TSX: JAG
TORONTO, Oct. 27, 2016 /PRNewswire/ - Jaguar
Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased
to announce that it has commenced an expanded and accelerated
growth exploration initiative at its operating underground gold
mines Turmalina, Pilar and Roça Grande located in the Iron
Quadrangle, Minas Gerais, Brazil.
This initiative will be focused on brownfield exploration targets
to expand and discover new mineral resources located in and around
existing mine infrastructure that have a strong potential to
further grow sustainable production, lower unit costs, increase
cash flows and extend expected mine life. The Company's current
ongoing exploration programs will continue to focus on increasing
resources at its core assets through the upgrading of current
Measured and Indicated Mineral ("M&I") Resources to Mineral
Reserves.
Over the next 12 months, the Company expects to invest up to
US$8 million in exploration and
growth initiatives. Approximately 75% of the investment will be on
underground work at the Company's core operating mines for drilling
of step-out and down-dip extensions and targets. The remaining
growth exploration investment is expected to be on the high
priority targets Pacheca and Cubas located near Pilar Gold
Mine.
Rodney Lamond, President and
Chief Executive Officer of Jaguar, stated: "Considering our
sizable footprint in the prolific greenstone belt of the Iron
Quadrangle in Brazil, and the
significant exploration potential across all of our operating
mines, this accelerated growth exploration initiative is an
exciting step towards assisting us in increasing our resources and
extending our operating mine life. This program will also allow for
the potential discovery of new resources to support our goal of
growing our sustainable production profile. To date, we have made
excellent progress with our infill resource drilling programs,
however we now have the immediate means, to accelerate our resource
growth objectives and to execute exploration programs on the
numerous target areas that could potentially add significant new
resources to the current mineral base."
Growth Exploration Highlights
- Major growth capital investment primarily focused on
increasing mineral resources at its core assets, and discovery of
new resources near existing infrastructure at its operating
mines.
- Expanded growth exploration program includes approximately
31,000 metres ("m") of diamond drilling, including approximately
15,000 m deep down-plunge continuities of the ore bodies A and C at
Turmalina and BFII and BF at the Pilar Gold Mine.
- 8,500 m of surface diamond drilling will be dedicated to
test the high priority Pacheca and Cubas targets in the vicinities
of the Pilar Gold Mine and other advanced targets.
- Exploration targets generated, as a result of extensive
compilation work from previous exploration campaigns, in and around
the current mine sites will be followed up by geophysical surveys
and diamond drilling. Subject to the results, an additional 7,750 m
of surface drilling will be dedicated to test those
targets.
- Geophysics, soil geochemistry, trenching, plus prospecting
and mapping will also be conducted to advance additional target
areas for future drilling. Field work has already commenced at the
Pacheca and Cubas targets, located near Pilar Gold Mine.
Turmalina Gold Mine
An underground drilling campaign of approximately 9,600 m will
be dedicated to the test the down-plunge extension and continuity
of ore bodies A and C.
Ore Body A
Deep diamond drilling of ore body A
will be performed after the development of a new exploration
horizon is positioned in the hanging wall of the mine. The proposed
drilling is intended to reach the 12, 13 and 14 levels, up to 240
vertical m below current development and 160 m below the current
inferred resources.
Ore Body C
Down-dip extension drilling of the
South Eastern portion of Ore Body C is expected to generate new
mineral resources that are near surface and to contribute in the
near term to the Turmalina throughput profile.
IP Geophysics will test the hanging wall of Orebody C and
eastern continuity of Orebody A. Following the IP work, an
estimated 6,000 m surface diamond drilling program is expected to
take place.
Pilar Gold Mine
An underground drilling campaign of approximately 5,100 m will
be dedicated to test the down-plunge extension and continuity of
ore bodies BFII, BF and BA.
Deep diamond drilling will be performed after the development of
a new exploration horizon is positioned in the hanging wall of the
mine. The proposed drilling is intended to reach the 12, 13 and 14
levels, up to 250 vertical metres below current development and 200
metres below the current inferred resources.
Approximately 3,500 m of surface diamond drilling on the Pacheca
Target is planned. The Pacheca target is located three km NE of the
Pilar mine and is characterized by a series of extensive open pit
excavations made by Portuguese explorers during the 18th century.
Similarly hosted in the Banded Iron Formation (BIF) encompassing
most of the Iron Quadrangle, the Pacheca target is strongly
delineated by soil Au geochemistry.
Surface diamond drilling on the Cubas Target of approximately
2,500 m is planned. The Cubas Target is identified by a number of
deep IP anomalies situated on the southern continuity of the shear
zone, which hosts the main Pilar ore bodies.
Roça Grande (RG) Gold Mine
During 2016, the Company undertook a compilation program of the
available surface information. In light of the revised geological
model, a review of the diamond drill-hole information will be
carried out to consolidate the geological model. Soil geochemistry
and a total of 1,750 m of drilling follow-up is expected to test
the ore bodies' open continuities.
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 OesteLtda"
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 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. The Company has made
numerous assumptions with respect to forward-looking information
contained herein, including, among other things, assumptions about
the development and production activities and the intended use and
allocation of capital on its growth exploration initiatives; the
assumptions on which the reserve and resource estimates are based;
the receipt of necessary permits; 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 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.
SOURCE Jaguar Mining Inc.