Jaguar Mining Receives Fine Related to the Previously Announced Incident at the Satinoco DRY-Stacked Pile __________________________________________________________________________________________
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto, Ontario, Canada M5C 3A1 T: 416-847-1854
JAGUAR MINING RECEIVES FINE RELATED TO THE PREVIOUSLY ANNOUNCED INCIDENT
AT THE SATINOCO DRY-STACKED PILE
__________________________________________________________________________________________
Toronto, January 7, 2025 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG ) announced that its
subsidiary, Mineração Serras do Oeste, has received a notice of infraction and resulting civil-liability fine from the
State Secretariat for the Environment and Sustainable Development (SEMAD) of Minas Gerais, Brazil in connection
with the previously announced slump that occurred in the north wall of the Satinoco dry-stacked pile at the
Company’s Turmalina mine (see the press releases issued by Jaguar on December 9, 2024 and December 30,
2024, respectively). Operations at the Turmalina mine remain temporarily suspended following the incident. The
Turmalina mine is part of the Company’s MTL mining complex located in the state of Minas Gerais, Brazil,
approximately 130 kilometers northwest of the city of Belo Horizonte. The Company’s Pilar mine in Brazil remains
operational.
The face value of the fine amounts to approximately R$320 million (US$52.5 million). The Company considers the
amount of the fine to be disproportionate to the scale of the event , as well as the actual impact caused by the
incident. As a result, the Company plans to appeal the fine through a formal administrative process conducted by
SEMAD. The Company has 20 days from the date of the aforementioned notice of infraction to accept the fine
(which can be paid in up to 60 monthly instalments) or present a defense to SEMAD, during which the repayment
obligation would be suspended until a final decision is rendered.
As remediation efforts remain ongoing and notable progress continues to be made in this regard , the Company
reaffirms its commitment to resolving the issues arising from the dry-stacked slump and assisting the employees
and families impacted by this incident . Jaguar will continue to cooperate with local authorities to resolve the issue
in a fair and transparent manner. Jaguar is also committed to restarting the Turmalina mine as soon as it becomes
possible and to operate it safely and profitably in the future.
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 southeastern 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 land position in the Iron Quadrangle with over 41,000 hectares.
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 include the MTL Mining Complex (Turmalina mine and plant) and Caeté Mining
Complex (Pilar and Roça Grande mines, and Caeté plant). The Roça Grande mine has been on temporary care
and maintenance since April 2019. The Company also owns the Paciência Mining Complex (Santa Isabel mine and
plant), which had been on care and maintenance since 2012 and is planned to restart in early 2025. Additional
information is available on the Company's website at www.jaguarmining.com.
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto, Ontario, Canada M5C 3A1 T: 416-847-1854
For further information please contact:
Vernon Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Alfred Colas
Chief Financial Officer
Jaguar Mining Inc.
416-847-1848
Forward-Looking Statements
Certain statements in this news release constitute "forward -looking information" within the meaning of applicable
Canadian securities legislation. Forward -looking statements 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 the 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," "estimate," "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 than 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,
the results and outcome of the Company’s intended appeal of the aforementioned fine, the duration of the temporary
suspension of the Company’s MTL complex in the wake of the slump at its Satinoco dry tailings pile, the cost of
resuming operations at the MTL complex, the impact of the tailings pile slump on the waterways and infrastructure
at or near the Turmalina mine, the future stability of the tailings pile in question and safety at the Turmalina mine,
the amount, timing and payment terms of any future fines imposed on the Company , as well as any costs and
damages arising from any civil and criminal lawsuits, resulting from the tailings pile slump, the expected impact of
Jaguar’s planned relocation of personnel and equipment from the Turmalina mine to the Company’s Pilar and Santa
Isabel mines, management’s expectations regarding the Company’s response to the tailings pile slump and the
Company’s recovery and remediation efforts at the MTL complex, and any information and statements related to
expected growth, sales, production statistics, ore grades, tonnes milled, recovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated future production, costs of production, capital
expenditures, costs and timing of the develop ment of projects and new deposits, success of exploration,
development and mining activities, currency fluctuations, capital requirements, project studies, mine life extensions,
restarting suspended or disrupted operations, continuous improvement initiativ es, and resolution of pending
litigation. The Company has made numerous assumptions with respect to forward -looking information contained
herein, including, without limitation, the following: assumptions regarding the future and long-term stability of the
Satinoco tailings pile; collaboration with the Brazilian National Mining Agency and local authorities will continue to
progress effectively and without significant delays ; damages to the Turmalina mine infrastructure, including
maintenance areas, piping, storage areas, can be repaired or replaced within the anticipated timeline; the safety of
the mine site can be verified to meet or exceed regulatory and internal safety standards before operations resume;
necessary resources, including materials, personnel and equipment, will remain available to implement repairs and
safety measu res efficiently at the MTL complex; there will be no unforeseen adverse weather events or other
external factors that could delay the Company’s recovery or remediation efforts; the current assumptions regarding
the extent of the damage and timeline for repairs at the MTL complex remain accurate and will not require significant
revision as further assessments are completed ; gold prices and exchange rates will continue at similar or more
favourable levels for the Company on a go -forward basis; assumptions relating to the estimated timeline for the
development of the Company’s mineral properties; the supply and demand for, and the level and volatility of the
price of, gold; the accuracy o f reserve and resource estimates and the assumptions on which the reserve and
resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with
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JAGUAR MINING INC.
1400-25 Adelaide Street East, Toronto, Ontario, Canada M5C 3A1 T: 416-847-1854
employees and impacted communities; political and legal developments in any jurisdiction in which the Company
operates being consistent with its current expectations including, without limitation, the impact of any potential
power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained and
renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general
business and economic conditions. For additional information regarding assumptions made with respect to forward-
looking information contained herein, please see the assumptions set forth in the Company’s annual information
form dated March 25, 2024 for the year ended December 31, 2023, the Company’s most recent management’s
discussion and analysis, and the Company’s NI 43 -101 technical reports, as well as other public disclosure
documents that can be accessed under the issuer profile of "Jaguar Mining Inc." on SEDAR+ at www.sedarplus.ca.
Forward-looking information involves a number of known and unknown risks and uncertainties, including among
others: the risk of Jaguar not meeting the forecast plans regarding its operations and financial performance;
uncertainties with respect to the pric e of gold, labour disruptions, mechanical failures, increase in costs,
environmental compliance and change in environmental legislation and regulation, weather delays and increased
costs or production delays due to natural disasters, power disruptions, pro curement 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 herein. 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 workplace 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.