Jaguar Mining Reports Q4 and Full Year 2017 Production and Provides 2018 Outlook
NEWS RELEASE
January 17, 2018 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Q4 and Full Year 2017 Production and Provides 2018 Outlook
Toronto, Canada, January 17, 2018 – Jaguar Mining In c. ("Jaguar" or the "Company") (TSX:JAG) today
announced preliminary fourth quarter 2017 (“Q4 2017”) oper ating results for its core assets located in the Iron
Quadrangle area of Minas Gerais, Brazil. All figures are in US dollars unless otherwise expressed. Detailed Q4
2017 financial results are expected to be released on or around March 28, 2018.
Rodney Lamond, President and CEO, Jaguar Mining comm ented: “In 2017, we made meaningful progress at our
core producing assets Turmalina and Pilar mines in te rms of production, explor ation and managing cash costs
company-wide. Turmalina delivered improved fourth quarter results compared to the previous two quarters in both
head grade and gold production following accelerated development and stoping activities into new high-grade
mining areas of Orebodies A and C. As head grades cont inue to increase at Pilar, we expect lower cash
operating costs and increasing gold production in 2018, potentially at new record levels”.
“Our core producing assets are benefitting from signific ant investments during 2017, including 48.5 kilometres of
diamond drilling, 7.76 kilometres of underground development, sustaining capital expenditures and equipment
purchases. The exploration success achieved during 2017 at Turmalina and Pilar will allow the Company to begin
realizing the upside potential of creating long-term su stainable value through increasing near-mine Ore Reserves
and Mineral Resources.”
2017 Key Milestones and Exploration Success
Invested total capital of approximately $23M in 2017, which yielded positive results with approximately $5M
invested in exploration drilling. In creased definition, infill and exploration drilling metr es by 28% to 48,498 m
compared to 2016.
Completed more than 48,000 m of ta rgeted diamond drilling for exploration and growth programs across our
core assets focusing on upgrading and converting resources and adding new resources. Currently 9 drills are
in operation at Jaguar’s core assets.
Significantly increased exploration drilling year-over-year, 28.5 km (61% increase) drilled at Turmalina Mine
(“Turmalina”) and 18.8 km (68% increase) at Pilar Mine (“Pilar”). Secondary development at Pilar increased
64% year-over-year.
Exploration success at Pilar (see press releases August 16 and September 20, 2017) and Turmalina (see
press releases February 8 and November 28, 2017). I dentified high-grade mineraliz ation on the significant
down plunge extensions to main producing ore bodies. Pilar drill resu lts demonstrated expected continuity of
high-grade mineralized structures well beyond current mine plans an d provided the potential for adding
substantial new resources to significantly extend mine life.
Completed the rebuild and dry commi ssioning of the paste fill plant at Tu rmalina. Final commissioning and
start-up of the plant to be completed in the beginning of 2018.
Turmalina purchased 35.9 hectares of private land over its Zona Basal deposit, which the Company plans to
test mine in 2018.
Fourth Quarter and Full Year 2017 Operating Highlights
Total gold production in 2017 was 84,151 ounces, reflecti ng 22% increase year-over-year in production at
Pilar to 34,017 ounces, the highest production since 2012.
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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
Increased total gold production to 21,311 ounces in Q4 2017, up 2.5% compared to 20,780 ounces in
Q3 2017; however, lower compared to 25,408 ounces in Q4 2016. Improved progress at Turmalina: 12,245
ounces of gold produced in Q4 2017, 27% higher over Q3 2017.
Turmalina average grade recovered significantly in Q4 2017, up 42% to 4.41 g/t Au over Q3 2017 reflecting
mining from higher-grade area of Orebody A. Mining volumes continue to increase from higher grade
Orebody A with more working stopes.
Pilar average head grade of 3.46 g/t Au in FY 2017 wa s the highest annual average grade since the start-up
of the mine. Year-over-year head grade increased 14% in Q4 2017 and 5% for full year 2017 (“FY 2017”).
Completed 13,973 m or 41% more definition, infill and exploration drilling metres in Q4 2017, compared to
9,914 m in Q4 2016 and 21% more metres than Q3 2017.
Definitions: g/t Au – grams per tonne gold
Improving Cash Operating Costs
Improved consolidated cash operating costs (“COC”) to $743 per ounce sold during Q4 2017, compared to
$809 in Q3 2017, and $735 in Q4 2016. COC for the second half of 2017 decreased to $775 per ounce sold
compared to $895 in the first half of 2017.
Lower unit costs are a result of a continued focus on profitable ounce production, waste reduction and solid
progress made on company-wide cost reduction programs. The Company estimates that the Q4 2017
operating cash flow will be between $5-6M.
Preliminary cash balance of approximately $18.6M as of December 31, 2017, compared to a cash balance of
$19.2M at September 30, 2017.
Mr. Lamond continued: “Our fourth quarter results demon strate excellent progress made on our strategy of
delivering profitable ounce production to generate operating cash flow for re-investment in sustaining and growth
exploration projects and to pay down debt. With this focus, we continued to make operational and strategic
improvements in all key areas including Geological Modeling, Block Modeling and Mine Design. Operational
Excellence programs, both underground and in our processi ng facilities, have helped deliver the efficiencies and
productivity needed to continue reducing cash operating costs. As a result, cash costs decreased to $775 per
ounce sold in the second half of 2017, compared to $895 fo r the first half. During the fourth quarter, cash costs
decreased 8% to $743 per ounce sold compared to Q3 2017.
“Turning to 2018, we will continue to focus on increasing operating cash flow and investing capital in sustaining
and growth projects, and reducing debt. The results of our 2017 exploration success will be summarized in the
updated mineral resource and ore reserve statement fo r Pilar and an update mineral resource statement for
Turmalina for Q1 2018. Our exploration strategy for 2018 will be to convert the newly reported resources into
reserves through infill drilling and productive sub-level developm ent. While this work will take 12 to 18 months to
complete, the goal is to establish a large reserve base and convert the perception of a short life mine into a long-
term sustainable asset.
“Based on our plan, the Company will be positioned to ac hieve strong production growth and increased mining
flexibility by the end of 2018 and beyond. In 2018, we expect gold production of approximately 90,000–105,000
ounces.”
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
2018 Guidance
Guidance for FY 2018 for Turmalina, Pilar and Roça Grande (“RG”) mines is as follows:
2018 Production & Guidance cost
Turmalina CCA Consolidated
Pilar RG
Low High Low High Low High Low High
Gold production (ounces) 50,000 57,000 36,000 42,000 4,000 6,000 90,000 105,000
Cash Operating Cost (US$/oz sold) 675 775 700 800 825 925 700 800
All-in sustaining cost (US$/oz sold) 900 1,000 950 1,050 1,100 1,250 950 1,100
Sustaining Capex (US$'000) 12,000 15,000 9,000 11,000 1,000 2,000 22,000 28,000
Development
Primary waste (m) 2,200 2,800 2,000 2,200 300 400 4,500 5,400
Secondary ore (m) 1,800 2,100 1,000 1,150 200 250 3,000 3,500
Definition, infill and exploration drilling (m) 18,000 25,000 14,000 20,000 3,000 5,000 35,000 50,000
Preliminary Cash Balance
The Company had a preliminary cash balance of approximately $18.6M as of December 31, 2017, compared to a
cash balance of $19.2M as at September 31, 2017. During the fourth quarter, the Company received an
additional $2M from Avanco for the second instalment of the Accelerated Earn-in Agreement signed for the
Gurupi Project.
Capital investments and growth exploration in the seco nd half of 2017 were primarily funded through operating
cash flows. In addition to the continuing in capital expendi tures, the Company also paid $3M in debt principal and
interest payments during the quarter.
Fourth Quarter and Full Year 2017 Operating Summary
Quarterly Summary
Q4 2017 Q4 2016
Turmalina Pilar Roça
Grande Total Turmalina Pilar Roça
Grande Total
Tonnes milled (t) 95,000
81,000 14,000 190,000 122,000
84,000 31,000 237,000
Average head grade (g/t) 4.41 3.53 2.19 3.87 4.39 3.11 1.93 3.61
Recovery % 91.2% 89.4% 89.5% 90.3% 92.5% 90.8% 90.8% 91.7%
Gold ounces
Produced (oz) 12,245 8,156 911 21,311 16,101 7,569 1,738 25,408
Sold (oz) 12,142 7,880 819 20,841 16,024 7,326 1,760 25,110
Preliminary Financial Data
Cash Operating Costs ($/oz) 646 840 1,247 743 562 942 1,454 735
Avg. Realized gold price ($/oz) 1,278 1,205
Avg. US$: BRL Fx (US$1:BRL) 3.25 3.30
Development
Primary (m) 363 475 70 908 483 608 - 1,091
Secondary (m) 261 416 - 677 466 718 21 1,205
Definition, infill, and exploration
drilling (m) 9,345 4,138 490 13,973 5,123 2,588 2,203 9,914
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JAGUAR MINING INC.
First Canadian Place, 100 King Street West, 56th Floor, Toronto, Ontario, Canada M5X 1C9 T: 416-847-1854
Annual Summary
FY 2017 FY 2016
Turmalina Pilar
Roça
Grande Total Turmalina Pilar
Roça
Grande Total
Tonnes milled (t) 427,000 338,000 68,000 833,000 502,000 290,000 89,000 881,000
Average head grade (g/t) 3.65 3.46 2.34 3.47 4.28 3.30 2.12 3.77
Recovery % 91.0% 90.2% 90.3% 90.6% 91.5% 90.6% 90.7% 91.2%
Gold ounces
Produced (oz) 45,466 34,017 4,668 84,151 63,259 27,846 5,503 96,608
Sold (oz) 45,575 33,793 4,382 83,750 63,639 28,138 5,500 97,277
Cash Operating Costs ($/oz) 706 939 1,404 837 566 926 1,425 719
Development
Primary (m) 1676 1634 264 3,573 2,985 2,262 215 5,462
Exploration (m) 171 13 31 215 78 125 - 203
Secondary (m) 1,644 2,124 201 3,969 2,620 1,293 838 4,751
Definition, infill, and exploration
drilling (m) 28,456 18,799 1,243 48,498 17,648 11,167 9,045 37,860
Consolidated gold production increased 3% to 21,311 ounces in Q4 2017 compared to 20,781 ounces in Q3
2017, though lower than 25,408 ounces in Q4 2016. Consolidated gold production for 2017 was 84,151
ounces compared to 96,608 ounces in 2016, mainly due to challenges experienced at Turmalina in the first
half of 2017, which deferred approximately 12,000 ounces.
Pilar achieved a record in production in FY 2017 wi th 34,017 ounces, the highest production since 2013 at a
head grade of 3.46 g/t Au, an annual record for the mine. Pilar continued to see improvement in advancing
ore development into the higher-grade Orebodies BF II and BF.
Turmalina improved production in Q4 2017 to 12,245 ounces, up 27% compared to the Q3 2017, reflecting
increasing grade from mining deeper in Orebody A. Fu ll year 2017 production of 45,466 ounces was lower
than 63,259 ounces in 2016 mainly due to mining issues encountered at level 9 during Q1 and Q2 2017.
In December 2017, Turmalina produced 4,930 ou nces, the highest production since Q1 2017 when
geotechnical issues were encountered at level 9. Turmalin a is currently mining on level 10 and 11 below the
area of geotechnical issues and with the current mining practices should not encounter this problem in the
future.
The Company completed 908 m and 3,573 m of primary development during the fourth quarter and full year
2017, respectively, compared to 1,091 m and 5,463 m in the comparative 2016 periods.
Ore processed was 190,000 tonnes in Q4 2017 (Q4 2 016 - 237,000 tonnes) at a higher average head grade
of 3.87 g/t Au (Q4 2016 - 3.61 g/t Au). In Q4 2017, Turmalina processed 95,000 tonnes (Q4 2016 - 122,000
tonnes) and continued to see an increased average head grade of 4.41 g/t Au (Q4 2016 - 4.39 g/t Au) as
mining now has access to lower Orebody A containing higher grades.
Caeté plant processed 95,000 tonnes in Q4 2017 (Q4 2016 - 115,000 tonnes) at an average head grade of
3.33 g/t Au (Q4 2016 – 2.79 g/t Au).
Pilar Gold Mine grade of 3.53 g/t Au increased compared to Q4 2016 grade of 3.11 g/t Au as mining activity
increased into the higher-grade BF II Orebody. Additiona lly, total production at Pilar declined, quarter over
quarter in Q4 2017 to 8,156 ounces due to equipment availability issues in October and operational issues
caused by a blast next to a zone of weakness on level 9 sublevel 3 causing a delay in the drilling cycle in
November.
The higher average head grade and lower tonnage reduced consolidated CoC per ounce sold in Q4 2017.
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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
Roça Grande Mine ("Roça Grande") contributed to 911 ounces of gold production in Q4 2017 and 4,668
ounces in FY 2017 with improving grade compared to FY 2016. Improved performance and operational
efficiencies, including optimization of working shifts, resulted in lower cash operating costs.
Total 2017 ore processed by all the operating assets was 833,000 tonnes (average head grade of 3.47 g/t
Au), as compared to 881,000 tonnes processed in 2016 (average head grade of 3.77 g/t Au).
Operational Excellence Initiatives
The Company continues to make m eaningful progress on cost reductions and operational excellence. All
sites have established operational excellence teams resp onsible for reviewing business processes to identify
efficiency and productivity opportunities as well as direct cost reduction opportunities.
Excellence teams have lowered operating costs and impr oved operational efficiency across the Company.
During 2018, the cost savings and efficiencies are expected to continue effe ctive cost reduction and
containment. The initiatives include:
- Reducing energy consumption by optimizing the main ventilation fans during shift changes after the
blast clearance, as well as finding and reducing unnecessary electrical consumption;
- Improving the metres per blast during development;
- Optimizing underground haulage by improving the average haul truck loads closer to the optimum
load per trip; and,
- Drilling efficiency with the fandrills, equipment ut ilization and preventive maintenance to improve
equipment availability, improving tire life on u nderground equipment, warehouse inventory controls,
reduction and optimization of plant consumables.
Turmalina commenced an initiative to improve the q uality of drilling and blasting focused on improving the
fragmentation of the blasts, which is expected to decrease overall drilling and blasting costs and with
additional cost savings in crushing also anticipated.
In 2017, the road used to haul ore from the Pilar Mine to the Caeté plant was interrupted by a slope failure.
During the first half of 2017, Jaguar incurred higher haula ge costs by using a longer and more restricted route
through the town of Rancho Novo. During this period, a long-term right-of-way was purchased and a new route
constructed allowing for an overall shorter haulage between the Pilar mine and the Caeté plant. This has resulted
in overall lower haulage cost per tonne for moving ore between the sites.
Qualified Person
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 black 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 Sã o Bento. Jaguar holds the second largest
gold land position in the Iron Quadrangle with just over 25,000 hectares.
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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
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mi ning, 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 gree nstone belt in the state of Minas Gerais and include the
Turmalina Gold Mine Complex and Caeté Gold Mine Complex. The Company also owns the Paciência Gold Mine
Complex, which has been on care and maintenance sinc e 2012. 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 t he cautionary statements below and those made in our
other filings with the securities regul ators in Canada. Forward- looking information contai ned in forward-looking
statements can be identified by the use of words such as "are ex pected," "is forecast," "is targeted,"
"approximately," "plans," "anticipates," "projects," "anticipates," "continue," "e stimate," "believe" or variations of
such words and phrases or statements t hat certain actions, events or results "may," "could," "would," "might," or
"will" be taken, occur or be achieved. All statements, othe r than statements of historic al 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 assump tions 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 le vel 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 competition; ongoing rela tions 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 information involve a nu mber of known 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 regulation, 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 othe r 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 herei n. In addition, there are risks and hazards associated
with the business of gold exploration, development, mi ning and production, including environmental hazards,
tailings dam failures, industrial accidents and workplac e safety problems, unusual or unexpected geological
formations, pressures, cave-ins, flooding, chemical spills, and gold bullion thefts an d losses (and the risk of
inadequate insurance, or the inability to obtain insurance, to cover these risk s). 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 qualified by this cautionary
statement.
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 above stat ed footnotes where the Company expanded on its use of
non-IFRS measures.
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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
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 costs per ounce are common performance measures but do not
have any standardized meaning. Cash operating co sts are derived from amounts included in the
Consolidated Statements of Comprehensive Income (Los s) and include mine-site operating costs such as
mining, processing and administration, as well as roya lty expenses, but exclude depreciation, depletion,
share-based payment expenses, and reclamation cost s. Cash operating costs per ounce 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
operating costs and cash operating co sts per ounce, as it believes those measures provide valuable
assistance to investors and analysts in evaluatin g the Company's operational performance and ability to
generate cash flow. The most directly comparable m easure prepared in accordance with IFRS is total
production costs. A reconciliation of cash operating costs per ounce to total prod uction costs for the most
recent reporting period, the quarter ended September 30 , 2017, is set out in the Company's third quarter
2017 Management Discussion and Analysis (MD&A) filed on SEDAR at www.sedar.com.