Jaguar Mining produces 22,291 ounces of Gold in the first quarter of 2017
Jaguar Mining Inc. announced first quarter 2017 operational results for its core assets located in the Iron Quadrangle area of Minas Gerais, Brazil.
First Quarter 2017 Highlights
- Consolidated gold production of 22,291 ounces, up 5% year-over-year, with 214,000 tonnes of ore processed.
- Strong operating performance at Pilar Gold Mine resulted in an 86% increase in gold production to 8,485 ounces, a 17% improvement in average grade to 3.39 g/t, and higher recovery of 91%. Strong gold production reflects the advancing ore development into the higher-grade Orebodies BF and BFII.
- Turmalina Gold Mine produced 12,736 ounces of gold, lower than Q1 2016 and Q4 2016 production levels, due to lower throughput and grade. Mining activities in one section of Orebody A were temporarily interrupted during the quarter to conduct ground control rehabilitation work. Previously scheduled high-grade mining blocks from this area were deferred later into the mining schedule.
- Turmalina increased Measured & Indicated Mineral Resources by 22% to 540,000 ounces of gold (grade of 4.93 g/t Au), and Proven & Probable Mineral Reserves for Orebody C by 167% to 80,000 ounces of gold (grade of 4.10 g/t Au)
- Growth exploration programs advanced during the quarter with 1,889 metres of diamond drilling being completed from surface and 966 metres from underground. Over 150 metres of exploration development also advanced during the quarter for new deep drilling horizon platforms at Pilar and Turmalina
- Preliminary cash balance of approximately $18.1 million as of March 31, 2017, compared to a cash balance of $26.3 million at December 31, 2016.
Rodney Lamond, President and Chief Executive Officer of Jaguar commented, "Jaguar Mining commenced 2017 performing well, building on the positive trends established in 2016, to deliver total gold production of 22,291 ounces in Q1 2017. In particular, strong operating performance at Pilar resulted in an 86% increase in gold production to 8,485 ounces, and a 17% improvement in grade to 3.39 g/t compared to Q1 2016. Pilar's strong performance reflects the advancing of ore development (614 metres) into the high-grade Orebodies BF and BFII. Turmalina's mining activities in a high-grade section of Orebody A were temporarily interrupted during the quarter due to ground control rehabilitation. We are confident that a revised mining schedule at Turmalina will recover the gold production shortfall during the second quarter.
"Looking ahead, we remain on track to achieve 2017 production guidance of between 100,000 – 110,000 ounces. Additionally, performance is expected to continue to improve as we remain focused on growing our sustainable production profile through ongoing strategic exploration and development programs. As previously reported, strong exploration results during 2016 drove a 22% increase in Measured & Indicated Mineral Resources at Turmalina, to 540,000 ounces of gold with average grade of 4.93 g/t Au. The growth in M&I Mineral Resources at Turmalina has positively impacted the mine life at Turmalina and we expect our growing sustainable production profile to have a positive impact on unitary costs in the near term."
"We look forward to the development and advancement of our growth exploration programs in the first half of 2017 and reporting the results from the deep drilling programs at Turmalina and Pilar later this year."
Preliminary Cash Balance
Preliminary cash balance of approximately $18.1 million as at March 31, 2017, compared to a cash balance of $26.3 million at December 31, 2016. Q1 2017 cash balance reflects impact of a stronger foreign Brazilian currency, accelerated exploration, and approximately $2.0 million in principal and interest repayments towards debt facilities.
2017 Exploration and Mineral Resources Highlights
• An incremental $8.0 million is targeted to be spent on a major growth exploration program in 2017 and 2018. Approximately $6.0 million has been dedicated to core assets to test the down-plunge continuities of Orebodies A, B, and C at Turmalina and Orebodies BFII and BF at Pilar to increase identified Mineral Resources, including the discovery of new resources at the high priority Pacheca and Cubas targets near Pilar. The remaining $2.0 million will be distributed towards other growth targets in and around the existing core assets.
• Drilling and exploration success at Turmalina during 2016 resulted in upgraded Inferred Resources at Orebodies A and C to Measured and Indicated Mineral Resources, announced March 30, 2017:
- M&I Mineral Resources increased 22% to 540,000 ounces of gold, after production depletion in 2016, with grade of 4.93 g/t Au.
- Orebody C Proven and Probable Mineral Reserves increased 167% during 2016 to 80,000 ounces of gold grading 4.10 g/t Au, up 12%, reflecting the newly discovered high-grade core within larger mineralized intersections.
Source: Company Press Release