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Jaguar Mining Reports Q1 2018 Operating Performance and Improving Costs; On Track to Achieve 2018 Gold Production of 95,000-105,000 Ounces

TORONTO, Apr 17, 2018 (Canada NewsWire via COMTEX) --

Jaguar Mining Reports Q1 2018 Operating Performance and Improving Costs; On Track to Achieve 2018 Gold Production of 95,000-105,000 Ounces


Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced operating results for the first quarter ("Q1 2018") ended March 31, 2018. All figures are in US dollars, unless otherwise expressed. Detailed financial results for Q1 2018 will be reported and filed on or before May 10, 2018.

Q1 2018 Summary

    --  Consolidated gold production of 18,864 ounces (174,000 tonnes
        milled at 3.67 g/t) was in line with the Company's 2018
        production plan; Q1 2018 production was lower than the 22,291
        ounces (214,000 tonnes milled at 3.50 g/t) in Q1 2017.

    --  Pilar Gold Mine ("Pilar") production increased 13% to 9,553
        ounces compared to Q1 2017, and 17% compared to Q4 2017 on
        average grade of 4.08 g/t, which increased 20% year-over-year.
        Pilar continues to deliver improved grade and tonnes milled.
        Pilar's lower cost per ounce production replaces the higher
        cost Roà§a Grande Mine ("RG") production, also improving
        operating cash flow.

    --  Turmalina Gold Mine ("Turmalina") production of 8,442 ounces
        was 34% lower year-over-year due to a focus on increasing
        primary (waste) development to facilitate increased ore
        production for the balance of 2018. This resulted in lower
        secondary ore development and lower tonnes milled for the
        quarter which reduced ore production, which was in line with
        the Company's projected annual mine plan. Production levels are
        expected to increase in Q2 2018 and significantly increase in
        H2 2018 as accelerated primary waste development advances.

    --  Turmalina primary waste development increased 77% during the
        quarter to 648 metres compared to 366 metres in Q1 2017 and 363
        metres in Q4 2017. The focus in Q1 2018 was to extensively
        advance accelerated development to access higher-grade
        mineralization in Level 11 at Orebody A and Level 4 at Orebody
        C. A new total of four production sublevels are expected to
        contribute to production in Q2 2018.

    --  Consolidated cash operating costs ("COC") decreased to $814 per
        ounce sold, a 12% improvement from Q1 2017 and 10% increase
        from Q4 2017. Company on track to deliver 2018 COC annual
        guidance between $700-$800 per ounce sold.

    --  Strengthened operations and project management teams to drive
        increased productivity and overall performance. Placed orders
        for new mining equipment to increase capacity and productivity
        at Turmalina and Pilar.

    --  Cash balance of approximately $14.3 million as of March 31,
        2018, compared to a cash balance of $18.6 million at December
        31, 2017. Cash outflow during the quarter includes $3 million
        financing repayments reducing total bank debt to approximately
        $12.3 million at quarter end. Company generated approximately
        $4-5 million in operating cash flow with approximately $6
        million spent in investing and growth activities.

Rodney Lamond, President and Chief Executive Officer commented, "We have successfully established a large mineral resource at Pilar and Turmalina as a direct result of our strategic investments in Growth Exploration programs, underground mine development and upgrading mining equipment. These investments demonstrate our commitment to growing sustainable gold production over the long-term. Through our investments, we have unlocked significant value at Pilar and its performance is increasing our ability to grow operating and free cash flow. Based on Pilar's performance to date, we believe there continues to be excellent upside potential. We are taking the same approach to unlocking the deep value that we believe exists at Turmalina, which is also supported by its mineral resource."

"Pilar's first quarter operating results, including a 13% year-over-year increase in gold production driven by a 20% increase in head grade, are positively impacting our overall profitability and generating increased returns. This performance was achieved through targeted exploration programs, development and training of operations teams, disciplined capital allocation and operational excellence. The confidence in delivering increased gold production supported the Company's decision to place Roca Grande temporarily on care and maintenance. This decision will further decrease the Company's COC by displacing high gold ounces with Pilar's lower COC ounces."

Mr. Lamond continued, "In addition to the excellent ongoing work completed by our operations teams, during the quarter we successfully transitioned to a new mining contractor to increase high speed development at Turmalina. We completed key development objectives to access higher grade pay-shoots in Orebodies A and C. Primary waste development increased 77% during the quarter, the highest level since Q2 2016. The extensive accelerated development will continue to increase as key access drives are advanced into higher-grade mineralization in Level 11 at Orebody A and Level 4 at Orebody C. A new total of four production sublevels are expected to contribute to production in Q2 2018. To further support production and drive increased annual production, we have purchased two new underground loaders and one 30-tonne underground haulage truck for Turmalina."

Mr. Lamond concluded, "Looking ahead, we are positioned to deliver stronger production in the second half of 2018 as we expect to see higher production at Turmalina, as well as higher production at Pilar. Ongoing infill drilling on Orebody A and C at Turmalina has demonstrated continued high-grade mineralization in upcoming sublevels for mining, which is expected to significantly increase production. Our strategy for sustainable production, which starts with a fundamental understanding of our geological models, aims to extend the reserve mine life at all of our operations by replacing depleted Mineral Resources in a timely manner through the execution of targeted exploration programs. We have also made important staffing changes at our sites to ensure we deliver on our productivity and efficiency targets to achieve our 2018 objectives. We continue to focus on mining quality ounces to generate cash flow, sustain future growth and reduce our bank debt."

2018 First Quarter Operating Results Summary

             Quarterly Summary              Q1 2018                                         Q1 2017
             =================              -------                                         -------

                 Turmalina     Pilar     Roca       Total     Turmalina     Pilar         Roca       Total
                                        Grande                                           Grande
    ===                                 ======                                           ======

    Tonnes milled (t)            81,000   81,000       12,000       174,000      113,000       84,000      17,000     214,000

    Average head grade
     (g/t)                         3.43     4.08         2.52          3.67         3.79         3.39        2.12        3.50

    Recovery %                    91%     89%         89%          90%         91%         91%         91%        91%
    =========                       ===      ===          ===           ===          ===          ===         ===         ===

    Gold ounces

    Produced (oz)                 8,442    9,553          870        18,864       12,736        8,485       1,070      22,291

    Sold (oz)                     8,414    9,929          894        19,237       13,536        9,422       1,076      24,034
    ========                      =====    =====          ===        ======       ======        =====       =====      ======

     Financial Data

    Cash Operating
     Costs(1) ($/oz)                777      809        1,216           814          738        1,092       1,787         924


    Primary (metres)                648      422           84         1,154          366          470          74         910

    Exploration (metres)              -       -           -            -         104           13          34         151

    Secondary (metres)               91      356            -          447          754          614          14       1,382
    =================               ===      ===          ===          ===          ===          ===         ===       =====

    Definition, infill,
     and exploration
     drilling (metres)            5,544    3,197          613         9,354        4,164        5,218         567       9,949
    ===================           =====    =====          ===         =====        =====        =====         ===       =====

    1.             Cash Operating Cost is a
                   non-IFRS reporting

Cash Position and Working Capital

    --  Cash balance of approximately $14.3 million as of March 31,
        2018, compared to a cash balance of $18.6 million at December
        31, 2017. Cash outflow during the first quarter includes $3
        million for financing repayments reducing total bank debt to
        approximately $12.3 million at the end of Q1 2018.

    --  Company generated approximately $4-$5 million in operating cash
        flow with approximately $6 million spent in investing
        activities. Working capital expected at $11-$12 million as
        March 31, 2018.

First Quarter Operating and Project Update

    --  Operational excellence programs continue to be adopted Company
        wide. A key focus has been to improve data collection processes
        to deliver real time data that facilitates timely analysis and
        decision making.

    --  Turmalina management changes have been completed and the focus
        is on operational efficiency, productivity and cost reduction
        on projects, including improving preventative maintenance and
        equipment availability.

    --  At Pilar and Turmalina, operational excellence teams are
        focused on increasing haulage tonnes moved in the mine and
        development metres utilizing equipment within the same shift to
        improve recovery and increase productivity.

    --  Restructured projects group to streamline the management of
        Growth and Capital Projects.

    --  Turmalina paste fill plant completed final commissioning tests
        and is expected to be operational in Q2 2018.

First Quarter 2018 Exploration Highlights

    --  Growth exploration at Turmalina has focused on depth extension
        drilling of Orebody C below level 4. Drilling completed to date
        includes approximately 4,826 metres (20 drill holes)
        representing approximately 53% completion of the 9,050 metres
        planned growth program.

    --  Additional exploration activities are focused on advancing key
        near mine targets including the Zona Basal Target at Turmalina,
        the Torre, Pacheca North and Pilarzinho Targets contiguous to
        the Pilar mining operation and at Pedra Branca in Ceara State.

    --  Subsequent to the temporary halt of mining activities at the RG
        Mine, exploration potential is being reviewed aimed at
        prioritizing future activities targeting extensions to the
        known RG orebodies and the Company's highly prospective greater
        tenement package supported by the CCA Plant.

2018 Guidance

    --  Pilar production guidance of 39,200-47,000 ounces reflects the
        Company's reforecast for increased mineral resources reported
        in March 2018. The Pilar production is expected to offset the
        temporary halted production ounces from RG.

    --  RG performance reflects production from January 1-March 21,
        2018. RG temporarily on care and maintenance.

    --  Turmalina positioned and expected to deliver significantly
        higher production in second half of 2018.

                2018 Production &
                  Guidance cost               Turmalina              CCA            Consolidated
                -----------------             ---------              ---            ------------

                      Pilar                RG
                      -----                ---

         Low                   High                Low                High                Low          High        Low     High
         ---                   ----                ---                ----                ---          ----        ---     ----

    Gold production
     (oz.)                                50,000      57,000   39,200      47,000                800        1,000   90,000   105,000
    ---------------                       ------      ------   ------      ------                ---        -----   ------   -------

    Cash Operating
     Cost(1) ($/oz.
     sold)                                   675         775      650         800              1,000        1,100      660       800

    All-in sustaining
     cost(1) ($/oz.
     sold)                                   900       1,000      900       1,050              1,050        1,200      920     1,100
    -----------------                        ---       -----      ---       -----              -----        -----      ---     -----

    Sustaining Capex
     ($'000)                              12,000      15,000    9,000      12,000                100          500   21,000    28,000
    ----------------                      ------      ------    -----      ------                ---          ---   ------    ------


                   Primary waste (metres)    2,200       2,800    2,000       2,600                N/A         N/A   4,500     5,400

                   Secondary ore (metres)    1,800       2,100    1,000       1,150                N/A         N/A   3,000     3,500
                   ---------------------     -----       -----    -----       -----                ---         ---   -----     -----

    Definition, infill
     and exploration
     drilling (metres)                    18,000      25,000   14,000      20,000                200          300   32,000    45,000
    ------------------                    ------      ------   ------      ------                ---          ---   ------    ------

            1.     Cash Operating Cost and
                   All-in Sustaining Cost
                   are non-IFRS reporting

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), 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 16th 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 three 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 and Roca Grande Mines, and Caeté Plant). The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. The Roca Grande Mine has been on temporary care and maintenance since April 2018. Additional information is available on the Company's website at

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements and information are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking information made in this news release is qualified by the cautionary statements below and those made in our other filings with the securities regulators in Canada. 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. All statements, other than statements of historical fact, may be considered to be or include forward-looking information. This news release contains forward-looking information regarding, among other things, expected sales, production statistics, ore grades, tonnes milled, recovery rates, cash operating costs, definition/delineation drilling, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, currency fluctuations, capital requirements, project studies, mine life extensions, restarting suspended or disrupted operations, continuous improvement initiatives, and resolution of pending litigation. The Company has made numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated timeline for the development of its mineral properties; 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; political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained an renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to 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; uncertainties with respect to the price of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) 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. In addition, there are risks and hazards associated with the business of gold exploration, development, mining and production, including environmental hazards, tailings dam failures, industrial accidents and workplace safety problems, unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, procurement fraud and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). 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 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.

Non-IFRS Measures

This news release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. Readers are cautioned to review the below stated footnotes where the Company expanded on its use of non-IFRS measures.

  1. 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 quarter ended December 31, 2017, is
     set out in the Company's fourth quarter 2017 Management Discussion
     and Analysis (MD&A) filed on SEDAR at

  2. 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 quarter ended December
     31, 2017, is set out in the Company's fourth quarter 2017 MD&A
     filed on SEDAR at

Rodney Lamond, President & Chief Executive Officer, Jaguar Mining Inc.,, 416-847-1854; Hashim Ahmed, Chief Financial Officer, Jaguar Mining Inc.,, 416-847-1854

View original content with multimedia:

SOURCE Jaguar Mining Inc.

View original content with multimedia:

SOURCE: Jaguar Mining Inc.

Rodney Lamond, President & Chief Executive Officer, Jaguar Mining Inc.,, 416-847-1854; Hashim Ahmed, Chief Financial Officer,
Jaguar Mining Inc.,, 416-847-1854

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