TSX: JAG
TORONTO, May 28, 2019 /PRNewswire/ -- Jaguar
Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased
to report the Company has completed the filings of
independent National Instrument 43-101 ("NI 43-101") "Technical
Reports on the Turmalina and Pilar Gold Mines, respectively, (the
"Technical Report"). The Technical Report supports the Company's
updated Mineral Reserves and Mineral Resources announced in a news
release dated March 1, 2019. All
Company Technical Reports are available on SEDAR
(www.sedar.com).
Turmalina Gold Mine Update
Management continues to advance a turnaround plan expected to
return gold production to historical rates of approximately 15,000
ounces quarterly by the end of 2020. Importantly, Turmalina
maintains a well-defined base of mineral reserves and mineral
resources to support a sustainable, increasing gold grade and
production profile. The Company continues to focus on operational
execution and provided the following operational update on recent
and upcoming critical milestones in process:
- Total Mineral Reserve gold ounces increased 95% as at
December 31, 2018 to 1.4 Mt at 5.05
g/t containing 228 koz, representing over four years of mine life
based on a 50,000-ounce annual production rate.
- Following exploration success at Orebody C-Central, the Company
has prioritized and initiated development in this area to provide a
third mining area and additional flexibility. Orebody C-Central is
expected to contribute development ore in the second half of 2019
with first stoping ore expected in
Q4 2019.
- Orebody B Measured Mineral Resources totaled 353 kt at 3.34 g/t
containing 38,000 ounces and Indicated Mineral Resources totaled
192 kt at 4.26 g/t containing 26,000 ounces at December 31, 2018. Orebody B, which is outside
the current mine plan and does not have Proven and Probable
Reserves, has the potential to provide increased mine flexibility
and production capability in 2019. A higher-grade pay shoot is
currently being re-evaluated as a potential forth mining area.
Orebody B has existing ventilation infrastructure and can be
accessed from Orebody A. (Refer to the Press Release dated
March 1, 2019 for more information on
Mineral Reserves and Mineral Resources.)
- In Q1 2019, mine working hours increased to a 4 shift/day
schedule. Hiring and training efforts ramped up during Q2 2019 to
support increased development and production. The new management
team is implementing work routines to improve employee
communication, shift effectiveness, mine planning, adherence to
plan and safety culture.
- Q2 2019 equipment purchases to support increased planned
production: (1) development jumbo, (1) haul truck, (2) basket-lift,
auxiliary vehicles, and (1) personnel -carrier to facilitate the
hot shift changes.
- Expected ore production during Q2 and Q3 will be from remaining
stopes in Orebody A and from one production panel in orebody C-SE.
Increased development combined with two new production mining
panels in Q4 2019, followed by one new panel in Q1 2020, is
expected to support planned production ramp up.
- Total development rates continued to improve to over 400
meters/month from 300 meters/month prior. With increasing shift
schedules, extra equipment, added employees, and added development
faces, development rates are expected to increase to over 550
meters/month in the second half of 2019. The contractor developing
the Orebody A ramp area has also changed shift schedule and added
equipment and people. The contractor will be increasing from 150 to
+200 meters/month while Jaguar crews increase from 250 to +350
meters/month.
- Mine designs and systematic sequencing developed for the new
mining panels will prevent geotechnical delays, production delays,
and re-work. Dilution and ore loss will be significantly improved
when mining includes drill-and-blast quality control improvements
and use of cemented paste fill in wide zones of the orebody.
- Mine infrastructure improvements are in progress
including:
- A ventilation system to the ramp bottom has been upgraded and a
ventilation raise is expected to be completed in Q2 2019;
- Underground pumping stations are planned for Q2 and Q3
2019;
- Electrical substation has been installed in the deepest zone in
the mine (A-12);
- Paste fill distribution system will be extended to Orebody A
level 12 in Q3 2019;
- A new mine infrastructure coordinator has been added combined
with new infrastructure crews which has resulted in a significant
reduction in production delays.
Pilar Gold Mine Update
Management continues to make progress on operational execution
and key initiatives to support a sustainable production profile
including the following:
- Exploration success at Pilar increased Mineral Reserve
contained gold ounces by 69% as at December
31, 2018, including Proven Mineral Reserves of 1.2 Mt at
3.79 g/t containing 143,000 ounces, and Probable Mineral Reserves
of 0.6 Mt at 3.47 g/t containing 68,000 ounces. This represents
more than four years of mine life at 50,000-ounce annual
production. (Refer to the Press Release dated March 1, 2019 for more information on Mineral
Reserves and Mineral Resources.)
- Development and exploration in 2019 include the BA, Torre, and
SW orebodies and potential open pit sources, which are being
targeted to increase mine flexibility and production
capability.
- Operational issues experienced in early 2019, with excess
dilution in a large stope, and fan drill production have been
resolved. A new fan drill was delivered in February 2019 and drilled inventory has recovered
to target levels.
- An underground maintenance shop will be completed in Q2 2019 to
ensure improved equipment availability with faster maintenance
response time and avoid tramming slow moving equipment to
surface.
- Caeté metallurgical recovery has returned to 88% following the
replacement of leach agitators in February
2019 combined with additional operational improvements. CIP
agitators are planned to be replaced in early H2 2019 to further
improve recovery levels.
- Production remains stable and with mine working hours increased
following a 4 shift/day schedule that started in May 2019. Additional employees are being hired
and trained which are expected to add work hours and drive
increased ore production starting in Q3 2019.
Corporate Update
- The Board of Directors (the "Board") initiated a strategic
review process to explore opportunities and alternatives to enhance
shareholder value. The Board has appointed Canaccord Genuity Corp.
as its exclusive financial advisor in conjunction with its
strategic review. The review will consider various alternatives for
the Company, including reviewing merger opportunities, potential
partnerships, joint venture agreements and any other options with
the objective of maximizing value for the Company's
shareholders.
- The Company has also retained an external executive recruitment
firm to search for a permanent Chief Executive Officer. The hiring
process is in an advance stage and the Company expects to finalize
the position in Q2 2019.
Qualified Persons
The scientific and technical information contained in the
Turmalina and Pilar Gold Mines' Technical Reports has been reviewed
and approved (i) in respect of the estimated Mineral Reserves and
the Life of Mine Plan (LOM) by
Jeff Sepp, 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 Mr. Sepp and Mr. Pressacco are
each Qualified Persons within the definition of NI 43-101.
Scientific and technical information contained in this press
release has been reviewed and approved by Jonathan Victor Hill, BSc (Hons) (Economic
Geology - UCT), FAUSIMM, Senior Expert Advisor Geology and
Exploration to the Jaguar Mining Management Committee, who is also
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 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 64,000
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 Caeté
Mining Complex (Pilar and Roça Grande
Mines, and Caeté Plant). The Company also owns the Paciência
Gold Mine Complex, which has been on care and maintenance since
2012 and the Roça Grande Mine which has been on care and
maintenance since April 2018.
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 made 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," "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. All statements, other than statements of historical fact,
may be considered to be or include forward-looking information.
This news release contains forward-looking information regarding,
among other things, expected sales, production statistics, ore
grades, tonnes milled, recovery rates, cash operating costs,
definition/delineation drilling, 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, restarting suspended or disrupted operations,
continuous improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions with respect
to forward-looking information contained herein, including, among
other things, assumptions about the estimated timeline for the
development of 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; 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
an 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,
labour disruptions, mechanical failures, increase in costs,
environmental compliance and change 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 environmental
hazards, tailings dam failures, industrial accidents and workplace
safety problems, unusual or unexpected geological formations,
pressures, cave-ins, flooding, chemical spills, procurement fraud
and gold bullion thefts and losses (and the risk of inadequate
insurance, or the inability to obtain insurance, to cover these
risks). 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.
For further information: Ben
Guenther, Interim Chief Executive Officer, Jaguar Mining
Inc., bguenther@jaguarmining.com, 416-847-1854; Hashim Ahmed, Chief Financial Officer, Jaguar
Mining Inc., hashim.ahmed@jaguarmining.com, 416-847-1854