Jaguar Mining Inc. Increases Turmalina Gold Resources by 41%

Mar 17, 2006 Download PDF

Jaguar Mining Inc. ("Jaguar") (JAG-TSX) recently completed its Phase 2 drilling program at Turmalina and has increased its measured and indicated resources by 41% from 399,000 oz to 562,000 oz of gold on the extensions of the Main and Northeast Zones. Jaguar will revise its Turmalina reserves and mine plan when the current Phase 3 drilling program is completed in early Q2 2006. The Phase 2 program successfully converted about three-quarters of the inferred resources quoted in the NI 43-101 Technical Report on the Turmalina Gold Project prepared by Roscoe Postle Associates Inc. ("RPA") in September 2005, to measured and indicated resources. It is significant to note, when assessing the new resource of 562,000 oz of gold, that 92% of the previous measured and indicated resources were converted into reserves. The revised average grade of the measured and indicated resources increased from 6.85 g/t to 7.00 g/t. The Phase 3 program is testing the deeper extensions of the Main and Northeast Zones for new resources and vertical continuity. Both zones are open at depth with economic grades and widths and are highly prospective.

The new Phase 2 resources are:

Turmalina Project
MainNE Total
Tonnes
(t)
Grade
(g/t)
Cont. Au
(oz)
Tonnes
(t)
Grade
(g/t)
Cont. Au
(oz)
Tonnes
(t)
Grade
(g/t)
Cont. Au
(oz)
Measured362,0006.0971,000362,0006.0971,000
Indicated1,521,0008.29406,000612,0004.3485,0002,133,0007.16491,000
Meas + Indic1,884,0007.87477,000612,0004.3485,0002,495,0007.00562,000
Inferred106,0006.5422,00072,0003.518,000178,0005.3130,000

Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cutoff grade of 1.0 g/t Au.
3. Mineral Resources are estimated using an average long-term gold price of US$375 per ounce
4. A minimum mining width of 2.0 metres was used.


The NI 43-101 report was written by Mr. Graham G. Clow, P.Eng. and Mr. Wayne W. Valliant, P.Geo. of RPA, both of whom are certified under NI 43-101 as a Qualified Person. The report is available on SEDAR.

The Main Zone is 200 m to 250 m long, dips at 55º to 60º and ranges between 2 m and 30 m wide, with an average width of 8 m. The Northeast Zone is about 200 m long, dips at 55º to 60º and ranges between 1 m and 12 m wide, with an average width of 3 m. The two orebodies are only 50 m to 100 m apart, which is technically and economically attractive.

Turmalina will begin production in Q4 2006 at a capital cost of US$19.4 million and with an initial design capacity of 60,000 oz per year and cash operating costs of US$176/oz. The feasibility study assumed a gold price of US$375/oz and an exchange rate of R$2.75/US$. Jaguar has revised its capital budget for the project to US$25.4 million as a result of the change in the Reais/US$ exchange rate, which was R$2.10/US$ as of March 9, 2006. The mine has 3.9 km of existing underground ramp development and is 120 km northwest of the major industrial city of Belo Horizonte, in the Iron Quadrangle greenstone belt.

Jaguar recently completed the feasibility study for the new Sabará Mine and expects to complete the feasibility studies for the Santa Bárbara -- Pilar project in Q2 2006 and the Paciência project in Q3 2006.

Active Growth and Development Program
Jaguar produces gold in the Iron Quadrangle region of Brazil and projects a production profile of 235,000 oz/year by 2008. Using its experience and strong local relationships, Jaguar continues to acquire quality gold resources from senior mining companies and is preparing feasibility studies targeting the conversion of the acquired resources to reserves. It controls 62,500 acres of gold concessions, which is the second largest gold property portfolio in the district, and continues to aggressively explore its assets in Brazil's most prolific gold region. Jaguar has 33,826,148 common shares outstanding.

For further information, please contact Daniel Titcomb, President on (603) 224-4800 or Robert Jackson, EVP, Corporate Development on (416) 725-4343.

This discussion contains forward-looking statements that involve risks, uncertainties and assumptions, including the measured and indicated resources, their average grade, expected commencement period of production, cash operating costs and expected completion dates of feasibility studies. Measured and indicated resources and their average grade are estimates made in the Technical Report, and no assurance can be made about the amount of gold that will be produced. The capital budget, production and technical report schedules and anticipated operating costs are estimates made by Jaguar based on numerous assumptions about factors that affect mining exploration and the construction and operation of processing plants. RPA and Jaguar have reasonable bases for these estimates and forecasts. Such statements are only predictions, and the Company's actual financial conditions and results of operations could differ materially from those that may be contemplated by these forward looking statements and the assumptions upon which they are based as a result of those risks and uncertainties. For a discussion of factors affecting these estimates and forecasts and other important factors affecting the Company, see the "DESCRIPTION OF THE COMPANY'S BUSINESS" and in particular the subsection entitled "Risk Factors" in the Company's Annual Information Statement for the year ended December 31, 2004 filed on SEDAR and available at http://www.sedar.com. RPA's assumptions are set forth in its Technical Report, which is also available on http://www.sedar.com. Jaguar's securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or resold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements.