Jaguar Mining Reports Q1 2018 Operating Performance and Improving Costs; On Track to Achieve 2018 Gold Production of 95,000–105,000 Ounces __________________________________________________________________________________________
NEWS RELEASE
April 17, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Q1 2018 Operating Performance and Improving Costs;
On Track to Achieve 2018 Gold Production of 95,000–105,000 Ounces
__________________________________________________________________________________________
Toronto, April 17, 2018 – Jaguar Mining Inc. (" Jaguar" or the "Company") (TSX: JAG) today announced
operating results for the first quarter (“Q1 2018”) ended March 31, 2018. All figures are in US dollars, unless
otherwise expressed. Detailed financial results for Q1 2018 will be reported and filed on or before May 10, 2018.
Q1 2018 Summary
● Consolidated gold production of 18,864 ounces (174,000 tonnes milled at 3.67 g/t) was in line with the
Company’s 2018 production plan; Q1 2018 production was lower than the 22,291 ounces (214,000 tonnes
milled at 3.50 g/t) in Q1 2017.
● Pilar Gold Mine (“Pilar”) producti on increased 13% to 9,553 ounces compared to Q1 2017, and 17% compared
to Q4 2017 on average grade of 4.08 g/t, which increased 20% year-over-y ear. Pilar continues to deliver
improved grade and tonnes milled. Pilar’s lower cost per ounce production replaces the higher cost Roça
Grande Mine (“RG”) production, also improving operating cash flow.
● Turmalina Gold Mine (“Turmalina”) production of 8,442 ounces was 34% lower year-over-year due to a focus
on increasing primary (waste) development to facilitate increased ore production for the balance of 2018. This
resulted in lower secondary ore development and lowe r tonnes milled for the quarter which reduced ore
production, which was in line with the Company’s projected annual mine plan. Production levels are expected
to increase in Q2 2018 and significantly increase in H2 2018 as accelerated primary waste development
advances.
● Turmalina primary waste development increased 77% dur ing the quarter to 648 metres compared to 366 metres
in Q1 2017 and 363 metres in Q4 2017. The focus in Q1 2018 was to extensively advance accelerated
development to access higher-grade mineralization in Level 11 at Orebody A and Level 4 at Orebody C. A new
total of four production sublevels are expected to contribute to production in Q2 2018.
● Consolidated cash operating costs (“COC”) decreased to $814 per ounce sold, a 12% improvement from Q1
2017 and 10% increase from Q4 2017. Company on track to deliver 2018 COC annual guidance between
$700–$800 per ounce sold.
● Strengthened operations and project management team s to drive increased productivity and overall
performance. Placed orders for new mining equipment to increase capacity and productivity at Turmalina and
Pilar.
● Cash balance of approximately $14.3 million as of Marc h 31, 2018, compared to a cash balance of $18.6 million
at December 31, 2017. Cash outflow during the quarter includes $3 million financing repayments reducing total
bank debt to approximately $12.3 million at quarter end. Company generated approximately $4–5 million in
operating cash flow with approximately $6 million spent in investing and growth activities.
Rodney Lamond, President and Chief Executive Officer co mmented, “We have successfully established a large
mineral resource at Pilar and Turmalina as a direct resu lt of our strategic investments in Growth Exploration
programs, underground mine development and upgrading mining equipment. These investments demonstrate our
commitment to growing sustainable gold production over the long-term. Through our investments, we have
unlocked significant value at Pilar and its performance is increasing our ability to grow operating and free cash flow.
Based on Pilar’s performance to date, we believe there continues to be excellent ups ide potential. We are taking
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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
the same approach to unlocking the deep value that we believe exists at Turmalina, which is also supported by its
mineral resource.”
“Pilar’s first quarter operating results, including a 13% year-over-year increase in gold production driven by a 20%
increase in head grade, are positively impacting our ov erall profitability and generating increased returns. This
performance was achieved through targeted exploration programs, development and training of operations teams,
disciplined capital allocation and operational excellence. The confidence in delivering increased gold production
supported the Company’s decision to place Roça Grande temporarily on care and maintenance. This decision will
further decrease the Company’s COC by displacing high gold ounces with Pilar’s lower COC ounces.”
Mr. Lamond continued, “In addition to the excellent ongoing wo rk completed by our operations teams, during the
quarter we successfully transitioned to a new mining contractor to increase high speed development at Turmalina.
We completed key development objectives to access higher grade pay-shoots in Orebodies A and C. Primary waste
development increased 77% during the quarter, the highe st level since Q2 2016. The extensive accelerated
development will continue to increase as key access drives are advanced into higher-grade mineralization in Level
11 at Orebody A and Level 4 at Orebody C. A new total of f our production sublevels are expected to contribute to
production in Q2 2018. To further support production and drive increased annual production, we have purchased
two new underground loaders and one 30-tonne underground haulage truck for Turmalina.”
Mr. Lamond concluded, “Looking ahead, we are positioned to deliver stronger production in the second half of 2018
as we expect to see higher production at Turmalina, as well as higher production at Pilar. Ongoing infill drilling on
Orebody A and C at Turmalina has demonstrated continue d high-grade mineralization in upcoming sublevels for
mining, which is expected to significantly increase production. Our strategy for sustainable production, which starts
with a fundamental understanding of our geological models, aims to extend the reserve mine life at all of our
operations by replacing depleted Mineral Resources in a timely manner through the execution of targeted
exploration programs. We have also made important staffi ng changes at our sites to ensure we deliver on our
productivity and efficiency targets to achieve our 2018 obj ectives. We continue to focus on mining quality ounces
to generate cash flow, sustain future growth and reduce our bank debt.”
2018 First Quarter Operating Results Summary
Quarterly Summary
Q1 2018 Q1 2017
Turmalina Pilar Roça
Grande Total Turmalina Pilar Roça
Grande Total
Tonnes milled (t) 81,000 81,000 12,000 174,000 113,000 84,000 17,000 214,000
Average head grade (g/t) 3.43 4.08 2.52 3.67 3.79 3.39 2.12 3.50
Recovery % 91% 89% 89% 90% 91% 91% 91% 91%
Gold ounces
Produced (oz) 8,442 9,553 870 18,864 12,736 8,485 1,070 22,291
Sold (oz) 8,414 9,929 894 19,237 13,536 9,422 1,076 24,034
Preliminary Financial Data
Cash Operating Costs1 ($/oz) 777 809 1,216 814 738 1,092 1,787 924
Development
Primary (metres) 648 422 84 1,154 366 470 74 910
Exploration (metres) - - - - 104 13 34 151
Secondary (metres) 91 356 - 447 754 614 14 1,382
Definition, infill, and
exploration drilling (metres) 5,544 3,197 613 9,354 4,164 5,218 567 9,949
1. Cash Operating Cost is a non-IFRS reporting measure.
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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
Cash Position and Working Capital
● Cash balance of approximately $14.3 million as of Marc h 31, 2018, compared to a cash balance of $18.6 million
at December 31, 2017. Cash outflow during the firs t quarter includes $3 million for financing repayments
reducing total bank debt to approximately $12.3 million at the end of Q1 2018.
● Company generated approximately $4–$5 million in operating cash flow with approximately $6 million spent in
investing activities. Working capital expected at $11–$12 million as March 31, 2018.
First Quarter Operating and Project Update
● Operational excellence programs continue to be ado pted Company wide. A key focus has been to improve
data collection processes to deliver real time data that facilitates timely analysis and decision making.
● Turmalina management changes have been completed and the focus is on operational efficiency, productivity
and cost reduction on projects, including improving preventative maintenance and equipment availability.
● At Pilar and Turmalina, operational excellence teams ar e focused on increasing haulage tonnes moved in the
mine and development metres utilizing equipment within the same shift to improve recovery and increase
productivity.
● Restructured projects group to streamline t he management of Growth and Capital Projects.
● Turmalina paste fill plant completed final commissioning tests and is expected to be operational in Q2 2018.
First Quarter 2018 Exploration Highlights
● Growth exploration at Turmalina has focused on dept h extension drilling of Orebody C below level 4. Drilling
completed to date includes approximately 4,826 metr es (20 drill holes) representing approximately 53%
completion of the 9,050 metres planned growth program.
● Additional exploration activities are focused on advancing key near mine targets including the Zona Basal
Target at Turmalina, the Torre, Pacheca North and Pilarzinho Targets contiguous to the Pilar mining operation
and at Pedra Branca in Ceara State.
● Subsequent to the temporary halt of mining activities at the RG Mine, exploratio n potential is being reviewed
aimed at prioritizing future activities targeting extensions to the known RG orebodies and the Company’s highly
prospective greater tenement package supported by the CCA Plant.
2018 Guidance
● Pilar production guidance of 39,200–47,000 ounces reflec ts the Company’s reforecast for increased mineral
resources reported in March 2018. The Pilar production is expected to offset the temporary halted production
ounces from RG.
● RG performance reflects production from January 1–March 21, 2018. RG temporarily on care and maintenance.
● Turmalina positioned and expected to deliver sign ificantly higher production in second half of 2018.
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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
2018 Production & Guidance cost Turmalina CCA Consolidated Pilar RG
Low High Low High Low High Low High
Gold production (oz.) 50,000 57,000 39,200 47,000 800 1,000 90,000 105,000
Cash Operating Cost1 ($/oz. sold) 675 775 650 800 1,000 1,100 660 800
All-in sustaining cost1 ($/oz. sold) 900 1,000 900 1,050 1,050 1,200 920 1,100
Sustaining Capex ($'000) 12,000 15,000 9,000 12,000 100 500 21,000 28,000
Development
Primary waste (metres) 2,200 2,800 2,000 2,600 N/A N/A 4,500 5,400
Secondary ore (metres) 1,800 2,100 1,000 1,150 N/A N/A 3,000 3,500
Definition, infill and exploration drilling
(metres) 18,000 25,000 14,000 20,000 200 300 32,000 45,000
1. Cash Operating Cost and All-in Sustaining Cost are non-IFRS reporting measures.
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”).
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral explorat ion 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 just over 25,000 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 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 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:
Rodney Lamond
President & Chief Executive Officer
Jaguar Mining Inc.
416-847-1854
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 the cautionary statements below and those made in our other
filings with the securities regulators in Canada. Forw ard-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," "ant icipates," "continue," "estimate," "belie ve" or variations of such words and
phrases or statements that certain actions, events or resu lts "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, t onnes milled, recovery rates, cash operating costs,
definition/delineation drilling, the timing and amount of estimated future produc tion, costs of production, capital
expenditures, 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, continuou s improvement initiatives, and resolution of pending
litigation. The Company has made numerous assumptions wi th 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 volatility of the price of, gold; the accuracy of reserve and
resource estimates and the assumptions on which the rese rve 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 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 information
involves a number of known and unknown risks and uncertain ties, including among others: the risk of Jaguar not
meeting the forecast plans regarding it s operations and financial performance; uncertainties with respect to the
price of gold, labour disruptions, mechanical failures, in crease in costs, environmental compliance and change in
environmental legislation and regulation, weather delays and increased costs or production delays due to natural
disasters, power disruptio ns, procurement and delivery of parts and supplies to the operations; uncertainties
inherent to capital markets in general (including the some times 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 ar e 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 g eological 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 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 required by law. The
forward-looking information contained in this news release is expressly qualified by this cautionary statement.
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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
Non-IFRS Measures
This news release provides certain financial measur es that do not have a standardized meaning prescribed by
IFRS. Readers are cautioned to review the below stated footnotes where the Company expanded on its use of non-
IFRS measures.
1. Cash operating costs and cash operating cost per ounce are non-IFRS measures. In the gold mining industry, cash
operating costs and cash operating co sts per ounce are common performance measures but do not have any
standardized meaning. Cash operating costs are derived from amounts includ ed in the Consolidated Statements
of Comprehensive Income (Loss) and include mine-site operating costs such as mining, processing and
administration, as well as royalty expenses, but exclude depreciation, depletion, share-based payment expenses,
and reclamation costs. Cash operating costs per ounc e are based on ounces produced and are calculated by
dividing cash operating costs by commercial gold ounces produced; US$ cash operating costs per ounce produced
are derived from the cash operating costs per ounce produced translated using the average Brazilian Central Bank
R$/US$ exchange rate. The Company discloses cash operati ng costs and cash operating costs per ounce, as it
believes those measures provide valuable assistance to investors and analysts in evaluating the Company's
operational performance and ability to generate cash flow . The most directly comparable measure prepared in
accordance with IFRS is total production costs. A reconciliation of cash operating costs per ounce to total production
costs for the most recent reporting period, the quarter ended December 31, 2017, is set out in the Company's fourth
quarter 2017 Management Discussion and Analysis (MD&A) filed on SEDAR at www.sedar.com.
2. All-in sustaining cost is a non-IFRS measure. This meas ure is intended to assist rea ders in evaluating the total
costs of producing gold from current operations. While there is no standardized meaning across the industry for
this measure, except for non-cash item s the Company's definition conforms to the all-in sustaining cost definition
as set out by the World Gold Council in its guidance note dated June 27, 2013. The Company defines all-in
sustaining cost as the sum of producti on costs, sustaining capital (capital r equired to maintain current operations
at existing levels), corporate general and administrativ e expenses, and in-mine exploration expenses. All-in
sustaining cost excludes growth capital, reclamation cost accretion related to current operations, interest and other
financing costs, and taxes. A reconciliation of all-in sustai ning cost to total production costs for the most recent
reporting period, the quarter ended December 31, 2017, is set out in the Company's fourth quarter 2017 MD&A
filed on SEDAR at www.sedar.com.