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DGAP-News: Jaguar Mining Inc.: Jaguar Mining Reports 23,483 Ounces Produced in Second Quarter

DGAP-News: Jaguar Mining Inc. / Key word(s): Miscellaneous
Jaguar Mining Inc.: Jaguar Mining Reports 23,483 Ounces Produced in Second Quarter

07.07.2020 / 12:00
The issuer is solely responsible for the content of this announcement.

Jaguar Mining Reports 23,483 Ounces Produced in Second Quarter

Pilar Mine Achieves New Record Production

Strong Free Cash Flow and Liquidity

Operational Update on COVID-19 Action Plan

TORONTO, ON / ACCESSWIRE / July 7, 2020 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) today announced interim gold production results for the second quarter of 2020 ("Q2 2020"). The Company is pleased to announce that it continues to show consistent quarter-over-quarter operational improvement at the Pilar Gold Mine ("Pilar") and Turmalina Gold Mine ("Turmalina") located in Minas Gerais, Brazil. Financial results for Q2 2020 will be reported and filed on SEDAR on or before August 10, 2020. All figures are in US Dollars, unless otherwise expressed.

Vern Baker, CEO, commented: "We are pleased to be able to announce our continued progress toward our goal of sustainable production of 25,000 ounces per quarter. Our teams at Pilar and Turmalina continue to make steady strides to build the foundation of a strong company. Jaguar's gold production of 23,483 ounces combined with 2,445 development metres and 14,278 Diamond Drilling meters demonstrate a strong performance on all key aspects of our plan. I personally would like to thank all our team members for their continuing commitment to building a strong company during a quarter with COVID-19 issues."

Q2 2020 Operating Highlights

- Consolidated gold production increased 28% with 23,483 ounces compared to 18,366 ounces in Q2 2019, demonstrating the fifth consecutive quarter of increase in sustainable production. Grade also increased to 4.00 g/t compared to 3.48 g/t in Q2 2019;

- Pilar gold production increased 28% and set a new production record with 13,452 ounces compared to 10,543 ounces in Q2 2019;

- Turmalina gold production increased 28% with 10,031 ounces, compared to 7,823 ounces in Q2 2019;

- Total development metres increased 22% to 2,445 metres compared to 2,009 metres in Q2 2019. Primary development meters increased 30% to 1,707 metres compared to 1,310 metres in Q2 2019. Secondary development meters increased 6% to 738 metres compared to 699 metres in Q2 2019.

- Total definition, infill and exploration drilling increased 74% to 14,278 metres compared to 8,189 metres in Q2 2019. The additional drilling is expected to allow Jaguar to continue expanding Mineral Resources in 2020;

- Strong treasury as of June 30, 2020, with cash of $30.1 million compared to cash of $12.1 million on March 31, 2020, demonstrating significant generation of pre-tax free cash flow. Brazilian Bank debt of $1 million was also paid down and $0.7 million of common shares were bought back through the Normal Course Issuer Bid program.

Vern continued; "Pilar has continued to demonstrate improved mine performance at a pace that meets our goal of 50,000 ounces per year. As all underground mines, Pilar has ongoing challenges, however our strong team shows a commitment for developing consistency and new opportunities as we move forward. With development meters and diamond drilling meters being completed; Pilar can sustain a 50,000 ounce per year production base. Turmalina continues to strengthen and is driving development that will underpin the next step up in production. The next two quarters should see increases in production at Turmalina as a new panel in C-zone is brought online. Improvements in Q2 operating performance, coupled with the tail winds of strong gold prices and a positive change in the exchange rate are reflected in the company's cash flow."

The table below summarizes Q2 2020 operating results compared to Q2 2019:

Quarterly SummaryQ2 2020Q2 2019
Tonnes milled (t)104,000104,000208,00075,000109,000184,000
Average head grade (g/t)3.414.594.003.553.443.48
Recovery %88.3%87.1%87.7%90.6%87.3%88.6%
Gold ounces      
Produced (oz)10,03113,45223,4837,82310,54318,366
Sold (oz)10,83614,13424,9707,99910,59918,598
Primary (m)1,0866211,7077835271,310
Secondary (m)415323738330369699
Definition, infill, and exploration drilling (m)8,2706,00814,2784,9633,2268,189


Vern also commented on the current issues surrounding the COVID-19 pandemic and the Company's COVID-19 Action Plan, which was Initiated on March 14, 2020; "During the ongoing COVID-19 issues, our people at all levels have stepped up to keep our company strong and moving forward. We continue to monitor the situation daily, while maximizing communications, and we have a fluid plan in place. Thanks are due to our operating teams who have kept our mines working and have continued to advance on our production goals. Management and staff teams are also due thanks as they have remained engaged and focused on maintaining the service levels critical to our operating teams while adapting to the "home office" work environment. A disappointment for our teams did occur in June when one of our people twisted an ankle dismounting a vehicle and incurred the first lost-time accident in 10 months. In these trying times of COVID-19, it reminds us of the need to be continually reinforcing our efforts of safety and quality control of our processes."

Risks and Mitigating Factors

Jaguar is maintaining its social licenses to operate in all sites throughout Brazil and continues to deliver on its ethical and collaborative partnerships with employees, suppliers, local communities and unions. During this COVID-19 pandemic, the Company has formulated a formal COVID-19 Action Plan which has been adopted company-wide. The Action Plan is committed to sustainability while implementing increased health and safety initiatives with all stakeholders, including the protection of employees and their employment.

COVID-19 remains the largest question mark for all companies. At any time, state and federal government mandates may change and any mandate that would result in the shutdown of operations will affect the Company's production. As well, the pandemic may impact the availability of our workforce or supplies. Jaguar is not able to predict the consequences of the pandemic over the next several months and hence is unable to project the impact on production at the current time.

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), FAUSIMM, 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 17th 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

For further information, please contact:

Vern Baker<...

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