Jaguar Mining Reports Updated Mineral Reserves and Mineral Resources Boosts Proven and Probable (2P) Mineral Reserves 4%, Measured and Indicated Mineral Resources 27% and Inferred Resources 41% __________________________________________________________________________________
Toronto, February 26, 2024 – 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 2023. Proven and Probable (2P) Mineral Reserves and Measured, Indicated and Inferred Mineral Resources figures are reported for Jaguar’s two operating mining and production complexes, Turmalina and Caeté, and for the Paciencia Complex, currently on care and maintenance. The Turmalina Complex is comprised of the Turmalina mine, the Faina and Onças de Pitangui growth projects as well as the Zona Basal and Pontal deposits. The Caeté Complex is comprised of the Pilar mine, the Roça Grande mine (on care and maintenance) and the Córrego Brandao deposit. The Paciencia Complex is comprised of the Santa Isabel and Margazao mines (both on care and maintenance) and the Bahú deposit.
Detailed tabulations and discussion of this 2023 MRMR disclosure may be found within the company’s AIF Document which will be uploaded to SEDAR+ on or before the March 31, 2023. An updated NI 43- 101 Technical Report for the Turmalina Complex was uploaded to SEDAR+ on the February 2, 2024.
HIGHLIGHTS
- Consolidated Proven and Probable Mineral Reserves show additions of 132 koz reflecting the addition of reserves at the Faina project, offset by mined depletion at Pilar and Turmalina of 88 koz and removal of remnant material from inventory at Turmalina of 28 koz for a net increase of 4% to 470 koz, (4,015 kt @ 3.64 g/t Au).
- Faina Probable Mineral Reserves added 132 koz (787 kt @ 5.22 g/t Au) to Jaguar’s 2P Mineral Reserves inventory.
- Consolidated Measured and Indicated Mineral Resources increased by 27% to 1,676 koz, (12,633 kt @ 4.12 g/t Au), reflecting the addition of measured and indicated mineral resources from the Onças de Pitangui project.
- Onças de Pitangui Indicated Mineral Resources added 448 koz, (3,423 kt @ 4.07 g/t Au) to Jaguar´s Mineral Resources inventory.
- Consolidated Inferred Mineral Resources increased by 41% to 1,628 koz, (14,175 kt @ 3.58 g/t Au), driven by the addition of inferred mineral resources from the Onças de Pitangui project.
- Onças de Pitangui Inferred Mineral Resources added 379 koz, (3,343 kt @ 3.53 g/t Au) to the Company’s inventory.
- Life of Mine (LOM) plans at the Pilar operation forecast production at current rates into 2028. At the Turmalina Complex, with Faina ramping up from this year through 2026, the LOM extends at increased production rates beyond 2030. The Company continues to progress project work required to support the publication of initial mineral reserves for the Onças de
1400-25 Adelaide Street East, Toronto, Ontario M5C 3A1 T: 416-847-1854 Pitangui project (current Indicated and inferred mineral resource at Sao Sebastiao) in the fourth quarter of 2024.
Vern Baker, CEO of Jaguar Mining stated, “This year’s Mineral Reserve and Mineral Resource update further advances our organic growth strategy, especially with the initial disclosure of probable Mineral Reserves from our Faina project and the addition of 800 koz of Mineral Resources added from the acquisition of Iamgold´s Sao Sebastiao deposit and Onças de Pitangui project. A net increase of 4% in Mineral Reserves along with the material increases in Mineral Resources is a very positive driver underpinning the long-term future of the company.
Figure 1. Location of Jaguar Mining Operations Complexes
The Company’s year-over-year track record of Mineral Reserve estimates replacing production, and Mineral Resource growth, are illustrated in the following figures.
Figure 2. Mineral Reserves 2015 – 2023
Figure 3. Mineral Resources Growth 2015 – 2023
Figure 4. Graph showing the Mineral Reserves - Annual Production ratio over time since 2015. Reserve replacement has successfully maintained a 5-year Life of Mine profile since 2018.
2023 MINERAL RESERVES AND MINERAL RESOURCES
Mineral Reserves
During the year, the Company’s consolidated Proven and Probable Mineral Reserves showed additions of 132 koz at the Faina project, partly offset by mined depletion at Pilar and Turmalina of 88 koz and the removal of remnant material from inventory at Turmalina of 28 koz, for a net increase of 4% to 470 koz (4,015 kt @ 3.64 g/t Au).
Turmalina Complex Proven and Probable (2P) Mineral Reserves of 276 koz, (2,109 kt @ 4.07 g/t Au) reflects a net increase of 62 koz from the prior year. Mining in 2023 depleted 42 koz from the Mineral Reserve and a further 28 koz of Mineral Reserves attributed to remnant material was re-evaluated, proved to be uneconomic, and removed from inventory. At Faina, an initial Mineral Reserve was estimated, as detailed in a NI 43-101 Technical Report for the Turmalina Complex.
The 2P Mineral Reserves at Turmalina (excluding Faina) can be separated between Orebody A (24 koz, 177 kt @ 4.16 g/t Au), Orebody B (32 koz, 302 kt @ 3.33 g/t Au), and Orebody C (88 koz, 843 kt @ 3.24 g/t Au).
At Pilar, 2P Mineral Reserves are reported as 194 koz, (1906 kt @ 3.17 g/t Au) which reflects a net decrease of 46 koz by mined depletion.
At Pilar, a 17% reduction in the Mineral Reserve grade year-over-year from 3.81 g/t Au to 3.17 g/t Au was reported. This difference largely reflects the impacts of geometrical and grade challenges associated with unexpected geological complexity encountered in early 2023, especially on level 15. The average produced grade in the first and second quarter of 2023 of 3.26 g/t Au is consistent with this reduced Mineral Reserve grade reported in this disclosure. It is important to note that modifications to mining methodology and grade control protocols implemented late in the second quarter to mitigate these reconciliation and geometrical / grade challenges saw the produced grade at Pilar increase to 3.68 g/t Au by the fourth quarter of 2023. However, due to timing constraints, the database cut-off date for the Mineral Reserves disclosure presented here was July 31, 2023, which did not capture any drilling (77 holes) or productive development sampling results (approximately 1,000 metres) achieved subsequent to July 31, 2023, in the remainder of 2023. The results from this incremental drilling and development sampling were generally higher grade than the areas mined in the first and second quarter. The Company also reported higher grades in production during the fourth quarter of 2023 and expects these grade improvements to be incorporated in the next MRMR estimation cycle, through which Pilar mine inventories can be expected to return to pre-2023 levels.
2P Mineral Reserves at Pilar can be divided between Orebody BA (26 koz, 237 kt @ 3.36 g/t Au), Orebodies BFs (92 koz, 869 kt @ 3.29 g/t Au), Orebody SW (54 koz, 550 kt @ 3.05 g/t Au), Orebody Torre (12 koz, 127 kt @ 2.98 g/t Au) and others (11 koz, 122 kt @ 2.77 g/t Au).
Table 1. Consolidated Mineral Reserves as at December 31, 2023
| Proven Reserves Probable Reserves Proven & Probable Reserves December 31, 2023 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) Underground MTL Gold Complex | Proven Reserves | Probable Reserves | Proven & Probable Reserves | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Tonnes | Grade | Gold oz | Tonnes | Grade | Gold oz | Tonnes | Grade | Gold oz | |
| Ore Body A | 122 | 5 | 18 | 56 | 3 | 6 | 177 | 4 | 24 |
| Ore Body B Ore Body C Sub-Total - Turmalina Mine | 202 190 514 | 3.32 3.31 3.61 | 22 20 60 | 100 653 808 | 3.34 3.22 3.24 | 11 68 84 | 302 843 1323 | 3.33 3.24 3.38 | 32 88 144 |
| Faina | 0 514 | 0.00 3.61 | 0 60 | 787 1595 | 5.22 4.21 | 132 216 | 787 2109 | 5.22 4.07 | 132 276 |
| Total - MTL Complex UG | |||||||||
| Underground Caeté Gold Complex Pilar Ore Body BA 119 3.26 12 118 3.45 13 237 3.36 26 | |||||||||
| Ore Body BA | 119 | 118 | |||||||
| Ore Body BFs (BF, BFI,BFII) | 479 | 3.36 | 52 | 390 | 3.19 | 40 | 869 | 3.29 | 92 |
| Ore Body Torre | 27 | 3.67 | 3 | 100 | 2.79 | 9 | 127 | 2.98 | 12 |
| Ore Body SW | 177 | 3.31 | 19 | 373 | 2.92 | 35 | 550 | 3.05 | 54 |
| Others | 31 | 2.77 | 3 | 92 | 2.77 | 8 | 122 | 2.77 | 11 |
| Total - Pilar 833 3.33 89 1073 3.05 105 1906 3.17 194 | |||||||||
| Total - Mineral Reserves | 1347 | 3.43 | 149 | 2668 | 3.75 | 321 | 4015 | 3.64 | 470 |
Notes:
1. CIM (2014) definitions were followed for Mineral Reserves.
2. Mineral Reserves are estimated at a cut-off grade of 2.39 g/t Au for orebodies A, B, and C at Turmalina deposit and 2.44 g/t Au for Pilar deposit. For Faina, the Mineral Reserves are estimated at a cut-off grade of 4.00 g/t Au.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,650 per ounce and a BRL/US$ exchange rate of 5.20 for Turmalina and Faina deposits and an average long-term gold price of US$1,800 per ounce and a BRL/US$ exchange rate of 4.90 for Pilar deposit.
4. A minimum mining width of 3.50 m was used at Orebodies A, B, and C at Turmalina, 2.50 m at Pilar and 2.00 m at Faina deposit.
6. Numbers may not add due to rounding.
Figure 5. Waterfall Graph showing consolidated Proven and Probable (2P) Mineral Reserves year-over-year changes by operation 2022 – 2023.
Figure 6. Long Section showing year-over-year changes in Pilar Mineral Reserves 2023 vs 2022.
Figure 7. Long Section showing year-over-year changes in Turmalina Mineral Reserves 2023 vs 2022.
Mineral Resources
Consolidated Measured and Indicated Mineral Resources as of December 31, 2023, are reported as 1,676 koz (12,633 kt @ 4.12 g/t Au) which are 356 koz above the prior year reflecting a 27% increase in reported Measured and Indicated Mineral Resource inventory year-over-year.
Inferred Mineral Resources for 2023 are reported as 1,628 koz (14,175 kt @ 3.58 g/t Au) which is a 437 koz net increase over the prior year reflecting a 41% increase in reported Inferred Mineral Resource inventory year on year.
Table 2. Consolidated Mineral Resources as at December 31, 2023
| Measured Resources Indicated Resources Measured & Indicated Resources Inferred Resources December31, 2023 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 711 6.29 144 263 3.64 31 974 5.58 175 95 3.61 11 Ore Body B 297 3.69 35 182 3.66 21 479 3.68 57 167 4.36 23 Ore Body C 646 3.48 72 1196 3.34 128 1842 3.39 201 1009 3.05 99 Sub-Total Turmalina Mine 1655 4.73 251 1641 3.42 181 3295 4.08 432 1271 3.26 133 Faina 1427 5.08 233 1427 5.08 233 1420 5.09 232 Pontal 266 3.44 29 266 3.44 29 159 4.72 24 Pontal South 669 3.76 81 Projeto Pitangui (São Sebastião) 3423 4.07 448 3423 4.07 448 3343 3.53 379 Total - MTL Complex UG 1655 4.73 251 6757 4.10 891 8411 4.23 1143 6862 3.85 849 Underground Caeté Gold Complex Pilar Ore Body BA 276 4.68 41 168 4.11 22 443 4.46 63 283 6.19 56 Ore Body BFs (BF, BFI,BFII) 780 4.44 111 494 4.13 65 1275 4.32 176 772 3.90 97 Ore Body Torre 47 3.78 6 243 4.16 33 290 4.10 38 365 4.29 50 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ore Body SW Others | 284 53 | 3.75 3.45 | 34 6 | 689 226 | 3.26 3.03 | 72 23 | 973 279 | 3.40 3.11 | 106 29 | 1039 312 | 3.05 3.84 | 102 38 |
| Total - Pilar Roça Grande | 1440 197 | 4.29 3.42 | 198 22 | 1821 765 | 3.67 4.02 | 215 99 | 3260 962 | 3.93 3.90 | 413 121 | 2771 889 | 3.87 4.08 | 343 117 |
| Total - Caeté UG | 1637 | |||||||||||
| Underground Paciência Gold Complex Santa Isabel/Corrego Grande - - - - - - - - - 978 4.01 126 | ||||||||||||
| Marzagão Bahu | - - | - - | - - | - - | - - | - - | - - | - - | - - | 445 333 | 4.44 3.99 | 63 43 |
| Total - Paciência Complex UG | - - - - - - - - - 1756 4.12 232 | |||||||||||
| Open Pit - MTL Gold Complex Zona Basal - - - - - - - - - 781 1.28 32 Open Pit - Caeté Gold Complex Córrego Brandão - - - - - - - - - 1072 1.48 51 | ||||||||||||
| Córrego Brandão Waste | 0 | |||||||||||
| Open Pit -Paciência Gold Complex | ||||||||||||
| Bahu | - | - | - | - | - | - | - | - | - | 43 | 2.08 | 3 |
| JAGUAR UG Total - Mineral Resources JAGUAR OP Total - Mineral Resources | 3291 - | 4.46 - | 471 - | 9342 - | 4.01 - | 1205 - | 12633 - | 4.12 - | 1676 - | 12278 1896 | 3.91 1.41 | 1542 86 |
| JAGUAR TOTAL - Mineral Resources | 3291 | 4.46 | 471 | 9342 | 4.01 | 1205 | 12633 | 4.12 | 1676 | 14175 | 3.58 | 1628 |
Notes:
1. CIM (2014) definitions were followed for the classification of Mineral Resources.
2. Mineral Resources are inclusive of the Mineral Reserves at Turmalina, Faina and Pilar. No Mineral Reserves are currently present at the Pontal, Zona Basal, São Sebastião, Santa Isabel, Marzagão, Bahu, Roça Grande and Córrego Brandão deposits.
3. Mineral Resources include the Turmalina, Faina, Pontal, São Sebastião, Santa Isabel, Marzagão, Bahu, Pilar and Roça Grande underground mineral resources and the Zona Basal, Bahu and Córrego Brandão open-pit mineral resources.
3. Mineral Resources are estimated at a cut-off grade of 1.79 g/t Au at Turmalina, 2.65 g/t Au at Faina, 3.0 g/t Au at Pontal, 0.75 g/t Au at Zona Basal, 2.25 g/t Au at São Sebastião, 2.75 g/t Au at Santa Isabel, 2.75 g/t Au at Marzagão, 0.74 g/t Au and 1.85 g/t Au for, respectively, open-pit and underground mineral resources at Bahu, 1.86 g/t Au at Pilar, 1.80 g/t Au at Roça Grande and 0.38 g/t Au and 0.74 g/t Au for, respectively, oxidized and fresh material for open-pit mineral resources at Córrego Brandão deposit.
4. Mineral Resources at the Turmalina deposit include all drill hole and channel sample data as of September 13, 2022, and are depleted using mining excavations as of December 31, 2023. Mineral Resources at the Faina and Pontal deposits include drill hole information as of September 9, 2022. Mineral Resources at the Zona Basal deposit include drill hole information current as of August 25, 2022. Mineral Resources at the São Sebastião deposit include drill hole information current as of July 29, 2019. Mineral Resources at the Santa Isabel and the Marzagão deposits include drill hole information current as of September 2022. Mineral Resources at the Bahu deposit include drill hole information current as of November 2022. Mineral Resources at the Pilar deposit include drill hole information current as of July 25, 2023. Mineral Resources at the Roça Grande deposit include drill hole information current as of December 31, 2018. Mineral Resources at the Córrego Brandão deposit include drill hole information current as of June 8, 2021.
5. Mineral Resources are estimated using a long-term gold price of US$1,800/oz Au for the Turmalina, Faina, Pontal, Zona Basal, Santa Isabel, Marzagão, Bahu, Roça Grande and Córrego Brandão deposits, US$1,500/oz Au for the São Sebastião deposit and US$1,950/oz Au for the Pilar deposit.
6. Mineral Resources are estimated using an average long term exchange rate of R$5.20:US$1.00 for the Turmalina, Faina, Pontal, Zona Basal, São Sebastião, Santa Isabel, Marzagão, Bahu, Roça Grande, Córrego Brandão deposits and an exchange rate of R$4.90:US$1.00 for the Pilar deposit.
7. Minimum width of approximately 2.00 m was used for Turmalina, Faina, Pontal, Santa Isabel, Marzagão, Bahu, Pilar and Roça Grande deposits. A minimum height of 2.00 m was applied to São Sebastião using reporting panels. Córrego Brandão, Zona Basal and Bahu open pit mineral resources were constrained with pit optimizations using Lerchs-Grossmann algorithm.
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
9. Numbers may not add due to rounding.
Figure 8. Waterfall Graph showing consolidated Mineral Resources (koz) year-over-year changes by operation and project 2022 vs 2023.
Figure 9. Waterfall Graph showing consolidated Measured and Indicated Mineral Resources (koz) year-over-year changes by operation and project 2022 vs 2023.
Consolidated Turmalina Complex (Measured and Indicated) Mineral Resources (Underground) are reported as 1,143 koz (8,411 kt @ 4.23 g/t Au) and Inferred Mineral Resources 881 koz, (Underground, 6,862 kt @ 3.85 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 432 koz (3,295 kt @ 4.08 g/t Au).
- Turmalina mine Inferred Mineral Resources are reported as 133 koz (1,271 kt @ 3.26 g/t Au).
- Faina project Measured and Indicated Mineral Resources of 233 koz (1,427 kt @ 5.08 g/t Au). Unchanged from the prior year’s disclosure.
- Faina project Inferred Mineral Resources are reported as 232 koz (1,420 kt @ 5.09 g/t Au). Unchanged from the prior year’s disclosure.
- Pontal deposit Measured and Indicated Mineral Resources are reported as 29 koz (266 kt @ 3.44 g/t Au).
- Pontal deposit Inferred Mineral Resources are reported as 24 koz (159 kt @ 4.72 g/t Au)
- Pontal South deposit Inferred Mineral Resources are reported as 81 koz (669 kt @ 3.76 g/t Au).
Open Pit Mineral Resources
Initial Zona Basal deposit Inferred Mineral Resources (Open Pit) are reported as 32 koz (781 kt @ 1.28 g/t Au) unchanged from the prior year’s disclosure.
Figure 10. Long Section showing year-over- year changes in Turmalina Mineral Resources 2022 – 2023.
Figure 11. Long Section showing Faina Mineral Resources as at December 31, 2022
Figure 12. Long Section showing year on year changes in Geological Interpretation of Pontal and Pontal South deposit 2022-2023.
Figure 13. Long Section showing Zona Basal Mineral Resources as at December 31, 2023
Figure 14. Long Section showing São Sebastião Resources as at December 31, 2023.
Consolidated CCA Complex (Measured and Indicated) Mineral Resources (Underground) are reported as 534 koz (4,222 kt @ 3.92 g/t Au) and Inferred Mineral Resources 511 koz, (Underground, 3,660 kt @ 3.92 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 413 koz (3,260 kt @ 3.93 g/t Au).
- Pilar mine Inferred Mineral Resources are reported as 343 koz (2,771 kt @ 3.87 g/t Au).