Jaguar Mining Reports Early Exploration Success from Iron Quadrangle Drilling New Discoveries at Corrego Brandão & Zona Basal Near Existing Plant Infrastructure
February 16, 2021 NEWS RELEASE
FOR IMMEDIATE RELEASE TSX: JAG
Jaguar Mining Reports Early Exploration Success from
Iron Quadrangle Drilling
New Discoveries at Corrego Brandão & Zona Basal Near Existing Plant Infrastructure
Toronto, Canada, February 16, 2021 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is
pleased to announce two new discoveries at the Corrego Brandão (“CB”) and Zona Basal (“ZB”) targets. The
Company’s expanded exploration program in the Iron Quadrangle (“IQ”), announced September 2020, is
reporting early success at the two targe ts with important oxide intersections and with clear potential to host
sulphide mineralization extending to depth. Although both discoveries are greenfields in nature, they have the
potential for near term, open pit mineable resource additions. Corrego Brandão is located near the Caeté Mill
complex (“CCA”) while Zona Basal is located near the Turmalina Mine and Mill (“MTL”).
Drilling programs at both sites commenced in Q4-2020 (see news release September 9, 2020) and are ongoing
with three (3) drill rigs deployed. The Company is targeting a consolidated maiden resource from CB and ZB
during 2021. While a number of assay results are still pending, impacted by Covid-19 related issues at ALS ,
processing times are now expected to return to normal reporting timeframes.
In this release Jaguar reports results from 17 (2,000m) of 36 holes (4,916.76m) drilled over the two sites in
ongoing reconnaissance Phase I programs.
Figure 1 – Location of Exploration Projects Zona Basal and Corrego Brandão relative to MTL and CCA
Operations and Processing Facilities
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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
Highlights of the drill program reported to date include:
Oxide Intersections
• Corrego Brandão: near surface oxide intercept of 7.91 g/t Au over a drilled width of 20.10m.
• Zona Basal: near surface oxide intercepts of 2.38 g/t Au over a drilled width 20.45m and 2.00 g/t over a drilled
width of 15.40m.
Sulphide Intersections
• Corrego Brandão: sulphide intercept of 3.11 g/t Au over a drilled width of 6.45m.
Vern Baker, CEO, Jaguar Mining commented: “The early success of these two exploration programs is extremely
encouraging. Both of these properties are showing potential for near surface , low-cost ounces, and as we
develop the understanding of the underlying control structures, they also provide the opportunity to find
mineralized deposits that can provide long-term sustainable production. We are confident that the organic growth
of our resources will allow us to sustain and grow production within our existing infrastructures. Thanks are due
to the Jaguar exploration team which has shown the ability to move multiple programs ahead while maintaining
excellent geologic discipline.”
Jon Hil l, Vice President, Geology and Exploration, Jaguar Mining commented: “At Jaguar we are highly
encouraged by these early drilling results from our priority, near mine and plant infrastructure projects. The team
deserves special credit for the immense progre ss made in a very short timeframe. While very early in the
discovery cycle, the near-term value creation potential of the two projects presented today, is an important part
of Jaguar’s future production profile and mine life. The team will continue to focus on progressing these projects
with the requisite care and discipline required while advancing the next targets in Jaguar´s quality Iron
Quadrangle portfolio.”
Phase I (Reconnaissance) Drill Campaign
Table 1 – Drilling Statistics to date by Target
Complex Target Number of
holes
Number of
meters
Results
reported
Results
awaited
Caeté Corrego Brandão 14 1664.36 5 9
MTL Zona Basal 22 3252.40 12 10
Total 36 4916.76 17 19
Corrego Brandão (CB) Target
CB target results are reported from 5 holes (548m) of a drilling program which commenced in late November
2020 and where to date, 14 holes (1664.36m) have been completed.
Phase 1 was designed to follow up highly encouraging auger drilling results (refer to News Releases June 4,
2019, Septembe r 9, 2020) targeting an extensive (>5km strike length) gold, arsenic, and antimony in soil
anomaly. The first diamond drill hole reported oxide mineralization grading 7.91 g/t Au over a width of 21m which
confirmed and extended the drilled interval defined by the previous high-grade auger hole interval.
The highest grades intercepted in the initial diamond (and auger) drilling at CB are related to a highly magnetic
– iron rich mafic lithological unit, initially described as a chlorite rich banded iron formation (BIF) contained within
a folded mafic to ultramafic greenstone sequence. This host BIF unit is interpreted to have a true width of some
6 to 10m and while it appears to be mineralized across this width, very high grades are associated with both the
upper and lower contacts of the host unit.
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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
In addition to the first hole FCBR00 1, a total of 13 step out holes have been drilled to date , aimed primarily at
the definition of the extent, geometry, and geological controls of this mineralization. Of these, 8 step out holes
focused on defining the shallow – oxide potential of the target and results from the first two such step out holes
FCBR002 and FCBR003 are reported below.
To the west along strike, 5 wide spaced holes (991m) have been drilled to test extensions in this direction and
target the magnetic mineralized BIF horizon and associated strong surface gold, arsenic and antimony in soil
anomalism into the unweathered hypogene (fresh rock) zone. T he targeted magnetic BIF horizon with
associated gold mineralization was intersected at depths of approximately 100m below surface in these holes
and results from the first two holes, FBCS001 and FBCS002 are also reported below.
Table 2 – Gold Assay Results for Corrego Brandão drilling
Summary of Significant Intersections, Drilling Program
Jaguar Mining Inc. – Corrego Brandão Target
Hole ID From
(m)
To
(m)
Down Hole
Interval (m)
Gold Grade
(g/t Au) Redox
FCBR001 10.40 30.50 20.10 7.91 Oxide
Including 10.40 16.50 6.10 15.81 Oxide
27.00 28.50 1.50 33.60 Oxide
FCBR001 35.50 37.75 2.25 1.69 Oxide
41.15 45.00 3.85 0.56 Sulphide
FCBR002 8.50 26.50 18.00 2.56 Oxide
Including 8.50 10.25 1.75 6.29 Oxide
18.00 25.50 7.50 3.38 Oxide
FCBR002 29.50 35.50 6.00 0.85 Oxide
FCBR003 14.35 21.70 7.35 2.63 Oxide
Including 17.35 20.85 3.50 4.73 Oxide
FCBS001
99.65 100.65 1.00 1.68 Sulphide
108.90 110.50 1.60 1.12 Sulphide
119.95 125.75 5.80 2.17 Sulphide
Including 119.95 121.35 1.40 5.48 Sulphide
FCBS002
79.15 80.10 0.95 1.40 Sulphide
99.40 101.40 2.00 0.82 Sulphide
117.35 123.80 6.45 3.11 Sulphide
Including 119.50 123.80 4.30 4.22 Sulphide
FCBS002 164.75 165.55 0.80 1.50 Sulphide
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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 of Corrego Brandão Project showing drill hole locations and results received to date.
Background is an image of the gold in soil anomaly.
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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 3 – Sections of Corrego Brandão Drilling Results
Zona Basal (ZB) Target
Zona Basal results are reported from 12 holes (1458m) of a drilling program which commenced in mid-October
2020 and where to date 22 holes (3252.40m) have been completed.
Phase 1 reconnaissance drilling at this target initially focused on a program of wide spaced holes following up
and targeting near surface oxide and potential deeper, structurally controlled sulphide extensions to the
greenstone bedrock gold intersections from surface trenching , both within the footprint, and along the margins
of the extensive 100ppb Au in soil anomaly.
Results reported to date include both encouraging oxide and sulphide intercepts of 2.39 g/t Au over a drilled
width of 20,45m from surface in hole FZB014 and 1.30 g/t Au over a drilled width of 11.60m (including 1.78 g/t
Au over 8.2m) in hole FZB026 respectively.
Of further interest is the oxide intersection in hole FZB014 which falls within a wider intersection interval that
contains anomalous silver grading 7.81 g/t Ag over a drilled width of 27.5m. The presence of anomalous silver
values associated with high gold values in the oxide – saprolite zone clearly points to the potential for an
extensive supergene deposit within the footprint of the Au soil anomaly. The main – central gold in soil anomaly
at ZB as defined by the 100 ppb Au contour interval , covers a strike length of some 1 ,000m, a width of over
200m and which, is now interpreted to overlay a supergene (oxidised – saprolite) profile which attains a thickness
of some 30-50m.
Preliminary leach test work completed on samples from the sulphide intersection reported above (Hole FZB026)
demonstrate the material is free milling/non - refractory, further justifying follow-up exploration drill programs to
define potential ly open pit mine able resources from this source. Such exploration would also aim at further
defining structural controls of the sulphide mineralization and will aid the delineation of potentially higher-grade
plunging mineralization as seen nearby at the Turmalina Mine.
6
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Table 3 – Gold Assay Results for Zona Basal
Summary of Significant Intersections, Drilling Program
Jaguar Mining Inc. – Zona Basal Target
Hole ID From
(m)
To
(m)
Down Hole
Interval (m)
Gold Grade
(g/t Au) Redox
FZB013 4.60 20.00 15.40 2.00 Oxide
Including 13.00 17.00 4.00 4.39 Oxide
FZB014 0.00 20.45 20.45 2.39 Oxide
Including 7.70 16.50 8.80 3.90 Oxide
FZB015
No Au Intersection - FZB016
FZB017
FZB018 62.80 64.50 1.70 0.45 Sulphide
FZB022
57.50 62.50 5.00 0.37 Sulphide
74.00 82.00 8.00 0.82 Sulphide
110.80 116.00 5.20 1.02 Sulphide
FZB024 149.30 155.00 5.70 0.39 Sulphide
176.50 209.10 32.60 0.63 Sulphide
Including 202.10 205.05 2.95 1.62 Sulphide
FZB025
40.20 45.00 4.80 0.97 Oxide
49.80 55.70 5.90 0.53 Oxide
64.10 65.30 1.20 1.27 Sulphide
114.55 120.05 5.50 1.32 Sulphide
FZB026 65.85 77.45 11.60 1.30 Sulphide
FZB027 40.30 50.05 9.75 1.21 Oxide
187.95 209.75 21.80 0.59 Sulphide
Including 189.95 193.00 3.05 0.91 Sulphide
FZB028 86.40 101.8 15.40 1.04 Sulphide
Including 88.35 97.30 8.95 1.57 Sulphide
Figure 4 - Plan of Zona Basal Project showing drillhole locations and results relative to the Au and Silver
in soil anomalies.
7
JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Figure 5 – Schematic Cross-Section through the central portion of the Zona Basal Target showing the
potential distribution of supergene – oxide saprolite mineralization and relative to the deeper structurally
controlled mineralization in the sulphide zone.
Geology and Exploration observations Corrego Brandão Target
From an exploration targeting perspective the mineralized magnetic BIF unit at CB can be mapped over the full
strike length of the regional host fold structure and its magnetic response is generally coincident with the gold –
arsenic and antimony in soil anomalism as well as having a distinct radiometric signature. Exploration is targeting
parasitic fold hinges aided by magnetic inver sion modelling, along the limbs of the regional fold structure
whereby the host BIF unit is thickened with increased potential for forming the favourable plunge persistent
higher-grade mineralization extending to depth, characterized by the major known dep osits in the iron
quadrangle.
Of further interest is the weathering process does not appear to have demagnetized the Mineralized BIF unit in
the oxide zone and this observation opens up further exploration opportunities in the greater region.
Qualified Person
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill,
BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and Exploration, 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”).
Quality Control
Jaguar continues to use a quality -control program that includes insertion of blanks and c ommercial standards in order to
ensure best practice in sampling and analysis.
HQ, NQ, and BQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals
according to geological characteristics such as litho logy and hydrothermal alteration. All diamond drill hole collars are
accurately surveyed using a Total Station instrument and down -hole deviations are surveyed using a non -magnetic north
seeking Reflex GyroTM
A
A’
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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
Mean grades are calculated using a variable l ower grade cut-off (generally 0.5g/t Au). No upper gold grade cut has been
applied to the data. However, the requirement for assay top cutting will be assessed during future resource work.
Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is store d
in a secure location. The drill core samples from growth exploration drillholes are transported in securely sealed bags and
sent for physical preparation to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano,
Minas Gerais, Brazil. The analysis is conducted at ALS Global’s respective facilities (fire assay are conducted by ALS Global
in Lima, Peru, and multi-elementary analysis are conducted by ALS Global in Vancouver, Canada). ALS has accreditation
in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO
9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical
procedures.
The drilling results presented on this news release are from drill holes completed by contractors Major Drilling and Energold.
For a complete description of Jaguar’s sample preparation, analytical methods and QA/QC procedures, please refer to the
“Technical Report on the Roça Grande and Pilar Operations, Minas Gerais State, Brazil”, a copy of which is available on the
Company’s SEDAR profile at www.sedar.com.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian -listed junior gold mining, development, and exploration company operating in Brazil with
two 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 Turmalina Gold Mine Complex and Caeté Mining Complex (Pilar Mine 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 care and maintenance since April 2018. Additional information is available on the Company's
website at www.jaguarmining.com.
For further information please contact:
Vernon Baker
Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
Hashim Ahmed
Chief Financial 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 statements and inform ation 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, expected sales, production statistics, ore grades, tonnes milled, r ecovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated future production, costs of production, capital expenditu res, costs and
timing of the development 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 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 level and vola tility 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 competition; 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 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. 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 fin ancial
performance; uncertainties with respect to the price of gold, labour disruptions, mechanical failures, inc rease 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, 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 herein. In addition, there are risks and hazards associated with the business of gold exploratio n,