TORONTO, ON / ACCESSWIRE / April 14, 2022 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) today announced production results for the first quarter of 2022 ("Q1 2022"). Financial results for Q1 2022 will be reported and filed on SEDAR on or before May 10, 2022. All figures are in US Dollars, unless otherwise expressed.
Q1 2022 Operating Highlights
- Consolidated gold production decreased 8% with 16,663 ounces in Q1 2022 compared to 18,160 ounces in Q1 2021. Average head grade improved to 3.19 g/t in Q1 2022 compared to 3.10 g/t in Q1 2021.
- Pilar gold production decreased 6% with 9,082 ounces in Q1 2022 compared to 9,643 ounces in Q1 2021;
- Turmalina gold production decreased 11% with 7,581 ounces in Q1 2022, compared to 8,517 ounces in Q1 2021;
- Total development of 2,620 metres for the first quarter of 2022, an increase of 30% compared with the same period in 2021 with 2,016 metres.
- Total definition, infill and exploration drilling increased 65% to 25,771 metres in Q1 2022 compared to 15,598 metres in Q1 2021. The additional drilling is expected to allow Jaguar to continue expanding Mineral Resources in 2022;
- Treasury position as of March 31, 2022, with cash of $34.8 million compared to cash of $40.3 million on December 31, 2021. During the quarter, the Company paid a dividend of $2.8 million.
Q1 2022 Operating Results
Vern Baker, President and CEO of Jaguar Mining stated: "Our teams did a good job of development and exploration work after a very challenging beginning for the quarter due to intense flooding in the region resulting in the shut-down of both mines for 5 days and having an impact on the infrastructure in the region that is still ongoing. At the same time our teams experienced an increase from zero absenteeism due to CV19 at the end of the year to more than 60 people in less than 3 weeks. Heavy rain and CV19 impacted our teams through February. Management focus was able to maintain development rates and exploration efforts, but ore production did not return to targeted production rates until the end of the quarter. Current positioning should see Q2 return to targeted ounce production rates, with an opportunity to recoup some of Q1 ounce shortfalls during the remainder of the year. We still expect to produce within our guidance of 86,000 to 94,000 ounces although on the lower side. Despite the challenges faced by Turmalina during the quarter, the mine was able to develop at an average of well over 500 meters per month. This includes meters in the Project NW that are opening new mining areas and progressing toward the Faina resource. Pilar also experienced a difficult beginning to the quarter, but development progressed well including Project SW which is opening new mining areas higher in the mine. Exploration efforts continued with significant drilling in both mines and on the surface. Drilling to upgrade the Faina Resource to the Measured and Indicated level was initiated and more than 4,000 meters drilled. This core will also be used for continuing metallurgical tests. While this was a challenging quarter in respect to ounces produced, we are positioned to perform for the remaining quarters of the year while we continue to build a strong base to grow our company."
Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and Exploration, 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 third largest gold land position in the Iron Quadrangle with over 50,000 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. 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 Roça Grande Mines, 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 temporary care and maintenance since April 2019. Additional information is available on the Company's website at www.jaguarmining.com.
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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 and 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 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.
SOURCE: Jaguar Mining Inc.
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