Jaguar Mining Reports Updated Mineral Reserves and Mineral Resources __________________________________________________________________________________
NEWS RELEASE
March 29, 2023 TSX:JAG FOR IMMEDIATE RELEASE OTCQX:JAGGF
Jaguar Mining Reports Updated Mineral Reserves and Mineral Resources
__________________________________________________________________________________
TORONTO, March 29, 2023 – Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG, OTCQX: JAGGF) is pleased to announce its annual Mineral Reserves and Mineral Resources (MRMR) statement for 2022. The Proven and Probable (2P) Mineral Reserve figures are derived from Jaguar’s two operating mines: Turmalina and Pilar. The Mineral Resource figures are derived from these two mines and also includes updated Mineral Resources for the Faina Growth Project following 2022 infill drilling and restated Mineral Resources for the Company’s dormant Paciência Complex (CPA). Initial Mineral Resources are also reported from the recent Zona Basal and Pontal South brownfields discoveries.
Detailed tabulations and discussion of this 2022 MRMR disclosure may be found within the Company´s AIF Document which will be uploaded to SEDAR on or before the 31st of March 2023 while an updated NI 43-101 Technical Report for the CPA Complex will be published by the end of May 2023.
HIGHLIGHTS
- Proven and Probable Mineral Reserves additions of 49 koz were offset by mined depletion of 103 koz for a net decrease of 11% to 454 koz, (3816 kt @ 3.70 g/t Au).
- Measured and Indicated Resources increased by 7% to 1320 koz, (9455 kt @ 4.43 g/t Au).
- Inferred Mineral Resources increased by 13% to 1191 koz, (10302 kt @ 3.60 g/t Au).
- Faina Growth Project infill drilling moved the project forward increasing the Measured and Indicated Mineral Resource from 58 koz to 233 koz with conversion from Inferred to Indicated Mineral Resources of 128 koz and with an addition of 47 koz.
- Paciência Complex (CPA) some 235 koz of Inferred Mineral Resources were added to inventory from Santa Isabel and Margazao after a full review of historical data and for Bahu after 2022 drilling.
- Life of Mine (LOM) plans at both operations schedules production at current rates into 2027 maintaining a near five-year mineral reserve pipeline in front of operations for the fifth consecutive year.
- Exploration Results from in-mine and brownfields areas were robust with solid increases reported in all Mineral Resource categories including initial disclosure of Inferred Mineral Resources reported from two new discoveries (Zona Basal and Pontal South).
Vern Baker, CEO of Jaguar Mining stated, “Jaguar has generated $91.2M in free cash flow over the last three years and paid out $29.6M in dividends. In addition to making the required investments to sustain current operations, its further objective is to make targeted capital allocations necessary to best exploit the Company’s underutilized plant capacity. This year’s Mineral Reserve and Mineral Resource update underlines this strategy.”
Figure 1. Location of Jaguar Mining Operations and Exploration Projects
Figure 2. Jaguar Mineral Reserves 2015 – 2022
2022: MINERAL RESERVES AND MINERAL RESOURCES
Mineral Reserves
During the year, at the Company’s operations, Proven and Probable (2P) Mineral Reserve additions of 49 koz were offset by mined depletion of 103 koz for a net decrease of 11% to 454 koz (3816 kt @ 3.70 g/t Au).
Turmalina Proven and Probable (2P) Mineral Reserves of 214 koz, (1855 kt @ 3.58 g/t Au) is a net decrease of 42 koz from the prior year. Mining in 2022 depleted 49 koz from the Mineral Reserve offset by a gain of 7 koz.
2P Mineral Reserves at Turmalina can be divided between Orebody A (53 koz, 379 kt @ 4.37 g/t Au), Orebody B (38 koz, 346 kt @ 3.42 g/t Au) and Orebody C (122 koz, 1130 kt @ 3.37 g/t Au).
Pilar Proven and Probable (2P) Mineral Reserves are reported as 240 koz, (1961 kt @ 3.81 g/t Au) which reflects a small net decrease (11 koz) after mined depletion of some 54 koz from the prior year.
2P Mineral Reserves at Pilar can be divided between Orebody BA (29 koz, 223 kt @ 4.1 g/t Au), Orebodies BFs (90 koz, 708 kt @ 3.95 g/t Au), Orebody SW (77 koz, 631 kt @ 3.80 g/t Au), Orebody Torre (21 koz, 178 kt @ 3.73 g/t Au) and others (22 koz, 221 kt @ 3.12 g/t Au).
Table 1. Jaguar Consolidated Mineral Reserves as at 31st December 2022
| December 31, 2022 | Proven Reserves | Probable Reserves | Proven & Probable Reserves | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tonnes | Grade | Gold oz | Tonnes | Grade | Gold oz | Tonnes | Grade | Gold oz | |
| (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | |
| Turmalina Gold Complex | |||||||||
| Ore Body A | 286 | 4.70 | 43 | 93 | 3.37 | 10 | 379 | 4.37 | 53 |
| Ore Body B | 215 | 3.32 | 23 | 130 | 3.59 | 15 | 346 | 3.42 | 38 |
| Ore Body C | 327 | 3.31 | 35 | 803 | 3.39 | 87 | 1130 | 3.37 | 122 |
| Total - Turmalina | 829 | 3.79 | 101 | 1026 | 3.41 | 113 | 1855 | 3.58 | 214 |
| Caeté Gold Complex | |||||||||
| Pilar | |||||||||
| Ore Body BA | 130 | 4.14 | 17 | 93 | 4.05 | 12 | 223 | 4.10 | 29 |
| Ore Body BFs (BF, BFI,BFII) | 518 | 4.01 | 67 | 190 | 3.82 | 23 | 708 | 3.95 | 90 |
| Ore Body Torre | 21 | 3.50 | 2 | 157 | 3.76 | 19 | 178 | 3.73 | 21 |
| Ore Body SW | 274 | 3.70 | 33 | 357 | 3.87 | 44 | 631 | 3.80 | 77 |
| Others | 136 | 3.14 | 14 | 85 | 3.09 | 8 | 221 | 3.12 | 22 |
| Total - Pilar | 1079 | 3.82 | 133 | 882 | 3.78 | 107 | 1961 | 3.81 | 240 |
| Total - Mineral Reserves | 1908 | 3.81 | 234 | 1909 | 3.58 | 220 | 3816 | 3.70 | 454 |
Notes:
1. CIM (2014) definitions are followed for Mineral Reserves.
2. Mineral Reserves reported are in-situ.
3. Mineral Reserves at Turmalina were estimated at a break-even cut-off grade of 2.32 g/t Au. Mineral Reserves at Pilar were estimated at a cut-off grade of 2.44 g/t Au.
4. Mineral Reserves are estimated using an average long-term gold price of $1,650 per ounce, and a US$/BRL$ exchange rate of 5.20 at both mines.
5. A minimum mining width of 3.50 m was used at Turmalina and 3.00 m at Pilar including dilution.
6. Numbers may not add due to rounding.
7. There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Reserve estimates.
Figure 3. Waterfall Graph showing Jaguar consolidated Proven and Probable (2P) Mineral Reserves year on year changes by operation 2021 – 2022.
Figure 4. Long Section showing year on year changes in Pilar Mineral Reserves 2022 vs 2021.
Figure 5. Long Section showing year on year changes in Turmalina Mineral Reserves 2022 vs 2021.
Mineral Resources
Jaguar Mining´s Consolidated Mineral Resources as at 31st December 2022 are reported for both the Pilar and Turmalina Mines, updated Mineral Resources for the Faina Growth Project based on infill drilling completed during 2022 and restated Mineral Resources for its CPA assets Santa Isabel, Margazao and Bahu after a full review of historical data from these areas. Initial Mineral Resources are reported from the Zona Basal and Pontal South Exploration Projects.
Jaguar´s consolidated Measured and Indicated Mineral Resources as of 31st December 2022 are reported as 1320 koz (9455 kt @ 4.43 g/t Au) which are 87 koz above the prior year reflecting a 7% increase in reported Measured and Indicated Mineral Resource inventory year on year.
Inferred Mineral Resources for 2022 are reported as 1191 koz (10302 kt @ 3.60 g/t Au) which is a 133 koz net increase on the prior year reflecting a 10% increase in reported Inferred Mineral Resource inventory year on year.
Table 2. Jaguar Mining´s Consolidated Mineral Resources as at 31st December 2022
| Measured & Indicated Measured Resources Indicated Resources Inferred Resources Resources December 31, 2022 Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz (000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's) Underground Turmalina Gold Complex Ore Body A 739 6.26 149 263 3.64 31 1002 5.57 179 94 3.60 11 Ore Body B 315 3.81 39 202 3.92 25 517 3.85 64 169 4.33 23 Ore Body C 734 3.59 85 1390 3.47 155 2124 3.51 240 1012 3.05 99 Sub-Total Turmalina 1788 4.73 272 1855 3.54 211 3643 4.13 483 1274 3.26 134 Faina 0 0.00 0 1427 5.08 233 1427 5.08 233 1420 5.09 232 Pontal 251 5.00 40 159 4.28 22 410 4.72 62 130 5.03 21 Pontal South 820 2.85 75 Total - Turmalina UG 2039 4.76 312 3441 4.21 466 5480 4.42 778 3644 3.94 462 Turmalina Waste/Void Tonnes Total Underground Caeté Gold Complex Pilar Ore Body BA 293 4.23 40 148 4.43 21 441 4.30 61 202 6.76 44 Ore Body BF 557 4.92 88 157 4.63 23 714 4.86 112 399 4.64 60 Ore Body BFII 269 5.12 44 22 3.78 3 291 5.02 47 49 5.35 9 Ore Body BFIII 38 4.49 5 55 4.00 7 93 4.20 13 39 4.33 5 Ore Body Torre 70 3.74 8 250 4.15 33 320 4.06 42 327 3.97 42 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ore Body SW | 376 | 3.99 | 48 | 509 | 4.03 | 66 | 886 | 4.01 | 114 | 978 | 3.68 | 116 |
| Others | 174 | 4.03 | 23 | 94 | 3.33 | 10 | 268 | 3.78 | 33 | 121 | 5.00 | 19 |
| Total - Pilar | 1778 | 4.50 | 257 | 1235 | 4.12 | 164 | 3013 | 4.34 | 421 | 2117 | 4.33 | 294 |
| Roça Grande | 197 | 3.42 | 22 | 765 | 4.02 | 99 | 962 | 3.90 | 121 | 889 | 4.08 | 117 |
| Total - Caeté UG Pilar Waste/Void Tonnes Total | 1975 4.39 279 2000 4.08 263 3975 4.24 542 3006 4.26 411 | |||||||||||
| Underground Paciência Gold Complex Santa Isabel/Corrego Grande | ||||||||||||
| 978 | 4.01 | 126 | ||||||||||
| Marzagão Bahu Total - Paciência UG | 445 | 4.44 | 63 |
Open Pit -Turmalina Gold Complex
| Zona Basal | 781 | 1.28 | 32 |
| Open Pit - Caeté Gold Complex | |||
| Córrego Brandão | 1072 | 1.48 | 51 |
| Open Pit -Paciência Gold Complex | |||
| Bahu | 43 | 2.08 | 3 |
| JAGUAR UG Total - Mineral Resources | 4014 | 4.58 | 591 | 5442 | 4.16 | 729 | 9455 | 4.34 | 1320 | 8406 | 4.09 | 1105 |
| JAGUAR OP Total - Mineral Resources | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1896 | 1.41 | 86 |
| JAGUAR TOTAL - Mineral Resources | 4014 | 4.58 | 591 | 5442 | 4.16 | 729 | 9455 | 4.34 | 1320 | 10302 | 3.60 | 1191 |
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources at the Turmalina Gold Complex include the Turmalina Mine, the Faina deposit, Pontal deposit, Pontal South deposit and the Zona Basal deposit.
3. Mineral Resources at the Caete Gold Complex include the Pilar and Roça Grande underground mines and the Córrego Brandão open pit deposit
3. Mineral Resources at the Paciência Gold Complex include the Santa Isabel, Marzagão underground mines and Bahu deposit.
4. Mineral Resources at Turmalina Complex are estimated at a cut-off grade of 1.72 g/t Au at Turmalina, 3.0 g/t at Faina, 2.90 g/t Au at Pontal, 2.02 g/t at Pontal South, and 0.75 g/t Au at Zona Basal. Faina underground mineral resources are reported using constraining panels over 3.00 g/t cut-off. For Zona Basal the resources are defined by pit optimization using Lerchs-Grossmann algorithm. Mineral Resources at Caete Complex are estimated at a cut-off grade of 1.90 g/t Au for Pilar and 1.80 g/t for Roça Grande. For Córrego Brandão, the Mineral Resources are defined by pit optimization using Lerchs-Grossmann algorithm and using cut-off grades of 0.38 g/t Au and 0.74 g/t Au for oxidized and fresh material, respectively.
5. Mineral Resources at the Pontal deposit remain unchanged from those stated as at December 31, 2015.Mineral Resources at Paciência Complex for Bahu underground mineral resources are reported using constraining panels that were created using a cut-off grade of 1.85 g/t Au. Santa Isabel/Córrego Grande/Marzagão underground mineral resources are reported from clipped wireframes created using a cut-off grade of 2.75 g/t Au.
6. Mineral Resources are estimated using a long-term gold price of $1,800 per ounces at Turmalina, Faina, Pontal South, Zona Basal, Pilar, Córrego Brandão, Santa Isabel, Marzagão, and Bahu. Mineral Resources for the Roça Grande and Pontal deposits are estimated using a long-term gold price of $ 1,800.
7. Mineral Resources are estimated using an average long-term foreign exchange rate of 5.20 Brazilian Reais: 1 US Dollar for Turmalina, Faina, Pontal South Zona Basal, Pilar, Santa Isabel, Marzagão, and Bahu.
8. A minimum mining width of 2.00 m was used at Turmalina, Faina, Pontal South, Pilar, Santa Isabel, and Marzagão. For Córrego Brandão and Zona Basal has used pit optimization using Lerchs-Grossmann algorithm.
9. Mineral Resources are inclusive of Mineral Reserves at Turmalina and Pilar mines. No Mineral Reserves are currently present at Faina, Pontal, Pontal South, Zona Basal, Roça Grande, Córrego Brandão, Santa Isabel, Marzagão and Bahu.
10. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
11. Numbers may not add due to rounding.
Figure 6. Waterfall Graph showing Jaguar consolidated Mineral Resources (koz) year on year changes by operation and project 2022 vs 2021.
Figure 7. Waterfall Graph showing Jaguar Consolidated Measured and Indicated Mineral Resources (koz) year on year changes by operation and project 2022 vs 2021.
Consolidated Turmalina Complex (Measured and Indicated) Mineral Resources (Underground) are reported as 778koz (5480 kt @ 4.42 g/t Au) and Inferred Mineral Resources 494koz, (Underground, 3644 kt @ 3.94 g/t Au and Open Pit, 781 kt @ 1.28 g/t Au) subdivided as follows:
Underground Mineral Resources
- Turmalina Mine Measured and Indicated Mineral Resources are reported as 483 koz, (3643 kt @ 4.13 g/t Au).
- Turmalina Mine Inferred Mineral Resources are reported as 134 koz, (1274 kt @ 3.26 g/t Au).
- Faina Measured and Indicated Mineral Resources of 233 koz, (1427 kt @ 5.08 g/t Au).
- Faina Inferred Mineral Resources are reported as 232 koz, (1420 kt @ 5.09 g/t Au).
- Pontal Measured and Indicated Mineral Resources are reported as 62 koz, (410 kt @ 4.72 g/t Au) unchanged from 2021 disclosure.
- Pontal Inferred Mineral Resources are reported as 21 koz, (130 kt @ 5.03 g/t Au) unchanged from 2021 disclosure.
- Initial Pontal South Inferred Mineral Resources are reported as 75 koz, (820 kt @ 2.85 g/t Au).
Open Pit Mineral Resources
- Initial Zona Basal Inferred Mineral Resources (Open Pit) are reported as 32 koz, (781 kt @ 1.28 g/t Au).
Figure 8. Long Section showing year on year changes in Turmalina Mineral Reserves 2021 – 2022.
Figure 9. Long Section showing Faina Mineral Resources as at December 31st 2022.
Figure 10. Long Section showing Pontal South Mineral Resources as at December 31st 2022.
Figure 11. Long Section showing Zona Basal Mineral Resources as at December 31st 2022.
Consolidated CCA Complex (Measured and Indicated) Mineral Resources (Underground) are reported as 542koz (3975 kt @ 4.24 g/t Au) and Inferred Mineral Resources 462koz, (Underground, 3006 kt @ 4.25 g/t Au and Open Pit, 43 kt @ 2.08 g/t Au) subdivided as follows:
Underground Mineral Resources
- Pilar Mine Measured and Indicated Mineral Resources are reported as 421 koz, (3031 kt @ 4.34 g/t Au).
- Pilar Mine Inferred Mineral Resources are reported as 294 koz, (2117 kt @ 4.33 g/t Au).
- Roca Grand Measure and Indicated Mineral Resources are reported as 121 koz, (962 kt @ 4.0 g/t Au).
- Roca Grand Inferred Mineral Resources are reported as 117 koz, (889 kt @ 4.0 g/t Au).
Open Pit Mineral Resources
- Córrego Brandão Inferred Mineral Resources are reported as 51 koz, (1072 kt @ 1.48 g/t Au) unchanged from 2021 disclosure.
Figure 12. Long Section showing year on year changes in Pilar Mineral Resources 2021 – 2022.
Figure 13. Long Section showing year on year changes in Roca Grande Mineral Resources 2020
- 2022.
Figure 14. Image showing Córrego Brandão Mineral Resources as at 31st December 2022
Consolidated CPA Complex Inferred Mineral Resources are reported as 235 koz (Underground 1756 kt @ 4.12 g/t Au, Open Pit 43 kt @ 2.08 g/t Au) subdivided as follows:
Underground Mineral Resources
- Santa Isabel Inferred Mineral Resources are reported as 126 koz, (978 kt @ 4.01 g/t Au).
- Margazao Inferred Mineral Resources are reported as 63 koz, (445 kt @ 4.44 g/t Au).
- Bahu Inferred Mineral Resources are reported as 43 koz, (333 kt @ 3.99 g/t Au).
Open Pit Mineral Resources
- Bahu Inferred Mineral Resources are reported as 3 koz, (43 kt @ 2.08 g/t Au).
An updated NI43-101 Technical Report for the CPA Complex will be published by the end of May 2023.