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TSX:JAG
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 Roca 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 Roca 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 17(th) and 18(th) 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
Produà§à£o 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 ca mpaign 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 Falcà£o (refer to Figures #1, #2, and #3). These
targets were identified and explored from the late 17(th)
century to the end of the 19(th) century. In the 1980's,
Unamgen Mineraà§à£o e Metalurgia S.A. ("Unamgen"), a Brazilian
mining and exploration company, and a subsidiary of Eldorado
Gold (Sà£o 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 UpdatePilar 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 PersonScientific 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 QuadrangleThe 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, tail ings 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 a nd 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
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Hole ID Date From To Downhole Estimated Gold Grade
(m) (m) Interval True Width (g/t Au)
(m) (m)
--- --- --- ---
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.
View original content with multimedia: http://www.newswire.ca/en/releases/archive/June2017/21/c1577.html
SOURCE: Jaguar Mining Inc.
Rodney Lamond, President & Chief Executive Officer, rodney.lamond@jaguarmining.com,
416-847-1854; Joanne Jobin, Vice President, Investor Relations,
joanne.jobin@jaguarmining.com, 416-847-1854
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