TORONTO, March 4, 2016 /PRNewswire/ --
INCREASES RESERVES BY 310% AND GRADE BY 63% ANNOUNCES 2016
DRILL PROGRAM
Key Highlights Pilar Gold
Mine
- 172,000 ounces of gold in Proven and Probable Reserves, up
310% compared to 2014
- Proven and Probable gold grade of 4.39 g/t increased 63%
compared to 2014
- 514,000 ounces of gold in Measured and Indicated Resources,
up 56% compared to 2014
- Significant increase to life of mine to the end of 2019 at
current production levels
- Latest drilling results and improved block modeling have
confirmed three significant mineralized banded iron formations (BA,
BF, and BFII)
- 2016 definition drill program is planned with 10,725 metres
(61 holes) from underground
Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX-V:
JAG) is pleased to report its 2015 year-end mineral resource
and mineral reserve estimate for its wholly owned Pilar Gold Mine
("Pilar") prepared in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101"). Pilar is an underground gold mine and is part
of the Caeté Gold Complex that also includes the underground Roça
Grande gold mine and a mill operation that processes ore from both
mines. The Caeté Complex is located in the municipalities of Caeté
and Santa Bárbara, respectively, in the state of Minas Gerais,
Brazil and is approximately 100
kilometres from Belo Horizonte,
the capital city of the state of Minas Gerais (see Figure #1).
Pilar Gold Mine Mineral Resource and Reserve Estimates as of
December 31, 2015
(see Tables 1 - 4 below for more detail).
Proven & Probable Reserves: 1,220
million tonnes grading 4.39 g/t Au, containing 172,000 oz Au
Measured & Indicated Resources: 3,479
million tonnes grading 4.59 g/t Au, containing 514,000 oz Au
Inferred Resources: 1,208 million tonnes grading 5.45
g/t Au containing 212,000 oz Au
Rodney Lamond, President and CEO
of Jaguar Mining stated, "We are extremely pleased with the
increased Mineral Resources and Mineral Reserves at Pilar. With the
positive results from our drill programs and our improved modeling
practices at Pilar, we now have a better understanding of the
geological model and its down-plunge mineralization potential. In
addition, the new block model has increased our confidence in our
Mineral Resources and Reserves inventory. Our priority of building
confidence in our mine planning begins with the confidence in our
actual Mineral Reserves. The large increase in our Mineral Reserve
base at Pilar has enabled us to significantly increase our mine
life with sufficient mineral reserves for four years at the current
production profile. The Inferred Mineral Resource at Pilar also now
confirms that mineralization continues down-plunge on the main
mineralized trends and highlights the considerable potential for
further additions to our Mineral Resource base."
Mr. Lamond continued, "We are also pleased that our latest
drill program has encountered wider mineralized structures at
depth, particularly on BF and BFII formations, resulting in a
significant increase in the number of ounces per vertical metre.
Our drilling has achieved encouraging results, however more
drilling is needed on the BA, BF, and BFII Formations. A drill
program consisting of 10,725 metres is planned for 2016 to explore
and infill drill the down-plunge extensions of these iron-banded
formations, with the key intent to build and strengthen our mine
model for future development."
The Mineral Resource and Reserve estimates were prepared by
Jaguar Mining under the supervision of Jason Cox, P.Eng., and Reno Pressacco, P.Geo. of
Roscoe Postle Associates Inc. ("RPA"). RPA is an independent mining
consultant and each of Messrs. Cox and Pressacco are Qualified
Persons within the meaning of NI 43-101. The effective date of the
estimates is December 31, 2015. An
independent technical report documenting the mineral resource
estimates prepared in accordance with NI 43-101 will be filed on
the System for Electronic Document Analysis and Retrieval (SEDAR)
within 45 days of the date of this news release.
Pilar Gold Mine Exploration Program Drilling Results
As shown in Figure #2 below, the drill program encountered three
significant mineralized banded iron formations (BA, BF, and BFII).
The BA mineralization and grade appears to be dropping off at
depth, however the footwall flank of the BF and both the footwall
and hanging wall flanks of the BFII unit are in fact increasing in
grade at depths below the active areas currently being mined.
Please refer to news releases dated August
17, 2015 and April 27, 2015
for previous Pilar Mine drill results.
While the drilling results are very encouraging, more drilling
is needed on the BA, BF and BFII formations to upgrade the Mineral
Resources into the Measured and Indicated Resource categories. A
10,725 metre drill program (61 holes) is planned for 2016. This
drill program will target infill drilling of the down-plunge
extensions of these iron-banded formations.
Updated Pilar Gold Mine Mineral Reserves and Mineral
Resources
For the December 31, 2015 estimates,
a new geological and block model was built under the supervision of
RPA. Previously, annual estimates were internally reviewed. This
year's estimates will be included in the first NI 43-101 Technical
Report filed with SEDAR since March 21,
2010 for Pilar.
As a result of the 2015 diamond drilling campaign and improved
modeling practices, the new reserve report includes a 310% increase
in total reserves to 172,000 ounces (1,220,000 tonnes at an average
grade of 4.39 g/t Au). The 310% increase in reserves compared to
the previous year's estimate of 42,000 ounces (488,000 tonnes at an
average grade of 2.70 g/t Au) exceeded the Company's target of
replacing reserves mined in 2014 and establishing a significant
increase in M&I resources mainly below mine level 7 (see
Figures #3, 4 and 5 below).
The database, used to prepare the estimates, with a cut-off date
of August 31, 2015, comprises 984
drill holes and 16,445 channel samples. The estimate was generated
from a block model constrained by three dimensional (3D) wireframe
models. A capping value varying from 10 to 60 g/t Au was applied
for all eight "Ore Bodies". The wireframe models of the
mineralization and excavated material for Pilar were constructed by
Jaguar and reviewed by RPA. A separate wireframe was built for each
"Ore Body" and was used to constrain the grade estimates into the
block model.
The mineralized material for each "Ore Body" was classified into
the Measured, Indicated, or Inferred Mineral Resource categories on
the basis of the search ellipse ranges obtained from the
variography study, the observed continuity of the mineralization,
the drill hole and channel sample density, and previous production
experience from these ore bodies.
The Mineral Resources are inclusive of Mineral Reserves. For
those portions of the Mineral Resources that comprise the Mineral
Reserve, stope design wireframes were used to constrain the Mineral
Resource reports. Additional Mineral Resources are present that
reside beyond the Mineral Reserves. For these areas,
three-dimensional clipping polygons were prepared to aid in the
estimation of the Mineral Resources. The clipping polygons were
prepared in either plan or longitudinal views, as appropriate. The
clipping polygons were drawn to include continuous volumes of
blocks whose estimated grades were above the stated cut-off grade,
and were not located in mined out areas. The clipping polygons were
used to appropriately code the block model and estimate the Mineral
Resources. At a cut-off grade of 1.93 g/t Au, the Mineral Resources
at Pilar comprise 3.48 million tonnes at an average grade of 4.59
g/t Au containing 514,000 ounces of gold in the Measured and
Indicated Resource category, and 1.21 million tonnes at an average
grade of 5.45 g/t Au containing 212,000 ounces of gold in the
Inferred Mineral Resource category.
Table 1 summarizes the change in Pilar Gold Mine Mineral
Reserves from December 31, 2014 to
December 31, 2015:
Pilar Gold Mine - Change in Mineral Reserves
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2015 2014 Change (%) 2015 2014 Change (%)
Proven Reserves 17 24 (33%) 3.15 2.84 11%
Probable Reserves 156 19 721% 4.58 2.54 81%
Total 172 42 310% 4.39 2.70 63%
Table 2 summarizes the change in Pilar Gold Mine Mineral
Resources from December 31, 2014 to
December 31, 2015:
Pilar Gold Mine - Change in Mineral Resources
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2015 2014 Change (%) 2015 2014 Change (%)
Measured Resources 97 171 (43%) 4.25 5.97 (29%)
Indicated Resources 417 158 164% 4.68 5.32 (12%)
Total - M&I Resources 514 329 56% 4.59 5.64 (19%)
Inferred Resources 212 183 16% 5.45 5.65 (4%)
Table 3 summarizes the Pilar Gold Mine Mineral Reserves as at
December 31, 2015:
Pilar Gold Mine - Mineral Reserves, December 31, 2015
Proven and Probable
Ore Body Proven Reserves Probable Reserves Reserves
Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body BA 69 3.20 7 - - - 69 3.20 7
Ore Body BF 64 2.95 6 343 4.44 49 407 4.20 55
Ore Body
BFII - - - 707 4.66 106 707 4.66 106
Ore Body LFW 30 3.44 3 - - - 30 3.44 3
Ore Body LPA 1 3.19 0 6 4.15 1 7 4.00 1
Total 164 3.15 17 1,056 4.58 156 1,220 4.39 172
Notes:
1. CIM definitions were followed for Mineral Reserves;
Mineral Reserves were estimated at a break-even cut-off grade of
2. 2.5 g/t Au;
Mineral Reserves are estimated using an average long-term gold
3. price of US$1,150 per ounce;
Mineral Reserves are estimated using an average long-term foreign
4. exchange rate of 3.8 Brazilian Reais: 1 US Dollar;
5. A minimum mining width of 2 metres was used;
Bulk densities used are either 2.89 t/m[3] for iron-formation
6. poor domains or 3.05 t/m[3] for iron-formation rich domains;
7. Numbers may not add due to rounding.
Table 4 summarizes the Pilar Gold Mine Mineral Resources as at
December 31, 2015:
Pilar Gold Mine Measured and Indicated Mineral Resources, December 31, 2015
Ore Body Measured Resources Indicated Resources
Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body BA 293 4.09 39 174 5.58 31
Ore Body BF 259 4.57 38 776 4.74 118
Ore Body BFII 4 4.46 1 874 5.11 144
Ore Body C 80 4.24 11 371 4.73 56
Ore Body LFW 68 3.82 8 175 4.22 24
Ore Body LFW - - - 12 3.61 1
Ore Body LPA 6 2.72 0 50 3.99 6
Ore Body SW - - - 338 3.28 36
Total 709 4.25 97 2,770 4.68 417
- TABLE CONTINUED -
Total Measured
Ore Body & Indicated Resources Inferred Resources
Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body BA 467 4.64 70 65 5.13 11
Ore Body BF 1,035 4.7 156 293 6.77 64
Ore Body BFII 878 5.11 145 198 7.89 50
Ore Body C 451 4.62 67 140 5.10 23
Ore Body LFW 243 4.11 32 117 4.87 18
Ore Body LFW 12 3.61 1 5 3.11 0
Ore Body LPA 56 3.86 7 - - -
Ore Body SW 338 3.28 36 389 3.60 45
Total 3,479 4.59 514 1,208 5.45 212
Notes:
1. CIM definitions are followed for Mineral Resources;
2. Mineral Resources were estimated at a break-even cut-off grade of 1.93 g/t Au;
Mineral Resources are estimated using an average long-term gold price of US$1,400
3. per ounce;
Mineral Resources are estimated using an average long-term foreign exchange rate
4. of 2.5 Brazilian Reais: 1 US Dollar;
5. A minimum mining width of 2 metres was used;
Bulk densities used are either 2.89 t/m[3] for iron-formation poor domains or
6. 3.05 t/m[3] for iron-formation rich domains;
Gold grades are estimated by the Inverse Distance Cubed interpolation algorithm
7. using capped composite samples;
8. Mineral Resources are inclusive of Mineral Reserves;
Mineral Resources that are not Mineral Reserves do not have demonstrated economic
9. viability;
10 Numbers may not add due to rounding.
Figure #1 shows the location of the Pilar Mine.
Figure #2 shows the orientation of the mineralized banded iron
formations (view looking north).
Figure #3 shows Ore Body BA distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Figure #4 shows Ore Body BF distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Figure #5 shows Ore Body BFII distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Qualified Persons
The scientific and technical information contained in this press
release has been reviewed and approved (i) in respect of the
estimated Mineral Reserves and the Life of Mine Plan (LOMP) by Jason Cox, P.Eng., of Roscoe Postle Associates
Inc. ("RPA"), and (ii) in respect of the estimated Mineral
Resources by Reno Pressacco, P.Geo., of RPA. RPA is an independent
mining consultant and each of Messrs. Cox and Pressacco are
Qualified Persons within the meaning of NI 43-101.
Quality Control
Jaguar Mining has implemented a quality-control program that
includes insertion of blanks, commercial standards and duplicate
core samples in order to ensure best practice in sampling and
analysis. NQ and BQ size drill core is sawn in half with a diamond
saw. Samples are selected for analysis in standard intervals
according to geological characteristics such as lithology and
hydrothermal alteration contents. Half of the sawed sample is
forwarded to the analytical laboratory for analysis while the
remaining half of the core is stored in a secure location. Rock
channel sampling of the underground development follows the same
standard intervals of the drill core. The drill core samples are
transported in securely sealed bags to the Jaguar in-house
laboratory located at the Roça Grande Mine, Caeté, Minas Gerais.
Some samples are also sent for check assaying to the independent
SGS Geosol laboratory located in Vespasiano, Minas Gerais. The rock
chip samples are transported in securely sealed bags to the Roça
Grande Mine Laboratory, Caeté, Minas Gerais. The preparation and
analysis are all conducted at the respective facilities, either at
the Roça Grande Mine Laboratory in Caeté, Minas Gerais or at the
SGS Geosol Laboratory in Vespasiano, Minas Gerais. The Roça Grande
Mine Laboratory does not carry an ISO certification. The SGS Geosol
Laboratory is ISO 9001 accredited. As part of in-house QA/QC, the
Roça Grande Mine Laboratory inserts certified gold standards,
blanks and pulp duplicate samples.
About Jaguar Mining Inc.
Jaguar is a gold producer with mining operations in a prolific
greenstone belt in the state of Minas Gerais, Brazil. Additionally, Jaguar wholly owns the
large-scale Gurupi Development Project in the state of Maranhão,
Brazil. In total, the Company owns
mineral claims covering an area of approximately 205,000 hectares.
Additional information is available on the Company's website at
http://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 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 news release contains forward-looking
information regarding the development of the Pilar Gold Mine, the
reserve and resource estimates for the Pilar Gold Mine and the
assumptions and parameters related thereto, the expected mine life
and anticipated gold production. The Company has made numerous
assumptions with respect to forward-looking information contained
herein, including, among other things, assumptions about the
availability of financing for exploration and development
activities; the estimated timeline for the development of the Pilar
Gold Mine; 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 general business and economic conditions.
Forward-looking information involve a number of known and unknown
risks and uncertainties, including among others the uncertainties
with respect to the price of gold, labor disruptions, mechanical
failures, increase in costs, environmental compliance and change in
environmental legislation and regulation, procurement and delivery
of parts and supplies to the operations, uncertainties inherent to
capital markets in general 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. 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 news 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
http://www.sedar.com. The forward-looking information set
forth herein reflects the Company's reasonable expectations as at
the date of this news 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 news
release is expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Rodney Lamond, President &
CEO, Jaguar Mining, +1-778-788-3743,
rodney.lamond@jaguarmining.com