Jaguar Achieves Major Milestone of Over 1.1
Million Ounces of Gold Production
TSX-V: JAG
TORONTO, July 13, 2016 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX-V: JAG) today announced
multiple high-grade drill intercepts generated from 46 infill drill
holes (7,310 metres from a total of a 7,842 metre program) designed
to test the current indicated and inferred resource envelope of
Orebody A at Turmalina Gold Mine ("Turmalina"). The 46 drill holes
do not include four additional holes (532 metres) that are pending
assay results.
Drilling Highlights and Key Intercepts
- Drill intercepts completed confirm the continuation of
high-grade gold mineralization down-plunge of Orebody A, 170 metres
below current production workings, while also increasing confidence
in the geological model of Orebody A through increased drill
density.
- Drill results provide the potential to upgrade current
inferred resources to a higher category and include the following
key intercepts:
- Drill hole FTS1299 intercepted 21.66 grams per tonne gold
("g/t Au") over 8.48 metres (ETW 7.1m)
- Drill hole FTS1298 intercepted 18.26 g/t Au over 8.39 metres
(ETW 5.9m)
- Drill hole FTS1268 intercepted 12.87g/t Au over 20.70 metres
(ETW 17.5m), including 29.48 g/t gold over 6.64 metres (ETW
5.6m) and 22.24 g/t Au over 2.94 metres (ETW 2.5m)
- Turmalina Gold Complex has achieved over 500,000 ounces of
gold production since its commissioning in 2007. Orebody A is the
main contributor to gold production at Turmalina. Orebody A has
been outlined along a strike length of approximately 250 m to 300 m
and remains open at depth below the current drilling
program.
ETW - Estimated true width
Rodney Lamond, President and
Chief Executive Officer of Jaguar, stated: "These
drilling results are highly significant as they represent the first
phase of infill drilling programs focused on increasing the
geological confidence of Orebody A at Turmalina. Drilling results
confirm that the high-grade mineralization recently mined from
Orebody A continues 170 metres below the current working production
levels, with grades persisting at depth. In addition, these results
also reinforce the excellent potential to expand Orebody A
down-plunge, as well as potentially increasing mineral resources as
we work towards upgrading current inferred resources to a higher
category. We are continuing with our infill drilling programs on
Orebody A as a priority target given the excellent grades and
widths we have encountered. In addition to this program, we are
initiating a deep drilling program on Orebody C, expected to
commence during Q3 2016, in an effort to identify higher grade
mineralized ore shoots within Orebody C to augment the main
production from Orebody A."
Turmalina Gold Deposit
The Pitangui area, where the
Turmalina Mine is located, is underlain by rocks of Archaean and
Proterozoic age. Archaean units include a granitic basement,
overlain by the Pitangui Group, a sequence of ultramafic to
intermediate volcanic flows and pyroclastics and associated
sediments. The Turmalina deposit is hosted by chlorite-amphibole
schist and biotite schist units within the Pitangui Group. All
units have been metamorphosed to the amphibolite grade.
The mineralization at the Turmalina Mine is typically epigenetic
and consists of a number of tabular bodies that are spatially
related to a BIF. These tabular bodies are grouped together
according to spatial configuration and gold content into Orebodies
A, B, and C. Gold can occur within the BIF itself, but can equally
occur in the other host lithologies.
Figures 1 and 2 below illustrate the spatial distribution of the
known targets at Turmalina. Figure 3 illustrates a detailed
longitudinal section of Turmalina.
Gold mineralization occurs in fine grains associated with
sulphides in sheared schists (Orebody A) and BIF sequences (Orebody
C). Gold particles average 10 μm to 20 μm and are mostly associated
with arsenopyrite, quartz, and micas (sericite and biotite).
The main production of the mine comes from Orebody A, which is a
steeply east dipping tabular deposit, that is located in a biotite
schist host rock with a steep southeasterly plunge. The
mineralization in this deposit has been outlined along a strike
length of approximately 250 m to 300 m and to depths of 700 m to
750 m below surface.
Orebody C is a series of 14 lenses that are located to the west
in the structural footwall of Orebody A and are generally of lower
grade than Orebody A. They strike northwest and dip steeply to the
northeast. A minor amount of production has been achieved from
these lenses to date. The mineralization in this deposit has been
outlined along a strike length of approximately 800 m to 850 m and
to depths of 400 m to 450 m below surface.
Orebody A and C Drill Program
The Company has
continued drilling for down-plunge extensions of Orebody A to
assess the growth potential for Measured and Indicated Mineral
Resources. In addition, drilling has focused on providing increased
definition and confidence in the near-term mine operation within
the Indicated mineral resource.
The development of a new exploration drilling horizon in the
hanging wall of the structure is currently being reviewed and
considered to drill the Orebody A down-plunge continuity below the
current inferred resource envelope.
Additional deep exploration drilling is also planned to test the
promising Orebody C SE down-plunge extension below the known
resources, in order to gradually increase total Turmalina
throughput.
The assessment of the historical geological information and the
rational use of state-of-the-art 3-D software are strongly
contributing to the understanding of the gold emplacement and
consequent target generation of new resource identification.
A schematic geological cross section (Figure 2) below
illustrates the structural positions of the Orebody A and C areas
with respect to Orebody B, Faina, and Pontal.
Significant Gold Production Milestones Achieved
In
2007, the Turmalina Gold Complex commenced mining operations and
has since maintained a consistent production level, achieving more
than 500,000 ounces of gold produced to date. Combining total gold
production from Turmalina with total gold production from the
Company's other gold assets, Jaguar has exceeded a major milestone
producing more than 1.1 million ounces of gold production as at Q2
2016 in one of the most prolific gold camps in South America, the Iron Quadrangle in the
state of Minas Gerais, Brazil.
Rodney Lamond, President and
Chief Executive Officer of Jaguar, commented: "I am extremely
proud of all of our employees and support groups who together
achieved a remarkable gold production milestone of 1.1 million
ounces which reflects the gold production capability of our gold
mines in Brazil. We continue to be
well- positioned for future growth and to deliver on our goals in a
safe and responsible operating environment."
With the recent success of key exploration programs and a cash
balance of US$17.5 million as at
June 30, 2016, the Company remains
committed to investing in exploration programs that will support
the replacement of depleted resources. Additionally, the
Company will focus its exploration efforts on areas that will
contribute to the growth of its sustainable production profile from
its core producing assets: Turmalina, Pilar, and Roça Grande.
Drill Intercepts
The highlighted drilling intercepts
contained in this news release (Table #1) are down-plunge of
current underground workings at Orebody A. Table #1 comprises
intersections drilled between January
2016 and June 2016, and are
contained within the current inferred resource envelope, as
detailed in the "Technical Report On The Turmalina Mine, Minas
Gerais State, Brazil", released
and filed on SEDAR on May 24, 2016
("The Turmalina Technical Report"). With these results, the Company
is expecting to replace the reserves being depleted in 2016
and confirming the down-plunge continuity and strength in grade and
tonnage of the mineralization.
The impact of these intercepts was not incorporated into the
reserve/resource model update that was disclosed in a news release
on April 7, 2016. The effect of
incorporating the new drill data into the reserve/resource model
will only be ascertained and quantifiable once a reserve and
resource model update is conducted, later in the year, as
additional data is gathered.
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 has implemented 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
Turmalina Technical Report filed on Jaguar's 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 approximate 191,000 hectares. The Company's
principal operating assets are located in 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 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.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Table #1 – Drill Results
Turmalina Gold
Mine
Drill
Results
|
Hole
ID
|
|
Date
|
|
From
(m)
|
|
To
(m)
|
Downhole Interval
(m)
|
Estimated
True Width
(m)
|
Gold Grade
(g/t
Au)
|
FTS1260
|
|
12-01-16
|
|
112.0
|
|
125.9
|
13.9
|
5.5
|
10.24
|
Including
|
|
12-01-16
|
|
112.0
|
|
120.5
|
8.5
|
3.4
|
15.50
|
|
|
|
|
|
|
|
|
|
|
FTS1261
|
|
06-01-16
|
|
73.3
|
|
77.1
|
3.7
|
2.6
|
2.75
|
|
|
|
|
|
|
|
|
|
|
FTS1262
|
|
15-02-16
|
|
205.7
|
|
227.2
|
21.5
|
9.0
|
4.10
|
Including
|
|
15-02-16
|
|
205.7
|
|
220.7
|
15.0
|
6.2
|
4.56
|
|
|
|
|
|
|
|
|
|
|
FTS1263
|
|
01-02-16
|
|
254.5
|
|
258.2
|
3.7
|
3.0
|
3.00
|
|
|
|
|
|
|
|
|
|
|
FTS1264
|
|
06-01-16
|
|
84.1
|
|
101.0
|
16.9
|
10.5
|
5.37
|
|
|
|
|
|
|
|
|
|
|
FTS1265
|
|
01-01-16
|
|
123.6
|
|
134.0
|
10.5
|
6.9
|
6.84
|
|
|
|
|
|
|
|
|
|
|
FTS1266
|
|
21-01-16
|
|
120.9
|
|
131.2
|
10.3
|
6.9
|
5.45
|
|
|
|
|
|
|
|
|
|
|
FTS1267
|
|
19-01-16
|
|
113.0
|
|
115.8
|
2.9
|
2.1
|
10.96
|
|
|
|
|
|
|
|
|
|
|
FTS1268
|
|
21-01-16
|
|
141.7
|
|
162.4
|
20.7
|
17.6
|
12.87
|
Including
|
|
21-01-16
|
|
141.7
|
|
148.3
|
6.6
|
5.6
|
29.48
|
Including
|
|
21-01-16
|
|
158.6
|
|
161.5
|
2.9
|
2.5
|
22.24
|
|
|
|
|
|
|
|
|
|
|
FTS1269
|
|
24-02-16
|
|
112.7
|
|
125.0
|
12.3
|
6.2
|
7.62
|
|
|
|
|
|
|
|
|
|
|
FTS1270
|
|
12-01-16
|
|
90.3
|
|
106.7
|
16.4
|
7.2
|
7.08
|
|
|
|
|
|
|
|
|
|
|
FTS1271
|
|
21-01-16
|
|
110.3
|
|
120.3
|
10.0
|
5.0
|
4.16
|
|
|
|
|
|
|
|
|
|
|
FTS1272
|
|
20-01-16
|
|
91.6
|
|
99.1
|
7.5
|
5.0
|
11.17
|
|
|
|
|
|
|
|
|
|
|
FTS1273
|
|
18-02-16
|
|
98.5
|
|
102.1
|
3.7
|
2.8
|
5.69
|
|
|
|
|
|
|
|
|
|
|
FTS1274
|
|
02-02-16
|
|
83.6
|
|
84.6
|
1.0
|
1.0
|
1.12
|
|
|
|
|
|
|
|
|
|
|
FTS1275
|
|
03-02-16
|
Exploration drill hole to
investigate granite / volcano
sedimentary rocks
contacts
|
|
|
|
|
FTS1276
|
|
10-02-16
|
Exploration drill hole to
investigate granite / volcano
sedimentary rocks
contacts
|
|
|
|
|
|
|
|
|
|
|
FTS1278
|
|
19-02-16
|
|
90.7
|
|
95.6
|
4.9
|
3.5
|
1.73
|
|
|
|
|
|
|
|
|
|
|
FTS1279
|
|
25-02-16
|
|
97.8
|
|
98.8
|
1.0
|
0.5
|
0.68
|
|
|
|
|
|
|
|
|
|
|
FTS1280
|
|
22-02-16
|
|
168.6
|
|
176.1
|
7.4
|
6.0
|
3.04
|
|
|
|
|
|
|
|
|
|
|
FTS1281
|
|
21-02-16
|
|
127.9
|
|
133.4
|
5.5
|
3.5
|
7.53
|
|
|
|
|
|
|
|
|
|
|
FTS1282
|
|
26-02-16
|
|
118.8
|
|
124.4
|
5.6
|
5.0
|
7.46
|
|
|
|
|
|
|
|
|
|
|
FTS1284
|
|
30-03-16
|
|
89.4
|
|
102.8
|
13.4
|
12.0
|
15.29
|
|
|
|
|
|
|
|
|
|
|
FTS1285
|
|
31-03-16
|
|
86.9
|
|
101.6
|
14.7
|
8.0
|
2.73
|
|
|
|
|
|
|
|
|
|
|
FTS1286
|
|
04-03-16
|
|
133.5
|
|
144.1
|
10.6
|
6.4
|
8.30
|
|
|
|
|
|
|
|
|
|
|
FTS1287
|
|
16-03-16
|
|
118.4
|
|
122.2
|
3.8
|
3.2
|
4.46
|
|
|
|
|
|
|
|
|
|
|
Hole
ID
|
|
Date
|
|
From
(m)
|
|
To
(m)
|
Downhole Interval
(m)
|
Estimated True Width
(m)
|
Gold Grade
(g/t
Au)
|
FTS1288
|
|
10-03-16
|
|
118.1
|
|
123.7
|
5.6
|
4.2
|
4.84
|
|
|
|
|
|
|
|
|
|
|
FTS1289
|
|
04-04-16
|
|
111.2
|
|
113.1
|
1.9
|
1.8
|
6.07
|
|
|
|
|
|
|
|
|
|
|
FTS1290
|
|
01-04-16
|
|
93.5
|
|
96.9
|
3.5
|
3.2
|
7.76
|
|
|
|
|
|
|
|
|
|
|
FTS1291
|
|
29-04-16
|
|
104.9
|
|
107.6
|
2.8
|
2.0
|
1.87
|
|
|
|
|
|
|
|
|
|
|
FTS1292
|
|
01-04-16
|
|
96.9
|
|
116.7
|
19.8
|
14.8
|
5.58
|
Including
|
|
01-04-16
|
|
96.9
|
|
102.4
|
5.5
|
4.1
|
14.30
|
|
|
|
|
|
|
|
|
|
|
FTS1293
|
|
06-02-16
|
|
75.6
|
|
89.5
|
13.9
|
12.2
|
12.17
|
|
|
|
|
|
|
|
|
|
|
FTS1294
|
|
15-05-16
|
|
81.8
|
|
87.3
|
5.5
|
3.5
|
10.87
|
|
|
|
|
|
|
|
|
|
|
FTS1295
|
|
19-05-16
|
|
81.1
|
|
97.7
|
16.6
|
10.4
|
10.24
|
|
|
|
|
|
|
|
|
|
|
FTS1296
|
|
23-05-16
|
|
91.1
|
|
100.5
|
9.4
|
5.6
|
4.74
|
|
|
|
|
|
|
|
|
|
|
FTS1297
|
|
06-01-16
|
|
87.5
|
|
101.0
|
13.5
|
10.7
|
7.71
|
|
|
|
|
|
|
|
|
|
|
FTS1298
|
|
13-06-16
|
|
100.7
|
|
109.0
|
8.4
|
5.9
|
18.26
|
|
|
|
|
|
|
|
|
|
|
FTS1299
|
|
13-06-16
|
|
91.6
|
|
100.1
|
8.5
|
7.1
|
21.66
|
|
|
|
|
|
|
|
|
|
|
FTS1300
|
|
26-05-16
|
|
146.3
|
|
152.6
|
6.3
|
3.4
|
5.44
|
|
|
|
|
|
|
|
|
|
|
FTS1301
|
|
29-05-16
|
|
131.3
|
|
137.9
|
6.6
|
3.0
|
5.33
|
|
|
|
|
|
|
|
|
|
|
FTS1302
|
|
30-05-16
|
|
119.3
|
|
126.6
|
7.4
|
3.2
|
5.77
|
|
|
|
|
|
|
|
|
|
|
FTS1303
|
|
30-05-16
|
|
99.6
|
|
100.5
|
1.0
|
0.5
|
0.71
|
|
|
|
|
|
|
|
|
|
|
FTS1304
|
|
29-04-16
|
|
107.1
|
|
108.9
|
1.8
|
1.6
|
8.42
|
|
|
|
|
|
|
|
|
|
|
FTS1305
|
|
27-06-16
|
|
118.7
|
|
131.7
|
13.0
|
5.0
|
5.65
|
|
|
|
|
|
|
|
|
|
|
FTS1309
|
|
21-06-16
|
|
102.0
|
|
106.6
|
4.6
|
2.1
|
2.92
|
|
|
|
|
|
|
|
|
|
|
FTS1310
|
|
23-06-16
|
|
144.2
|
|
150.8
|
6.5
|
3.1
|
6.27
|
SOURCE Jaguar Mining Inc.