JAG Jaguar Mining Inc

TSX: JAG

TORONTO, May 14, 2019 /PRNewswire/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced drilling results from a further 10 diamond drill holes from ongoing in-mine exploration and definition drilling programs targeting shallow, high grade ore shoots within the Orebody C structure which includes (C-SE, C-Central and C-NW). Please refer to Press Release dated 28^th February for further background.

Initial auger and trench sampling results are reported from a new Exploration Target, "Corrego Brandão" located close to Jaguar´s CCA Plant Facility at Caeté and trench sampling results from the Zona Basal Exploration Target at Turmalina.

Key Intercept Highlights

• Jaguar defines shallow Turmalina Orebody C high grade shoot with 11.20g/t Au over 9.64m (including 31.03gt Au over 3.15m) and 6.85gt Au over 11.08m (including 12.56 gt Au over 4.30m)
  
  
• Auger drilling intercepts 38.71gt Au over 5.80m (including 60.08gt Au over 3.0m) and 16.91gt Au over 3.8m (including 28.70gt Au over 2.0m) reported from new Córrego Brandão Exploration Target close to CCA (Caeté) Plant
  
  
• Positive trenching results confirm bedrock mineralization beneath extensive gold in soil anomaly at Zona Basal Target, Turmalina

Ben Guenther Interim CEO, Jaguar Mining commented: "Exploration results today again highlight the potential to grow production at both CCA and MTL operations from known in-mine and near-mine exploration targets. The goal is to fill both process plants to capacity with quality ounces. We continue to improve our geological understanding of our strategic tenement position within the highly prospective greenstones in Brazil's Iron Quadrangle Region. The continued delivery of positive drilling results on Orebody C-Central has allowed us to plan and develop shallow mineralization which will provide Turmalina near term additional ore faces and operational flexibility. Development of C Central will provide exploration platforms for C NW and extend the orebody laterally to increase longer term production capability."

"We are also very pleased with the Zona Basal Target showing great promise to add future production at Turmalina. Additionally, initial results from Corrego Brandão are highly encouraging and may present a near term production opportunity for our CCA operation near Caeté."

Jon Hill, Expert Advisor, Geology and Exploration, Jaguar Mining Management Committee commented: "The drilling and exploration results reported today are highly encouraging, especially on the back of an 81% increase in Company Proven and Probable Reserves reported in March. The sustained investment in geology and exploration by the Company continues to deliver high quality ounces on which to leverage future production and growth initiatives. We look forward to moving these and a number of other promising exploration projects forward in the coming months."

Exploration Highlights - Turmalina

Definitions: ETW – estimated true width, g/t Au – grams per tonne gold, m – metres, Grade (g/t Au) x Thickness (m) = GM (gram – meters)

• Jaguar defines shallow Turmalina Orebody C high grade shoot with 11.20g/t Au over 9.64m (including 31.03gt Au over 3.15m) and 6.85gt Au over 11.08m (including 12.56 gt Au over 4.30m).
  
  
• Auger drilling intercepts 38.71gt Au over 5.80m (including 60.08gt Au over 3.0m) and 16.91gt Au over 3.8m (including 28.70gt Au over 2.0m) reported from new Córrego Brandão Exploration Target close to CCA (Caeté) Plant
  
  
• Positive trenching results confirm bedrock mineralization beneath extensive gold in soil anomaly at Zona Basal Target, Turmalina
  
  
• Results for a further 10 diamond drill holes targeted to test both the geometry and extensions to high grade intersections at C-Central previously reported (see Press-Release Dated February 28^th, 2019) of 18.35g/t Au over 8.76m (ETW 8.23m) and 9.95g/t Au over 2.29m (ETW 2.0m).
  
  
• New, high grade intersections reported include: 11.20gt Au over 11.50m (ETW 9.64m) (Including 31.03gt Au over 3.75m (ETW 3.15m)) in hole FTS1701, 6.85gt Au over 13.53m (ETW 11.08M) (Including 12.56gt Au over 5.26m (ETW 4.3m) in hole FTS1695 and 9.83gt Au over 10.54m (ETW 7.45m) (including 18.81gt Au over 3.80m (ETW 2.70m)) in hole FTS1700. Please refer to Figures 1 and 2, Table 1 and Appendix 1.
  
  
• The drilling defines a high-grade plunging mineralized ``shoot´´ now termed the ´´C-Central Shoot`` extending over a strike length of some 50m, a width of 8-10m, and a vertical interval of some 150m. Mineralization remains open at depth.
  
  
• Underground development to access C-Central is underway with stoping planned to commence contributing to Turmalina production by early 2020.
  
  
• Turmalina trenching programs completed in Q4-2018 and Q1-2019 have confirmed the presence of bedrock mineralization beneath the extensive Au, As and Sb in soil anomalism discovered at the Zona Basal Target in early 2018. Structurally controlled, greenstone hosted mineralization has been intersected by trenching over a strike length of over two km´s beneath the extensive soil sampling footprint (>100ppb Au) which covers an area of some 3km along strike and up to 500m in width. Mineralized zones defined are associated with sericite-chlorite-silica altered Banded Iron Formation (BIF), Metasedimentary and Metavolcanic rocks and quartz veining. (Please refer to Table 2 and Figure 3)
  
  
• Encouraging trench results include 1.28gt Au over 17.61m including 3.1gt Au over 4.05m and 3.64gt Au over 7.92m including 18.60gt Au over 1.44m.
  
  
• Drilling of a number of priority targets at Zona Basal is planned for the second half of 2019.

Exploration Highlights - CCA (Caeté) New Corrego Brandão Target.

• The Corrego Brandão Exploration Target close to Jaguar´s CCA plant facility near Caeté was generated by soil sampling over a regional conceptual target identified during late 2018. Anomalous gold in soil sampling results (> 100ppb Au) over a strike length of some 400m were followed up in Q1-2019 with geological mapping, trenching and shallow Auger Drilling with very encouraging initial results. (Please refer to Figure 4.)
  
  
• Trench results of significance include 1.89gt Au over 12.23m including 3.08gt Au over 5.70m, 1.59gt Au over 10.22m including 2.77gt Au over 5.06m and 1.13gt Au over 4.90m.
  
  
• Follow-up, vertical shallow auger drilling intersected ferruginous-gossanous material with widespread boxwork textures (after sulphides) and highly encouraging mineralized sample intervals reporting assays of 38.71gt Au over a 5.8m vertical interval including 60.08gt Au over 3.00m while the adjacent hole 25m across strike reported 16.91gt Au over a 3.8m vertical interval which include 28.70gt Au over 2.0m.

Turmalina Gold Mine Drill Results and Intercepts. Orebody C- Central

Table 1. Exploration Drilling Results Orebody C-Central.

* Previously reported Drill Intercepts – February 2019
** Samples analysed at Jaguar´s Caeté Laboratory with check-assays at ALS, (Appendices 2 and 3)

Turmalina Complex – Zona Basal Target.

Table 2. Exploration Results. Zona Basal Target

* Samples analyzed at ALS Laboratory

CCA Complex (Caeté) – Córrego Brandão Target.

Table 3. Exploration Results. Corrego Brandão Target

*Samples analyzed at ALS Laboratory

Qualified Person

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").

Quality Control

Jaguar continues to use a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.

HQ, 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. All diamond drill hole collars are accurately surveyed using a Total Station instrument and down-hole deviations are surveyed using non-magnetic equipment (SPT Stockholm Precision Tools with GyroMaster™ Solid State North Seeker) and a Reflex Gyrosmart 642.

Mean grades are calculated using a variable lower grade cut-off (generally 0.5g/t Au). No upper gold grade cut has been applied to the data.

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. Auger, trench and drill core samples from exploration drillholes, auger holes and trenches are transported in securely sealed bags and sent for physical preparation to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil.

The analysis is conducted at ALS Global's respective facilities (fire assay are conducted by ALS Global in Lima, Peru, and multi-elementary analysis are conducted by ALS Global in Vancouver, Canada). ALS has accreditation in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.

The drilling results presented on this news release are from drill holes completed by Jaguar Mining Inc´s own drilling machines. The infill samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the Roça Grande Mine, Caeté, Minas Gerais. 10 – 15% of samples are submitted to ALS for check assay analysis. Please refer to Appendices 2 and 3 for check-assay results.

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.

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 of a gold producer 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. The Roça Grande Mine has been on temporary 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 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 future mineral resources, potential mineral production opportunities, geological and mineral exploration statistics, ore grades, current and expected future assay results, and definition/delineation/exploration drilling at the Pilar Gold Mine and the Turmalina Gold Mine in Brazil, as well as forward-looking information regarding costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, 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 Pilar Gold Mine (and its expanded exploration footprint) and the Turmalina Gold Mine; 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 its plans regarding its operations and financial performance; uncertainties with respect to the price of gold, labor 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 without limitation environmental hazards, tailings 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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Appendix 1

Drill Hole location data for holes reported in this Press-Release - Orebody C-Central Drilling.

Appendix 2

Check Assay Comparison between Jaguar's Caeté Laboratory Assay Results with ALS Laboratory Assay Results.

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SOURCE Jaguar Mining Inc.