All dollar amounts are in thousands of U.S.
dollars unless stated otherwise
TSX-V: JAG
Fourth Quarter 2015 ("Q4 2015") Highlights
- Consolidated gold production of 23,169 ounces up 3.4% compared
to 22,456 ounces of gold in the fourth Quarter 2014 ("Q4
2014")
- Average grade profile continues to improve with 216,000 tonnes
processed at average grade of 3.96 g/t compared to 258,000 tonnes
at an average head grade of 3.02 g/t in Q4 2014
- Turmalina gold production of 14,449 ounces, up 20%, compared to
12,067 ounces of gold in Q4 2014, on increasing grade at 4.79 g/t
and higher recovery at 91%
- Caeté gold production of 8,720 ounces, compared to 10,389
ounces of gold in Q4 2014, on higher grade of 2.59 g/t, significant
improvement in recovery at 90%
Fiscal Year End 2015 Highlights
- Consolidated gold production of 90,421 ounces, compared to
92,057 ounces of gold in 2014, on increasing average grade profile
of 3.67 g/t and strong recovery of 90%
- Turmalina gold production of 50,659 ounces, up 5.6% compared to
47,968 ounces of gold in 2014, on higher grade of 4.25 g/t and
higher recovery at 91%
- Caeté gold production of 39,762 ounces on higher grade of 2.92
g/t and strong recovery of 89%
- Gold sales of 92,988 ounces up slightly compared to 92,264
ounces of gold in 2014
- Preliminary Cash and bullion at fiscal year end, December 31, 2015, approximately $15.3 million
TORONTO, Jan. 19, 2016 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSXV: JAG) is pleased to report
consolidated annual gold production of 90,421 ounces in 2015 (2014
– 92,057 ounces). A total of 875,000 tonnes was processed in 2015
(2014 – 1,038,000 tonnes) at an average grade of 3.67 grams per
tonne (2014 – 3.03 grams per tonne). Mill recoveries for the
year 2015 averaged 90% (2014 - 90%).
In the fourth quarter of 2015, the Company reported gold
production of 23,169 ounces (Q4 2014 – 22,456 ounces). Mill
throughput during the fourth quarter totaled 216,000 tonnes at an
average grade of 3.96 grams per tonne.
Rodney Lamond, President and CEO
of Jaguar, commented, "In 2015 Jaguar performed well on many
measures and delivered slightly higher gold sales of 92,988 ounces.
Our team achieved a significant improvement in the average
grade profile from our assets and demonstrated the underlying
strength of the deposits at Turmalina and also at Caeté. Our
continued focus on grade control resulted in an 18.1% improvement
in grade to 4.25 g/t at Turmalina and helped drive higher
recoveries of 91%. The upside potential at Turmalina at the
end of the fourth quarter was impacted by the unanticipated
maintenance shutdown of Mill #2 (reported on December 21, 2015) however, the improved grades
and recovery helped to offset the lower than expected production
compared to 2015 guidance. Looking ahead, we are on track to
deliver an updated Mineral Reserve and Resource statement by the
end of the first quarter 2016, which we expect will improve the
geological understanding of our assets and will demonstrate
substantial resource growth potential. Our current top
priority is to build confidence in our mine plans and to review
opportunities for delivering improved operational performance to
achieve safe, sustainable and profitable physical performance in
2016 and beyond."
The consolidated production for the quarter and year ended
December 31, 2015 is as follows:
|
|
|
|
|
Production
|
Q4
2015
|
Q4
2014
|
YTD
2015
|
YTD
2014
|
|
Turmalina
|
Caeté
|
Total
|
Turmalina
|
Caeté
|
Total
|
Turmalina
|
Caeté
|
Total
|
Turmalina
|
Caeté
|
Total
|
Tonnes
milled
|
100,000
|
116,000
|
216,000
|
117,000
|
141,000
|
258,000
|
406,000
|
469,000
|
875,000
|
442,000
|
596,000
|
1,038,000
|
Recovery
|
91%
|
90%
|
90%
|
90%
|
88%
|
89%
|
91%
|
89%
|
90%
|
90%
|
88%
|
90%
|
Head grade
(grams/tonne)
|
4.79
|
2.59
|
3.96
|
3.60
|
2.57
|
3.02
|
4.25
|
2.92
|
3.67
|
3.65
|
2.56
|
3.03
|
Gold
ounces:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Produced
|
14,449
|
8,720
|
23,169
|
12,067
|
10,389
|
22,456
|
50,659
|
39,762
|
90,421
|
47,968
|
44,089
|
92,057
|
|
Sold
|
15,527
|
8,889
|
24,416
|
11,243
|
10,157
|
21,400
|
51,819
|
41,169
|
92,988
|
47,947
|
44,317
|
92,264
|
Exploration and
definition drilling (meters)
|
6,760
|
-
|
6,760
|
4,132
|
5,868
|
10,000
|
25,603
|
10,635
|
36,238
|
17,901
|
19,871
|
37,772
|
Average realized gold
price (US$/ounce)
|
|
|
$ 1,100
|
|
|
$ 1,204
|
|
|
$ 1,145
|
|
|
$ 1,261
|
Details of the Company's financial performance, including
capital and operating costs, will be included in its fourth quarter
2015 financial results expected to be released on March 24, 2016.
Outlined below is the Company's cash and gold bullion position
as at December 31, 2015.
|
Cash and gold
bullion, as at
|
|
|
|
|
|
|
|
December 31,
2015
|
Cash
|
|
|
|
|
|
|
|
15,320
|
Gold
bullion
|
|
|
|
|
|
|
|
-
|
Total cash and gold
bullion
|
|
|
|
|
|
|
|
15,320
|
2016 Consolidated
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Consolidated
Guidance
|
|
|
|
|
Low
|
|
High
|
|
2015
|
Au Production
(ounces)
|
|
|
|
|
90,000
|
|
95,000
|
|
90,421
|
Cash Operating
Costs1
|
|
|
|
|
$ 700
|
|
$ 750
|
|
|
All-in-Sustaining-Costs2
|
|
|
|
|
$ 950
|
|
$ 1,000
|
|
|
FX Assumptions (R$
per USD)
|
|
|
|
|
3.80
|
|
4.00
|
|
|
About Jaguar Mining Inc.
Jaguar Mining Inc. is
engaged in the acquisition, exploration, development and operation
of gold producing properties in Brazil. The Company holds mineral
concessions comprising 23,777 hectares in the Iron Quadrangle
mining district of Brazil, a
prolific greenstone belt located near the city of Belo Horizonte in the State of Minas Gerais,
where the Company's current operating mines are located. In
addition, Jaguar holds mineral concessions totaling 131,332
hectares in the State of Maranhão, where the Company's Gurupi
Project is located and 34,223 hectares in the State of Ceará, where
the Company's Pedra Branca Project is located. The Company
may consider the acquisition, exploration, development and
operation of other gold properties.
The Company currently produces gold at its Turmalina and Caeté
operations in Minas Gerais, while the Company's Paciȇncia
operation, also located in Minas Gerais, has been on care and
maintenance since 2012. Total Proven and Probable Mineral
Reserves as at December 31, 2014 for
Caeté and Turmalina (Southern
Brazil) include 1,871,000 tonnes at 4.43 g/t of gold,
containing 267,000 ounces of gold. Total Proven and Probable
Mineral Reserves as at December 31,
2014 for the Gurupi Project (Northern Brazil) include 63,757,000 tonnes at
1.14 g/t of gold, containing 2,328,000 ounces of gold. Total
Proven and Probable Mineral Reserves as at December 31,
2014 for both Southern Brazil and
Northern Brazil include 65,628,000
tonnes at 1.23 g/t of gold, containing 2,595,000 ounces of
gold. Notes for the Company's Reserves and Resources can be
found in the most recent Annual Information Form.
Potential for an increase in gold production exists through
further exploration and development of the Company's existing
brownfield land package around its existing mines and through the
development of the Company's Gurupi Project, with potential for an
open-pit gold mining operation. The Company is led by a
proven executive management team with extensive gold operations and
development experience in South America.
FORWARD-LOOKING STATEMENTS
Certain statements in
this press 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. In this press release,
forward-looking information includes estimates, projections and
statements as to the Company's reasonable expectations of
production and sales volumes, capital expenditure and mine
production costs, the impact of ore grades on future production,
the potential of production disruptions, the outcome of mine
permitting, the outcome of legal proceedings which involve the
Company, the future price of gold and foreign exchange ratios,
tonnes milled, recovery rates and definition/delineation
drilling. With respect to forward-looking information
contained herein, the Company has made numerous assumptions
including among other things, assumptions about the price of gold,
anticipated costs and expenditures and the ability to achieve the
Company's forecast plans regarding its operations and financial
performance. Management does not have firm commitments for all of
the costs, expenditures, prices or other financial assumptions used
to prepare the financial outlooks or assurance that such results
will be achieved. Forward-looking information contained in
forward-looking statements is based on assumptions that involve a
number of known and unknown risks and uncertainties, including
among others the uncertainties with respect to the price of gold,
labour disruptions, mechanical failures, procurement and delivery
of parts and supplies to the operations, and uncertainties
inherent to capital markets in general, which, if incorrect,
may cause actual results to differ materially from those
anticipated by Jaguar and described herein.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking statements
made in this press 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 Jaguar's
expectations as at the date of this press 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 press release is expressly qualified by this
cautionary statement.
Non-IFRS Measures
This press release provides
certain financial measures that do not have a standardized meaning
prescribed by IFRS. Readers are cautioned to review the below
stated footnotes where the Company expanded on its use of non-IFRS
measures.
Footnotes
1. Cash operating costs and cash
operating cost per ounce are non-IFRS measures. In the gold mining
industry, cash operating costs and cash operating costs per ounce
are common performance measures but do not have any standardized
meaning. Cash operating costs are derived from amounts included in
the Consolidated Statements of Comprehensive Income (Loss) and
include mine site operating costs such as mining, processing and
administration as well as royalty expenses, but exclude
depreciation, depletion share-based payment expenses and
reclamation costs. Cash operating costs per ounce are based on
ounces produced and are calculated by dividing cash operating costs
by commercial gold ounces produced; US$ cash operating costs per
ounce produced are derived from the cash operating costs per ounce
produced translated using the average Brazilian Central Bank R$/US$
exchange rate. The Company discloses cash operating costs and cash
operating costs per ounce as it believes those measures provide
valuable assistance to investors and analysts in evaluating the
Company's operational performance and ability to generate cash
flow. The most directly comparable measure prepared in accordance
with IFRS is total production costs. A reconciliation of cash
operating costs per ounce to total production costs for the most
recent reporting period, the three months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at www.sedar.com.
2. All-in sustaining cost is a
non-IFRS measure. This measure is intended to assist readers in
evaluating the total costs of producing gold from current
operations. While there is no standardized meaning across the
industry for this measure, except for non-cash items the Company's
definition conforms to the all-in sustaining cost definition as set
out by the World Gold Council in its guidance note
dated June 27, 2013. The Company defines all-in sustaining
cost as the sum of production costs, sustaining capital (capital
required to maintain current operations at existing levels),
corporate general and administrative expenses, and in-mine
exploration expenses. All-in sustaining cost excludes growth
capital, reclamation cost accretion related to current operations,
interest and other financing costs and taxes. A reconciliation of
all-in sustaining cost to total production costs for the most
recent reporting period, the three months ended September 30,
2015 is set out in the Company's third quarter 2015 MD&A
filed on SEDAR at www.sedar.com.
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.
SOURCE Jaguar Mining Inc.