Jaguar Mining has announced initial results from the first 18 underground drill holes (5,454m) from the company’s Growth Exploration Program at Turmalina Gold Mine in Minas Gerais, Brazil, targeting the down-plunge continuity of the principal mineralized Orebodies A and C.

Results reported are for the first 14 holes (4,368m) on Orebody A, as well as 4 holes (1,068m) on Orebody C, and represent approximately 50% completion of an overall exploration program of 11,355m. Three diamond drill rigs are currently focused on completing the remaining 50% of this program. Further results will be released over the coming months with an upgraded mineral resource expected to be published during 2018.

Highlights and Key Intercepts

  • Drilling results include multiple intercepts with wide and high-grade mineralization and confirm significant depth extensions to principal Orebodies A and C that remain open for expansion.
  • Orebody A key intercepts: 72g/t Au over 13.7m (ETW 10.2m) including 40.81g/t over 5.2m (ETW 3.87m),4.46g/t Au over 19.05m (ETW 11m) including 16.37g/t Au over 2.2m (ETW 1.27m) and 6.39g/t Au over 5.65m (ETW 5m).
  • Orebody C key intercepts: 15g/t Au over 1.75m (ETW 1.65m), 3.51g/t Au over 4.10m (ETW 3.95m) and 4.57g/t Au over 3.85m (ETW 3.46m), which is the deepest intercept on this orebody to-date close to level 9, or 300 m below current operational infrastructure on level 3..
  • Orebody A drill results demonstrate continuity of high-grade gold mineralization to below level 15 approximately 300m below the current deepest operations on level 11.
  • Deepest intercept reported to date is on level 16 with 80g/t Au over 11.05m (ETW 4.30m) including 5.25g/t Au over 3.55m (ETW 1.38m).
  • The downward extension of Orebody C is ideally positioned approximately 250 meters away from the principal ramp infrastructure of Orebody A.

Rodney Lamond, President and Chief Executive Officer, Jaguar Mining commented “We are very pleased to announce these positive results and the successful start of our growth exploration drilling program at Turmalina. Drilling from the first 18 holes focused on targeting down-plunge extensions to the high-grade Orebody A at depth, while also targeting extensions of Orebody C at shallower depths. These results confirm significant wide, high-grade gold mineralization within the primary orebodies at Turmalina. The multiple high-grade intercepts validate the geological model and confirm significant upside potential to grow the resource base at Turmalina. To date in 2017, we have successfully completed more than 20,000 meters of a targeted diamond drilling exploration and growth program across of our core assets. Our priority was to focus on upgrading and converting our resources and on growth drilling to increase and add new resources. We look forward to reporting updated mineral resources and mineral reserves in early 2018 that will reflect the excellent results we have achieved throughout this year.”

Growth Exploration Program Key Highlights

  • Drilling completed to date has successfully intersected both Orebody A and Orebody C between Levels 11 to 15 and levels 5 to 9 respectively.
  • Results from initial step out holes on Orebody A include several wide, high-grade gold intercepts representing the thickened central portion of Orebody A, as well as quality intercepts from contiguous narrower parts of the Orebody A structure. In addition, the first four holes targeting depth extensions to Orebody C have demonstrated orebody continuity to level 9, approximately 300m below the current operational infrastructure on level 3. These positive results validate the projected mineralization plunge and grade envelopes well beyond current mine production infrastructure on both principal orebodies.
  • Importantly, these intercepts were achieved from both targets in their respective predicted down-plunge projected positions up to 300m below current operational infrastructure and resource limits, and at grades and thicknesses consistent with historical production and resource grades. Grade, tonnage and ounces-per-vertical-metre are expected to be maintained at historical levels (see Figures 1, 2, 3 and 4).
  • Intercept widths and grades vary, as expected, according to the location of the pierce points along the targeted structures that host Orebody A. The wider, higher-grade zones reflect a drill intersection cutting an area where the separate host shear structures that define this orebody merge. This consistent, wide, high-grade zone extends some 40m along strike, can attain widths in excess of 12m and has a plunge of 50 degrees to the northeast. This wider zone (payshoot) is reflected above 30 GT (grade x thickness) on the GT plot (see Figure 1).
  • Narrower intersections with more variable grades occur where pierce points are intersecting either one or two of the host shears, which may be separated by low grade mineralization or waste where these segments of the overall mineralized structure are manifested as distinct separate structures (see Figures 1 and 2).
  • Growth exploration drilling is initially targeting the down-plunge depth extensions to higher grades associated with the narrower southeast and thicker central portions of Orebody C identified for the first time earlier in 2017 (see press release February 8, 2017). Production development and infill drilling completed this year centred on levels 3 and 4 confirmed and enhanced the drilled widths and grades on these levels.
  • To guide the growth exploration drilling, intersections from infill and production—grade control drilling conducted by Jaguar during 2017 were used to prepare grade thickness models in conjunction with initial structural work to project this orebody to depth down plunge 300m vertically below level 3. The intercepts used to prepare the grade thickness plots on Figure4 are tabulated in Appendix 3.

Jon Hill, Senior Expert Advisor (Geology and Exploration) to the Jaguar Mining Management Committee commented: “Today’s excellent results demonstrate material extensions to both principal Orebodies A and C, clearly underpin the long-term future of Turmalina, and support the value of sustained investment in exploration. The results from Orebody C are particularly encouraging as only four holes have been completed to date, and these have sampled a relatively small portion of the known potential strike length of the mineralized horizon as observed closer to surface. We continue to explore this horizon going forward.”

Drill Results and Intercepts –Turmalina

Drill results reported below and in Appendices 1 and 2 provide the potential to add substantial new mineral resources at Turmalina and include the following key intercepts:

Orebody A

  • FTS1434 intercepted 4.71g/t Au over 9.80m (ETW 8.5m)
  • FTS1435 intercepted 6.39g/t Au over 5.65m (ETW 5.0m)
  • FTS1436 intercepted 5.27g/t Au over 6.75m (ETW 6.11m)
  • FTS1440 intercepted 17.72g/t Au over 13.70m (ETW 10.2m)

          – (Including 40.81g/t Au over 5.2m (ETW 3.87m)

  • FTS1444 intercepted 4.46g/t Au over 19.05m (ETW 11.2m)

          – (Including 16.37g/t over 2.2m (ETW 1.27m)

Orebody C

  • FTS1470 intercepted 1.38g/t Au over 3.85m (ETW 3.85m)
  • FTS1471 intercepted 3.51g/t Au over 4.10m (ETW 3.95m)
  • FTS1472 intercepted 29.15g/t Au over 1.75m (ETW 1.65m)
  • FTS1473 intercepted 4.57g/t Au over 3.85m (ETW 3.46m)

          – (Including 7.75g/t over 2.1m (ETW 1.89m)

  • Drilling is being undertaken from a hanging wall development drive specifically prepared and completed for this program on Level 10-1. Drilling targeting Orebody A is designed to intersect this orebody between Levels 12 to 16, up to 300m vertically below the current development.
  • At shallower levels, drilling is targeting projected down-plunge extensions to Orebody C, which, once confirmed, will allow access for mining from existing infrastructure between Levels 4 and 10.
  • Regular updates on progress with results will be released over the coming months prior to reporting updated Mineral Resources in 2018.