Jaguar Mining Inc. ("Jaguar") (JAG-TSX) reports strong drill results from Phase I of the exploration program of the Satinoco Zone at the Turmalina Mine. Jaguar will proceed with a feasibility study to expand Turmalina's current 587,000 oz reserve base and its 60,000 oz per year gold production rate. Jaguar is targeting a significant increase of reserves and production rate over the next two years. Production at Turmalina is scheduled to begin in Q4 2006.
Main Phase I drill results:
|Hole||Grade (g/t)||Thick. (m)||Intervals|
|From (m)||To (m)|
The drill results comprise 7,857 m of drilling from 62 holes. Some of the deeper holes cut the mineralization 220 m below the surface, indicating continuity at depth and consistency with the mineralization of the parallel Turmalina Mine, which has known reserves to 500 m.
The location map, complete drill hole data and sectional views are available at:
View Maps and Tables
The Satinoco Target trend is about 1 km long and is located 250 m from Turmalina's Main Zone. Jaguar intends to access this mineralization through a cross cut underground from the mine.
Phase II of the Satinoco exploration program is underway. Jaguar plans to carry out 12,000 m of additional surface drilling, 1,250 m of drifts and 1,500 m of underground drilling.
The Phase II field work is expected to allow for the completion of the Satinoco feasibility study at an estimated cost of US$ 3.0 million. Historically, the Company has been converting resources into reserves at a cost of $5 to $8 per oz. The feasibility is expected to add reserves up to 500 m deep. The mineralization appears to be open at depth as in Turmalina's Main and NE Zones.
The Phase I exploration results were audited by Ivan C. Machado, M.Sc., P.E., P.Eng., Principal of Salt Lake City based TechnoMine Services LLC. Mr. Machado serves as Jaguar's Qualified Person in accordance with NI 43-101. SGS Laboratories of Belo Horizonte, Minas Gerais are providing independent sample preparation and assay services, using standard industry practices.
Active Growth and Development Program
Jaguar is a gold producer operating in a prolific greenstone belt in the state of Minas Gerais, Brazil. The company is developing its 72,000 acre portfolio of operating and exploration properties with the objective of becoming a mid-sized gold producer by the end of 2008. Jaguar is focused on mining operations at the Sabará property, construction of the Turmalina mine and plant, and feasibility studies at the Santa Bárbara, Paciência and Roça Grande properties. Jaguar has 45,833,100 common shares outstanding.
For further information, please contact Daniel Titcomb, President and Chief Executive Officer at (603) 224-4800 or e-mail to IR@jaguarmining.com.
This press release contains forward-looking statements concerning Jaguar's 2006 objectives, the measured and indicated resources, their average grade, the commencement period of production, cash operating costs and completion dates of feasibility studies, gold production and sales targets, capital expenditure costs, future profitability and growth in reserves. Forward-looking statements can be identified by the use of words, such as "are expected", "is forecast", approximately or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, or performance to be materially different from any future results or performance expressed or implied by the forward-looking statements.
These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cash and total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health and safety of mine workers, the availability of labour and equipment, the possibility of labour strikes and work stoppages and changes in general economic conditions. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
These forward-looking statements represent our views as of the date of discussion. The Company anticipates that subsequent events and developments may cause the Company's views to change. The Company does not undertake to update any forward-looking statements, either written or oral, that may be made from time to time by or on behalf of the Company subsequent to the date of this discussion. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculation of mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE" regarding forward-looking statements and "RISK FACTORS" in the Company's Annual Information Form for the year ended December 31, 2005 filed on System for Electronic Document Analysis and Retrieval ("SEDAR") and available at http://www.sedar.com.