Jaguar Mining Announces Production Growth Expected at Pilar Over Next 36 Months; Roça Grande Mine Placed On Care and Maintenance to Focus On Growth Exploration __________________________________________________________________________________________
NEWS RELEASE
March 26, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Announces Production Growth Expected at Pilar Over Next 36 Months;
Roça Grande Mine Placed On Care and Maintenance to Focus On Growth Exploration
__________________________________________________________________________________________
Toronto, Canada, March 26, 2018 – Jaguar Mining In c. ("Jaguar" or the "Company") (TSX: JAG) is pleased
to announce an increase in gold production at the underground Pilar Mine (“Pilar”), expected to continue for the
next 36 months. Pilar is part of the Caeté Complex t hat also includes the underground Roça Grande Mine (“RG”)
and mill operation that processes ore from both mines. As part of refocusing its resources on Pilar and Turmalina
Gold Mine (“Turmalina”), as well as exploration growth activities, the Company made a strategic decision to
temporarily suspend its Roça Grande mine operations.
Key Highlights
Gold production at Pilar over the next 36 months is expected to nearly double to 55,000–60,000 ounces
annually compared to the 2017 production of 34,017 ounces
2018 Pilar gold production guidance increas ed to approximately 39,000–47,000 ounces
Roça Grande mine to be placed on care and maintenance; focus turns to a larger regional growth exploration
program expected to prove up mineral resources and mineral reserves
2018 annual gold production unchanged at 90,000–105,000 ounces
Rodney Lamond, President and CEO of Jaguar Mining co mmented: “We are now seei ng the benefits of the
significant investment we made in growth exploration projects over the last 24 months at our core operating assets
of Pilar and Turmalina. Pilar’s increasing grade profile and greater gold ounces per vertical metre have positioned
the mine to deliver strong production growth over the next 36 months, approximately 55,000–60,000 ounces
annually, nearly double its production in 2017. Capital spending during this period is also forecast to remain stable
as a significant amount of development has already been completed. Over the past two years, Pilar has completed
4.53 kilometres of primary waste dev elopment and 3.85 kilometres of sub-level ore development. We recognized
an opportunity to turn Pilar’s operations into a high performing mine and took the necessary steps to deliver on that
opportunity. We continue to invest in growth projects at Pilar given the significant upside potential that still exists.”
“With our higher cost Roça Grande mine on care and maintenance, we are working to strategically rebuild this mine
for the future. As we have done with our other assets, we will focus on very promising growth exploration projects
that will prove up existing mineral resources and provide a more comple te understanding of unknown mineral
resources to ensure our investment continues to provide a strong return.”
“For 2018, we now expect Pilar’s gold production to increase to between 39,000–47,000 ounces, offsetting the
reduction of ounces from the RG Mine. We are maintain ing the overall Company’s annual production guidance
between 90,000–105,000 ounces for 2018.”
Pilar Expected Production Growth
Following the recently updated Mineral Resources and Mineral Reserves for Pilar, the Company has confirmed it
expects an increase in production growth over the next 36 months. This increase is the result of strategic investment
in exploration and infill drilling over the last year, which has significantly increased the ounce per vertical metre
profile below the current mining horizon. The increasing grad es and profile of ounces per vertical metre will allow
the mine to gradually increase gold production without significantly increasing the capital investment to deliver these
ounces. An increase in the mining fleet is expected in 2019 with an additional two 30-tonne haulage trucks and one
additional fandrill for stoping.
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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
Summary of Pilar Results
Back in January 2016, the Company initiated an accelerated waste development program at Pilar that focused on
deepening the main ramp to access into the newly discovered BFII orebody. The Company hired a mining contractor
to focus on completing the development wo rk to increase overall mining capaci ty of the mine. Over the past two
years, Pilar has completed 4.53 kilometres of primar y waste development and 3.85 kilometres of sub-level ore
development.
In addition to the investment in underground development over the past two years, the Company completed 6,268
metres of growth exploration drilling, which successfully confirmed the down plunge extension of the main BFII and
BF orebodies at Pilar, 300m vertically below the current mining infrastructure.
In March 2018, the Company reported Total Measured Resources increased 277% to 317,000 ounces of gold, net
of depletion, grading 4.47 g/t. Total Measured and Indicated (“M&I”) Resources increased 10% to 532,000 ounces
of gold, grading 4.37 g/t. Inferred Re sources increased 104% to 433,000 ounces grading 5.69 g/t, reflecting a
successful growth exploration drillin g campaign in 2017 targeting high-grade deeper extensions to the principle
banded iron formation orebodies (BFII, BF, and BA) below current mine production levels. Higher quality and
increased grades of newly added mineral resources facilitate resource-to- reserve conversion drilling to be
prioritized in 2018 and scheduled as per the mine plan, while ensuring financial discipline.
In addition, ounces per vertical metre have shown a strong increase across the orebodies resulting from the infill
and growth exploration drilling (shown in Figure#1 and Figure#2).
The increase in resource and ounce per vertical metre at Pilar supports the forecast increased gold production from
its current guidance of 43,000–48,000 ounces in 2018 to 55,000–60,000 ounces per year by 2020.
Pilar Gold Mine 2018 2019 2020
Q1 Q2 Q3 Q4 Total Total Total
Gold Production (oz. Au) 10.2K1 10-12K 10-13K 10-13K 40–48K1 48–55K 55–60K
Sustaining Capex (US$ M) $2.5 $2.5 $3.1 $3.2 $11.3 $12.9 $15.0
1. Q1 2018 includes production from Roça Grande Mine.
Roça Grande Mine Update
The Company has made the difficult decision to tempor arily suspend production at Roça Grande Mine, and will
commence a growth exploration program in the area.
RG is located adjacent to the Caeté processing plant and ha s been supplementing feed from Pilar. Over the last
few years, work has been focused on mining the end of the known resource on the orebodies RG01 and RG07
while infill drilling continued to expand the resources. Due to these conditions, production has decreased resulting
in significantly increased cash costs at unsustainable levels above the average realized gold price.
The Company has planned to commence a broader Regional Growth Exploration program in order to get a complete
understanding of all the orebodies in the region, which will allow management to properly plan the restart of mining
with sufficient reserves and resources to be financially viable. The Company has b een successful in acquiring
concessions around RG (see press release June 21, 2017) , bringing total concession to 1,000 hectares. This
concession includes areas where there has already been underground mining work on RG01 and RG07 orebodies,
and open pit mining on RG 02E, RG 02W, RG03, RG05 and RG06 orebodies. The licensed area contains a number
of strategic exploration ta rgets including the highly prospective Morr o da Mina target, which forms part of the
Banded Iron Formation (“BIF”) continuity running through the concession hosting the mineralization that makes up
the RG complex.
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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
Ounce per Vertical Metre Profile for Pilar Mine
3D schematic for Pilar including Ramp down to 2020 ramp designs and sublevels and for each level the ounces
per vertical metres.
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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 #2 Plan view on level 2 and level 9:
Plan view through Pilar Resources Model (December 31 st 2017) showing remaining Measured Indicated and
Inferred resources.
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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
Qualified Persons
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan
Victor Hill, BSc (Hons) (Economic Ge ology - UCT), 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”).
Caeté Complex
The Caeté Complex is composed of the Roça Grande and Pilar Mines and the Caeté Plant. It is located in the
municipalities of Caeté and Santa Bárbara, in the state of Minas Gerais, Brazil, and is approximately 50 kilometres
from Belo Horizonte, the capital city of the state of Minas Gerais.
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 Gold Mine Complex. The Co mpany also owns the Paciência Gold Mine Complex,
which has been on care and maintenance since 2012. Additional information is available on the Company's website
at www.jaguarmining.com.
For further information please contact:
Rodney Lamond
President & Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Forward-Looking Statements
Certain statements in this news release constitute "forward -looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking info rmation 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," "mi ght," or "will" be taken, occur or be
achieved. This news release contains forward-looking information regardi ng the development of the Pilar Gold
Mine, the reserve and resource estima tes for the Pilar Gold Mine and the assumptions and parameters related
thereto, the expected mine life and ant icipated 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 com petition; ongoing relations with employees and impacted communities; and
general business and economic conditions. Forward-looking information involves 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.
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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
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 re quired by law. The forward-looking
information contained in this news release is expressly qualified by this cautionary statement.
Neither the TSX Exchange nor its Regulations Services Prov ider (as that term is defined in policies of the TSX
Exchange) accepts responsibility for the adequacy or accuracy of this release.