INCREASES RESERVES BY 310% AND GRADE BY
63%
ANNOUNCES 2016 DRILL PROGRAM
____________________________________________________________________________________________
Key Highlights Pilar Gold Mine
- 172,000 ounces of gold in Proven and Probable Reserves, up
310% compared to 2014
- Proven and Probable gold grade of 4.39 g/t increased 63%
compared to 2014
- 514,000 ounces of gold in Measured and Indicated Resources,
up 56% compared to 2014
- Significant increase to life of mine to the end of 2019 at
current production levels
- Latest drilling results and improved block modeling have
confirmed three significant mineralized banded iron formations (BA,
BF, and BFII)
- 2016 definition drill program is planned with 10,725 metres
(61 holes) from underground
TORONTO, March 4, 2016 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX-V: JAG) is pleased to report
its 2015 year-end mineral resource and mineral reserve estimate for
its wholly owned Pilar Gold Mine ("Pilar") prepared in
accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101").
Pilar is an underground gold mine and is part of the Caeté Gold
Complex that also includes the underground Roça Grande gold mine
and a mill operation that processes ore from both mines. The Caeté
Complex is located in the municipalities of Caeté and Santa
Bárbara, respectively, in the state of Minas Gerais, Brazil and is approximately 100 kilometres
from Belo Horizonte, the capital
city of the state of Minas Gerais (see Figure #1).
Pilar Gold Mine Mineral Resource and Reserve Estimates as of
December 31, 2015
(see Tables 1 – 4 below for more detail).
Proven & Probable Reserves: 1,220
million tonnes grading 4.39 g/t Au, containing 172,000 oz Au
Measured & Indicated Resources: 3,479
million tonnes grading 4.59 g/t Au, containing 514,000 oz Au
Inferred Resources: 1,208 million tonnes grading 5.45
g/t Au containing 212,000 oz Au
Rodney Lamond, President and CEO
of Jaguar Mining stated, "We are extremely pleased with the
increased Mineral Resources and Mineral Reserves at
Pilar. With the positive results from our drill programs and
our improved modeling practices at Pilar, we now have a better
understanding of the geological model and its down-plunge
mineralization potential. In addition, the new block model has
increased our confidence in our Mineral Resources and Reserves
inventory. Our priority of building confidence in our mine planning
begins with the confidence in our actual Mineral Reserves. The
large increase in our Mineral Reserve base at Pilar has enabled us
to significantly increase our mine life with sufficient mineral
reserves for four years at the current production profile. The
Inferred Mineral Resource at Pilar also now confirms that
mineralization continues down-plunge on the main mineralized trends
and highlights the considerable potential for further additions to
our Mineral Resource base."
Mr. Lamond continued, "We are also pleased that our latest
drill program has encountered wider mineralized structures at
depth, particularly on BF and BFII formations, resulting in a
significant increase in the number of ounces per vertical metre.
Our drilling has achieved encouraging results, however more
drilling is needed on the BA, BF, and BFII Formations. A drill
program consisting of 10,725 metres is planned for 2016 to explore
and infill drill the down-plunge extensions of these iron-banded
formations, with the key intent to build and strengthen our mine
model for future development."
The Mineral Resource and Reserve estimates were prepared by
Jaguar Mining under the supervision of Jason Cox, P.Eng., and Reno Pressacco, P.Geo. of
Roscoe Postle Associates Inc. ("RPA"). RPA is an independent mining
consultant and each of Messrs. Cox and Pressacco are Qualified
Persons within the meaning of NI 43-101. The effective date of the
estimates is December 31, 2015. An
independent technical report documenting the mineral resource
estimates prepared in accordance with NI 43-101 will be filed on
the System for Electronic Document Analysis and Retrieval (SEDAR)
within 45 days of the date of this news release.
Pilar Gold Mine Exploration Program Drilling
Results
As shown in Figure #2 below, the drill program
encountered three significant mineralized banded iron formations
(BA, BF, and BFII). The BA mineralization and grade appears to be
dropping off at depth, however the footwall flank of the BF and
both the footwall and hanging wall flanks of the BFII unit are in
fact increasing in grade at depths below the active areas currently
being mined. Please refer to news releases dated August 17, 2015 and April
27, 2015 for previous Pilar Mine drill results.
While the drilling results are very encouraging, more drilling
is needed on the BA, BF and BFII formations to upgrade the Mineral
Resources into the Measured and Indicated Resource categories.
A 10,725 metre drill program (61 holes) is planned for 2016.
This drill program will target infill drilling of the down-plunge
extensions of these iron-banded formations.
Updated Pilar Gold Mine Mineral Reserves and Mineral
Resources
For the December 31,
2015 estimates, a new geological and block model was built
under the supervision of RPA. Previously, annual estimates were
internally reviewed. This year's estimates will be included in the
first NI 43-101 Technical Report filed with SEDAR since
March 21, 2010 for Pilar.
As a result of the 2015 diamond drilling campaign and improved
modeling practices, the new reserve report includes a 310% increase
in total reserves to 172,000 ounces (1,220,000 tonnes at an average
grade of 4.39 g/t Au). The 310% increase in reserves compared to
the previous year's estimate of 42,000 ounces (488,000 tonnes at an
average grade of 2.70 g/t Au) exceeded the Company's target of
replacing reserves mined in 2014 and establishing a significant
increase in M&I resources mainly below mine level 7 (see
Figures #3, 4 and 5 below).
The database, used to prepare the estimates, with a cut-off date
of August 31, 2015, comprises 984
drill holes and 16,445 channel samples. The estimate was generated
from a block model constrained by three dimensional (3D) wireframe
models. A capping value varying from 10 to 60 g/t Au was applied
for all eight "Ore Bodies". The wireframe models of the
mineralization and excavated material for Pilar were constructed by
Jaguar and reviewed by RPA. A separate wireframe was built for each
"Ore Body" and was used to constrain the grade estimates into the
block model.
The mineralized material for each "Ore Body" was classified into
the Measured, Indicated, or Inferred Mineral Resource categories on
the basis of the search ellipse ranges obtained from the
variography study, the observed continuity of the mineralization,
the drill hole and channel sample density, and previous production
experience from these ore bodies.
The Mineral Resources are inclusive of Mineral Reserves. For
those portions of the Mineral Resources that comprise the Mineral
Reserve, stope design wireframes were used to constrain the Mineral
Resource reports. Additional Mineral Resources are present that
reside beyond the Mineral Reserves. For these areas,
three-dimensional clipping polygons were prepared to aid in the
estimation of the Mineral Resources. The clipping polygons were
prepared in either plan or longitudinal views, as appropriate. The
clipping polygons were drawn to include continuous volumes of
blocks whose estimated grades were above the stated cut-off grade,
and were not located in mined out areas. The clipping polygons were
used to appropriately code the block model and estimate the Mineral
Resources. At a cut-off grade of 1.93 g/t Au, the Mineral Resources
at Pilar comprise 3.48 million tonnes at an average grade of 4.59
g/t Au containing 514,000 ounces of gold in the Measured and
Indicated Resource category, and 1.21 million tonnes at an average
grade of 5.45 g/t Au containing 212,000 ounces of gold in the
Inferred Mineral Resource category.
Table 1 summarizes the change in Pilar Gold Mine Mineral
Reserves from December 31, 2014 to
December 31, 2015:
Pilar Gold Mine -
Change in Mineral Reserves
|
Gold Ounces (000's)
|
Gold Grade
(g/t)
|
As at December
31
|
2015
|
2014
|
Change
(%)
|
2015
|
2014
|
Change
(%)
|
Proven
Reserves
|
17
|
24
|
(33%)
|
3.15
|
2.84
|
11%
|
Probable
Reserves
|
156
|
19
|
721%
|
4.58
|
2.54
|
81%
|
Total
|
172
|
42
|
310%
|
4.39
|
2.70
|
63%
|
Table 2 summarizes the change in Pilar Gold Mine Mineral
Resources from December 31, 2014 to
December 31,
2015:
Pilar Gold Mine -
Change in Mineral Resources
|
Gold Ounces (000's)
|
Gold Grade
(g/t)
|
As at December
31
|
2015
|
2014
|
Change
(%)
|
2015
|
2014
|
Change
(%)
|
Measured
Resources
|
97
|
171
|
(43%)
|
4.25
|
5.97
|
(29%)
|
Indicated
Resources
|
417
|
158
|
164%
|
4.68
|
5.32
|
(12%)
|
Total - M&I
Resources
|
514
|
329
|
56%
|
4.59
|
5.64
|
(19%)
|
Inferred
Resources
|
212
|
183
|
16%
|
5.45
|
5.65
|
(4%)
|
Table 3 summarizes the Pilar Gold Mine Mineral Reserves as at
December 31, 2015:
Pilar Gold Mine -
Mineral Reserves, December 31, 2015
|
Ore
Body
|
Proven
Reserves
|
Probable
Reserves
|
Proven and
Probable Reserves
|
Tonnes
|
Grade
|
Gold
oz
|
Tonnes
|
Grade
|
Gold
oz
|
Tonnes
|
Grade
|
Gold
oz
|
(000's)
|
(g/t)
|
(000's)
|
(000's)
|
(g/t)
|
(000's)
|
(000's)
|
(g/t)
|
(000's)
|
Ore Body
BA
|
69
|
3.20
|
7
|
-
|
-
|
-
|
69
|
3.20
|
7
|
Ore Body
BF
|
64
|
2.95
|
6
|
343
|
4.44
|
49
|
407
|
4.20
|
55
|
Ore Body
BFII
|
-
|
-
|
-
|
707
|
4.66
|
106
|
707
|
4.66
|
106
|
Ore Body
LFW
|
30
|
3.44
|
3
|
-
|
-
|
-
|
30
|
3.44
|
3
|
Ore Body
LPA
|
1
|
3.19
|
0
|
6
|
4.15
|
1
|
7
|
4.00
|
1
|
Total
|
164
|
3.15
|
17
|
1,056
|
4.58
|
156
|
1,220
|
4.39
|
172
|
Notes:
|
|
1.
|
CIM definitions were
followed for Mineral Reserves;
|
2.
|
Mineral Reserves were
estimated at a break-even cut-off grade of 2.5 g/t Au;
|
3.
|
Mineral Reserves are
estimated using an average long-term gold price of US$1,150 per
ounce;
|
4.
|
Mineral Reserves are
estimated using an average long-term foreign exchange rate of 3.8
Brazilian Reais: 1 US Dollar;
|
5.
|
A minimum mining
width of 2 metres was used;
|
6.
|
Bulk densities used
are either 2.89 t/m3 for iron-formation poor domains or
3.05 t/m3 for iron-formation rich domains;
|
7.
|
Numbers may not add
due to rounding.
|
Table 4 summarizes the Pilar Gold Mine Mineral Resources as at
December 31, 2015:
Pilar Gold Mine
Measured and Indicated Mineral Resources, December 31,
2015
|
Ore
Body
|
Measured
Resources
|
Indicated
Resources
|
Total
Measured
&
Indicated Resources
|
Inferred
Resources
|
Tonnes
|
Grade
|
Gold
oz
|
Tonnes
|
Grade
|
Gold
oz
|
Tonnes
|
Grade
|
Gold
oz
|
Tonnes
|
Grade
|
Gold
oz
|
(000's)
|
(g/t)
|
(000's)
|
(000's)
|
(g/t)
|
(000's)
|
(000's)
|
(g/t)
|
(000's)
|
(000's)
|
(g/t)
|
(000's)
|
Ore Body
BA
|
293
|
4.09
|
39
|
174
|
5.58
|
31
|
467
|
4.64
|
70
|
65
|
5.13
|
11
|
Ore Body
BF
|
259
|
4.57
|
38
|
776
|
4.74
|
118
|
1,035
|
4.7
|
156
|
293
|
6.77
|
64
|
Ore Body
BFII
|
4
|
4.46
|
1
|
874
|
5.11
|
144
|
878
|
5.11
|
145
|
198
|
7.89
|
50
|
Ore Body C
|
80
|
4.24
|
11
|
371
|
4.73
|
56
|
451
|
4.62
|
67
|
140
|
5.10
|
23
|
Ore Body
LFW
|
68
|
3.82
|
8
|
175
|
4.22
|
24
|
243
|
4.11
|
32
|
117
|
4.87
|
18
|
Ore Body
LFW
|
-
|
-
|
-
|
12
|
3.61
|
1
|
12
|
3.61
|
1
|
5
|
3.11
|
0
|
Ore Body
LPA
|
6
|
2.72
|
0
|
50
|
3.99
|
6
|
56
|
3.86
|
7
|
-
|
-
|
-
|
Ore Body
SW
|
-
|
-
|
-
|
338
|
3.28
|
36
|
338
|
3.28
|
36
|
389
|
3.60
|
45
|
Total
|
709
|
4.25
|
97
|
2,770
|
4.68
|
417
|
3,479
|
4.59
|
514
|
1,208
|
5.45
|
212
|
Notes:
|
1.
|
CIM definitions are
followed for Mineral Resources;
|
2.
|
Mineral Resources
were estimated at a break-even cut-off grade of 1.93 g/t
Au;
|
3.
|
Mineral Resources are
estimated using an average long-term gold price of US$1,400 per
ounce;
|
4.
|
Mineral Resources are
estimated using an average long-term foreign exchange rate of 2.5
Brazilian Reais: 1 US Dollar;
|
5.
|
A minimum mining
width of 2 metres was used;
|
6.
|
Bulk densities used
are either 2.89 t/m3 for iron-formation poor domains or
3.05 t/m3 for iron-formation rich domains;
|
7.
|
Gold grades are
estimated by the Inverse Distance Cubed interpolation algorithm
using capped composite samples;
|
8.
|
Mineral Resources are
inclusive of Mineral Reserves;
|
9.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability;
|
10
|
Numbers may not add
due to rounding.
|
Figure #1 shows the location of the Pilar Mine.
Figure #2 shows the orientation of the mineralized banded iron
formations (view looking north).
Figure #3 shows Ore Body BA distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Figure #4 shows Ore Body BF distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Figure #5 shows Ore Body BFII distribution of the Mineral
Resources and Reserves seen from the hanging wall, as well as the
location of the most significant exploration drill hole
intersections.
Qualified Persons
The scientific and technical
information contained in this press release has been reviewed and
approved (i) in respect of the estimated Mineral Reserves and the
Life of Mine Plan (LOMP) by
Jason Cox, P.Eng., of Roscoe Postle
Associates Inc. ("RPA"), and (ii) in respect of the estimated
Mineral Resources by Reno Pressacco, P.Geo., of RPA. RPA is an
independent mining consultant and each of Messrs. Cox and Pressacco
are Qualified Persons within the meaning of 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. 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. Rock channel sampling of the
underground development follows the same standard intervals of the
drill core. The drill core samples are transported in securely
sealed bags to the Jaguar in-house laboratory located at the Roça
Grande Mine, Caeté, Minas Gerais. Some samples are also sent for
check assaying to the independent SGS Geosol laboratory located in
Vespasiano, Minas Gerais. The rock chip samples are transported in
securely sealed bags to the Roça Grande Mine Laboratory, Caeté,
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 Roça Grande Mine Laboratory does not carry an ISO
certification. The SGS Geosol Laboratory is ISO 9001 accredited. As
part of in-house QA/QC, the Roça Grande Mine Laboratory inserts
certified gold standards, blanks and pulp duplicate samples.
About Jaguar Mining Inc.
Jaguar is a gold producer
with mining operations in a prolific greenstone belt in the state
of Minas Gerais, Brazil.
Additionally, Jaguar wholly owns the large-scale Gurupi Development
Project in the state of Maranhão, Brazil. In total, the Company owns mineral
claims covering an area of approximately 205,000 hectares.
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. This news release contains
forward-looking information regarding the development of the Pilar
Gold Mine, the reserve and resource estimates for the Pilar Gold
Mine and the assumptions and parameters related thereto, the
expected mine life and anticipated gold production. 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 and development activities; the estimated timeline for
the development of the Pilar Gold Mine; 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 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.
SOURCE Jaguar Mining Inc.