Jaguar Mining Increases Reserves 81%; Large Growing Base of Higher Grade Reserves, Near Surface at Turmalina, To Drive Gold Production Growth and Extend Mine Life
NEWS RELEASE
March 1, 2019 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Increases Reserves 81%; Large Growing Base of Higher Grade Reserves, Near
Surface at Turmalina, To Drive Gold Production Growth and Extend Mine Life
Toronto, Canada, March 1, 2019 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased to
report Mineral Resources and Mineral Reserves estimates as at December 31, 2018 for its Pilar Gold Mine (“Pilar”)
and Turmalina Gold Mine (“Turmalina”), each prepared in accordance with CIM definitions (2014) as required by
National Instrument 43-101 (“NI 43-101”). Mineral Resources and Mineral Reserves updates are supported by NI
43-101 Technical reports that twill be filed on SEDAR within 45 days.
Year End 2018 Consolidated Jaguar Mineral Reserves Highlights
• Consolidated Pilar and Turmalina Mines Proven and Probable (2P) Reserves increased 81% year-over-
year (net of 2018 depletion) to 439,000 oz’s of gold at a weighted average grade of 4.39 g/t Au (Table 1)
• Turmalina Proven and Probable tons increased by 74% and grade increased by 12% to 1408 tons at 5.05
g/t containing 228,000 oz´s of gold
• Pilar Proven and Probable Reserve tons increased by 83% and grade decreased by 8% to 1784 tons at
3.68 g/t containing 211,000 oz´s of gold
• Consolidated Proven Reserves increased 1 23% to 2 45,000 oz´s of gold at a weighted average grade of
4.01 g/t Au
• Consolidated Probable Reserves increased 47% to 194,000 oz´s of gold at a weighted average grade of
5.00 g/t Au
• At both Pilar and Turmalina now have 4 years of Proven and Probable Reserves at current mining rat es
and over 3 years at target production rates
Ben Guenther, Interim CEO of Jaguar Mining stated: “We achieved solid growth in our 2018 year-end Proven and
Probable gold ounces that increased by 81% to a large base of 439,000 ounces compared to 2017, in addition to
depletion. We are especially pleased that results have delivered a meaningful increase in both Proven and
Probable tons and grade at Turmalina. Turmalina Orebody A and Orebody C both have significant life at favorable
grades of 5.47 and 4.73 g/t respectively. Both Turmalina and Pilar have over 4 years of Proven and Probable
Reserves at current mining rates and over 3 years at our target production rates. The 2018 focus was on Resource-
Reserve Conversion via infill drilling at both operations after significantly increasing our Resource Inventory in 2016-
2017 through the growth exploration program.”
“Looking forward, the increase in Mineral Reserves greatly improves our confidence in the production capability to
support a return to a growing gold production profile and the potential to extend the mine life at Turmalina and Pilar.”
2
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 1. Consolidated Jaguar Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:
Jaguar (Pilar and Turmalina Gold Mines) - Change in Mineral Reserves 2017-2018
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2018 2017 Change (%) 2018 2017 Change (%)
Proven Reserves 245 110 123% 4.01 4.18 -4%
Probable Reserves 194 132 47% 5.00 4.26 17%
Total 2P 439 242 81% 4.39 4.22 4%
Year-End 2018 Pilar Gold Mine Mineral Res ources and Mineral Reserves Highlights (Refer to Tables 2 – 5
below)
• Total Pilar Measured Resources increased 37% to 435,000 oz’s of gold, net of depletion, grading 4.40 g/t
Au
• Total Indicated Resources increased 7% to 231,000 oz’s of gold, net of depletion, grading 3.87 g/t Au
• Total Measured and Indicated (“M&I”) Resources increased 25% to 666,000 oz’s of gold, net of depletion
grading 4.20 g/t Au
• Prioritizing resource – reserve conversion in 2018, Inferred Resources decreased 63% to 161,000 oz’s of
gold grading 3.61 g/t Au
• Total Proven and Probable (“2P”) Mineral Reserves of 211,000 oz’s of gold, up 69%, grading 3.68 g/t Au
• Significant increase in 2P reserves reflect replacement o f 2018 Mineral Reserve depletion through
production and addition of new Mineral Reserves via infill drilling and development and confirm more than
years of future production at current production levels
• 38,000 oz’s of the above 2P Mineral Reserves reflect reserves contained in remnant material located in
upper portions of the mine accessible from the existing ramp and level development
Year- End 2018 Turmalina Gold Mine Mineral Reserves and Resources Highlights (Refer Tables 6 – 9)
• Total Measured Resources increased 15% to 305,000 oz´s of gold, net of depletion, grading 5.37 g/t Au
• Total Indicated Resources increased 75% to 272,000 oz´s of gold, net of depletion, grading 5.70 g/t Au
• Total Measured and Indicated (“M&I”) Resources increased 37% to 577,000 oz´s of gold, grading 5.52 g/t
Au
• Prioritizing resource – reserve conversion in 2018, Inferred Resources decreased 51% to 148,000 oz’s of
gold with a 21% decrease in grade to 4.31g/t Au
• Total Proven Mineral Reserves increased 252% to 102,000 oz´s of gold, grading 4.33 g/t Au
• Total Probable Mineral Reserves have increased 43% to 126,000 oz’s of gold, grading 5.82 g/t Au
3
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
• Total Proven and Probable (“2P”) Mineral Reserves have increased 95% to 228,000 oz’s of gold, grading
5.05 g/t reflecting replacement of 2018 Mineral Reserve depletion through production and addition of new
Mineral Reserves via infill drilling
• Orebody C grade and tonnage increases underpin an 81% increase in shallow , high-grade Mineral
Reserves to 123,000 oz ’s at 4.73 g/t Au which now surpasses the Orebody A 2P Mineral Reserve of
105,000 oz´s at 5,47 g/t Au (refer Table 8)
• 47,000 oz´s of the above 2P Mineral Reserves reflect reserves contained in remnant material located in
upper portions of the mine accessible from existing ramp and level development
Jaguar Mining prepared the Mineral Resource and Reserve estimates under the supervision of Reno Pressacco,
P.Geo, and Jeff Sepp, P.Eng. of Roscoe Postle Associates Inc. (“RPA”). RPA is an independent mining consultant
and Mr. Pressacco and Mr. Sepp are Qualified Persons within the definition of NI 43-101. The effective date of the
estimates is December 31, 2018. An independent technical report documenting the Mineral Resource and Mineral
Reserves estimates for the Pilar mine , prepared in accordance with NI 43 -101, will be filed on SEDAR within 45
days of the date of this press release.
About Pilar and Turmalina
Pilar is an underground gold mine and is part of the Caeté Gold Complex that also includes the underground Roça
Grande gold mine (currently on care and maintenance) and mill op eration. 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 km from Belo Horizonte, the capital city of the state of Minas Gerais. Turmalina is an underground gold mine
and plant complex , also located in the state of Minas Gerais; approximately 130 km northwest of Belo Horizonte
(see Figure 1).
Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2018
(Refer to Tables 2–5 below)
• Proven & Probable Reserves: 1,784 million tonnes grading 3.68 g/t Au, containing 211,000 oz. Au
• Measured & Indicated Resources: 4,934 million tonnes grading 4.20 g/t Au, containing 666,000 oz. Au
• Inferred Resources: 1,385 million tonnes grading 3.61 g/t Au containing 161,000 oz. Au
Table 2
Pilar Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:
Pilar Gold Mine - Change in Mineral Reserves
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2018 2017 Change (%) 2018 2017 Change (%)
Proven Reserves 143 81 77% 3.79 3.78 0%
Probable Reserves 68 44 55% 3.47 4.45 -22%
Total 211 125 69% 3.68 3.99 -8%
4
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 3
Pilar Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:
Pilar Gold Mine - Change in Mineral Resources
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2018 2017 Change (%) 2018 2017 Change (%)
Measured Resources 435 317 37% 4.40 4.47 -2%
Indicated Resources 231 216 7% 3.87 4.22 -8%
Total - M&I 666 532 25% 4.20 4.37 -4%
Inferred Resources 161 433 -63% 3.61 5.69 -37%
Table 4
Pilar Gold Mine Mineral Reserves Summary as at December 31, 2018, by Orebody:
Pilar Gold Mine - Mineral Reserves, December 31, 2018
Ore Body
Proven Reserves Probable Reserves Proven and Probable Reserves
ROM (t) Au Oz ROM (t) Au Oz ROM (t) Au Oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
BA 81 5.16 13 23 2.89 2 104 4.66 15
BF 383 3.72 46 239 3.98 31 622 3.82 77
BFII 633 3.71 75 304 2.97 29 937 3.47 104
TORRE 43 3.72 5 42 4.58 6 85 4.15 11
Others 36 3.05 3 - - - 36 3.05 3
Total 1,176 3.79 143 608 3.47 68 1,784 3.68 211
Notes:
1. CIM (2014) definitions were followed for Mineral Reserves
2. Mineral Reserves were estimated at a break-even cut-off grade of 1.90 g/t Au
3. Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce
4. Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar
5. A minimum mining width of 2 m was used
6. Numbers may not add due to rounding
7. There are no known environmental, permitting, legal, title, socio -economic, political or other risk factors which could materially affect the
Mineral Reserve estimates.
5
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 5
Pilar Gold Mine Mineral Resources Summary at December 31, 2018, by Orebody:
Pilar Gold Mine - Mineral Resources, December 31, 2018
Ore Body
Measured Resources Indicated Resources Total Measured &
Indicated Resources Inferred Resources
Tonnes Au Oz Tonnes Au Oz Tonnes Au Oz Tonnes Au 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)
BA 521 4.13 69 82 3.62 9 603 4.03 78 98 3.03 9
BF 815 4.47 117 459 5.24 77 1 274 4.78 194 398 3.29 42
BFII 953 4.96 152 161 3.49 18 1 114 4.77 170 533 4.43 76
BFIII 16 3.97 2 25 3.22 3 41 3.79 5 4 3.71 1
Torre 373 3.99 48 273 3.95 35 646 4.00 83 300 3.02 29
Others 401 3.65 47 855 3.24 89 1256 3.37 136 52 2.39 4
Total 3 079 4.40 435 1 855 3.87 231 4 934 4.20 666 1 385 3.61 161
Notes:
1. CIM (2014) definitions are followed for Mineral Resources
2. Mineral Resources were estimated at a break-even cut-off grade of 1.8 g/t Au
3. Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar
5. A minimum mining width of 2 m was used
6. Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples
7. Mineral Resources are inclusive of Mineral Reserves
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
9. Numbers may not add due to rounding
10. There are no known environmental, permitting, legal, title, socio -economic, political or other risk factors which could materially affect the
Mineral Resource estimates.
Pilar Gold Mine Mineral Reserves and Resources
• Infill Drilling and evaluation of remnant material completed in 2018 successfully replaced depletion. Mineral
Reserves are now equivalent to more than three years of production at current and planned production
rates resulting in total 2P Mineral Reserves of 211,000 ounces of gold ( 1,784,000 tonnes at an average
grade of 3.68 g/t Au) which are 69% higher compared to 2P Reserves of 125,000 ounces as at December
31, 2017.
• Mineral Reserves at Pilar are based on the main orebodies currently in production centered on Levels 9,
10 and 11 (BA, BF and BFII ). Further work is in progress to convert the M&I Resource inventory to 2P
Reserves on material from other orebodies and remnant material that are accessible from ramp and access
development throughout the mine.
6
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
• The database, used to prepare the estimates, with a cut-off date of December 31, 2018, comprises 1,658
drill holes and 20,698 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 orebodies. Wireframe models of the mineralization and excavated material for Pilar were constructed
by Jaguar and reviewed by RPA. A separate wireframe was prepared for each orebody and was used to
constrain the grade estimates into the block model.
• Mineralized material for each orebody was classified into the Measured, Indicated, or Inferred Mineral
Resource categories based on the search ellipse ranges obtained from the variography study, the observed
continuity of the mineralization, the drill hole and channel sample density, a nd previous production
experience from these orebodies.
• 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 Reso urce
reports. Additional Mineral Resources are present that reside beyond the Mineral Reserves. For these
areas, 3D clipping polygons were prepared to aid in the estimation of the Mineral Resources. The clipping
polygons were prepared in either plan or lon gitudinal 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.
• For the December 31, 2018 , estimates, the Company prepared a n updated geological and block model
under the supervision of RPA. The Mineral Resources and Mineral Reserves for 2018 will be supported by
a NI 43-101 technical report to be filed on SEDAR within 45 days of this press release.
Turmalina Gold Mine Mineral Reserves and Resources
(Refer to Tables 6-9 below)
• Proven & Probable Reserves: 1,408 million tonnes grading 5.05 g/t Au, containing 228,000 oz. Au
• Measured & Indicated Resources: 3,253 million tonnes grading 5.52 g/t Au, containing 577,000 oz. Au
• Inferred Resources: 1,066 million tonnes grading 4.31 g/t Au containing 148,000 oz. Au
Table 6
Turmalina Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:
Turmalina Gold Mine - Change in Mineral Reserves
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2018 2017 Change (%) 2018 2017 Change (%)
Proven Reserves 102 29 252% 4.33 5.90 -27%
Probable Reserves 126 88 43% 5.82 4.18 39%
Total 228 117 95% 5.05 4.50 12%
7
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 7
Turmalina Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:
Turmalina Gold Mine - Change in Mineral Resources
Gold Ounces (000's) Gold Grade (g/t)
As at December 31 2018 2017 Change (%) 2018 2017 Change (%)
Measured Resources 305 265 15% 5.37 5.70 -6%
Indicated Resources 272 155 75% 5.70 3.86 48%
Total - M&I 577 420 37% 5.52 4.86 14%
Inferred Resources 148 305 -51% 4.31 5.49 -21%
Table 8
Turmalina Gold Mine Mineral Reserves as at December 31, 2018, by Orebody:
Turmalina Gold Mine - Mineral Reserves, December 31, 2018
Ore Body
Proven Reserves Probable Reserves Proven and Probable
Reserves
ROM (t) Au Oz ROM (t) Au Oz ROM (t) Au Oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body ANW 116 6.40 24 192 6.60 40 308 6.52 64
Ore Body ASE 229 4.64 34 65 3.36 7 294 4.36 41
Ore Body CSE 388 3.53 44 418 5.85 79 806 4.73 123
Total 733 4.33 102 675 5.82 126 1,408 5.05 228
Notes:
1. CIM (2014) 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 $1,300 per ounce
4. Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar
5. A minimum mining width of 2 m was used
6. Numbers may not add due to rounding
7. There are no known environmental, permitting, legal, title, socio -economic, political or other risk factors which could materially affect the
Mineral Reserve estimates.
8
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 9
Turmalina Gold Mine Mineral Resources Summary as at December 31, 2018, by Orebody:
Turmalina Gold Mine - Mineral Resources, December 31, 2018
Area
Measured Resources Indicated Resources Total Measured &
Indicated Resources Inferred Resources
Tonnes Au Oz Tonnes Au Oz Tonnes Au Oz Tonnes Au 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 A 894 6.86 197 339 7.61 83 1,233 7.06 280 372 4.81 58
Ore Body B 353 3.34 38 192 4.26 26 545 3.65 64 18 6.46 4
Ore Body C 520 4.20 70 955 5.31 163 1,475 4.91 233 676 3.97 86
Total 1,767 5.37 305 1,486 5.70 272 3,253 5.52 577 1,066 4.31 148
Notes:
1. CIM (2014) definitions are followed for Mineral Resources
2. Mineral Resources were estimated at a break-even cut-off grade of 2.1 g/t Au
3. Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar
5. A minimum mining width of 2 m was used
6. Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples
7. Mineral Resources are inclusive of Mineral Reserves
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
9. Numbers may not add due to rounding
10. There are no known environmental, permitting, legal, title, socio -economic, political or other risk factors which could materially affect the
Mineral Resource estimates.
• Infill Drilling and evaluation of remnant material completed in 2018 successfully replaced depletion. Mineral
Reserves are now equivalent to more than three years of production at current and planned production
rates resulting in total 2P Mineral Reserves of 228,000 ounces of gold ( 1,408,000 tonnes at an average
grade of 5,05 g/t Au) which are 95% higher compared to 2P Reserves of 117,000 ounces as at December
31, 2017.
• Orebody C grade and tonnage increases underpinned an 81% increase in shallow – high grade Mineral
Reserves to 123,000 oz´s.at 4.73 g/t Au which now surpasses the total Orebody A 2P Mineral Reserve of
105,000 oz´s. (refer to Table 8).
• Mineral Resource esti mates at December 31, 201 8, reflect a n updated geological and block model
prepared by Jaguar staff under the supervision of RPA. This updated block model incorporates the results
from the on-going diamond drilling campaigns completed since late 2017.
• This Mineral Resource includes total Measured and Indicated Resources of 577,000 ounces of gold (3,253
million tonnes at an average grade of 5.52 g/t Au) and Inferred Resources of 148,000 ounces of gold (1,066
million tonnes at an average grade of 4.31 g/t Au).
• Orebody C Mineral Resource grades have increased following new infill drilling intercepts and from
development channel sampling completed in 2018, in particular on Levels 3 and 4. (Please refer to Press