Jaguar Mining Reports Third Quarter 2019 Operating Results
Jaguar Mining Reports Third Quarter 2019
Operating Results
TSX: JAG
TORONTO
,
Oct. 17, 2019
/CNW/ -
Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG)
today announced operating results for its operating gold mines, located in Minas Gerais,
Brazil
for
the third quarter ("Q3 2019") and year-to-date ended
September 30, 2019
. Financial results for Q3
2019 will be reported and filed on SEDAR on or before
November 14, 2019
. All figures are in US
dollars, unless otherwise expressed.
Q3 2019 Operating Highlights
Vern Baker
, CEO, commented,
"Our operating mines are showing steady improvement as shown
by the on-going increases in performance since the first quarter of the year.
At Jaguar, our first
goal is to safely strengthen our two operations into sustainable consistent mines. The third quarter
of 2019 was a strong step toward this goal, and as a result, we experienced our best production
quarter of the year for ounces produced, meters developed, and tonnage milled".
Consolidated gold production of 19,324 ounces compared to 20,320 ounces in Q3 2018 (-5%),
and is up 5% from our Q2 production, and is up 18% from Q1 production levels,
Pilar Gold Mine
("Pilar") produced 11,044 ounces in line compared with the same period of
2018,
Turmalina Gold Mine
("Turmalina") produced of 8,280 ounces compared to 9,252 ounces in Q3
2018 (-11%)
Development metres increased to 2,526 total up from 2,089 in Q3 2018 (+21%); and up from
1,496 in Q1 2019 (+69%)
Vern continued: "Tonnes were at recent highs for both mines, reflecting the ability to handle
increases in both development and ore quantities. Head grades continued well below mine reserve
grades. At Pilar, grades remained close to reserve. At Turmalina, the grade was well below reserve
levels as the sequence of stoping blocks was limited to lower grade portions of the mine, and dilution
induced by prior development and stoping sequences continued plaguing the mine in July and
August. September saw strong improvement in Turmalina´s dilution indicators, as dilution was at the
lowest level of the year. The team at Turmalina continues the development of new panels that will
allow access to a stoping sequence more representative of mineral reserve grades. The completion
of our financing in July, allowed us to achieve the highest levels of development metres and ore
tonnages this year".
"In the third quarter of 2019, the team at Pilar moved forward in their mine plan to grow the
production rate to 50,000 ounces per year by fiscal year end. The on-going trend of improving
operations at Pilar reflects on the strong team developed there over the last two years. At
Turmalina, we continue building a strong team that is showing significant progress on their plan to
also reach a production rate of 50,000 ounces per year. Development rates have increased
significantly, and ore tonnages have also begun to approach targeted levels. We expect continued
improvement at Turmalina over the next three quarters as accessed mineral reserves increase and
mine typical grades are available within the stoping sequence now under development".
Mr. Baker added, "The Jaguar teams have done an excellent job of adapting to recent management
changes, the deployment of a major financing, and a challenging situation within the orebodies.
During the fourth quarter of 2019, the team will be focused on executing the plan to safely achieve
our targeted production rate, and to prepare our company to take advantage of excellent position in
the Iron Quadrangle of
Brazil
".
Third Quarter and FY 2019 Operating Results
Quarterly Summary
Q3 2019
Q3 2018
Turmalina
Pilar
Roça
Grande
Total
Turmalina
Pilar
Roça
Grande
Total
Tonnes milled (t)
94,000
114,000
-
208,000
88,000
87,000
-
175,000
Average head grade (g/t)
3.05
3.50
-
3.30
3.62
4.40
-
4.01
Recovery %
89.6%
86.3%
-
87.8%
90.1%
89.6%
-
89.8%
Gold ounces
Produced (oz)
8,280
11,044
-
19,324
9,252
11,068
-
20,320
Sold (oz)
7,399
10,018
-
17,418
8,609
11,832
-
20,441
Development
Primary (m)
1,001
515
-
1,516
780
656
-
1,436
Secondary (m)
436
575
-
1010
558
169
-
727
Definition, infill, and
exploration drilling (m)
4,090
3,751
-
7,841
8,203
3,513
-
11,716
Annual Summary
2019 (YTD)
2018 (YTD)
Turmalina
Pilar
Roça
Grande
Total
Turmalina
Pilar
Roça
Grande
Total
Tonnes milled (t)
235,000
318,000
-
553,000
247,000
262,000
12,000
521,000
Average head grade (g/t)
3.47
3.43
-
3.45
3.55
4.18
2.55
3.85
Recovery %
89.9%
86.7%
-
88.1%
90.6%
89.5%
89.5%
90.0%
Gold ounces
Produced (oz)
23,628
30,426
-
54,054
25,517
31,616
870
58,004
Sold (oz)
23,405
29,432
-
52,837
24,632
31,381
894
56,908
Development
Primary (m)
2,357
1,630
-
3,987
2,167
1,615
-
3,782
Secondary (m)
1,087
1,254
-
2,341
951
800
-
1,751
Definition, infill, and
exploration drilling (m)
13,343
9,319
-
22,661
19,370
9,850
697
29,917
The table below summarizes the gradual improvements at our consolidated operations over the past
2019 quarters.
Quarterly Summary
2019
Q1
Q2
Q3
YTD
Tonnes milled (t)
161,000
184,000
208,000
553,000
Average head grade (g/t)
3.59
3.48
3.30
3.45
Recovery %
87.7%
88.6%
87.8%
88.1%
Gold ounces
Produced (oz)
16,364
18,366
19,324
54,054
Sold (oz)
16,821
18,598
17,418
52,837
Primary Development (m)
Turmalina
573
783
1,001
2,357
Pilar
588
527
515
1,630
Secondary Development (m)
Turmalina
321
330
436
1,087
Pilar
310
369
575
1,254
Qualified Persons
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").
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 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 two 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 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
.
Forward-Looking Statements and Cautionary Notes
Certain statements in this news release constitute "forward-looking information" within the meaning
of applicable Canadian securities legislation. Forward-looking statements 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
. 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, recovery rates, cash operating costs, definition/delineation drilling, the
timing and amount of estimated 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 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 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 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 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, mechanical
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 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 exploration, 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, procurement fraud and gold bullion thefts and losses (and the risk of
inadequate insurance, or the inability to obtain insurance, to cover these risks). In addition, the
Company's principal operations and mineral properties are located in
Brazil
and there are
additional business and financial risks inherent in doing business in
Brazil
as compared to
the
United States
or
Canada
. In
Brazil
, corruption represents a challenge requiring extra attention by
those who conduct business there. Corruption does not only occur with the misuse of public,
government or regulatory powers, it also can occur in a business's supplies, inputs and
procurement functions (such as illicit rebates, kickbacks and dubious vendor relationships) as well
as the inventory and product sales functions (such as inventory shrinkage or skimming).
Employees as well as external parties (such as suppliers, distributors and contractors) have
opportunities to commit theft, procurement fraud and other wrongs against the Company. While
corruption, bribery and fraud and theft risks can never be fully eliminated, the Company reviews
and implements controls to reduce the likelihood of these events occurring. The Company's
present and future business operations face these risks. Accordingly, for all of the reasons above,
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 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.
SOURCE
Jaguar Mining Inc.
View original content:
http://www.newswire.ca/en/releases/archive/October2019/17/c7693.html
%SEDAR: 00019963E
For further information:
Vern Baker, Chief Executive Officer, Jaguar Mining Inc.,
[email protected], 416-847-1854; Hashim Ahmed, Chief Financial Officer, Jaguar
Mining Inc., [email protected], 416-847-1854
CO: Jaguar Mining Inc.
CNW 06:30e 17-OCT-19