Jaguar Mining Reports Third Quarter 2017 Operating Results, Reviews 2017 Outlook Company Achieves Record Grade at Pilar, Lowers Cash Costs, Increases Operating Cash Flow and Reduces Higher Cost Brazilian Debt by $2M
NEWS RELEASE
October 17, 2017 TSX: JAG
FOR IMMEDIATE RELEASE
Jaguar Mining Reports Third Quarter 2017 Operating Results,
Reviews 2017 Outlook
Company Achieves Record Grade at Pilar, Lowers Cash Costs, Increases Operating Cash Flow and
Reduces Higher Cost Brazilian Debt by $2M
Toronto, Canada, October 17, 2017 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) today
announced preliminary third quarter 2017 (“Q3 2017”) operating results for its core assets located in the Iron
Quadrangle area of Minas Gerais, Brazil. All figures ar e in US Dollars unless otherwise expressed. Full Q3
2017 financial results are expected to be released on or around November 8, 2017.
Q3 2017 Highlights
Consolidated gold production of 20 ,781 ounces, improved grade of 3.36 g/t Au and recovery of 90%. First
9 months consolidated production totalled 62,840 ounces.
New record grade at Pilar Gold Mine (“Pilar”) of 3.77 g/t Au for the quarter as mining activity increases into
the higher-grade BFII ore body, resulting in 9,674 ounce s of gold produced in Q3 2017, an increase of
26% quarter over quarter. September gold grade for Pilar was 4.48 g/t Au. The higher average head grade
and lower tonnage reduced consolidated Cash Operating Costs (“COC”) per ounce sold in Q3 2017.
Turmalina Mine (“Turmalina”) gold production of 9,616 ounces, grading 3.10 g/t Au, declined compared to
Q2 2017 gold production of 10,870 ounces grading 3.37 g/t Au, due to less overall tonnes mined and a
delay in accessing the next in-line higher grade ore fr om Orebody A, resulting in higher contribution of
material from lower grade Orebody C.
Increasing grade at Roça Grande Mi ne (“Roça Grande”) of 2.89 g/t Au c ontributed to gold production of
1,491 ounces, which was 25% higher compared to Q2 2017. Improved performance and operational
efficiencies, including optimization of working shifts from four to two per day, resulted in positive
operational cash flows for Roça Grande.
Definitions: g/t Au – grams per tonne gold
Improving Third Quarter Cash Operating Costs
Improved consolidated COC per ounce sold to $819, an 11.4% reduction compared to $924 in Q1 2017,
and a reduction of 4.4% compared to $857 in Q2 2017. The COC per ounce sold decreased significantly
in September 2017 to $743.
Lower unit costs are a result of a continued focu s on profitable ounce product ion, waste reduction and
solid progress made on company-wide cost reduction program s, despite a continui ng impact of a strong
Brazilian Real vs. the US Dollar. The Company estima tes that the Q3 2017 operating ca sh flow will be
between $5-6M with net free cash flow of between $1-2M (excluding Gurupi-Avanco proceeds).
Preliminary cash balance of approximately $19.2M as of September 30, 2017, compared to a cash
balance of $20.7 million at June 30, 2017. In addition to the regular r epayment of financing obligations of
$3.2M, the Company also made an additional debt repaym ent of $2M to reduce part of its higher cost
Brazilian debt.
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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
2017 Outlook
The Company continues to focus on generating positive operating cash flow and improving COC per
ounce sold. Further improvement in operating cash flow and net positive free cash flow is expected to be
generated in the fourth quarter of 2017 (“Q4 2017”).
A re-forecast for 2017 has been completed resulting in lower estimated gold production for the full year.
The reduction is mainly due to lower than anticipated pr oduction from Turmalina as a result of mining less
higher-grade material from Orebody A than planned and an increase in lower grade ore from Orebody C.
In the midst of lower production, the Company increased its focus on maximizing operating cash flow from
all three mines in order to achieve its key milesto nes to support its current operations and contribute
towards future growth plans.
2017 production is now expected to be between 87,000–92,000 ounces of gold, compared with
approximately 95,000 ounces previously announced.
Rodney Lamond, President and CEO of Jaguar, commented: "Third quarter production was highlighted by
strong operating performance at Pilar which has progressed extremely well throughout 2017, including posting
a record quarterly grade of 3.77 g/t Au and decreasing cash costs compared to the second quarter of 2017.
Overall consolidated grade improved over the second quar ter by 5.7% to 3.36 g/t Au driven by higher grades
at Pilar and Roça Grande, resulting in an increase of 5.1% in overall gold production quarter over quarter.”
“Operationally, we have kept a sharp focus on reducing costs and delivering profitabl e ounces to provide us
with the flexibility to reinvest capital in key near mine exploration growth projects. Cash operating costs per
ounce continue to steadily improve and decreased 9% to $819 per ounce for Q3 2017 compared to $895 per
ounce in the first half of 2017. The improvement is partially attributed to the strong results at Pilar, from mining
the higher-grade BFII ore body, which also continues to perform at consistently higher production levels each
month. Additionally, cost containment and cash flow m onitoring efforts across all mine sites have contributed
to the expected positive financial results for the third quarter of 2017.”
“After completing a gold production re-forecast for 2017, we expect to improve production performance at
Turmalina into Q4 2017 as the team is focused on ac hieving key milestones to support future production.
Although we have deferred approximately 12,000 ounces of production we had previously forecasted in 2017
to 2018, we are pleased with these assets returning back to generating positive operating cash flows.”
“Looking ahead, we have made excellent progress on our exploration growth projects with highly encouraging
drill results that have increased our confidence in the re source upside of Pilar and its ability to have a very
positive impact on the Company’s future. We are al so optimistic that the drill program commenced at
Turmalina, now about 40% complete, may deliver similar exploration success and we look forward to reporting
these drill results before year-end.”
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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
Quarterly Operating Summary
Update on Progress at Turmalina to End of September 2017
Management is focused on supporting current and future production targets at Turmalina by achieving certain
key milestones including the following:
Increasing the number of working areas in an effort to stabilize the mining cycles in order to have a
consistent gold production.
Increasing gold production from Orebody C while th e mining cycle is normalized in Orebody A and until
access to lower Orebody C containing higher grades can be established. Production from Orebody C is
expected to continue to impact consolidated grade in the short term.
Completing the review of the upper levels of the mi ne in Orebody A to identify areas of high-grade blocks
that can be recovered. Several areas have already been identified and two mining blocks within these
areas are expected to be recovered by year-end.
Completed the newly designed paste-fill plant. Commissioning of the plant is expected to begin in the
fourth quarter.
The completion of the key milestones outlined above is cr itical to ensuring the flexibility and consistency in the
production plan at Turmalina and realizing the full potential of the higher grades in Orebody A.
Outlined below is the trailing consolidated COC summary for the past three quarters:
Consolidated Cost
Summary
Q1 2017 Q2 2017 Q3 2017
Jan Feb Mar Q1 Apr May June Q2 Jul Aug Sep Q3
Cash Operating Costs
(per oz)
891
937
945
924
1,017
823
797
857
908
828
743
819
Third Quarter Cost Reduction and Operational Excellence Initiatives Highlights
Renegotiated haulage costs for ore from Pilar to the Caeté Mill combined with a new, shorter access road
are expected to decrease future operating costs of Pilar by approximately $20-25 per ounce of gold sold.
Turmalina Pilar Roça
Grande Total Turmalina Pilar Roça
Grande Total Turmalina Pilar Roça
Grande Total
Tonnes milled (t) 107,000 88,000 18,000 213,000 128,000 78,000 25,000 231,000 112,000 85,000 19,000 216,000
Average head grade (g/t) 3.10 3.77 2.89 3.36 4.36 3.51 2.12 3.83 3.37 3.16 2.15 3.18
Recovery % 91% 90% 90% 90% 92% 91% 91% 91% 91% 90% 90% 91%
Gold ounces
Produced (oz) 9,616 9,674 1,491 20,781 16,304 7,923 1,556 25,783 10,870 7,702 1,197 19,769
Sold (oz) 9,082 9,820 1,519 20,421 15,945 7,821 1,551 25,317 10,815 6,625 1,013 18,453
Financial Data
Cash Operating Costs (per oz) 758 817 1,197 819 528 762 1249 645 6 9 51 0 3 31 4 3 9 857
Avg. Realized gold price ($/oz) 1,276 1,328 1,266
Avg. US$:BRL FX (US$1:BRL) 3.16 3.25 3.22
Developm ent
Primary (m) 443 471 18 932 605 741 7 1,353 504 218 102 824
Exploration (m) 11 - - 11 - 22 - 22 56 - - 56
Secondary (m) 337 518 67 922 623 284 275 1,182 292 577 120 989
Diamond drilling (m) 8,355 3,237 - 11,592 2,793 2,811 1,145 6,749 4,676 6,206 186 11,068
Q2 2017
Ope rating Summary
Q3 2017 Q3 2016
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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
Efficiency initiatives at Pilar and Turmalina are yiel ding tangible results. Oper ating improvements include
initiatives such as management of ventilation shut-offs to reduce elec trical consumption, increasing fan-
drill efficiency by metres drilled per shift, tracking of full-load haul tr ucks, and increasing drill and blast
efficiency of jumbo drills to achieve more break per metre drilled.
Invested $1.2M and acquired a new 33 tonne haul truck, replacing two older trucks, which will improve
equipment availability and lower cash operating costs.
Preliminary Cash Balance
Preliminary cash balance of approximately $19.2M as of September 30, 2017, compared to a cash balance of
$20.7M at June 30, 2017. During the third quarter, the Company received $2M from Avanco for the first
instalment of the Accelerated Earn-in Agreement signed for the Gurupi Project on September 18, 2017.
In addition to the regular repayment of financing obligat ions of $3.2M during the quarter, the Company used
the initial proceed from the Gurupi Avanco transaction to make an additional debt repayment of $2M for part of
the high cost Brazilian debt, thus reducing the future debt servicing and improving the working capital.
2017 Growth Exploration and Mineral Resources Highlights
Jaguar provided an update on its recent Exploration Gr owth Program (see news release dated September 20,
2017) and announced the acquisition of a new strategic land position (see news release dated June 21, 2017)
located 4.5 km west of the Caeté Mill, increasing the total registered RG Mine concession by 1,000 hectares.
Recent results from Pilar incl uded drill results that continued to intersect high-grade visible gold
mineralization down-plunge of current resources. Key intercepts included 15.9 g/t Au over 11.8 m (ETW
9.6 m), 25.3 g/t Au over 6.0 m (ETW 5.2 m) and 5. 3 g/t Au over 49.3 m (ETW 38.7 m) and confirm the
thick, high-grade intercepts from earlier holes, previously reported in August 2017, which included 10.8 g/t
Au over 29.3 m (ETW 22.5 m). A further 3,200 m of infill diamond drilling at P ilar aimed at increasing
drilling density in these areas for inclusion in updat ed Mineral Resource and Ore Reserve estimates for
this operation are scheduled for rele ase in early 2018. This drilling comm enced with one rig in the last
week of September 2017.
At Turmalina, three diamond drill rigs commenced 11,355 m of growth exploration drilling in July 2017
which are targeting down-plunge extensions to th e high-grade Orebody A at depth, and shallower
extensions of Orebody C. Approximately 40% of the planned program has been completed to date
including fourteen holes (eleven holes for Orebody A and three holes for Orebody C) with a combined
meterage totalling 4,520 m.
Definitions: ETW – estimated true width m – metres
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), 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”).
Quality Control
Jaguar continues to use a quality-control program that in cludes insertion of blanks and commercial 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 characteri stics such as lithology and hydrothermal alteration
contents. All diamond drill hole collars are accurately surveyed using a Total Stations instrument and down-
hole deviations are surveyed using non-magnetic equipm ent with Icefield Tools' Gyro Path® NSG equipment
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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
and SPT Stockholm Precision Tools with GyroMaster™ Solid State [North Seeker].
Mean grades are calculated using a variable lower grade cut-off (generally 0.5 g/t Au). No upper gold grade
cut has been applied to the data. However, the requi rement for assay top cutting will be assessed during
future resource work.
Half of the sawed sample is forwarded to the analytical laboratory for analysis wh ile the remaining half of the
core is stored in a secure location. The drill core samples are transported in securely sealed bags and sent for
physical preparation to the independent ALS Brasil (subsidiary of ALS Global) laboratory located in
Vespasiano, Minas Gerais, Brazil. The analysis is conducted at ALS Global’s respective facilities (fire assay is
conducted by ALS Global in Lima, Peru and multi-elementary analysis are conducted by ALS Global in
Vancouver, Canada). ALS has accreditation in 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 Iron Quadrangle
The Iron Quadrangle has been an area of mineral exploration 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 Ou ro Preto (Black Gold). The Iron Quadrangle contains
world-class multi-million-ounce gold deposits such as Mo rro 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 approximate ly 192,000 hectares. The Company’s principal operating
assets are located in the Iron Quadrangle, a prolific gr eenstone 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) which combined, produce more than 95,000 oun ces of gold annually. The Company also owns the
Paciência Gold Mine Complex, which has been on care and maintenance since 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 "f orward-looking information" within the meaning of
applicable Canadian securities legislati on. Forward-looking statements and information are provided for the
purpose of providing information about management's expect ations and plans relating to the future. All of the
forward-looking information made in this news releas e is qualified by the ca utionary 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 us e of words such as "are expected," "is forecast," "is
targeted," "approximately," "plans," "anticipates," "proje cts," "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 look ing information. This news release contains forward-
looking information regarding, among other things, expect ed sales, production statistics, ore grades, tonnes
milled, recovery rates, cash operating costs, definit ion/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 explorat ion, development and mining activiti es, currency fluctuations, capital
requirements, project studies, mine life extensions, rest arting suspended or disrup ted operations, continuous
improvement initiatives, and resolution of pending litigation. The Company has made numerous assumptions
with respect to forward-looking information contain ed 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 re serve 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 consist ent with its current expect ations including, without
limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine
operating licenses and permits being obtained an renewe d 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 number of known and unknown risk s 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 price of gold, labour disruptions, me chanical 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 di sruptions, 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 ra ise 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 addi tion, there are risks and
hazards associated with the business of gold explor ation, 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, 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 Company'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 expect ations 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 in formation, future events or otherwise, other than as
required by law. The forward-looking information contai ned in this news release is expressly qualified by this
cautionary statement.
Non-IFRS Measures
This news release provides certain financial measures that do not have a standardized meaning prescribed by
IFRS. Readers are cautioned to review the above stated 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 oper ating costs are derived from amounts included in
the Consolidated Statements of Comprehensive Income (Loss) and include mine-site operating costs such
as mining, processing and administration, as we ll as royalty expenses, but exclude depreciation,
depletion, share-based payment expenses, and reclamat ion costs. Cash operat ing costs per ounce are
based on ounces produced and are calculated by di viding 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 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 mo st directly comparable measure prepared in
accordance with IFRS is to tal production costs. A reconciliation of cash operating costs per ounce to total
production costs for the most recent reporting period , the quarter ended June 30, 2017, is set out in the
Company's second quarter 2017 Management Disc ussion and Analysis (MD&A) filed on SEDAR
at www.sedar.com.