TORONTO, January 19, 2016 /PRNewswire/ --
All dollar amounts are in
thousands of U.S. dollars unless stated otherwise
Fourth Quarter 2015 ("Q4 2015") Highlights
- Consolidated gold production of 23,169 ounces up 3.4% compared
to 22,456 ounces of gold in the fourth Quarter 2014 ("Q4
2014")
- Average grade profile continues to improve with 216,000 tonnes
processed at average grade of 3.96 g/t compared to 258,000 tonnes
at an average head grade of 3.02 g/t in Q4 2014
- Turmalina gold production of 14,449 ounces, up 20%, compared to
12,067 ounces of gold in Q4 2014, on increasing grade at 4.79 g/t
and higher recovery at 91%
- Caeté gold production of 8,720 ounces, compared to 10,389
ounces of gold in Q4 2014, on higher grade of 2.59 g/t, significant
improvement in recovery at 90%
Fiscal Year End 2015 Highlights
- Consolidated gold production of 90,421 ounces, compared to
92,057 ounces of gold in 2014, on increasing average grade profile
of 3.67 g/t and strong recovery of 90%
- Turmalina gold production of 50,659 ounces, up 5.6% compared to
47,968 ounces of gold in 2014, on higher grade of 4.25 g/t and
higher recovery at 91%
- Caeté gold production of 39,762 ounces on higher grade of 2.92
g/t and strong recovery of 89%
- Gold sales of 92,988 ounces up slightly compared to 92,264
ounces of gold in 2014
- Preliminary Cash and bullion at fiscal year end, December 31, 2015, approximately $15.3 million
Jaguar Mining Inc. ("Jaguar" or the "Company") (TSXV:
JAG) is pleased to report consolidated annual gold production
of 90,421 ounces in 2015 (2014 - 92,057 ounces). A total of 875,000
tonnes was processed in 2015 (2014 - 1,038,000 tonnes) at an
average grade of 3.67 grams per tonne (2014 - 3.03 grams per
tonne). Mill recoveries for the year 2015 averaged 90% (2014
- 90%).
In the fourth quarter of 2015, the Company reported gold
production of 23,169 ounces (Q4 2014 - 22,456 ounces). Mill
throughput during the fourth quarter totaled 216,000 tonnes at an
average grade of 3.96 grams per tonne.
Rodney Lamond, President and CEO
of Jaguar, commented, "In 2015 Jaguar performed well on many
measures and delivered slightly higher gold sales of 92,988
ounces. Our team achieved a significant improvement in
the average grade profile from our assets and demonstrated the
underlying strength of the deposits at Turmalina and also at
Caeté. Our continued focus on grade control resulted
in an 18.1% improvement in grade to 4.25 g/t at Turmalina and
helped drive higher recoveries of 91%. The upside
potential at Turmalina at the end of the fourth quarter was
impacted by the unanticipated maintenance shutdown of Mill #2
(reported on December 21, 2015)
however, the improved grades and recovery helped to offset the
lower than expected production compared to 2015 guidance.
Looking ahead, we are on track to deliver an updated Mineral
Reserve and Resource statement by the end of the first quarter
2016, which we expect will improve the geological understanding of
our assets and will demonstrate substantial resource growth
potential. Our current top priority is to build
confidence in our mine plans and to review opportunities for
delivering improved operational performance to achieve safe,
sustainable and profitable physical performance in 2016 and
beyond."
The consolidated production for the quarter and year ended
December 31, 2015 is as follows:
Production Q4 2015 Q4 2014
Turmalina Caeté Total Turmalina Caeté Total
Tonnes milled 100,000 116,000 216,000 117,000 141,000 58,000
Recovery 91% 90% 90% 90% 88% 89%
Head grade
(grams/tonne) 4.79 2.59 3.96 3.60 2.57 3.02
Gold ounces:
Produced 14,449 8,720 23,169 12,067 10,389 22,456
Sold 15,527 8,889 24,416 11,243 10,157 21,400
Exploration
and definition
drilling
(meters) 6,760 - 6,760 4,132 5,868 10,000
Average
realized gold
price
(US$/ounce) $ 1,100 $ 1,204
(table continued below)
Production YTD 2015 YTD 2014
Turmalina Caeté Total Turmalina Caeté Total
Tonnes milled 406,000 469,000 875,000 442,000 596,000 1,038,000
Recovery 91% 89% 90% 90% 88% 90%
Head grade
(grams/tonne) 4.25 2.92 3.67 3.65 2.56 3.03
Gold ounces:
Produced 50,659 39,762 90,421 47,968 44,089 92,057
Sold 51,819 41,169 92,988 47,947 44,317 92,264
Exploration
and definition
drilling
(meters) 25,603 10,635 36,238 17,901 19,871 37,772
Average
realized gold
price (US$/ounce) $ 1,145 $ 1,261
Details of the Company's financial performance, including
capital and operating costs, will be included in its fourth quarter
2015 financial results expected to be released on March 24, 2016.
Outlined below is the Company's cash and gold bullion position
as at December 31, 2015.
Cash and gold bullion, as at December 31, 2015
Cash 15,320
Gold bullion -
Total cash and gold bullion 15,320
2016 Consolidated Guidance
2016 Consolidated Guidance Low High 2015
Au Production (ounces) 90,000 95,000 90,421
Cash Operating Costs[1] $ 700 $ 750
All-in-Sustaining-Costs[2] $ 950 $ 1,000
FX Assumptions (R$ per USD) 3.80 4.00
About Jaguar Mining Inc.
Jaguar Mining Inc. is engaged in the acquisition, exploration,
development and operation of gold producing properties in
Brazil. The Company holds
mineral concessions comprising 23,777 hectares in the Iron
Quadrangle mining district of Brazil, a prolific greenstone belt located
near the city of Belo Horizonte in
the State of Minas Gerais, where the Company's current operating
mines are located. In addition, Jaguar holds mineral
concessions totaling 131,332 hectares in the State of Maranhão,
where the Company's Gurupi Project is located and 34,223 hectares
in the State of Ceará, where the Company's Pedra Branca Project is
located. The Company may consider the acquisition,
exploration, development and operation of other gold
properties.
The Company currently produces gold at its Turmalina and Caeté
operations in Minas Gerais, while the Company's Paciȇncia
operation, also located in Minas Gerais, has been on care and
maintenance since 2012. Total Proven and Probable Mineral
Reserves as at December 31, 2014 for
Caeté and Turmalina (Southern
Brazil) include 1,871,000 tonnes at 4.43 g/t of gold,
containing 267,000 ounces of gold. Total Proven and Probable
Mineral Reserves as at December 31,
2014 for the Gurupi Project (Northern Brazil) include 63,757,000 tonnes at
1.14 g/t of gold, containing 2,328,000 ounces of gold. Total
Proven and Probable Mineral Reserves as at December 31,
2014 for both Southern Brazil and
Northern Brazil include 65,628,000
tonnes at 1.23 g/t of gold, containing 2,595,000 ounces of
gold. Notes for the Company's Reserves and Resources can be
found in the most recent Annual Information Form.
Potential for an increase in gold production exists through
further exploration and development of the Company's existing
brownfield land package around its existing mines and through the
development of the Company's Gurupi Project, with potential for an
open-pit gold mining operation. The Company is led by a
proven executive management team with extensive gold operations and
development experience in South America.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute
forward-looking information within the meaning of applicable
Canadian securities legislation. 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. In this press release, forward-looking information
includes estimates, projections and statements as to the Company's
reasonable expectations of production and sales volumes, capital
expenditure and mine production costs, the impact of ore grades on
future production, the potential of production disruptions, the
outcome of mine permitting, the outcome of legal proceedings which
involve the Company, the future price of gold and foreign exchange
ratios, tonnes milled, recovery rates and definition/delineation
drilling. With respect to forward-looking information
contained herein, the Company has made numerous assumptions
including among other things, assumptions about the price of gold,
anticipated costs and expenditures and the ability to achieve the
Company's forecast plans regarding its operations and financial
performance. Management does not have firm commitments for all of
the costs, expenditures, prices or other financial assumptions used
to prepare the financial outlooks or assurance that such results
will be achieved. Forward-looking information
contained in forward-looking statements is based on assumptions
that involve a number of known and unknown risks and uncertainties,
including among others the uncertainties with respect to the price
of gold, labour disruptions, mechanical failures, procurement and
delivery of parts and supplies to the operations, and
uncertainties inherent to capital markets in general,
which, if incorrect, may cause actual results to differ
materially from those anticipated by Jaguar and described
herein.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking statements
made in this press 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
http://www.sedar.com. The forward-looking information set
forth herein reflects Jaguar's expectations as at the date of this
press 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 press
release is expressly qualified by this cautionary
statement.
Non-IFRS Measures
This press 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.
Footnotes
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 three months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at http://www.sedar.com.
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 three months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Derrick Weyrauch, Chief Financial
Officer, +1-416-628-9601, dweyrauch@jaguarmining.com