Mr. Rodney Lamond reports
JAGUAR ANNOUNCES 2015 YEAR END MINERAL RESERVES AND RESOURCES
Jaguar Mining Inc. has released its updated mineral reserves and mineral resources estimates as of Dec. 31, 2015, prepared in accordance with National Instrument 43-101. Southern Brazil operating assets include the Turmalina gold complex, consisting of the Turmalina gold mine and a process mill, and the Caete gold complex, consisting of the Pilar gold mine, the Roca Grande gold mine (RG mine) and a process mill. Both complexes are located within 100 kilometres of Belo Horizonte, the capital city of the state of Minas Gerais. Northern Brazil development assets include the Gurupi development project located in the northern state of Maranhao, Brazil.
Mineral reserves and mineral resources highlights
for 2015 (as at Dec. 31, 2015)
Southern Brazil, operating mines:
- Pilar mineral reserves increased 310 per cent to 172,000 ounces of gold after depletion, while also exceeding reserve replacement targets, as a result of the increased gold presence encountered on the BF and BFII orebodies, which comprise 91 per cent of Pilar's underground mineral reserves.
- Pilar measured and indicated (M&I) mineral resources increased 56 per cent to 514,000 ounces of gold grading 4.59 grams per tonne Au. Recent drilling results from the BF and BFII zones confirm the open downplunge potential to expand mineral resources, and also confirm increasing grade and widths below the current mining fronts.
- Turmalina mineral reserves average grade remained unchanged at 5.31 g/t Au, while ounces declined 15 per cent to 185,000 ounces of gold due to depletion during the year.
- RG M&I mineral resources declined to 111,000 ounces grading 2.81 g/t Au as a result of a large reclassification of resources, compared with 940,000 ounces grading 3.47 g/t Au in 2014. Exploration and development commenced during first quarter 2016 aim to rebuild the existing mineral resource base and also convert the mineral resources to reserves.
- Consolidated mineral reserves, representing southern Brazil operating mines, increased 34 per cent to 357,000 ounces with a 9-per-cent increase in grade to 4.82 g/t Au as a result of a significant increase in mineral reserves at the Pilar mine.
- Consolidated M&I mineral resources for the company's southern Brazil operating mines remain strong at 1.1 million ounces grading 4.45 g/t Au.
Northern Brazil, Gurupi development project (open pit)
-
Northern Brazil mineral reserves and mineral resources, comprising the open-pit Gurupi development project, remain unchanged from 2014 with proven and probable (2P) mineral reserves of 2.3 million ounces of gold (63,757,000 tonnes grading 1.14 g/t Au), included in mineral resources, and M&I mineral resources of 3.5 million ounces of gold (142,636,000 tonnes grading 0.77 g/t Au).
Rodney Lamond, president and chief executive officer of Jaguar Mining, stated: "We have made excellent progress with the geological modelling at our core operating assets in southern Brazil. Relative to our current production profile we have a solid base of mineral reserves comprised of 320,000 ounces from which we continue to build from. Our new models have provided the company with a dartboard of where to focus our exploration programs in order to build on the current life-of-mine plans. In particular, at Pilar, recent drilling results from the BF and BFII zones confirm the open downplunge potential to expand mineral resources, and also confirm increasing grade and widths below the current mining fronts. We are also focused on limiting our capital expenditures to only exploration and development of high-priority targets at our operating assets. These high-priority targets are those that will support finding, replacing and adding to our mineral reserves inventory, thereby extending mine life at all of our operating mines."
Southern Brazil operating mines mineral reserves and mineral resources review
PILAR MINE MINERAL RESERVES AND RESOURCES SUMMARY
Dec. 31, 2015 Dec. 31, 2014(1)
Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz)
2P mineral reserves
Orebody BA 69 3.20 7
Orebody BF 407 4.20 55
Orebody BFII 707 4.66 106
Orebody LFW 30 3.44 3
Orebody LPA 7 4.00 1
Total 2P reserves 1,220 4.39 172 488 2.70 42
M&I mineral resources
Orebody BA 467 4.66 70
Orebody BF 1,035 4.69 156
Orebody BFII 878 5.11 145
Orebody C 451 4.62 67
Orebody LFW 243 4.10 32
Orebody LHW 12 3.61 1
Orebody LPA 56 3.99 7
Orebody SW 338 3.28 36
Total M&I resources 3,479 4.59 514 1,817 5.64 329
Inferred mineral resources 1,208 5.45 212 1,011 5.65 184
(1) Pilar mineral resources as at Dec. 31, 2014, reported were calculated
using the historical technical reports, depleting ounces mined until 2014.
The new model developed in 2015 has reserves and resources by orebodies as
listed. Two thousand fourteen analysis by similar orebodies was not carried
out due to the new modelling techniques; hence the information for 2014 is
presented on a consolidated basis only.Pilar reserves and resources:
-
Pilar mineral reserves increased 310 per cent to 172,000 ounces of gold after 2015 depletion, while also exceeding reserve replacement targets as a result of the increased gold presence encountered on the BF and BFII orebodies, which comprise 91 per cent of Pilar's underground mineral reserves. Pilar mineral reserves average grade increased 63 per cent to 4.39 g/t Au. In 2014, mineral reserves included 42,000 ounces (488,000 tonnes at an average grade of 2.70 g/t Au) (see press release dated March 4, 2015).
- The large increase in mineral reserves at Pilar supports a significant increase in mine life with sufficient mineral reserves for four years based on the current production profile at Pilar.
- Recent drill programs at Pilar have encountered wider mineralized structures at depth, particularly on the BF and BFII formations, resulting in a significant increase in the number of ounces per vertical metre.
- A drill program consisting of 10,725 metres is planned for 2016 to explore and infill drill the downplunge extensions of the BA, BF and BFII zones to build and strengthen the company's mine model for future development.
- M&I mineral resources increased 56 per cent to 514,000 ounces of gold grading 4.59 g/t Au. Pilar's current mining front, the BA, BF and BFII orebodies, hosts M&I mineral resources containing 371,000 ounces of gold grading 4.85 g/t Au. Recent drilling results from the BF and BFII zones confirm the downplunge potential to expand defined mineral resources. The BF and BFII zone drilling results also confirm increasing grade at depth, while also remaining open at depth below current active mining fronts.
- For the Dec. 31, 2015, Pilar estimates, a new geological and block model was built under the supervision of Roscoe Postle Associates Inc. (RPA). Previous annual mineral resource estimates were internally reviewed. The previous technical report was filed in 2010. The 2015 mineral resource estimates for Pilar will be filed on SEDAR 45 days from the press release distributed on March 4, 2015.
- Estimates were prepared based on a cut-off date of Aug. 31, 2015, including 984 drill holes and 16,445 channel samples. Estimates were generated from a block model constrained by 3-D wireframe models. A capping value varying from 10 to 60 g/t Au was applied for all eight orebodies. The wireframe models of the mineralization and excavated material for Pilar were constructed by Jaguar and reviewed by RPA. A separate wireframe was built for each orebody and was used to constrain the grade estimates into the block model.
TURMALINA GOLD COMPLEX MINERAL RESERVES AND RESOURCES SUMMARY
Dec. 31, 2015 Dec. 31, 2014
Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz)
2P mineral reserves
Orebody A 827 5.82 155 899 6.23 180
Orebody C 253 3.66 30 367 3.14 37
Total 2P reserves 1,080 5.31 185 1,266 5.33 217
M&I mineral resources
Orebody A 855 7.01 193 904 7.70 224
Orebody B 511 3.56 58 581 3.11 58
Orebody C 702 3.14 71 697 2.86 64
Faina 261 6.87 58 261 6.87 58
Pontal 410 4.72 62 410 4.72 62
Total M&I resources 2,739 5.01 442 2,853 5.08 466
Inferred mineral resources 3,057 6.30 619 3,268 6.40 673Turmalina reserves and resources:
-
Turmalina mine mineral reserves declined 15 per cent to 185,000 ounces of gold, due to depletion, while average grade remained consistent at 5.31 g/t Au. Orebody C mineral reserves grade achieved a 17-per-cent increase to 3.66 g/t Au compared with the prior year, following a decision to selectively mine higher-grade ore, having the net effect of lower tonnes.
- M&I mineral resources of 442,000 ounces of gold (2,739,000 tonnes grading 5.01 g/t Au) decreased 5 per cent compared with 466,000 ounces of gold (2,853,000 tonnes grading 5.08 g/t Au) in 2014 mainly due to depletion.
- Two thousand sixteen drilling programs of the orebody A and orebody C downdip continuities will focus on replacing ounces mined during the year.
- The 2015 mineral resource estimates for Turmalina will be filed on SEDAR 45 days from the date of this press release.
ROCA GRANDE MINERAL RESOURCES SUMMARY
Dec. 31, 2015 Dec. 31, 2014(1)
Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz)
M&I mineral resources 1,231 2.81 111 8,421 3.47 940
Inferred 1,759 3.48 197 2,335 3.90 293
Mineral resources
(1) RG reported mineral resources as at Dec. 31, 2014, were
calculated using the historical technical reports, depleting
ounces mined until 2014.
Roca Grande resources:
-
Exploration and development commenced during Q1 2016 at RG to rebuild the mineral resources as 2015 M&I minerals resources declined to 111,000 ounces grading 2.81 g/t Au compared with 940,000 ounces grading 3.47 g/t Au in 2014.
- Compared with the prior year, 2015 M&I mineral resources of 111,000 ounces declined 88 per cent due to 829,000 ounces from RG that were not included in the 2015 mineral resources due to the revision of estimation parameters and geological modelling assessment.
SOUTHERN BRAZIL OPERATING MINES PROVEN AND PROBABLE MINERAL RESERVES AT DEC. 31, 2015
Proven Probable Proven and probable
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Turmalina 460 5.19 77 620 5.40 108 1,080 5.31 185
Pilar 164 3.15 17 1,056 4.58 156 1,220 4.39 172
Total mineral reserves 624 4.65 94 1,676 4.89 264 2,300 4.82 357Southern Brazil mineral reserves:
-
Consolidated proven and probable mineral reserves increased 34 per cent to 357,000 ounces based on a 23-per-cent increase in tonnes to 2.3 million tonnes and a 9-per-cent increase in average grade to 4.82 g/t Au, mainly due to a significant increase in mineral reserves at the Pilar mine.
- Total mineral reserves at Pilar increased by 310 per cent to 172,000 ounces in 2015 at a cost of $6/ounce.
SOUTHERN BRAZIL OPERATING MINES MEASURED AND INDICATED MINERAL RESOURCES AT DEC. 31, 2015
Measured Indicated M&I
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Turmalina 1,235 5.21 207 1,505 4.88 236 2,739 5.01 442
Pilar 709 4.25 97 2,770 4.68 417 3,479 4.59 514
Roca Grande 217 2.17 15 1,014 2.95 96 1,231 2.81 111
Total MI mineral resources 2,161 4.59 319 5,289 4.40 749 7,449 4.45 1,067Southern Brazil mineral resources:
-
Consolidated M&I mineral resources for the operating mines remain strong at 1.1 million ounces (7,449,000 tonnes grading 4.45 g/t Au). An improving average grade profile, due to a higher tonnage contribution from Pilar and lower tonnes from Roca Grande, drove a 3-per-cent increase in M&I mineral resource grade to 4.45 g/t Au from 4.30 g/t Au in 2014.
- Compared with the prior year, 2015 M&I mineral resources of 1.1 million ounces declined 49 per cent due to 829,000 ounces from RG that were not included in the 2015 mineral resources due to the revision of estimation parameters and geological modelling assessment. Total tonnes decreased 51 per cent to 7,449,000 compared with the prior year, also due to lower tonnes at RG.
Northern Brazil mineral reserves and mineral resources review
NORTHERN BRAZIL MINERAL RESERVES AT DEC. 31, 2015
Proven Probable Proven and probable
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Gurupi project (open pit)
Cipoeiro - - - 45,044 1.20 1,735 45,044 1.20 1,735
Chega Tudo - - - 18,713 0.99 593 18,713 0.99 593
Total mineral reserves
-- northern Brazil - - - 63,757 1.14 2,328 63,757 1.14 2,328
NORTHERN BRAZIL MINERAL RESOURCES AT DEC. 31, 2015
Measured Indicated M&I Inferred
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Gurupi project
(open pit)
Cipoeiro 25,734 0.78 640 58,494 0.87 1,633 84,229 0.84 2,273 7,041 0.67 152
Chega Tudo 20,923 0.66 440 37,484 0.67 805 58,408 0.66 1,246 678 0.62 13
Total mineral
resources --
northern Brazil 46,657 0.72 1,080 95,979 0.79 2,438 142,636 0.77 3,519 7,719 0.66 165
Northern Brazil reserves and resources:
-
Northern Brazil mineral reserves and mineral resources, comprising the Gurupi development project, remain unchanged from 2014 with proven and probable mineral reserves of 2.3 million ounces of gold (63,757,000 tonnes grading 1.14 g/t Au) included in M&I mineral resources of 3.5 million ounces of gold (142,636,000 tonnes grading 0.77 g/t Au).
- The open-pit Gurupi project comprises two deposits, Cipoeiro and Chega Tudo, which are approximately eight kilometres from each other. Both deposits are located 500 kilometres southwest of the city of Sao Luis, the capital city of the state of Maranhao, and 350 kilometres southeast of the city of Belem, the capital city of the state of Para, in northeastern Brazil.
- Gurupi project estimates as at Dec. 31, 2015, are based on the Technomine feasibility study technical report filed on SEDAR on Jan. 31, 2011, and have not been re-estimated for this press release.
SUMMARY OF MINERAL RESERVES AS AT DEC. 31, 2015
Proven Probable Proven and probable
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Southern Brazil
Turmalina gold complex(2)
Orebody A 387 5.70 71 440 5.92 84 827 5.82 155
Orebody C 73 2.51 6 180 4.13 24 253 3.66 30
Total -- Turmalina 460 5.19 77 620 5.40 108 1,080 5.31 185
Caete gold complex
Pilar(3)
Orebody BA 69 3.20 7 - - - 69 3.20 7
Orebody BF 64 2.95 6 343 4.44 49 407 4.20 55
Orebody BFII - - - 707 4.66 106 707 4.66 106
Orebody LFW 30 3.44 3 - - - 30 3.44 3
Orebody LPA 1 3.19 0 6 4.15 1 7 4.00 1
Total -- Pilar 164 3.15 17 1,056 4.58 156 1,220 4.39 172
Roca Grande - - - - - - - - -
Total -- Caete 164 3.15 17 1,056 4.58 156 1,220 4.39 172
Total -- southern Brazil 624 4.65 94 1,676 4.89 264 2,300 4.82 357
Northern Brazil
Gurupi project(4)
Cipoeiro - - - 45,044 1.20 1,735 45,044 1.20 1,735
Chega Tudo - - - 18,713 0.99 593 18,713 0.99 593
Total -- northern Brazil - - - 63,757 1.14 2,328 63,757 1.14 2,328
Total -- 2P mineral
reserves 624 4.65 94 65,433 1.23 2,592 66,057 1.26 2,685
(1) Canadian Institute of Mining, Metallurgy and Petroleum definitions are followed for
mineral reserves.
(2) Turmalina:
(a) Mineral reserves are estimated using a break-even cut-off grade of 2.57 g/t Au. Some
stopes were included using an incremental cut-off grade of 1.38 g/t Au.
(b) Bulk densities used were 2.76 tonnes/cubic metre for orebody A and B, and 2.95 t/cubic m
for orebody C.
(c) Mineral reserves are estimated using an average long-term foreign exchange rate of 3.8
Brazilian reals to $1 (U.S.).
(d) Mineral reserves are estimated using a gold price of $1,150 (U.S.) per ounce for the year
of 2016 and $1,250 (U.S.) per ounce for the year of 2017 and beyond.
(e) A minimum mining width of approximately two m was used.
(3) Caete -- Pilar:
(a) Mineral reserves were estimated using a break-even cut-off grade of 2.5 g/t Au.
(b) Bulk densities used were 2.89 t/cubic m for iron-formation-poor domains or 3.05 t/cubic m
for iron-formation-rich domains.
(c) Mineral reserves are estimated using an average gold price of $1,150 (U.S.) per ounce.
(d) Mineral reserves are estimated using an average long-term foreign exchange rate of 3.8
Brazilian reals to $1 (U.S.).
(e) A minimum mining width of approximately two m was used.
(4) Gurupi reserves are based on the Technomine feasibility study technical report filed on
SEDAR on Jan. 31, 2011.
(5) Numbers may not add due to rounding.
SUMMARY OF MINERAL RESOURCES AS AT DEC. 31, 2015
Measured Indicated M&I Inferred
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz) (000) (g/t) (koz)
Southern Brazil
Turmalina gold complex(2)
Orebody A 478 6.75 104 378 7.33 89 855 7.01 193 564 6.50 118
Orebody B 352 3.38 38 158 3.95 20 511 3.56 58 46 5.45 8
Orebody C 82 2.88 8 621 3.17 63 702 3.14 71 775 4.51 112
Faina 72 7.39 17 189 6.66 42 261 6.87 58 1,542 7.26 360
Pontal 251 5.00 40 159 4.28 22 410 4.72 62 130 5.03 21
Total -- Turmalina 1,235 5.21 207 1,505 4.88 236 2,739 5.01 442 3,057 6.30 619
Caete gold complex
Pilar(3)
Orebody BA 293 4.09 39 174 5.58 31 467 4.66 70 65 5.13 11
Orebody BF 259 4.57 38 776 4.74 118 1,035 4.69 156 293 6.77 64
Orebody BFII 4 4.46 1 874 5.11 144 878 5.11 145 198 7.89 50
Orebody C 80 4.24 11 371 4.73 56 451 4.62 67 140 5.10 23
Orebody LFW 68 3.82 8 175 4.22 24 243 4.10 32 117 4.87 18
Orebody LHW - - - 12 3.61 1 12 3.61 1 5 3.11 1
Orebody LPA 6 2.72 1 50 3.99 6 56 3.99 7 - - -
Orebody SW - - - 338 3.28 36 338 3.28 36 389 3.60 45
Total -- Pilar 709 4.25 97 2,770 4.68 417 3,479 4.59 514 1,208 5.45 212
Roca Grande(4) 217 2.17 15 1,014 2.95 96 1,231 2.81 111 1,759 3.48 197
Total -- Caete 926 3.76 112 3,784 4.22 513 4,710 4.13 625 2,967 4.29 409
Total -- southern Brazil 2,161 4.59 319 5,289 4.40 749 7,449 4.45 1,067 6,024 5.31 1,028
Northern Brazil
Gurupi project(5)
Cipoeiro 25,734 0.78 640 58,494 0.87 1,633 84,229 0.84 2,273 7,041 0.67 152
Chega Tudo 20,923 0.66 440 37,484 0.67 805 58,408 0.66 1,246 678 0.62 13
Total -- northern Brazil 46,657 0.72 1,080 95,979 0.79 2,438 142,636 0.77 3,519 7,719 0.66 165
Total -- mineral resources 48,818 0.89 1,399 101,268 0.98 3,187 150,085 0.95 4,586 13,743 2.70 1,193
(1) CIM definitions are followed for mineral reserves.
(2) Turmalina:
(a) Mineral resources were estimated using cut-off grades of 2.11 g/t Au (Turmalina), 3.8 g/t Au (Faina) and 2.9
g/t Au (Pontal).
(b) Bulk densities used were 2.89 t/cubic m for iron-formation-poor domains or 3.05 t/cubic m for
iron-formation-rich domains.
(3) Caete -- Pilar:
(a) Mineral reserves were estimated using a break-even cut-off grade of 2.5 g/t Au.
(b) Bulk densities used were 2.89 t/cubic m for iron-formation-poor domains or 3.05 t/cubic m for
iron-formation-rich domains.
(4) Caete -- Roca Grande:
(a) Mineral resources are estimated using a cut-off grade of 1.46 g/t Au.
(b) Bulk densities used were 2.87 t/ cubic m for RG1, RG2, RG3, and RG6, and 2.75 t/cubic m for RG7.
(5) Gurupi reserves are based on the Technomine feasibility study technical report filed on SEDAR on Jan. 31,
2011.
(6) Numbers may not add due to rounding.
(7) Mineral resources for Turmalina, Pilar and Roca Grande are estimated using an average long-term foreign
exchange rate of 2.5 Brazilian reals to $1 (U.S.) and average long-term gold price of $1,400 per ounce.
(8) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
(9) Numbers may not add due to rounding.
Qualified persons
Mineral reserve and mineral resource 2015 estimates for southern Brazil were prepared by Jaguar Mining under the supervision of Jason Cox, PEng, and Reno Pressacco, PGeo, of Roscoe Postle Associates. RPA is an independent mining consultant and each of Mr. Cox and Mr. Pressacco are qualified persons within the meaning of National Instrument 43-101. The effective date of these estimates is Dec. 31, 2015. An independent technical report documenting the mineral resource estimates prepared in accordance with NI 43-101 will be filed on SEDAR.
In respect of mineral reserve and mineral resource 2015 estimates for northern Brazil, that is the Gurupi project, information up to Jan. 31, 2011, is derived from the technical report titled "Gurupi Gold Project Cipoeiro e Chega Tudo Properties Feasibility Study," filed on SEDAR on Jan. 31, 2011 (with an effective date of Jan. 31, 2011). The Gurupi feasibility study was prepared by Ivan C. Machado, MSc, PE, PEng, of TechnoMine; information on updated measured and indicated resources dated July 30, 2012, for the Gurupi project has been prepared by or under the supervision of Leah Mach. Gurupi mineral reserve and mineral resource 2015 estimates were reviewed by Marcos Dias Alvim, BSc, Geo, MAusIMM (CP), as the qualified person.
Quality control
Jaguar Mining has implemented a quality control program that includes insertion of blanks, commercial standards and duplicate core samples in order to ensure best practice in sampling and analysis. NQ- and BQ-sized drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration contents. Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is stored in a secure location. Rock-channel sampling of the underground development follows the same standard intervals of the drill core. The drill core samples are transported in securely sealed bags to the Jaguar in-house laboratory located at the Roca Grande mine, Caete, Minas Gerais. Some samples are also sent for check assaying to the independent SGS Geosol laboratory located in Vespasiano, Minas Gerais. The rock-chip samples are transported in securely sealed bags to the Roca Grande mine laboratory, Caete, Minas Gerais. The preparation and analysis are all conducted at the respective facilities, either at the Roca Grande mine laboratory in Caete, Minas Gerais, or at the SGS Geosol Laboratory in Vespasiano, Minas Gerais. The Roca Grande mine laboratory does not carry an ISO certification. The SGS Geosol Laboratory is ISO 9001 accredited. As part of in-house quality assurance/quality control, the Roca Grande mine laboratory inserts certified gold standards, blanks and pulp duplicate samples.
We seek Safe Harbor.
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