Strong Potential to Convert Additional Mineral
Resources and Reserves
TSX: JAG
TORONTO, Sept. 26, 2016 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX: JAG) is pleased to announce
positive drill results from 40 underground diamond drill holes
conducted at the Pilar Gold Mine ("Pilar") located at the Company's
Caeté Complex in the state of Minas Gerais, Brazil. The Caeté Complex is situated in the
Iron Quadrangle, one of the most prolific mining districts in
South America. These results
continue to reaffirm increasing grade profiles at depth at the
Pilar BFII ore body and suggest a strong potential for the
significant conversion of Mineral Resources to Mineral
Reserves.
This drill program (5,369 metres ("m")) included 40 holes, which
generated multiple high-grade drill intercepts from Pilar including
BFII, BF, BA, LFW, LHW, C, and SW ore bodies. The total cost of
this exploration program was approximately $0.4 million. The underground resource
definition-drilling program was designed to test the current
resource envelope, and to test the down plunge extensions of the
Pilar ore bodies. The drill program targeted, in particular, the
newly discovered BFII ore body, as previously outlined in the
"Technical Report on the Roça Grande and Pilar Operations, Minas
Gerais State, Brazil", a copy of
which is available on the Company's SEDAR profile at
www.sedar.com.
Drilling Highlights and Key Intercepts
- Underground definition drilling on the Pilar BFII ore body has
returned significant high-grade mineralization. Key intercepts
include:
- Hole FSB552A – 17.40 g/t Au over 6.80 m (6.46 m
ETW1);
- Hole PPL325 – 7.73 g/t Au over 16.35 m (15.52 m
ETW1);
- Hole PPL326 – 24.19 g/t Au over 5.65 m (4.46 m
ETW1);
- Hole PPL363 – 23.95 g/t Au over 4.00 m (3.35 m
ETW1); and
- Hole PPL340 – 9.05 g/t Au over 7.90 m (6.24 m
ETW1)
1ETW - Estimated true width
- Exploration drilling focused on testing extensions to the
Banded Iron Formation ("BIF") ore bodies to assess the growth
potential for Measured and Indicated Mineral Resources.
- Definition drilling focused on providing increased confidence
and classification of the near-term mineral resources.
- The definition drilling programs are designed to replace
current reserves being depleted from mining and will be added to
the new 2016 Mineral Reserve and Mineral Resource model at
year-end.
Rodney Lamond, President and
Chief Executive Officer of Jaguar, stated: "Today's reported
high-grade intercepts continue to confirm a strong mineralized
system down-plunge of current Mineral Reserves at Pilar, in
particular the high-grade intercepts related to the newly
discovered BFII ore body. These results provide excellent potential
for higher grades, the increase of Mineral Resources, and the
conversion to reserves for mining at Pilar. Additionally, we have
been very pleased with our operations at Pilar where our average
grade has steadily increased and we are on track to achieve our
production guidance for 2016. For the balance of 2016, the
underground exploration and definition drilling programs will be
focused on mineral resource growth and resource conversion to
reserves in order to grow sustainable gold production."
Drill Programs
This latest completed drill program
consisting of 40 holes, over 5,369 m, (Table 1 and Figure 1) was
designed to test and convert the current mineral resource envelope,
and to test the extensions of the Pilar ore bodies. In addition,
drilling has focused on providing increased confidence and
classification of the near-term Mineral Resources. The drill
program continues to confirm the geological continuity of BIF ore
bodies and high grades at depth. The Company expects to continue to
test down-plunge continuity in the BFII, BF, and BA ore bodies with
a dedicated drill program throughout 2016 and 2017, which will
include approximately 5,000 m of diamond drilling to increase
definition and confidence below Level 9.
The Company's current assessment of the historical geological
information and the rational use of state-of-the-art 3-D software
have been an important contribution to the understanding of the
gold emplacement and consequent target generation of new resource
identification.
Pilar Gold Mine
The Pilar Mine is situated in the
northeast portion of the Iron Quadrangle about 100 kilometres east
of the city of Belo Horizonte in
Minas Gerais, Brazil. The Iron
Quadrangle is one of the largest and most important mining and
mineral districts in South America
with historical production of over 50 million ounces of gold.
Mining activities in the Iron Quadrangle have been ongoing since
the late 1600s. A number of important and historical gold deposits,
including those of AngloGold Ashanti and Vale, are located in the
Iron Quadrangle and make up a significant contribution to
Brazil's gold production.
The deposit is hosted in a meta volcanic sedimentary sequence of
the Rio das Velhas Greenstone Belt and the mineralization is
located between a folded zone of BIF, which forms a local isoclinal
syncline dipping to the southeast. The west limb of this syncline
has a normal stratigraphic stacking and is called the SW limb and
the inverted limb, at the east side, is called limb B. The regional
axial plane foliation has general direction of NNE/SSW dipping to
SSE.
Mineralized zones are classified according to the position of
the mineralization relative to the major syncline, the
morphological continuity, and the structural and mineralogical
occurrence mode. The mineralization is divided from footwall to
hanging wall in the SW, LFW, BFII, BF, LHW, BA, and C ore
bodies.
The SW ore body matches with the west limb, SW, of the syncline.
The LFW ore body consists of a mineralized lens of
sericite-chlorite-carbonate-quartz schist present in the footwall
of the inverted limb B. The mineralized zones BFII, BF, and BA are
parasitic anticlines dipping to the SE, also in limb B of the major
syncline. The C ore body is a group of mineralized lenses of
sericite-chlorite-carbonate-quartz schist associated with the
contact of the shear zone with the BIF at the hanging wall of limb
B.
Qualified Person
Scientific and technical information
contained in this press release has been reviewed and approved by
Marcos Dias Alvim, BSc Geo., MAusIMM (CP), Project Development
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").
Quality Control
Jaguar Mining continues to use 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. All diamond drill hole collars are accurately
surveyed using a Total Stations instrument and down-hole deviations
are surveyed using optical Reflex Maribor.
Mean grades are calculated using a variable lower grade cut-off
(generally 2 g/t Au). No upper gold grade cut has been applied to
the data. However, the requirement for assay top cutting will be
assessed during future resource work.
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. The drill core samples are transported
in securely sealed bags to the Jaguar in-house laboratory located
at the Caeté Mine Complex in Minas Gerais. Some samples are also
sent for check assaying to the independent SGS Geosol Laboratory
located in Vespasiano, 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 Caeté Mine Complex
laboratory does not carry an ISO certification. The SGS Geosol
Laboratory is ISO 9001 accredited. As part of in-house QA/QC, the
Caeté Mine Complex laboratory inserts certified gold standards,
blanks, and pulp duplicate samples.
For a complete description of Jaguar's sample preparation,
analytical methods, and QA/QC procedures, please refer to the
"Technical Report on the Roça Grande and Pilar Operations, Minas
Gerais State, Brazil", a copy of
which is available on the Company's SEDAR profile at
www.sedar.com.
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 the Caeté Gold Mine Complex ("Mineracao Serras do Oeste
Ltda" 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 availability of financing for exploration, development and
production activities; 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;
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.
Table 1 – Drill Results
Pilar Gold
Mine
Drill
Results
|
Hole
ID
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Estimated
True
Width
(m)
|
Gold
Grade
(g/t
Au)
|
Ore
Body
|
FSB549
|
24.25
|
28.60
|
4.35
|
2.91
|
3.32
|
BFII
|
FSB551
|
25.00
|
27.50
|
2.50
|
1.53
|
0.98
|
BFII
|
29.90
|
33.60
|
3.70
|
3.38
|
10.12
|
BFII
|
FSB552A
|
18.80
|
20.30
|
1.50
|
1.32
|
10.57
|
BFII
|
21.80
|
28.60
|
6.80
|
6.46
|
17.40
|
BFII
|
FSB553
|
26.25
|
29.50
|
3.25
|
2.86
|
7.33
|
BFII
|
FSB554
|
47.30
|
51.65
|
4.35
|
4.22
|
3.78
|
BFII
|
53.50
|
56.50
|
3.00
|
2.74
|
1.19
|
BFII
|
63.30
|
65.20
|
1.90
|
1.08
|
7.34
|
BFII
|
66.40
|
68.90
|
2.50
|
1.43
|
5.06
|
BFII
|
FSB556
|
43.20
|
45.10
|
1.90
|
1.38
|
4.03
|
BFII
|
FSB561
|
31.60
|
35.10
|
3.50
|
2.10
|
7.75
|
BFII
|
FSB562
|
26.10
|
29.30
|
3.20
|
2.90
|
1.44
|
BFII
|
PPL325
|
107.10
|
123.45
|
16.35
|
15.52
|
7.73
|
BFII
|
124.60
|
130.40
|
5.80
|
5.77
|
2.87
|
BFII
|
PPL326
|
90.25
|
95.90
|
5.65
|
4.46
|
24.19
|
BFII
|
112.10
|
118.50
|
6.40
|
6.01
|
3.15
|
BFII
|
PPL327
|
105.30
|
109.75
|
4.45
|
3.54
|
5.33
|
BFII
|
127.20
|
127.85
|
0.65
|
0.53
|
4.76
|
BFII
|
135.25
|
137.10
|
1.85
|
1.51
|
6.47
|
BFII
|
PPL328A
|
129.05
|
132.45
|
3.40
|
3.25
|
1.17
|
BFII
|
149.90
|
154.20
|
4.30
|
2.80
|
12.91
|
BFII
|
171.20
|
174.20
|
3.00
|
1.84
|
0.86
|
BFII
|
PPL333
|
174.65
|
176.60
|
1.95
|
1.83
|
6.54
|
BFII
|
PPL337
|
99.75
|
105.85
|
6.10
|
5.34
|
4.35
|
BFII
|
PPL338
|
58.80
|
60.70
|
1.90
|
1.79
|
1.56
|
BFII
|
72.80
|
74.60
|
1.80
|
1.49
|
31.72
|
BFII
|
PPL339C
|
73.25
|
74.85
|
1.60
|
1.02
|
27.59
|
BFII
|
PPL340
|
52.85
|
60.75
|
7.90
|
6.24
|
9.05
|
BFII
|
64.50
|
65.75
|
1.25
|
1.13
|
7.01
|
BFII
|
68.50
|
71.00
|
2.50
|
2.46
|
4.87
|
BFII
|
PPL342
|
175.30
|
176.80
|
1.50
|
0.68
|
2.18
|
BFII
|
PPL343
|
101.75
|
104.10
|
2.35
|
1.41
|
0.66
|
BFII
|
116.60
|
117.30
|
0.70
|
0.44
|
7.46
|
BFII
|
122.10
|
122.60
|
0.50
|
0.26
|
11.08
|
BFII
|
PPL344
|
173.10
|
173.95
|
0.85
|
0.82
|
14.26
|
BFII
|
176.25
|
176.55
|
0.30
|
0.28
|
39.54
|
BFII
|
PPL357
|
32.35
|
41.00
|
8.65
|
6.98
|
4.94
|
BFII
|
PPL363
|
54.55
|
58.55
|
4.00
|
3.35
|
23.95
|
BFII
|
FSB554
|
33.25
|
34.70
|
1.45
|
1.22
|
5.51
|
BF
|
FSB556
|
20.20
|
24.50
|
4.30
|
1.54
|
2.97
|
BF
|
PPL320
|
110.45
|
112.70
|
2.25
|
2.22
|
0.75
|
BF
|
142.60
|
145.60
|
3.00
|
2.71
|
1.66
|
BF
|
146.40
|
148.60
|
2.20
|
1.99
|
4.17
|
BF
|
PPL321
|
104.80
|
106.95
|
2.15
|
1.46
|
1.20
|
BF
|
114.30
|
123.95
|
9.65
|
6.57
|
6.34
|
BF
|
130.80
|
131.95
|
1.15
|
1.13
|
25.40
|
BF
|
138.60
|
139.80
|
1.20
|
0.77
|
2.61
|
BF
|
142.80
|
146.25
|
3.45
|
2.21
|
2.40
|
BF
|
PPL324
|
109.20
|
112.80
|
3.60
|
2.94
|
1.43
|
BF
|
132.55
|
134.10
|
1.55
|
1.47
|
6.03
|
BF
|
136.45
|
137.05
|
0.60
|
0.57
|
2.83
|
BF
|
139.00
|
141.45
|
2.45
|
2.33
|
4.41
|
BF
|
143.20
|
144.30
|
1.10
|
1.09
|
5.29
|
BF
|
PPL325
|
160.80
|
165.50
|
4.70
|
3.85
|
1.46
|
BF
|
PPL326
|
128.85
|
129.40
|
0.55
|
0.35
|
7.63
|
BF
|
142.40
|
144.25
|
1.85
|
1.60
|
1.14
|
BF
|
148.05
|
151.45
|
3.40
|
1.54
|
2.66
|
BF
|
PPL330A
|
91.80
|
92.90
|
1.10
|
0.73
|
3.98
|
BF
|
119.25
|
124.30
|
5.05
|
5.05
|
4.11
|
BF
|
PPL331
|
114.55
|
115.85
|
1.30
|
1.19
|
13.48
|
BF
|
PPL334
|
173.40
|
180.60
|
7.20
|
6.17
|
6.09
|
BF
|
PPL339C
|
90.65
|
92.10
|
1.45
|
0.83
|
1.60
|
BF
|
PPL340
|
84.60
|
88.30
|
3.70
|
3.47
|
3.33
|
BF
|
PPL343
|
137.50
|
146.00
|
8.50
|
7.84
|
3.92
|
BF
|
165.60
|
167.45
|
1.85
|
1.71
|
4.00
|
BF
|
PPL350
|
167.70
|
172.90
|
5.20
|
4.94
|
12.92
|
BF
|
179.65
|
186.10
|
6.45
|
6.22
|
5.05
|
BF
|
PPL351
|
122.45
|
124.45
|
2.00
|
1.72
|
19.83
|
BF
|
PPL377
|
55.80
|
63.90
|
8.10
|
7.68
|
4.33
|
BF
|
PPL380
|
64.10
|
66.80
|
2.70
|
2.35
|
13.16
|
BF
|
FSB546
|
48.90
|
50.20
|
1.30
|
0.63
|
5.70
|
BA
|
67.30
|
78.60
|
11.30
|
5.48
|
6.01
|
BA
|
PPL320
|
72.05
|
73.20
|
1.15
|
0.93
|
1.96
|
BA
|
PPL324
|
71.45
|
71.75
|
0.30
|
0.29
|
15.24
|
BA
|
82.40
|
83.85
|
1.45
|
1.42
|
1.43
|
BA
|
PPL335
|
82.20
|
88.00
|
5.80
|
4.02
|
3.15
|
BA
|
96.30
|
98.55
|
2.25
|
2.17
|
2.28
|
BA
|
99.50
|
101.70
|
2.20
|
2.12
|
1.55
|
BA
|
106.30
|
110.00
|
3.70
|
3.20
|
4.24
|
BA
|
PPL336
|
95.70
|
100.25
|
4.55
|
1.70
|
1.19
|
BA
|
PPL335
|
41.80
|
42.65
|
0.85
|
0.80
|
1.77
|
C
|
PPL336
|
40.85
|
42.55
|
1.70
|
1.65
|
1.31
|
C
|
47.70
|
49.35
|
1.65
|
1.58
|
1.68
|
C
|
FSB552A
|
44.40
|
46.55
|
2.15
|
2.14
|
1.12
|
LFW
|
PPL325
|
94.95
|
99.50
|
4.55
|
2.47
|
3.92
|
LFW
|
103.05
|
105.00
|
1.95
|
1.78
|
1.64
|
LFW
|
PPL326
|
78.00
|
83.65
|
5.65
|
4.53
|
7.10
|
LFW
|
PPL328A
|
115.90
|
119.65
|
3.75
|
3.07
|
1.01
|
LFW
|
PPL333
|
116.60
|
118.50
|
1.90
|
1.41
|
1.93
|
LFW
|
PPL338
|
23.05
|
24.9
|
1.85
|
1.55
|
11.24
|
LFW
|
38.50
|
39.8
|
1.3
|
0.78
|
3.25
|
LFW
|
PPL339C
|
26.40
|
28.85
|
2.45
|
1.63
|
3.99
|
LFW
|
PPL340
|
20.10
|
21.75
|
1.65
|
1.06
|
11.12
|
LFW
|
PPL341
|
91.05
|
93.4
|
2.35
|
2.31
|
1.15
|
LFW
|
145.00
|
146.65
|
1.65
|
1.06
|
3.18
|
LFW
|
PPL342
|
121.40
|
122.70
|
1.30
|
1.25
|
6.24
|
LFW
|
124.20
|
129.20
|
5.00
|
4.82
|
1.67
|
LFW
|
132.35
|
134.15
|
1.80
|
1.73
|
2.18
|
LFW
|
PPL343
|
61.80
|
64.60
|
2.80
|
2.23
|
2.73
|
LFW
|
85.05
|
85.95
|
0.90
|
0.40
|
1.89
|
LFW
|
PPL344
|
90.20
|
95.60
|
5.40
|
5.21
|
1.89
|
LFW
|
PPL363
|
32.65
|
40.45
|
7.80
|
5.56
|
6.25
|
LFW
|
PPL321
|
100.00
|
102.15
|
2.15
|
1.49
|
7.23
|
LHW
|
PPL320
|
122.00
|
123.45
|
1.45
|
1.22
|
0.63
|
LPA
|
PPL325
|
141.50
|
146.60
|
5.10
|
2.73
|
5.13
|
LPA
|
PPL329
|
92.25
|
98.85
|
6.60
|
6.45
|
1.30
|
LPA
|
PPL330A
|
112.55
|
115.80
|
3.25
|
2.66
|
4.48
|
LPA
|
PPL331
|
105.75
|
108.00
|
2.25
|
2.16
|
4.89
|
LPA
|
PPL346
|
26.60
|
29.20
|
2.60
|
1.49
|
3.73
|
SW
|
71.70
|
72.80
|
1.10
|
0.63
|
12.05
|
SW
|
100.75
|
101.85
|
1.10
|
0.63
|
3.58
|
SW
|
PPL347
|
13.95
|
25.20
|
11.25
|
10.34
|
3.27
|
SW
|
52.85
|
55.75
|
2.90
|
1.66
|
1.42
|
SW
|
PPL348
|
48.65
|
52.65
|
4.00
|
2.29
|
4.30
|
SW
|
SOURCE Jaguar Mining Inc.