PDAC-UPDATE 1-Jaguar Mining CEO looking for Q1 turnaround

* Construction decision on Gurupi by July

* Company not for sale, CEO says

By Cameron French

TORONTO, March 7 (Reuters) - Jaguar Mining's (JAG.TO) flagship Turmalina mine has turned the corner after a rough 2010, and should begin showing stronger production early this year, the company's chief executive said on Monday.

Jaguar's shares fell about 40 percent in 2010 and have continued to slide this year, due in part to disappointing output at Turmalina, its flagship mine in Brazil.

In an interview on the sidelines of the Prospectors and Developers Conference (PDAC) in Toronto, CEO Daniel Titcomb said the company moved to address the production issues by shifting the mining method late last year.

This forced Jaguar to defer some output as it refocused on development, thus boosting costs.

Titcomb said the company's first-quarter results should reflect the improvement when they are released later this year.

"It should show up" in the results," he told Reuters. "The truth is we sacrificed Q4 to get that development."

The company has targeted production of about 200,000 ounces of gold this year, rising to a range of 435,000-460,000 in 2014.

Jaguar has yet to release year-end 2010 results, but the company estimated in November output of around 150,000 ounces.

Titcomb said the company's current assets, which include three mines and two projects in Brazil, have the capacity to eventually produce 500,000 ounces annually.

Jaguar's main development project is Gurupi, which holds reserves of 2.3 million ounces. Titcomb said he expects the company to make a construction decision on the project in July.

With gold prices flirting with record levels above $1,400 an ounce, many predict a surge in gold mining mergers and acquisitions activity.

Titcomb said the company's not for sale.

"We're not out there trying to sell the company. We think we can create a lot of value here."