Jaguar Announces Positive Metallurgical Testwork at High-Grade Faina Deposit Progresses Conceptual MINE Study and Plan
September 7, 2021
FOR IMMEDIATE RELEASE
NEWS RELEASE
TSX: JAG
JAGUAR ANNOUNCES POSITIVE METALLURGICAL TESTWORK AT
HIGH-GRADE FAINA DEPOSIT
PROGRESSES CONCEPTUAL MINE STUDY AND PLAN
• Metallurgical Testwork achieves > 85% gold re covery via a combination of gravity concentration
followed by flotation of gravity tails.
• Faina Measured and Indicated Mineral Resources total 261,000 t at a grade of 6.87 g/t Au, containing
58,000 oz Au.
• Faina Inferred Mineral Resources total 1.5 million tonnes (Mt) at a grade of 7.26 g/t Au, containing
360,000 oz Au.
Toronto, September 7, 2021 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased to
announce that it is progressing conceptual min ing studies and plans to advance its high -grade Faina mineral
resource following positive metallurgical testwork results. The Faina project is located 500m northwest on strike
from its operating Turmalina Gold Mine and Mill Complex, in Minas Gerais, Brasil.
Faina measured and indicated mineral resources (“MRMR”) as of December 31, 2019 (refer to press release
dated 20th April, 2020), totalled 261,000 tonnes at a grade of 6.87 g/t Au, containing 58,000 oz Au And Inferred
Mineral Resources totalled 1.5 million tonnes (Mt) at a grade of 7.26 g/t oz Au, containing 360,000 oz Au*.
* 1. Mineral Resources were estimated at a cut-off grade of 3.8 g/t Au. 2. Mineral Resources are estimated using a long-term gold
price of US$1,400/oz. Au. 3. Mineral Resources are estimated using an average long-term foreign exchange rate of R$2.5: US$1. 4.
No Mineral Reserves currently exist for Faina.
The shallow oxide portion of the Faina deposit was previously mined via an open pit from 1992 to 1993 and
processed by heap leaching, but due to the refractory nature of the sulphide mineralization beneath the oxides,
this portion of the mineralization remains to be exploited. The Faina mineral resource remains open with
exploration potential along strike and extending to depth.
Results from recently completed preliminary metallurgical testwork on Faina sulphide samples selected from
several large – diameter (PQ) diamond drill holes demonstrated that metallurgical recoveries > 85% are reported
from a combination of gravity concentration followed by flotation of gravity tails.
The above results will inform conceptual mine studies and plans supported by modern advances in metallurgical
processes for extraction of gold from refractory ores . Importantly, the studies will incorporate the viability of
adding to the production profile and life of the nearby Turmalina Mine by accessing the deposit north-west from
currently active mining areas and the utilization of available additional crushing and milling capacity.
Simultaneous with the studies , Jaguar is currently engaged in data collection and analysis required for the
estimation of mineral r eserves for Faina, including resource drilling, geotechnical investigation s, analysis of
mining scenarios, and more comprehensive metallurgical test work.
Vern Baker, CEO, Jaguar Mining commented: “Faina is the first project moving from our exploration team into a
potential growth project. Jaguar is focused on building exceptional value through growth that utilizes our existing
capital base, land position, and effective team. There is less than a kilometre between the Faina resource and
active workings at Turmalina, allowing the Faina resource to fit perfectly into our growth concept. We expect to
be able to leverage our underground infrastructure as w ell as our under -utilized plant by adding the Faina
resource into the Turmalina Mine. Faina will probably be accessed from current development headings being
completed to access and expand the CNW resources in the upper levels of Turmalina. We believe we c an
continue to grow the Faina resource as well as upgrade inferred resources to measured and indicated with
additional drilling. Our current conceptual study is targeted at determining our most effective actions to combine
Faina resource into the Turmalina Life-of-Mine plan. Faina can contribute to our company very quickly as it is
located within our current mining permits and will utilize existing infrastructure.”
Figure 1. Location map showing the location of the Faina relative to Jaguar’s Operations within the
Iron Quadrangle, Minas Gerais, Brazil
Key observations from preliminary metallurgical testwork are summarized as follows:
• Two composite samples, SF1 and SF2, selected from diamond drill holes FUH168A and FUH 171
were used for recent preliminary metallurgical test work. (See figure 2 for location of drill holes).
• The estimated gold grade for composite sample SF1 was 6.88 g/t Au and for composite sample SF2
was 9.13 g/t Au.
• The preliminary metallurgical testwork comprised a series of diagnostic tests on composite samples
SF1 and SF2 to determine the amenability of gold extraction using the following different techniques.
▪ Gravity concentration tests using a Knelson MD3 concentrator.
▪ Bottle roll simulated intensive leaching tests of gravity concentrate.
▪ Bottle roll cyanide leaching tests of gravity concentrate.
▪ Bottle roll simulated carbon-in-leach (CIL) tests (cyanide leaching with activated
carbon) of gravity concentrate
▪ Alkaline leaching (NaOH digestion) and cyanide leaching tests on gravity concentrate.
▪ Flotation tests on the combined gravity and intensive leach tails to produce a rougher
concentrate.
▪ Alkaline leaching and cyanide leaching tests on flotation concentrate.
• Chemical analyses were performed on the two composite samples. The average gold and sulphur
grades of sample SF1 were 6.88 g/t Au and 3.21% S, respectively. Sample SF2 was higher in gold
and sulphur grades than sample SF1 and averaged 9.13 g/t Au and 3.36% S.
• The highest gold recovery achieved was from a combination of gravity concentration followed by
flotation of gravity tails on sample SF1 (92.36% overall gold recovery).
• The highest gold recoveries on sample SF2 ranged between 86.25% and 88.49% from a combination
of gravity concentration followed by flotation of gravity tails while this recovery was improved to
89.72% with a secondary flotation test conducted using different reagents.
Table 1 Faina Mineral Resources by Category as at December 31st, 2019.
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)
Oxide 0 0.00 0 18 6.68 4 18 6.68 4 3 5.65 1
Transition 0 0.00 0 8 6.48 2 8 6.48 2 2 6.30 0
Fresh 0 0.00 0 235 6.88 52 235 6.88 52 1537 7.27 359
Total 0 0.00 0 261 6.87 58 261 6.87 58 1542 7.26 360
Notes:
2. Mineral Resources are estimated at a cut-off grade of 3.80 g/t Au.
3. Mineral Resources are estimated using a long-term gold price of US$1,400/oz Au.
4. Mineral Resources are estimated using na average long-term foreign exchange rate of R$2.50:US$1.00.
5. A minimum mining width of two meters was used.
6. Bulk density is 1.70 t/m3 for oxidized material, 2.25 t/m3 for transition and 2.85 t/m3 for fresh, um-weathered material.
7. Gold grades are estimted by inverse distance cubed interpolation algorithm.
8. No Mineral Reserves exist for Faina.
1.Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves
(CIM(2014) definitions) were followed for Mineral Resources.
Measured Resources Indicated Resources Measured & Indicated Resources Inferred Resources
Figure 2. Plan showing location of Faina relative to the Turmalina Mine and Mill Infrastructure and
principal mineralized structures. Please note the location of diamond holes FUH168A and FUH171 from
which composite sulphide samples SF1 and SF2 were selected for preliminary metallurgical testwork.
Figure 3. Long section showing the location of Faina Project relative to current operational areas 500m
along strike at the Turmalina Mine.
Qualified Person
Scientific and technical information contained in this press release has been reviewed and app roved by
Jonathan Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and
Exploration, 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").
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 south -eastern 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 lan d position in the Iron Quadrangle with just over 62,000* hectares (*includes Iamgold JV
Agreement Areas).
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. The Company's principal operating assets are located in the Iron Quadrangle, a prolific
greenstone belt in the state of Minas Gerais and i nclude 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 2019. Additional information is available on the Company's website at
www.jaguarmining.com
For further information please contact:
Vernon Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
416-847-1854
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