Jaguar Commences Drill Programs on Near-Mine Surface Targets at Pilar and Turmalina Mines, Brazil High-Priority Targets Include Zona Basal, Faina, Pilarzinho and Corrego Brandão
September 15, 2020 NEWS RELEASE
FOR IMMEDIATE RELEASE TSX: JAG
Jaguar Commences Drill Programs on Near-Mine Surface Targets
at Pilar and Turmalina Mines, Brazil
High-Priority Targets Include Zona Basal, Faina, Pilarzinho and Corrego Brandão
Toronto, Canada, September 15, 2020 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is
pleased to announce the commencement of near -mine surface diamond drilling for high -priority exploration
targets located in and around the Turmalina Gold Mine (“Turmalina”), the Pilar Gold Mine (“Pilar”) and the Caeté
processing facility all located in Minas Gerais, Brazil. The high priority targets include Zona Basal, Faina,
Pilarzinho and Corrego Brandão.
Drill Target Highlights
• At the Corrego Brandão Exploration Target, located near Jaguar’s Caeté Plant, soil sampling, geological
mapping and a recently completed high resolution drone magnetics survey have all significantly extended
the area of interest for drill targeting. A gold in soil anomaly (>100ppb Au) has now been defined in an area
that includes a greater than 5km strike length.
o In 2019, an intersection of 21.32 g/t Au over 12.8m (incl uding 60.08 g/t over 3.0m) was reported
from reconnaissance phase auger drilling (see press release June 4, 2019). Drilling is expected to
commence in Q4-2020 or early 2021 once permitting has been received.
• The Zona Basal Target, located near Turmalina, commenced an initial 10-hole (1,200m) reconnaissance
diamond drilling program in early September 2020. Drilling is currently focused on structurally controlled,
bed-rock mineralized sources reported from trench sampling within an extensive 3km x 0.5km (plus
pathfinder elements Arsenic and Antimony) gold in soil anomaly (>100 ppb Au) coincident with geophysical
(magnetics) anomalies.
• At the Faina Deposit, also located near Turmalina, four large-diameter (PQ) diamond drill -holes were
completed during August 2020 (547.10m) in order t o provide representative samples of mineralized
material for new m etallurgical test work benefiting from modern advancements in extractive metallurgy
subsequent to work completed at Faina prior to 2005. Historically, this resource was considered to have
refractory characteristics resulting in low metallurgical recoveries . Faina currently has a NI 43 -101
compliant Resource (M+I+I) of 418koz at a weighted average grade of 7.21 g/t Au . (Turmalina Technical
Report dated April 20th, 2020).
• At the Pilarzinho Project, located 1.5km along strike to the south-west of the Pilar Mine, a diamond drill rig
has been mobilized to complete a series of surface diamond holes targeting sheared Banded Iron
Formation (“BIF”) related mineralization, previously intersected in trenches and old workings. The targeted
mineralization is associated with the south-western limb of the same regional fold structure which hosts the
mineralization currently being mined at the Pilar Mine.
Vern Baker, CEO, Jaguar Mining commented: “ This is a very exciting time for Jaguar, we are not only building
a sustainable production base in our mines, but we are now funding significant exploration efforts in and around
our producing mines. The exploration team has done an outstanding job over the last several years with very
little investment as we have continued to replace and replenish our resource base and reserves at our mines.
Now the team is ready to take on a strategic, expanded regional exploration program, targeting new resources
that will utilize our current infrastructure and capacity, leading to production growth for the company and
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
strengthening of the exploration team . We now have a significant queue of quality targets beyond our current
programs and we look forward to moving ahead on the exploration properties in the recently announced Iron
Quadrangle Agreement with Iamgold. We are confident that our exploration portfolio will be a key value driver
for our shareholders and stakeholders as we move forward.”
Jon Hill, Vice President, Geology and Exploration, Jaguar Mining commented: “Growth exploration continues to
be one of the major value drivers for the company , as the exploration team is now focused on high-quality
exploration targets within Jaguar´s exten sive Iron Quadrangle portfolio. The time and effort expended by the
team over the past two years on systematic, on-the-ground exploration has greatly enhanced the effectiveness
of integration and interpretation of geological mapping, structural and geoche mical data . Coupled with the
recent, high-resolution drone magnetics data and specialist geophysical processing and interpretation, it is clear
that Jaguar is committed to increasing its exploration investment going forward and is adding capacity and
resources to support these enhanced, drill based, exploration programs.
Corrego Brandão Target-Caeté Plant
• The Corrego Brandão Exploration Target located near Jaguar´s Caeté plant facility was generated by soil
sampling over a regional conceptual target identified in 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 map ping, trenching and shallow auger drilling with very encouraging initial
results.
o In 2019, an intersection of 21.32 g/t Au over 12.8m (including 60.08 g/t over 3.0m) was reported from
reconnaissance phase auger drilling at this target (see press release June 4, 2019).
• In late 2019 and 2020, additional on -strike soil sampling, geological mapping along with a recently completed
high resolution (50m line spacing) drone magnetics survey has significantly extended the area of interest for
drill targeting.
• The gold in soil anomaly (>100ppb Au) has now been defined in an area that includes a greater than 5km strike
length and is believed to be importantly coincident with the highly anomalous pathfinder elements arsenic,
antimony and tellurium. The anomaly is closel y associated with a mafic lithological signature, evident in the
radiometrics images and spatially associated with regional scale folding and thrust faulting.
• Processing, interpretation and inversion modelling of high resolution (50m spaced) drone magnetic s flown in
Q2-2020 has defined a series of distinct targets for drill testing along the trend of the host structure.
• The permitting process for drilling the Corrego Brandão Exploration Target and related priority targets is in
progress and it is expected that drilling will commence in Q4-2020 or early 2021.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Figure 1 (A-F), Corrego Brandão Project Images showing Gold in Soil (A Top Left), Arsenic in Soil (B Top
Right), Antimony in Soil (C Middle Left), Tellurium in soil (D Middle Right), Radiometrics Ternary Image (U -Th-
K) (E Bottom Left) and Geological – Structural Interpretation (F Bottom Right).
Figure 2 Corrego Brandão Project Magnetic Image showing initial targets generated from preliminary Inversion
modeling.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Zonal Basal Target -Turmalina Mine
• Mineralized zones defined in trenching are associated with se ricite-chlorite-silica altered BIF,
Metasedimentary and Metavolcanic rocks and quartz veining. The best trench results reported in 2019 (see
press-release dated June 4, 2019) were 1.28 g/t Au over 17.61m including 3.1 g/t Au over 4.05m and 18.60
g/t Au over 1.44m.
• A high resolution drone magnetics survey at 50m line spacing was completed over the Turmalina Mine and
Exploration Licenses in Q1 -2020. This survey has generated a series of high-quality targets for follow -up
exploration including priority targets coincident with the strong soil anomalism and trench-results at the Zona
Basal Project.
• The magnetics data has defined an area, which both covers and extends the Zona Basal target, and displays
distinct similarities to the geophysical signature over known surface expressions of mineralization currently
being mined at Turmalina. Importantly these targets extend under recent cover soil where soil geochemistry
is ineffective for detecting bedrock mineralization sources. Several drill holes in the initial reconnaissance
program are targeting these covered areas. ( Please see figures 3 and 4 for the location of the Zonal Basal
target).
Figure 3 – Reduced to Pole (RTP) Magnetics Image showing the relative location of the Zona Basal Targets
relative to known mineralized occurrences at Turmalina and Au in Soil anomalism > 100ppb Au.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Figure 4 – Geological Map (left image) and surface geochemistry with trenching results at the Zona Basal
Targets relative. Au in soil anomalism is presented at > 100ppb Au.
Faina Deposit -Turmalina Mine
• The shallow oxide portion of the Faina Deposit was previously mined by Jaguar via an open pit , however
due to the refractory nature of the sulphide mineralization, it was never exploited. Metallurgical Testwork
completed prior to 2005 reported low recoveries of approximately 50% via the conventional processing
currently applied to the free-milling material from the Turmalina mine.
• Advances in metallurgical processes for extraction of gold from refractory ores like Faina, along with excess
crushing and milling capacity at the Turmalina Plant and current favourable economic conditions have
justified an investment in revi ewing the feasibility of the Faina Deposit, including a full review of new
metallurgical test-work.
o To obtain representative samples for this testwork, four large diameter (PQ) diamond drill holes were
completed during August 2020 with a total combined met erage of 547.10m. The holes targeted and
intersected representative sulphide mineralization.
o Sampling of this core is in process after which some 200kgs will be submitted to the laboratory for test-
work. Please see figures 5, 6 and 7 for the location of the Metallurgical drill holes and a cross-sectional
view through the Faina Resource Model.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Figure 5 – Location of Large Diameter Diamond (PQ) Drill Holes completed at the Faina Deposit for Metallurgical
Testwork Samples.
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Figure 6 – Figure showing Faina Resource Model and Oz per vertical meter profile.
Figure 7 Cross – section through the Faina Deposit showing a high grade intersection open at depth ( 10.2 g/t
Au over 9.7m* (*drilled width – true width unknown)).
Pilarzinho Project - Pilar Mine
• At Pilarzinho, a project located 1.5km along strike to the south -west of the Pilar Mine, a total of 12
reconnaissance phase surface diamond holes (1,400m) have been planned to target sheared BIF related
mineralization intersected in trenches and within extensive old workings present in the area. Drilling is expected
to commence in September 2020.
• The targeted mineralization is associated with the south-western limb of the same regional fold structure which
hosts the mineralization currently being mined nearby at the Pilar Mine. (Please see figure 8).
• The best result from surface trench ing reported on April 21 st 2020 (Jaguar AIF) , was 2.67 g/t Au over 8.56m
(including 9.46 g/t Au over 2m).