 7.5 km of mapped, highly prospective,
contiguous BIF extensions, including the possibility of a potential
gold-bearing BIF hinge zone in the west-south-west portion of the
License area (refer to Figure #2).
- The License area also contains a number of strategic
exploration targets including the highly prospective Morro da Mina
target, which forms part of the BIF continuity currently hosting
the RG1 mineralization along with additional RG mineralization
which make up the RG complex. Geological and structural mapping
with soil sampling is planned for the Morro da Mina target in the
second half of 2017, with the objective of confirming historic gold
occurrences in and around the target (refer to Figure #3)
Mr. Rodney Lamond, President and
CEO of Jaguar Mining stated; "The awarding of this new strategic
Mineral Exploration License to Jaguar is another outstanding
achievement by our vigilant operations team, who were able to apply
for the License area when it became publically available in
mid-2016. It is a very difficult task to maintain an attentive
watch for available concessions in a highly sought after mining
district. The new License further consolidates and considerably
expands the total RG concession adjacent to the RG mine and mill
operations. The new License area is also highly prospective,
containing a number of old Portuguese workings, and over 7.5 kms of
mapped, contiguous BIFs including a potential gold-bearing BIF
hinge in the west-south-west quadrant of the License area. These
BIFs form part of the continuity currently hosting the RG
mineralization which make up the entire RG complex. During the
second half of the year, Jaguar plans to carry out an exploration
campaign on one of the historic targets, Morro da Mina, to confirm
previously identified gold occurrences in and around the
target."
- Other known historic exploration targets within the new License
area include Ajunta Vaca, Vai e Vem, Santo
Antonio and Cachoeira Falcão (refer to Figures #1, #2, and
#3). These targets were identified and explored from the late
17th century to the end of the 19th century.
In the 1980's, Unamgen Mineração e Metalurgia S.A. ("Unamgen"), a
Brazilian mining and exploration company, and a subsidiary of
Eldorado Gold (São Bento), conducted an exploration campaign in and
around the License area. The campaign included 2,796 soil samples
contained in 10 x 100 metres ("m") and 20 x 200 m geochemical soil
sampling grids, 51 trenches with a total of 4,700 linear m, 17
reverse circulation drill holes and 2 diamond drill holes for a
total of 744 m, which generated a historic resource of 48,000
ounces of gold. Unamgen eventually departed the area in late 1990,
allowing the License to become publically available in May 2016.
Growth Exploration Update
Pilar Mine
- Deep exploration: The deep horizon exploration drive in the
hanging wall of the mine at Level 7-4 is now complete, with three
contract diamond drills currently in operation. The drilling
program is designed to extend resources targeting Levels 11-16 up
to 350 m below current development and 250 vertical m below the
current Inferred Resources. The program will test the down-plunge
extension and continuity of Orebodies BFII, BF, and BA.
Drilling results for this program will be announced in the second
half of 2017. It is expected that the drilling results will add to
the Mineral Reserves and Mineral Resources of Pilar, which are
expected to be updated in early Q1 2018. (See Figure #4).
- Pacheca Target: To date, we have completed 2,032 m (nine holes)
of surface diamond drilling at Pacheca (refer to Table #1). The
exploration program also included a 221 ha aerial magnetic survey,
which confirmed the identification of several additional magnetic
anomalies, along with 428 soil samples and 90 chip samples. Results
from the diamond drill program to date have intersected minor
intervals of gold; however, mineralized gold-bearing trends have
not yet been identified due to the degree of complex BIF
deformation and folding along the Pacheca target. Data collected to
date is currently being modeled, mapped, and reviewed for further
interpretation of the complex nature of the target. Further
exploration at the Pacheca Target will be results driven.
- Cubas Target: To date, we have completed 1,951 m (three holes)
of surface diamond drilling at Cubas. The program also included a
516 ha topographic survey, an aerial magnetic survey to be
completed at the end of June, and the collection of 611 soil
samples and eight chip samples. The deep diamond drilling campaign
was successful in targeting the Cubas IP anomaly, which it
intersected at 678 m from surface. Drilling intersected
approximately 33 m of massive sulphides predominantly composed of
pyrrhotite (> 80%), pyrite (<10%), and chalcopyrite.
Arsenopyrite and/or antimony minerals typically associated with
gold bearing deposits were not associated with the massive
sulfides. However, the ability to intersect and identify massive
sulfides at this depth is very important, as these types of massive
sulphides can be a predecessor for, or related to, potential deep
gold-bearing deposits. The geological data from the drilling
program is currently being reviewed and interpreted for a future
deep drill step-out program in and around the Cubas target.
- Exploration work is currently being conducted around the old
Pilar ore body located near the current ventilation raise. A
topographic survey along with soil samples and channel trench
samples are being collected. Results of this program will be
assayed, compiled, and announced in due course.
Turmalina Mine
- Deep exploration: The deep horizon exploration platform on
Level 10-1 is now complete. Diamond drilling from the platform is
intended to reach Levels 12-16, up to 420 vertical m below the
current development and 300 m below the current Inferred Resources.
Up to four contracted underground exploration drills will be moved
from Pilar to Turmalina to complete deep drilling once the
exploration program is completed at Pilar. (See Figure #5).
- Currently at Turmalina, there are three diamond drills in
operation, focused on infill drilling of the resources within
previously announced Mineral Reserves and Minerals Resources (see
news release March 30, 2017). This
program is targeting the downward extension of the high-grade
Orebody A, 90 m below the current mining areas. An additional drill
campaign has begun to confirm the downward extension of the
higher-grade shoots contained within Orebody C, which should
improve the interpretation of mineralization 500 m below the
current Inferred Resources. The campaign will commence in July and
results will be announced in the second half of 2017.
Qualified Person
Scientific and technical information
contained in this press release has been reviewed and approved by
Geraldo Guimarães Vieira dos Santos, BSc Geo., MAIG-3946 (CP),
Geology Manager, who is an employee of Jaguar Mining Inc., and is a
"qualified person" as defined by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI
43-101").
The Iron Quadrangle
The Iron Quadrangle has been an
area of mineral exploration 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 192,000 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 and the Caeté Gold Mine Complex,
which combined produce more than 95,000 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 news release constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation. Forward-looking statements and information are
provided for the purpose of providing information about
management's expectations and plans relating to the future. All of
the forward-looking information set forth in this news release is
qualified by the cautionary statements below and those made in our
other filings with the securities regulators in Canada. 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", "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. All
statements, other than statements of historical fact, may be
considered to be or include forward-looking information. These
forward-looking statements are made as of the date of this news
release and the dates of technical reports, as applicable. This
news release contains forward-looking information regarding
potential and, among other things, expected production, statistics,
ore grades, tonnes milled, recovery rates, cash operating costs,
and definition/delineation drilling at the Turmalina Gold Mine, the
timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the
development of projects and new deposits, success of exploration,
development and mining activities, currency fluctuations, capital
requirements, project studies, mine life extensions, and continuous
improvement initiatives. The Company has made numerous assumptions
with respect to forward-looking information contained herein,
including, among other things, assumptions about the estimated
timeline and for the development of the drill program at the
Turmalina Gold Mine and its mineral properties; the supply and
demand for, and the level and volatility of the price of, gold; the
accuracy of reserve and resource estimates and the assumptions on
which the reserve and resource estimates are based; the receipt of
necessary permits; market competition; ongoing relations with
employees and impacted communities; and political and legal
developments in any jurisdiction in which the Company operates
being consistent with its current expectations including, without
limitation, the impact of any potential power rationing, tailings
facility regulation, exploration and mine operating licenses and
permits being obtained and renewed and/or there being adverse
amendments to mining or other laws in Brazil and any changes to general business and
economic conditions. Forward-looking information involves a number
of known and unknown risks and uncertainties, including among
others: the risk of Jaguar not meeting the forecast plans regarding
its operations and financial performance; uncertainties with
respect to the price of gold, labor disruptions, mechanical
failures, increases in costs, environmental compliance and changes
in environmental legislation and regulation, weather delays and
increased costs or production delays due to natural disasters,
power disruptions, procurement and delivery of parts and supplies
to the operations; uncertainties inherent to capital markets in
general (including the sometimes volatile valuation of securities
and an uncertain ability to raise new capital) and other risks
inherent to the gold exploration, development and production
industry, which, if incorrect, may cause actual results to differ
materially from those anticipated by the Company and described
herein. In addition, there are risks and hazards associated with
the business of gold exploration, development, mining and
production, including without limitation environmental hazards,
tailings dam failures, industrial accidents and workplace safety
problems, unusual or unexpected geological formations, pressures,
cave-ins, flooding, chemical spills, and gold bullion thefts and
losses (and the risk of inadequate insurance, or the inability to
obtain insurance, to cover these risks). Although we have attempted
to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Important factors that could cause actual actions, events
or results to differ materially from expectations (or those
described in forward-looking statements) are discussed in greater
detail in Jaguar's annual information form for the year ended
December 31, 2016, under the heading
"Risk Factors". There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Table #1
|
Pilar Gold
Mine
Pacheca Target
Drill Results
|
Hole
ID
|
Date
|
From
(m)
|
To
(m)
|
Downhole
Interval (m)
|
Estimated
True Width
(m)
|
Gold Grade
(g/t Au)
|
FPCH001
|
18/10/2016
|
45.35
|
55.05
|
9.70
|
8.00
|
0.34
|
|
including
|
48.35
|
49.35
|
1.00
|
0.83
|
1.33
|
|
18/10/2016
|
59.45
|
61.70
|
2.25
|
1.85
|
0.30
|
|
18/10/2016
|
63.50
|
65.50
|
2.00
|
1.65
|
2.81
|
|
including
|
64.50
|
65.50
|
1.00
|
0.83
|
5.40
|
|
18/10/2016
|
73.50
|
78.50
|
5.00
|
4.01
|
0.50
|
|
including
|
75.50
|
76.50
|
1.00
|
0.84
|
1.50
|
|
18/10/2016
|
86.05
|
89.05
|
3.00
|
2.50
|
0.15
|
|
18/10/2016
|
240.35
|
242.1
|
1.75
|
1.46
|
0.20
|
FPCH002
|
16/10/2016
|
66.30
|
67.80
|
1.50
|
1.20
|
1.20
|
|
including
|
66.30
|
66.80
|
0.50
|
0.40
|
2.70
|
|
16/10/2016
|
72.25
|
73.00
|
0.75
|
0.60
|
0.96
|
|
16/10/2016
|
96.15
|
102.30
|
6.15
|
4.95
|
0.47
|
|
16/10/2016
|
108.60
|
110.60
|
3.30
|
2.70
|
0.49
|
FPCH003
|
03/11/2016
|
85.05
|
85.50
|
0.45
|
0.45
|
0.50
|
FPCH004
|
16/11/2016
|
224.10
|
228.10
|
4.00
|
3.95
|
0.28
|
|
16/11/2016
|
240.60
|
246.60
|
6.00
|
5.90
|
0.34
|
SOURCE Jaguar Mining Inc.