TSX-V: JAG
TORONTO, April 12, 2016 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX-V: JAG) today announced
operational results for the first quarter of 2016 ("Q1 2016"). All
figures are in US dollars unless otherwise expressed. Full
financial results will be released on or before May 12, 2016.
First Quarter 2016 Highlights
- Consolidated gold production of 21,197 ounces in Q1 2016 versus
21,336 ounces in Q1 2015.
- Consolidated average head grade increased 15% to 3.78 g/t in Q1
2016 versus 3.28 g/t in Q1 2015.
- Gold recovery increased to 90.2% in Q1 2016 compared to 89.4%
in Q1 2015.
- Turmalina produced 15,772 ounces of gold in Q1 2016, up 34%,
with average grade of 4.29 g/t, up 19% compared to Q1 2015.
- Caeté gold production of 5,425 ounces decreased 43% quarter
over quarter, reflecting a focus on restructuring mine plans. Pilar
focused on increasing development to access newly defined reserves
below current mining levels and Roça Grande ("RG") focused on
definition drilling and development.
- Preliminary cash balance of approximately $18.0 million as at March
31, 2016, compared to a cash and gold bullion balance of
$15.3 million at December 31, 2015. The quarter-end cash balance
reflects payments totaling $1.9
million for interest on the convertible debentures and
one-time severance payments.
- Consolidated Mineral Reserves, representing Southern Brazil operating mines, increased 34%
to 357,000 ounces with a 9% increase in grade to 4.82 g/t Au as a
result of a 310% increase in Mineral Reserves at the Pilar Mine
(Caeté Gold Complex), announced April 7,
2016.
Rodney Lamond, President and
Chief Executive Officer of Jaguar commented, "We delivered
strong operating results for the first quarter of 2016. A focus on
near-term mine plans to drive positive physical results, and
maintain a sustainable production profile, resulted in consolidated
production of 21,197 ounces in Q1 2016 and a 15% increase in
average grade to 3.78 g/t."
"First quarter production was led by Turmalina which
delivered a 34% improvement in production to 15,772 ounces and a
19% increase in average grade to 4.29 g/t as a result of mining
higher grade stopes and reduced dilution. Very strong gold
production from Turmalina offset lower gold production at Caeté as
the operations, both the Pilar and RG mines, restructured the mine
plans. Waste and ore development were prioritized at Pilar in an
effort to access the recently announced higher grade mineralization
while new definition drilling at RG was initiated in an effort to
extend mine life. Production at Caeté was temporarily impacted by
ore availability resulting in lower than expected production of
5,425 ounces, however during March, Caeté began to recover to near
forecast performance levels."
"We achieved a solid increase in our cash balance to
$18.0 million reflecting a quarter
over quarter increase of 65% in primary development, a 33% increase
in definition drilling, and $1.9
million in interest payments on the convertible debentures
and one-time severance payments."
"During the first quarter, we also announced a significant
increase in our consolidated Mineral Resources in particular at
Pilar where Mineral Reserves have increased 310% as at December 31, 2015. We have established a solid
base of resources from which to build from. Looking ahead, we are
confident in our ability to achieve our current full year
production guidance of 90,000 – 95,000 ounces."
Q1 2016 Operating Summary
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Q1
2016
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Q1
2015
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Turmalina
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Caeté
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Total
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Turmalina
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Caeté
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Total
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Tonnes milled
(t)
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128,000
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68,000
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196,000
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111,000
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115,000
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226,000
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Average head grade
(g/t)
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4.29
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2.83
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3.78
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3.59
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3.16
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3.28
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Recovery
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90.5%
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89.8%
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90.2%
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90.4%
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88.5%
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89.4%
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Gold
ounces
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Produced
(oz)
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15,772
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5,425
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21,197
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11,796
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9,540
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21,336
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Sold (oz)
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16,635
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6,246
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22,881
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13,196
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11,032
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24,228
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Development
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Primary
(m)
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731
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430
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1,161
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657
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48
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705
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Secondary
(m)
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838
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208
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1,046
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306
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-
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306
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Definition drilling
(m)
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4,691
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7,201
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11,892
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4,365
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4,603
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8,968
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Average realized
gold price US$/oz
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$1,165
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$1,187
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Cash and Gold Bullion
Cash balance of $18.0 million as
at March 31, 2016, which included
$1.9 million in interest payments on
the convertible debentures and one-time severance payments. This
compares to a cash and bullion balance of $15.3 million at December
31, 2015.
2016 Guidance
Jaguar remains strongly focused on delivering positive and
sustainable physical performance, profitability, and cost
optimization. The Company has established the following
consolidated production and cost guidance for 2016 and represents
achievable results from operations:
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2016
Guidance
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Consolidated
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Turmalina
Complex
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Caeté
Complex
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Low
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High
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Gold production
(oz)
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62,000
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65,000
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28,000
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30,000
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90,000
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95,000
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Cash operating costs
(per ounce sold)1
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600
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650
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925
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975
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700
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750
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All-in sustaining
costs (per ounce sold)1
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850
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900
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1,150
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1,200
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950
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1,000
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Recovery
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90%
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90%
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90%
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90%
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90%
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90%
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Development
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Primary
(m)
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3,000
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3,300
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1,700
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1,900
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4,700
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5,200
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Secondary
(m)
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3,200
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3,400
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2,500
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2,700
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5,700
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6,100
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Definition drilling
(m)
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18,000
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20,000
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10,000
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12,000
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28,000
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32,000
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1.
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Cash operating costs
and All-in sustaining costs are non-gaap financial performance
measures with no standard definition under IFRS. Refer to Non-IFRS
Financial Performance Measures below. 2016 cost guidance has been
prepared on the basis of a foreign exchange rate of 3.8 Brazilian
Reais vs. the US dollar and a gold price of US$1,150 per
ounce.
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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 Manager, who is
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").
Mineral Reserves and Mineral Resources 2015 estimates for
Southern Brazil (Turmalina, Pilar,
and RG) were prepared by Jaguar under the supervision of
Jason Cox, P.Eng., and Reno
Pressacco, P.Geo. of Roscoe Postle Associates Inc. ("RPA"). RPA is
an independent mining consultant and each of Messrs. Cox and
Pressacco are Qualified Persons within the meaning of NI 43-101.
The effective date of these estimates is December 31, 2015. An independent technical
report documenting the Mineral Resource estimates prepared in
accordance with NI 43-101 will be filed on SEDAR.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a
Canadian-listed junior gold mining, development, and exploration
company operating in Brazil with
three gold mining complexes, and a large land package with
significant upside exploration potential from mineral claims
covering an area of approximate 191,000 hectares. The Company's
principal operating assets are located in a prolific greenstone
belt in the state of Minas Gerais and include the Turmalina Gold
Mine Complex ("Mineração Turmalina Ltda" or "MTL") and the Caeté
Gold Mine Complex ("Mineracao Serras do Oeste Ltda" or "MSOL")
which combined produce more than 90,000 ounces of gold annually.
The Company also owns the Paciência Gold Mine Complex, which has
been on care and maintenance since 2012. Additional information is
available on the Company's website at www.jaguarmining.com.
FORWARD-LOOKING STATEMENTS
Certain statements in
this news release constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information contained in forward-looking statements
can be identified by the use of words such as "are expected", "is
forecast", "is targeted", "approximately", "plans", "anticipates"
"projects", "anticipates", "continue", "estimate", "believe" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved. This news release contains
forward-looking information regarding the development and
operations of the Company's mines, and anticipated gold production.
The Company has made numerous assumptions with respect to
forward-looking information contained herein, including, among
other things, the supply and demand for, and the level and
volatility of the price of, gold; the accuracy of reserve and
resource estimates and the assumptions on which the reserve and
resource estimates are based; the receipt of necessary permits;
market competition; ongoing relations with employees and impacted
communities; and general business and economic conditions.
Forward-looking information involves a number of known and unknown
risks and uncertainties, including among others the risk of Jaguar
not meeting the forecast plans regarding its operations and
financial performance, the uncertainties with respect to the price
of gold, labor disruptions, mechanical failures, increase in costs,
environmental compliance and change in environmental legislation
and regulation, procurement and delivery of parts and supplies to
the operations, uncertainties inherent to capital markets in
general and other risks inherent to the gold exploration,
development and production industry, which, if incorrect, may cause
actual results to differ materially from those anticipated by the
Company and described herein. Accordingly, readers should not place
undue reliance on forward-looking information.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking information
made in this news release, see the Company's most recent annual
information form and management's discussion and analysis, as well
as other public disclosure documents that can be accessed under the
issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com.
The forward-looking information set forth herein reflects the
Company's reasonable expectations as at the date of this news
release and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. The forward-looking information contained in this news release
is expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Non-IFRS Measures
This press release provides certain
financial measures that do not have a standardized meaning
prescribed by IFRS. Readers are cautioned to review the above
stated footnotes where the Company expanded on its use of non-IFRS
measures.
1.
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Cash operating costs
and cash operating cost per ounce are Non-IFRS measures. In the
gold mining industry, cash operating costs and cash operating costs
per ounce are common performance measures but do not have any
standardized meaning. Cash operating costs are derived from amounts
included in the Consolidated Statements of Comprehensive Income
(Loss) and include mine site operating costs such as mining,
processing and administration as well as royalty expenses, but
exclude depreciation, depletion share-based payment expenses and
reclamation costs. Cash operating costs per ounce are based on
ounces produced and are calculated by dividing cash operating costs
by commercial gold ounces produced; US$ cash operating costs per
ounce produced are derived from the cash operating costs per ounce
produced translated using the average Brazilian Central Bank R$/US$
exchange rate. The Company discloses cash operating costs and cash
operating costs per ounce as it believes those measures provide
valuable assistance to investors and analysts in evaluating the
Company's operational performance and ability to generate cash
flow. The most directly comparable measure prepared in accordance
with IFRS is total production costs. A reconciliation of cash
operating costs per ounce to total production costs for the most
recent reporting period, the year ended December 31, 2015 is
set out in the Company's fourth quarter 2015 MD&A filed on
SEDAR at www.sedar.com.
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2.
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All-in sustaining
cost is a non-IFRS measure. This measure is intended to assist
readers in evaluating the total costs of producing gold from
current operations. While there is no standardized meaning across
the industry for this measure, except for non-cash items the
Company's definition conforms to the all-in sustaining cost
definition as set out by the World Gold Council in its
guidance note dated June 27, 2013. The Company defines all-in
sustaining cost as the sum of production costs, sustaining capital
(capital required to maintain current operations at existing
levels), corporate general and administrative expenses, and in-mine
exploration expenses. All-in sustaining cost excludes growth
capital, reclamation cost accretion related to current operations,
interest and other financing costs and taxes. A reconciliation of
all-in sustaining cost to total production costs for the most
recent reporting period, the year ended December 31,
2015 is set out in the Company's fourth quarter 2015 MD&A
filed on SEDAR at www.sedar.com.
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SOURCE Jaguar Mining Inc.