Jaguar has filed a communication to DNPM declaring the existence of a mineral deposit containing Iron, on its gold exploration permits in the Bocaina and Palmital areas, located at approximately 130 meters from the gate to Palmital gold mine, now under care and maintenance. The access to the area is the same as for the Palmital gold mine.
Additionally, Jaguar has applied for a Guia de Utilização (an exploration authorization) with DNPM ("Departamento Nacional de Produção Mineral"), the federal mineral rights agency, and a LOP (Licença de Operação para Pesquisa or Exploration License) with SUPRAM, Superintendência de Regularização Ambiental de Minas Gerais, the state environmental agency.
In making this announcement, George Bee, Chief Executive Officer of Jaguar Mining Inc. stated, "Jaguar’s pursuit of this iron mineral deposit in no way changes our focus away from the main task at hand, which is the operation of our gold assets in Minas Gerais and capturing the potential within our existing portfolio of gold exploration assets." He went on to state that, "This iron deposit presents an opportunity to bring cash into the company with little or no capital expenditures, thereby assisting our gold business."
Based on the initial exploration activities conducted to date, a talus type of iron minerals deposit, containing hematite, itabirite, and quartz fragments, cemented by limonite, goethite and other iron and clay minerals, has been mapped and surveyed by Jaguar. Seven channel samples were collected from outcrops by Jaguar geologists, and sent to SGS Geosol Laboratorios LTDA., an independent laboratory in Belo Horizonte, Brazil, for screening, sample preparation, and analysis, providing the following results.
The elemental and oxide grades were analyzed by X-ray fluorescence, and loss on ignition ("LOI") was determined by high temperature ashing.
The location of the samples is indicated on the table by their UTM coordinates – Datum Córrego Alegre.
The grades shown are conceptual in nature, and there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Company may conduct further exploration to delineate and evaluate the talus deposit upon receipt of applicable licensing and approvals.
This press release has been reviewed and approved with respect to the technical information being reported by Wilson Miola, Jaguar’s Director of Engineering, and a Qualified Person under NI 43-101. Wilson Miola has verified the data disclosed, including sampling, and analytical data underlying the technical information. Wilson Miola has visited the target area twice during the months of April and June. The analytical data was obtained from a certified independent external laboratory, SGS Geosol.
