Mineral Reserves & Mineral Resources

Jaguar Mining Mineral Resources and Mineral Reserves (“MRMR”) estimates as at December 31, 2019 for Pilar Gold Mine (“Pilar”) and for Turmalina Gold Mine (“Turmalina”), each prepared in accordance with CIM definitions (2014) as in National Instrument 43-101 (“NI 43-101”) are presented below:

The MRMR estimates for Turmalina were prepared by Jaguar Mining with the assistance of Deswik Brazil. Mr. Jonathan Victor Hill BSc. (Hons) Economic Geology, FAUSIMM, Expert Advisor Exploration and Geology, Jaguar Mining Inc. and Mr. Bruno Yoshida Tomaselli, BSc Mining Engineering, Deswik Brasil, (FAUSIMM), Consulting Manager, are Qualified Persons within the definition of NI 43-101, MRMR for Pilar as at December 31st, 2019, are reported based on the depletion of the most recent Resource Model (2018), depleted for 2019 mined production. The effective date of the estimates is December 31, 2019.

Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2019

  • Proven & Probable Reserves: 1.51 million tonnes grading 3.56 g/t Au, containing 173,000 oz. Au
  • Measured & Indicated Resources: 4.65 million tonnes grading 4.12 g/t Au, containing 617,000 oz. Au
  • Inferred Resources: 1.38 million tonnes grading 3.61 g/t Au containing 161,000 oz. Au

Table 1
Pilar Gold Mine Mineral Reserves Summary December 31, 2019, compared to December 31, 2018:

Pilar Gold Mine – Change in Mineral Reserves

Gold Ounces (000’s)

Gold Grade (g/t Au)

As at December 31

2019

2018

Change (%)

2019

2018

Change (%)

Proven Reserves

106

143

-26%

3.59

3.79

-5%

Probable Reserves

67

68

-2%

3.51

3.47

1%

Total

173

212

-18%

3.56

3.68

-3%

Table 2

Pilar Gold Mine Mineral Resources Summary December 31, 2019, compared to December 31, 2018:

Pilar Gold Mine – Change in Mineral Resources

Gold Ounces (000’s)

Gold Grade (g/t Au)

As at December 31

2019

2018

Change (%)

2019

2018

Change (%)

Measured Resources

387

435

-11%

4.29

4.4

-2%

Indicated Resources

230

231

-1%

3.87

3.87

0%

Total – M&I Resources

617

666

-7%

4.12

4.2

-2%

Inferred Resources

161

161

0%

3.61

3.61

0%

Table 3

Pilar Gold Mine Mineral Reserves Summary as at December 31, 2019, by Orebody:

Pilar Gold Mine - Mineral Reserves, December 31, 2019

Orebody

Proven Reserves

Probable Reserves

Proven and Probable Reserves

Tonnes

Grade

Gold oz

Tonnes

Grade

Gold oz

Tonnes

Grade

Gold oz

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

Orebody BA

79

5

13

23

2.95

2

102

4.54

15

Orebody BF

284

3.4

31

237

3.99

30

521

3.67

61

Orebody BFII

482

3.5

54

147

2.91

14

629

3.36

68

Orebody Torre

38

3.86

5

42

4.58

6

80

4.24

11

Others

32

2.91

3

144

3.11

14

176

3.07

17

Total

915

3.59

106

593

3.51

67

1,508

3.56

173

Notes:

  1. CIM (2014) definitions were followed for Mineral Reserves
  2. Mineral Reserves were estimated at a break-even cut-off grade of 1.90 g/t Au
  3. Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce
  4. Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Numbers may not add due to rounding
  7. There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Reserve estimates.

Table 4

Pilar Gold Mine Mineral Resources Summary at December 31, 2019, by Orebody:

Pilar Gold Mine – Mineral Resources, December 31, 2019

Orebody

Measured Resources

Indicated Resources

Total Measured & Indicated Resources

Inferred Resources

Tonnes

Grade

Gold oz

Tonnes

Grade

Gold oz

Tonnes

Grade

Gold oz

Tonnes

Grade

Gold oz

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

Orebody BA

520

4.13

69

82

3.62

10

602

4.06

79

98

3.03

10

Orebody BF

731

4.32

102

457

5.24

77

1,188

4.67

179

398

3.29

42

Orebody BFII

794

4.87

124

183

3.46

20

977

4.61

145

537

4.42

76

Orebody Torre

371

3.99

48

272

3.96

35

643

3.98

82

300

3.02

29

Others

388

3.54

44

855

3.21

88

1,243

3.32

132

51

2.22

4

Total

2,804

4.29

387

1,849

3.87

230

4,653

4.12

617

1,384

3.61

161

Notes:

  1. CIM (2014) definitions are followed for Mineral Resources
  2. Mineral Resources were estimated at a break-even cut-off grade of 1.80 g/t Au
  3. Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
  4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples
  7. Mineral Resources are inclusive of Mineral Reserves
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  9. Numbers may not add due to rounding
  10. There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Resource estimates.

Turmalina Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2019

  • Proven & Probable Reserves: 2.39 million tonnes grading 4.31 g/t Au, containing 332,000 oz. Au
  • Measured & Indicated Resources: 4.23 million tonnes grading 4.89 g/t Au, containing 664,000 oz. Au
  • Inferred Resources: 1.82 million tonnes grading 4.23 g/t Au containing 248,000 oz. Au

Table 5

Turmalina Gold Mine Mineral Reserves Summary December 31, 2019, compared to December 31, 2018:

Turmalina Gold Mine - Change in Mineral Reserves

Gold Ounces (000's)

Gold Grade (g/t)

As at December 31

2019

2018

Change (%)

2019

2018

Change (%)

Proven Reserves

118

102

16%

4.88

4.33

13%

Probable Reserves

213

126

69%

4.04

5.82

-31%

Total

332

228

46%

4.31

5.05

-15%

Table 6

Turmalina Gold Mine Mineral Resources Summary December 31, 2019, compared to December 31, 2018:

Turmalina Gold Mine - Change in Mineral Resources

Gold Ounces (000's)

Gold Grade (g/t)

As at December 31

2019

2018

Change (%)

2019

2018

Change (%)

Measured Resources

333

305

9%

5.14

5.37

-4%

Indicated Resources

331

272

22%

4.66

5.7

-18%

Total - M&I

664

577

15%

4.89

5.52

-11%

Inferred Resources

248

148

68%

4.23

4.31

-2%

Table 7

Turmalina Gold Mine Mineral Reserves Summary as at December 31, 2019, by Orebody:

Turmalina Gold Mine - Mineral Reserves, December 31, 2019

Ore Body

Proven Reserves

Probable Reserves

Proven and Probable Reserves

ROM (t)

Au

Oz

ROM (t)

Au

Oz

ROM (t)

Au

Oz

(000's)

(g/t)

(000's)

(000's)

(g/t)

(000's)

(000's)

(g/t)

(000's)

Orebody A

408

5.75

75

398

4.91

63

806

5.34

138

Orebody C

347

3.85

43

1244

3.77

151

1591

3.79

194

Total

755

4.88

118

1642

4.04

213

2397

4.31

332

Notes:

  1. CIM (2014) definitions were followed for Mineral Reserves
  2. Mineral Reserves were estimated at a break-even cut-off grade of 2.50 g/t Au
  3. Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce
  4. Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Numbers may not add due to rounding
  7. There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Reserve estimates.

Table 8

Turmalina Gold Mine Mineral Resources Summary as at December 31, 2019, by Orebody:

Turmalina Gold Mine - Mineral Resources, December 31, 2019

Area

Measured Resources

Indicated Resources

Total Measured & Indicated Resources

Inferred Resources

Tonnes

Au

Oz

Tonnes

Au

Oz

Tonnes

Au

Oz

Tonnes

Au

Oz

(000's)

(g/t)

(000's)

(000's)

(g/t)

(000's)

(000's)

(g/t)

(000's)

(000's)

(g/t)

(000's)

Ore Body A

1,020

6.4

210

473

5.9

90

1,493

6.24

300

364

4.65

54

Ore Body B

353

3.34

38

192

4.26

26

545

3.66

64

18

6.46

4

Ore Body C

641

4.13

85

1,548

4.33

215

2,189

4.27

301

1,436

4.1

189

Total

2,014

5.14

333

2,213

4.66

331

4,227

4.89

664

1,818

4.23

248

Notes:

  1. CIM (2014) definitions are followed for Mineral Resources
  2. Mineral Resources were estimated at a break-even cut-off grade of 2.10 g/t Au
  3. Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
  4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Gold grades are estimated by the Inverse Distance Cubed interpolation algorithm using capped composite samples
  7. Mineral Resources are inclusive of Mineral Reserves
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  9. Numbers may not add due to rounding
  10. There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Resource estimates.

Figure 1

The distribution of Mineral Resources at Pilar Gold Mind as at December 31, 2019, (left) and December 31, 2018, (right) seen from the hanging wall looking west

Figure 2

The distribution of Mineral Resources at Turmalina Gold Mine as at December 31, 2019, (left) and December 31, 2018, (right) seen from the hanging wall (looking south).

Qualified Persons

The scientific and technical information contained in this press release has been reviewed and approved (i) in respect of the estimated Mineral Reserves and the Life of Mine Plan (LOMP) by Mr. Bruno Yoshida Tomaselli, BSc Mining Engineering, Deswik Brasil,  (FAUSIMM), Consulting Manager and (ii) in respect of the estimated Mineral Resources by Mr. Jonathan Victor Hill BSc. (Hons) Economic Geology, FAUSIMM, Expert Advisor Exploration and Geology, Jaguar Mining Inc.. They are each Qualified Persons within the definition of NI 43-101.

Quality Control

All sampling and samples utilized at Jaguar for Mineral Resource and or Mineral Reserves estimation uses a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.

HQ, NQ, and BQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration. Rock channel sampling of the underground development follows the same standard intervals as for the drill core All sampling and samples utilized at Jaguar for mineral resource and or mineral reserves estimation uses a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis. All diamond drill hole collars are accurately surveyed using a Total Station instrument, and downhole deviations measured by Reflex Sprint Gyro or equivalent survey tool.

Mean grades are calculated using a variable lower grade cut-off (generally 0.5g/t Au). Capping applied to the data with outlier gold grades.

Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is stored in a secure location. The drill core and rock chip samples for resource-reserve conversion and grade control samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the company´s Caeté Complex, Caeté, Minas Gerais. Growth exploration samples are sent to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil. The analysis of these exploration samples is conducted at ALS Global’s respective facilities (fire assay is conducted by ALS Global in Lima, Peru, and multi-elementary analysis is conducted by ALS Global in Vancouver, Canada). ALS has accreditation in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.

For a complete description of Jaguar’s sample preparation, analytical methods and QA/QC procedures, please refer to “Technical Report on the Roça Grande and Pilar Operations, Minas Gerais State, Brazil”, a copy of which is available on the Company’s SEDAR profile at www.sedar.com.

Mineralized material for each orebody was classified into the Measured, Indicated, or Inferred Mineral Resource categories based on the search ellipse ranges obtained from the variography study, the observed continuity of the mineralization, the drill hole and channel sample density, and previous production experience from these orebodies.

The Mineral Resources are inclusive of Mineral Reserves. For those portions of the Mineral Resources that comprise the Mineral Reserve, stope design wireframes were used to constrain the Mineral Resource reports.