Jaguar Mining Provides Management Update and Reports on Operating Progress __________________________________________________________________________________________
NEWS RELEASE
August 20, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Provides Management Update and Reports on Operating Progress
__________________________________________________________________________________________
Toronto, August 20, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today provided an
update on recent management changes and progress on operating performance.
As previously announced, Benjamin Guenther was appointed Interim Chief Executive Officer effective August 15,
2018. Ben brings more than 40 years of mining industry experience, with extensive knowledge of mining in Brazil.
On behalf of Jaguar Mining’s Board, Chairman Dick Falconer commented, “The entire Jaguar Mining Board would
like to thank Ben for taking the role as Interim Chief Executive Officer through this critical period. We are confident
that under his leadership, oper ational teams will take the right steps to improve Company performance including
delivering on our targets for production, lower costs and increase operational cash flow. We appreciate Ben’s
continued support as the Board conducts a thoughtful and comprehensive search for Jaguar’s next CEO.”
In addition, the Company has made progress on strengthening the senior operational team in Brazil with the
recent appointment of Kevin Weston as Vice President Operations in July 2018. Mr. Weston is a Mining Engineer
with nearly four decades of international gold and base metal mine management, as well as operational and gold
processing experience. He has been successful in turning around challenging mining operations as well as
achieving key targets during extended commissioning phases.
“As we focus on 2018 production and cost targets, we have made important changes to strengthen our operations
team in Brazil. We are extremely pleased to welc ome Kevin, who brings deep and proven experience with
challenging operations, and look forward to his insigh t and positive impact across all of our mines,” said Mr.
Guenther. “Over the coming weeks, Kevin’s top prio rity will be to focus on reviewing opportunities and
implementing key changes at Turmalina to deliver on critical targets to drive improved performance.”
The Company also takes this opportunity to provide an update on the strong performance at Pilar and its key
priorities at Turmalina over the near-term.
Pilar Gold Mine Update
Pilar Gold Mine (“Pilar”) continues to see solid resu lts and remains on track to achieve the higher end of
production guidance in line with management expec tations. Grades have more than doubled in the past two
years, as the current working levels approach the higher-grade areas of orebodies BF and BFII.
The mine management team performs well and is capable to adjust when challenging conditions are present.
The solid performance of the team is the result of very good execution of the mine plan.
Mine development and stope preparation inventories prov ide flexibility in maintaining consistent production
rates.
A new grade control program implemented at Pilar he lped reduce dilution and improved reconciliations with
reserve model.
The orebody capacity provides c onfidence that the mine will continue to grow production in 2018 and a
further growth is expected in 2019.
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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
Turmalina Gold Mine Update
Geotechnical issues in the higher-grade area of Turmalina required modifying the mining sequence in the second
quarter of 2018. This resulted in lower ore tonnage and grade as mine production was redirected to a lower grade
area. Lack of mining flexibility required mining stopes prior to completing ore control drilling which contributed to a
lower than expected grade profile.
In addition to a strengthened operating team with a Vice President of Operations in Brazil, management is
focused on near-term priorities to deliver safe sustai nable production performance and return to growing
Turmalina’s production to its historical profile.
Top near-term priorities at Turmalina include:
Modifying the mining approach to minimize the number of unfilled open stopes. Converting from blind back
stopes to cut-and-fill stoping below sill pillars to ensure minimal exposure from unfilled stope walls.
Utilization of top down drilling to ensure better quality control on drilling, reduce dilution, improve mining
recovery, and allow backfilling with waste rock.
Strict adherence to backfilling in the stop ing cycle to reduce unfilled open stopes.
Use of better blasting techniques to reduce vibration into the rock mass.
Improving ore control drilling, planning and execution to improve confidence in the ore production plan.
Improving development planning and execution to give a high confidence in the mine production schedule.
The paste backfill plant has been commissioned and paste backfilling has begun in the upper levels of the
Turmalina mine. In addition, a grade control program similar to Pilar has been implemented to reduce dilution.
The revised mine plan and schedule for the remainder of 2018 has been reviewed in detail which will allow
Jaguar Mining to achieve the updated 2018 guidance of 80,000 to 85,000 ounces without any incremental costs.
The completion of these near-term priorities is critical to ensuring the flexibility and consistency in Turmalina’s
production plan. As it makes progres s on these priorities, the Company expe cts in the near term that Turmalina
will deliver:
Improved gold production driving positive operati onal cash flow by the fourth quarter of 2018.
Stabilized mine production over the coming quarters.
Improved mine inventories over ti me to provide mining flexibility.
Allow the mine to return to the historical hi gher production levels given the ore body capacity.
“Our top priority remains delivering key operational improvements at Turmalina as a path to returning to a growing
and sustainable production profile more reflective of our large base of mineral resource s. Importantly, as we see
the favourable trends in increasing grades continuing at Pilar, we are optimistic that we will have a good second
half of the year. We expect to meet our cost targets and production targets, as well as improved operating cash
flows,” concluded Mr. Guenther.
Newly Appointed Management Bios
Benjamin Guenther, Interim Chief Executive Officer
Benjamin Guenther has been appointed as Interim Chief Ex ecutive Officer. Mr. Guenther was appointed to the
Board of Jaguar Mining in November 2017 and until recently was the Chairman of the Technical Committee of the
Board. He is a mining engineer with a wide range of management and executive experience with over 40 years in
the mining industry.
Mr. Guenther retired from AngloGold Ashanti in 2017. Du ring his 22 years with AngloGold Ashanti his roles
included: Executive Officer-Corporate Technical Grou p, Executive Officer–Inte rnational Technical, SVP
Operational Strategy and Asset Management, SVP-North America and Am ericas Technical, and General
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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
Manager. He has worked closely with AngloGold Ashanti mines in Brazil over a period of 18 years advising,
coaching, and supporting the management teams on operati onal strategies, operational performance, and capital
growth project development and execution. He served as project steering committee chairman for expansion and
new mine projects including Brazil during this period. He served on the boards of numerous alliance partners
(public and private), joint ventures, and subsidiaries. He has been involved in a number of turn around projects
and brings this experience to Jaguar.
Mr. Guenther has been working as a consultant since re tiring from AngloGold Ashanti. Mr. Guenther graduated
from the Colorado School of Mines.
Kevin Weston, Vice President, Operations
Kevin Weston was appointed Vice President, Operations in July 2018. Mr. Weston is a Mining Engineer with
nearly four decades of experience in all facets of the mining industry following graduation from McGill University
in Montreal. Mr. Weston has extensive international experience having worked in Zimbabwe, Tunisia, Mexico and
Nicaragua, and brings significant underground mining k nowledge, as well as wide experience with operating gold
processing plants.
Over his career, Kevin has been recognized as a turnar ound specialist having taken the Kemess Open Pit mine
while under receivership to a viable operation, st abilized and achieved nameplate tonnage at the Casa Berardi
gold concentrator, restructured the balance sheet of a pr ivate mining contractor in Northern Quebec, developed a
safety culture at the Myra Falls Mine following it havi ng the worst safety record in the Canadian Mining Industry,
oversaw the Minto Open Pit copper mine in the Yukon and the G9 base metals mine and concentrator as they
achieved their design capacities following extended commissioning phases.
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”).
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 up side exploration potential
from mineral claims covering an area of approximatel y 64,000 hectares. The Company's principal operating
assets are located in the Iron Quadrangle, a prolific gr eenstone belt in the state of Minas Gerais and include 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 2018. Additional information is
available on the Company's website at www.jaguarmining.com.
For further information please contact:
Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
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
Forward-Looking Statements
Certain statements in this news release constitute "for ward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking stat ements and information are provided for the purpose of
providing information about management's expectations and plans relating to the future. All of the forward-looking
information made in this news release is qualified by t he cautionary statements below and those made in our
other filings with the securities regulators in Canada. 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," "e stimate," "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. All statements, other t han statements of historical fact, may be considered
to be or include forward-looking information. This news release contains forward-looking information regarding,
among other things, expected sales, production statistics , ore grades, tonnes milled, recovery rates, cash
operating costs, definition/delineation drilling, the timing and amount of estima ted future production, costs of
production, capital expenditures, costs and timing of the development of projects and new deposits, success of
exploration, development and mining activities, currency fluc tuations, capital requirements, project studies, mine
life extensions, restarting suspended or disrupted operat ions, continuous improvement initiatives, and resolution
of pending litigation. The Company has made numerous assumptions with respect to forward-looking information
contained herein, including, among other things, assumptions about the estimated timeline for the development of
its mineral properties; the supply and demand for, and the leve l 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 competit ion; ongoing relations with employees and impacted
communities; political and legal developments in any jurisdiction in which the Company operates being consistent
with its current expectations including, without limitat ion, the impact of any potential power rationing, tailings
facility regulation, exploration and mine operating licenses and permits bei ng obtained an renewed and/or there
being adverse amendments to mining or other laws in Brazil and any changes to general business and economic
conditions. Forward-looking inform ation involves a number of know n and unknown risks and uncertainties,
including among others: the risk of Jaguar not meeting t he forecast plans regarding its operations and financial
performance; uncertainties with respect to the price of gol d, labour disruptions, mechanical failures, increase in
costs, environmental compliance and change in environm ental legislation and regul ation, weather delays and
increased costs or production delays due to natural di sasters, power disruptions, procurement and delivery of
parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes
volatile valuation of securities and an uncertain ability to raise new capital) 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 her ein. In addition, there are risks and hazards associated
with the business of gold exploration, development, mining and production, including environmental hazards,
tailings dam failures, industrial accidents and workpl ace safety problems, unusual or unexpected geological
formations, pressures, cave-ins, flooding, chemical spills, procurement fraud and gold bullion thefts and losses
(and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). 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 Co mpany'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 inte ntion or obligation to updat e or revise any forward-
looking information, whether as a result of new informat ion, future events or otherwise, other than as required by
law. The forward-looking information contained in this news release is expressly qu alified by this cautionary
statement.