Mr. Rodney Lamond reports
JAGUAR MINING INTERCEPTS HIGH-GRADE GOLD MINERALIZATION AND CONFIRMS DOWNWARD EXTENSION AT DEPTH AT TURMALINA GOLD MINE
Jaguar Mining Inc. has released multiple high-grade drill intercepts generated from 46 infill drill holes (7,310 metres from a 7,842-metre total program) designed to test the current indicated and inferred resource envelope of orebody A at the Turmalina gold mine. The 46 drill holes do not include four additional holes (532 metres) that are pending assay results.
Drilling highlights and key intercepts
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Drill intercepts completed confirm the continuation of high-grade gold mineralization downplunge of orebody A, 170 metres below current production workings, while also increasing confidence in the geological model of orebody A through increased drill density.
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Drill results provide the potential to upgrade current inferred resources to a higher category and include the following key intercepts:
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Drill hole FTS1299 intercepted 21.66 grams per tonne gold over 8.48 metres (estimated true width (ETW) 7.1 metres);
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Drill hole FTS1298 intercepted 18.26 g/t Au over 8.39 metres (ETW 5.9 metres);
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Drill hole FTS1268 intercepted 12.87 g/t Au over 20.7 metres (ETW 17.5 metres), including 29.48 g/t gold over 6.64 metres (ETW 5.6 metres) and 22.24 g/t Au over 2.94 metres (ETW 2.5 metres).
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The Turmalina gold complex has achieved over 500,000 ounces of gold production since its commissioning in 2007. Orebody A is the main contributor to gold production at Turmalina. Orebody A has been outlined along a strike length of approximately 250 metres to 300 metres and remains open at depth below the current drilling program.
Rodney Lamond, president and chief executive officer of Jaguar, stated: "These drilling results are highly significant as they represent the first phase of infill drilling programs focused on increasing the geological confidence of orebody A at Turmalina. Drilling results confirm that the high-grade mineralization recently mined from orebody A continues 170 metres below the current working production levels, with grades persisting at depth. In addition, these results also reinforce the excellent potential to expand orebody A downplunge, as well as potentially increasing mineral resources as we work towards upgrading current inferred resources to a higher category. We are continuing with our infill drilling programs on orebody A as a priority target given the excellent grades and widths we have encountered. In addition to this program, we are initiating a deep drilling program on orebody C, expected to commence during Q3 2016, in an effort to identify higher-grade mineralized ore shoots within orebody C to augment the main production from orebody A."
Turmalina gold deposit
The Pitangui area, where the Turmalina mine is located, is underlain by rocks of Archaean and Proterozoic age. Archaean units include a granitic basement, overlain by the Pitangui group, a sequence of ultramafic to intermediate volcanic flows and pyroclastics and associated sediments. The Turmalina deposit is hosted by chlorite-amphibole schist and biotite schist units within the Pitangui group. All units have been metamorphosed to the amphibolite grade.
The mineralization at the Turmalina mine is typically epigenetic and consists of a number of tabular bodies that are spatially related to a banded iron formation (BIF). These tabular bodies are grouped together according to spatial configuration and gold content into orebodies A, B and C. Gold can occur within the BIF itself, but can equally occur in the other host lithologies.
Gold mineralization occurs in fine grains associated with sulphides in sheared schists (orebody A) and BIF sequences (orebody C). Gold particles average 10 micrometres to 20 micrometres and are mostly associated with arsenopyrite, quartz and micas (sericite and biotite).
The main production of the mine comes from orebody A, which is a steeply east-dipping tabular deposit that is located in a biotite schist host rock with a steep southeasterly plunge. The mineralization in this deposit has been outlined along a strike length of approximately 250 metres to 300 metres and to depths of 700 metres to 750 metres below surface.
Orebody C is a series of 14 lenses that are located to the west in the structural footwall of orebody A and are generally of lower grade than orebody A. They strike northwest and dip steeply to the northeast. A minor amount of production has been achieved from these lenses to date. The mineralization in this deposit has been outlined along a strike length of approximately 800 metres to 850 metres and to depths of 400 metres to 450 metres below surface.
Orebody A and C drill program
The company has continued drilling for downplunge extensions of orebody A to assess the growth potential for measured and indicated mineral resources. In addition, drilling has focused on providing increased definition and confidence in the near-term mine operation within the indicated mineral resource.
The development of a new exploration drilling horizon in the hangingwall of the structure is currently being reviewed and considered to drill the orebody A downplunge continuity below the current inferred resource envelope.
Additional deep exploration drilling is also planned to test the promising orebody C southeast downplunge extension below the known resources, in order to gradually increase total Turmalina throughput.
The assessment of the historical geological information and the rational use of state-of-the-art 3-D software are strongly contributing to the understanding of the gold emplacement and consequent target generation of new resource identification.
Significant gold production milestones achieved
In 2007, the Turmalina gold complex commenced mining operations and has since maintained a consistent production level, achieving more than 500,000 ounces of gold produced to date. Combining total gold production from Turmalina with total gold production from the company's other gold assets, Jaguar has exceeded a major milestone, producing more than 1.1 million ounces of gold production as at the second quarter of 2016 in one of the most prolific gold camps in South America, the Iron Quadrangle in the state of Minas Gerais, Brazil.
Mr. Lamond commented: "I am extremely proud of all of our employees and support groups, who together achieved a remarkable gold production milestone of 1.1 million ounces, which reflects the gold production capability of our gold mines in Brazil. We continue to be well positioned for future growth and to deliver on our goals in a safe and responsible operating environment."
With the recent success of key exploration programs and a cash balance of $17.5-million (U.S.) as at June 30, 2016, the company remains committed to investing in exploration programs that will support the replacement of depleted resources. Additionally, the company will focus its exploration efforts on areas that will contribute to the growth of its sustainable production profile from its core producing assets: Turmalina, Pilar and Roca Grande.
Drill intercepts
The drilling intercepts contained in this news release (see the accompanying table) are downplunge of current underground workings at orebody A. The accompanying table shows intersections drilled between January, 2016, and June, 2016, and are contained within the current inferred resource envelope, as detailed in the "Technical Report On The Turmalina Mine, Minas Gerais State, Brazil," released and filed on SEDAR on May 24, 2016. With these results, the company is expecting to replace the reserves being depleted in 2016 and it is confirming the downplunge continuity and strength in grade and tonnage of the mineralization.
The effect of these intercepts was not incorporated into the reserve/resource model update that was disclosed in a news release on April 7, 2016. The effect of incorporating the new drill data into the reserve/resource model will be ascertained and quantifiable only once a reserve and resource model update is conducted, later in the year, as additional data are gathered.
Qualified person
Scientific and technical information contained in this press release has been reviewed and approved by Marcos Dias Alvim, BSc Geo, MAusIMM (CP), project development manager, who is an employee of Jaguar and is a qualified person as defined by National Instrument 43-101 (standards of disclosure for mineral projects).
Quality control
Jaguar 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-size 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. All diamond drill hole collars are accurately surveyed using a total stations instrument and downhole deviations are surveyed using optical Reflex Maribor.
Mean grades are calculated using a variable lower-grade cut-off (generally two g/t Au). No upper gold grade cut has been applied to the data. However, the requirement for assay top cutting will be assessed during future resource work.
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. The drill core samples are transported in securely sealed bags to the Jaguar in-house laboratory located at the Caete mine complex in Minas Gerais. Some samples are also sent for check assaying to the independent SGS Geosol Laboratory in Vespasiano, 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 Caete mine complex 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 Caete mine complex laboratory inserts certified gold standards, blanks and pulp duplicate samples.
For a complete description of Jaguar's sample preparation, analytical methods and quality assurance/quality control procedures, please refer to the Turmalina technical report, filed on Jaguar's profile on SEDAR.
TURMALINA GOLD MINE DRILL RESULTS
Downhole Estimated
Hole ID Date From To interval true width Gold grade
(m) (m) (m) (m) (g/t)
FTS1260 Jan. 12, 2016 112 125.9 13.9 5.5 10.24
Including Jan. 12, 2016 112 120.5 8.5 3.4 15.5
FTS1261 Jan. 6, 2016 73.3 77.1 3.7 2.6 2.75
FTS1262 Feb. 15, 2016 205.7 227.2 21.5 9 4.1
Including Feb. 15, 2016 205.7 220.7 15 6.2 4.56
FTS1263 Feb. 1, 2016 254.5 258.2 3.7 3 3
FTS1264 Jan. 6, 2016 84.1 101 16.9 10.5 5.37
FTS1265 Jan. 1, 2016 123.6 134 10.5 6.9 6.84
FTS1266 Jan. 21, 2016 120.9 131.2 10.3 6.9 5.45
FTS1267 Jan. 19, 2016 113 115.8 2.9 2.1 10.96
FTS1268 Jan. 21, 2016 141.7 162.4 20.7 17.6 12.87
Including Jan. 21, 2016 141.7 148.3 6.6 5.6 29.48
Including Jan. 21, 2016 158.6 161.5 2.9 2.5 22.24
FTS1269 Feb. 24, 2015 112.7 125 12.3 6.2 7.62
FTS1270 Jan. 12, 2016 90.3 106.7 16.4 7.2 7.08
FTS1271 Jan. 21, 2016 110.3 120.3 10 5 4.16
FTS1272 Jan. 20, 2016 91.6 99.1 7.5 5 11.17
FTS1273 Feb. 19, 2016 98.5 102.1 3.7 2.8 5.69
FTS1274 Feb. 2, 2016 83.6 84.6 1 1 1.12
FTS1275 Feb. 3, 2016 Exploration drill hole to investigate granite/volcano
sedimentary rocks contacts
FTS1276 Feb. 10, 2016 Exploration drill hole to investigate granite/volcano
sedimentary rocks contacts
FTS1278 Feb. 19, 2016 90.7 95.6 4.9 3.5 1.73
FTS1279 Feb. 25, 2016 97.8 98.8 1.0 0.5 0.68
FTS1280 Feb. 22, 2016 168.6 176.1 7.4 6.0 3.04
FTS1281 Feb. 22, 2016 127.9 133.4 5.5 3.5 7.53
FTS1282 Feb. 26, 2016 118.8 124.4 5.6 5.0 7.46
FTS1284 March 30, 2016 89.4 102.8 13.4 12.0 15.29
FTS1285 March 31, 2016 86.9 101.6 14.7 8.0 2.73
FTS1286 March 4, 2016 133.5 144.1 10.6 6.4 8.30
FTS1287 March 15, 2016 118.4 122.2 3.8 3.2 4.46
FTS1288 March 10, 2016 118.1 123.7 5.6 4.2 4.84
FTS1289 April 4, 2016 111.2 113.1 1.9 1.8 6.07
FTS1290 April 1, 2016 93.5 96.9 3.5 3.2 7.76
FTS1291 April 20, 2016 104.9 107.6 2.8 2.0 1.87
FTS1292 April 1, 2016 96.9 116.7 19.8 14.8 5.58
Including April 1, 2016 96.9 102.4 5.5 4.1 14.30
FTS1293 Feb. 6, 2016 75.6 89.5 13.9 12.2 12.17
FTS1294 May 15, 2016 81.8 87.3 5.5 3.5 10.87
FTS1295 May 19, 2016 81.1 97.7 16.6 10.4 10.24
FTS1296 May 23, 2016 91.1 100.5 9.4 5.6 4.74
FTS1297 Jan. 6, 2016 87.5 101.0 13.5 10.7 7.71
FTS1298 June 13, 2016 100.7 109.0 8.4 5.9 18.26
FTS1299 June 13, 2016 91.6 100.1 8.5 7.1 21.66
FTS1300 May 26, 2016 146.3 152.6 6.3 3.4 5.44
FTS1301 May 29, 2016 131.3 137.9 6.6 3.0 5.33
FTS1302 May 30, 2016 119.3 126.6 7.4 3.2 5.77
FTS1303 May 30, 2016 99.6 100.5 1.0 0.5 0.71
FTS1304 April 29, 2016 107.1 108.9 1.8 1.6 8.42
FTS1305 June 27, 2016 118.7 131.7 13.0 5.0 5.65
FTS1309 June 21, 2016 102.0 106.6 4.6 2.1 2.92
FTS1310 June 23, 2016 144.2 150.8 6.5 3.1 6.27
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