Jaguar Mining Reports Q3 2018 Operating Performance; Pilar Mine Continues to Deliver Record Results __________________________________________________________________________________________
NEWS RELEASE
October 10, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Q3 2018 Operating Performance;
Pilar Mine Continues to Deliver Record Results
__________________________________________________________________________________________
Toronto, October 10, 2018 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced
operating results for the third quarter (“Q3 2018”) ended September 30, 2018. All figures are in US dollars, unless
otherwise expressed. Detailed financial results for Q3 2018 will be reported and filed on or before November 15,
2018.
Q3 2018 Key Highlights
Gold production of 20,320 ounces (175,566 tonnes mill ed), record production at Pilar Gold Mine (“Pilar”)
Consolidated average f eed grade of 4.01 g/t, up 16% year-over-year
Pilar record production of 11,068 ounces, up 13%; higher average grade of 4.40 g/t, up 14%, year-over-year
Turmalina Gold Mine (“Turmalina”) initiated an action plan to return to historical production levels
Turmalina production of 9,251 ounces declined 4% year-over-year, up 18.2% over Q2 2018
Average grade at Turma lina increased to 3.62 g/t, up 14% year-over-year
Primary development increased 43% at Turmalina (780m ) and 28% at Pilar (656m) improving mining flexibility
Preliminary consolidated cash operating costs improv ed 22% to $630 per ounce sold year-over-year and 12%
from Q2 2018
Pilar achieves record low cash costs $560 per ounce sold, decreased 30%, driving higher margin per ounce
and operating cash flow
Preliminary cash balance of $6.6 million at September 30, 2018, reflects approximately $6 million in operating
cash flow, $7.2 million invested in growth activities and $1.3 million paid in financing activities
Ben Guenther, Interim President and Chief Executive O fficer commented, “We ended the third quarter with a
marked improvement in production and average grade compared to the prior two quarters in 2018 while operating
cash costs improved to below $630 per ounce. This performance reflects a third consecutive quarter of increasing
record production at Pilar and a solid improvement in produ ction at Turmalina. Pilar continues to demonstrate its
ability to deliver low cost, quality ounces and as a result, Pilar has transformed to a new lower cost producer. We
are also pleased with the progress made at Turmalina dur ing the quarter. Our new team is executing an action
plan to increase mining flexibility and we expect to see productio n return to historical levels at Turmalina over the
next 18 months. We look forward to continuing on our path to growth in the fourth quarter and beyond.”
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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 Third Quarter Operating Results Summary
Quarterly Summary
Q3 2018 Q3 2017
Turmalina Pilar Roça
Grande Total Turmalina Pilar Roça
Grande Total
Tonnes milled (t) 88,173 87,394 - 175,566 106,629 87,605 17,636 211,870
Average head grade (g/t) 3.62 4.40 - 4.01 3.10 3.77 2.89 3.36
Recovery % 90.1% 89.6% - 89.8% 90.5% 90.4% 90.5% 90.5%
Gold ounces
Produced (oz) 9,251 11,068 - 20,320 9,616 9,674 1,491 20,781
Sold (oz) 8,608 11,832 - 20,441 9,082 9,820 1,519 20,422
Cash Operating Costs 726 560 - 630 749 804 1,195 809
Development
Primary (m) 780 656 - 1,436 443 471 18 932
Secondary (m) 558 169 - 727 337 518 67 922
Definition, infill, and
exploration drilling (m) 8,203 3,513 - 11,715 8,355 3,237 - 11,592
1. Roça Grande mine was put under care & maintenance in the first quarter of 2018.
2. Cash Operating Cost is a non-IFRS reporting measure.
Cash Position and Use of Funds
● Cash balance of approximately $6.6 million as of Sept ember 30, 2018, compared to a cash balance of $9.1
million at June 30, 2018
● Company generated approximately $6 million in operating cash flow with approximately $7.2 million spent in
investing growth activities representing mainly in development expenditures. In addition $1.3 million was paid
in financing activities
Third Quarter 2018 Operating Mine Update
Pilar
Pilar continued to deliver strong pe rformance as record production reflects improving average grade and strong
plant recovery levels
Pilar’s main ramp development is currently two levels below current mining. This gives the mine considerable
flexibility in mine planning as well as additional time to complete infill drilling for grade determination
Operational Excellence continues to assist mining o perators understand existing and potential bottlenecks, and
how to address them. Operational Excellence initiatives have benefited Pilar as the mine is well developed and
management can focus on operational improvements
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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
Turmalina mine management has initiated an action plan to focus on the following key priorities at Turmalina
including:
- Modifying the mining approach to minimize the numbe r of unfilled open stopes. Converting from blind back
stopes to sublevel stoping and 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 st oping 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
Mining will now progress from the bottom sublevel to t he top sublevel of every ore panel which does require
more initial development. This approach allows backfilling in the stope cycle and provides better control of
over-break, less dilution, and improved mining recovery while also minimizing geotechnical issues created
through the blind back-stope method
A focus on ramp development and diamond drilling will create operational flexibility and more confidence in
mine production delivering to plan
During Q3 mine operations started paste-filling upper levels of the mine for the first time since the paste-fill
plant was commissioned. Paste-fill will continue to be used to fill stopes left open in upper areas of the mine as
paste-fill is expected to improve rock stability and extracti on ratio. This will provide an opportunity for added
ore from pillar recovery
Third Quarter 2018 Exploration Highlights
Turmalina growth exploration drilling targeting orebody C down dip extensions below Level 3 continued during
the quarter with one rig in operation. As previously reported this drilling has confirmed the continuity of the gold
bearing structure beyond Level 8, approximately 300 m below current operations. The current drilling phase is
being conducted in parallel with detailed geological and structural mapping of orebody C exposed in ongoing
underground production development and is expected to be completed during Q4 2018
Trenching and channel sampling of gold in soil anomalies at the Zona Basal Target at Turmalina commenced
in Q3 and the initial phase of this work is planned to be completed by early November prior to the onset of the
wet season. Preliminary results from this work are expected to be reported in December 2018
A comprehensive revision of historical exploration work over the Pedra Branca Project in Ceará was completed
during Q3. The Pedra Branca database has been re-formatted to better reflect the historical soil, stream, rock-
chip, drilling and trenching data and updated geological mapping. Options for progressing this project are being
evaluated by the Jaguar team
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”).
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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 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:
Ben Guenther
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 pe riod, the quarter ended June 30, 2018, is set out in the Company's second
quarter 2018 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 June 30, 2018, is set out in the Company's second quarter 2018 MD&A filed on
SEDAR at www.sedar.com.