Mineral Reserves & Mineral Resources
MINERAL RESERVES & MINERAL RESOURCES
Jaguar Mining Mineral Resources and Mineral Reserves (“MRMR”) estimates as at December 31, 2018 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 were prepared by Jaguar Mining under the supervision of Reno Pressacco, P.Geo., and Jeff Sepp, P.Eng. of Roscoe Postle Associates Inc. (“RPA”). RPA is an independent mining consultant and Mr. Pressacco and Mr. Sepp are Qualified Persons within the definition of NI 43-101. The effective date of the estimates is December 31, 2018.
Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2018
- Proven & Probable Reserves: 1.78 million tonnes grading 3.68 g/t Au, containing 211,000 oz. Au
- Measured & Indicated Resources: 4.93 million tonnes grading 4.20 g/t Au, containing 666,000 oz. Au
- Inferred Resources: 1.39 million tonnes grading 3.61 g/t Au containing 161,000 oz. Au
Table 1
Pilar Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:
| Pilar Gold Mine – Change in Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
Gold Ounces (000’s) | Gold Grade (g/t Au) | |||||
As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) |
Proven Reserves | 143 | 81 | 77% | 3.79 | 3.78 | 0% |
Probable Reserves | 68 | 44 | 55% | 3.47 | 4.45 | (22%) |
Total | 212 | 125 | 69% | 3.68 | 3.99 | (8%) |
Table 2
Pilar Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:
| Pilar Gold Mine – Change in Mineral Resources | ||||||
|---|---|---|---|---|---|---|
Gold Ounces (000’s) | Gold Grade (g/t Au) | |||||
As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) |
Measured Resources | 435 | 317 | 37% | 4.40 | 4.47 | (2%) |
Indicated Resources | 231 | 216 | 7% | 3.87 | 4.22 | (8%) |
Total – M&I Resources | 666 | 532 | 25% | 4.20 | 4.37 | (4%) |
Inferred Resources | 161 | 433 | (63%) | 3.61 | 5.69 | (37%) |
Table 3
Pilar Gold Mine Mineral Reserves Summary as at December 31, 2018, by Orebody:
| Pilar Gold Mine - Mineral Reserves, December 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
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 | 81 | 5.16 | 13 | 23 | 2.89 | 2 | 104 | 4.66 | 15 |
Orebody BF | 383 | 3.72 | 46 | 239 | 3.98 | 31 | 622 | 3.82 | 77 |
Orebody BFII | 633 | 3.71 | 75 | 159 | 2.88 | 15 | 792 | 3.54 | 90 |
Orebody Torre | 43 | 3.72 | 5 | 42 | 4.58 | 6 | 85 | 4.15 | 11 |
Orebody LFW | 29 | 2.97 | 3 | - | - | - | 29 | 2.97 | 3 |
Orebody LPA | 7 | 3.35 | 1 | - | - | - | 7 | 3.35 | 1 |
Orebody SW | - | - | - | 144 | 3.11 | 14 | 144 | 3.11 | 14 |
Total | 1176 | 3.79 | 143 | 608 | 3.47 | 68 | 1784 | 3.68 | 211 |
Notes:
- CIM (2014) definitions were followed for Mineral Reserves
- Mineral Reserves were estimated at a break-even cut-off grade of 1.90 g/t Au
- Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce
- Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
- A minimum mining width of 2 m was used
- Numbers may not add due to rounding
- 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, 2018, by Orebody:
| Pilar Gold Mine – Mineral Resources, December 31, 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Orebody | Measured Resources | Indicated Resources | Total Measured | 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 | 521 | 4.13 | 69 | 82 | 3.62 | 9 | 603 | 4.03 | 78 | 98 | 3.03 | 9 |
Orebody BF | 815 | 4.47 | 117 | 459 | 5.24 | 77 | 1274 | 4.74 | 194 | 398 | 3.29 | 42 |
Orebody BFII | 969 | 4.94 | 154 | 186 | 3.46 | 21 | 1155 | 4.71 | 175 | 538 | 4.42 | 77 |
Orebody Torre | 373 | 3.99 | 48 | 273 | 3.95 | 35 | 646 | 4.00 | 83 | 300 | 3.02 | 29 |
Orebody LFW (200’s) | 185 | 2.93 | 17 | 18 | 2.84 | 2 | 203 | 2.91 | 19 | 10 | 3.08 | 1 |
Orebody LHW | 67 | 2.72 | 6 | 7 | 2.33 | 1 | 74 | 2.94 | 7 | - | - | - |
Orebody LPA | 149 | 4.96 | 24 | - | - | - | 149 | 4.96 | 24 | - | - | - |
Orebody SW | - | - | - | 830 | 3.23 | 86 | 830 | 3.23 | 86 | 42 | 2.02 | 3 |
Total | 3,079 | 4.40 | 435 | 1,855 | 3.87 | 231 | 4,934 | 4.20 | 666 | 1,385 | 3.61 | 161 |
Notes:
- CIM (2014) definitions are followed for Mineral Resources
- Mineral Resources were estimated at a break-even cut-off grade of 1.80 g/t Au
- Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
- Mineral Resources are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
- A minimum mining width of 2 m was used
- Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples
- Mineral Resources are inclusive of Mineral Reserves
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
- Numbers may not add due to rounding
- 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, 2018
- Proven & Probable Reserves: 1.41 million tonnes grading 5.05 g/t Au, containing 228,000 oz. Au
- Measured & Indicated Resources: 3.25 million tonnes grading 5.52 g/t Au, containing 577,000 oz. Au
- Inferred Resources: 1.07 million tonnes grading 4.32 g/t Au containing 148,000 oz. Au
Table 5
Turmalina Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:
| Turmalina Gold Mine – Change in Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
Gold Ounces (000’s) | Gold Grade (g/t Au) | |||||
As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) |
Proven Reserves | 102 | 29 | 252% | 4.33 | 5.90 | (27%) |
Probable Reserves | 126 | 88 | 43% | 5.82 | 4.18 | 39% |
Total | 228 | 117 | 95% | 5.05 | 4.50 | 12% |
Table 6
Turmalina Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:
| Turmalina Gold Mine – Change in Mineral Resources | ||||||
|---|---|---|---|---|---|---|
Gold Ounces (000’s) | Gold Grade (g/t) | |||||
As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) |
Measured Resources | 305 | 265 | 15% | 5.37 | 5.7 | (6%) |
Indicated Resources | 272 | 155 | 75% | 5.70 | 3.86 | 48% |
Total – M&I Resources | 577 | 420 | 37% | 5.52 | 4.86 | 14% |
Inferred Resources | 148 | 305 | (51%) | 4.31 | 5.49 | (21%) |
Table 7
Turmalina Gold Mine Mineral Reserves Summary as at December 31, 2018, by Orebody:
| Turmalina Gold Mine - Mineral Reserves, December 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
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 ANW | 116 | 6.40 | 24 | 192 | 6.60 | 40 | 308 | 6.52 | 64 |
Orebody ASE | 229 | 4.64 | 34 | 65 | 3.36 | 7 | 294 | 4.36 | 41 |
Orebody CSE | 388 | 3.53 | 44 | 418 | 5.85 | 79 | 806 | 4.73 | 123 |
Total | 733 | 4.33 | 102 | 675 | 5.82 | 126 | 1408 | 5.05 | 228 |
Notes:
- CIM (2014) definitions were followed for Mineral Reserves
- Mineral Reserves were estimated at a break-even cut-off grade of 2.50 g/t Au
- Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce
- Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
- A minimum mining width of 2 m was used
- Numbers may not add due to rounding
- 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 Miner
| Turmalina Gold Mine – Mineral Resources, December 31, 2018 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Orebody | Measured Resources | Indicated Resources | Total Measured | 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 A | 894 | 6.86 | 197 | 339 | 7.61 | 83 | 1,233 | 7.07 | 280 | 372 | 4.81 | 58 | |
Orebody B | 353 | 3.34 | 38 | 192 | 4.26 | 26 | 545 | 3.66 | 64 | 18 | 6.46 | 4 | |
Orebody C | 520 | 4.20 | 70 | 955 | 5.31 | 163 | 1,475 | 4.92 | 233 | 676 | 3.97 | 86 | |
Total | 1,767 | 5.37 | 305 | 1,486 | 5.69 | 272 | 3,253 | 5.52 | 577 | 1,066 | 4.32 | 148 | |
al Resources Summary as at December 31, 2018, by Orebody:
Notes:
- CIM (2014) definitions are followed for Mineral Resources
- Mineral Resources were estimated at a break-even cut-off grade of 2.10 g/t Au
- Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce
- Mineral Resources are estimated using an average long-term foreign exchange rate of 3.70 Brazilian Reais: 1 US Dollar
- A minimum mining width of 2 m was used
- Gold grades are estimated by the Inverse Distance Cubed interpolation algorithm using capped composite samples
- Mineral Resources are inclusive of Mineral Reserves
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
- Numbers may not add due to rounding
- 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, 2018, (left) and December 31, 2017, (right) seen from the hanging wall looking west
Figure 2
The distribution of Mineral Resources at Turmalina Gold Mine as at December 31, 2018, (left) and December 31, 2017, (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 Jeff Sepp, P.Eng., of Roscoe Postle Associates Inc. ("RPA"), and (ii) in respect of the estimated Mineral Resources by Reno Pressacco, P.Geo., of RPA. RPA is an independent mining consultant and Mr. Sepp and Mr. Pressacco 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 diamond drill hole collars are accurately surveyed using a Total Station instrument, and downhole deviations were surveyed using non-magnetic equipment with Icefield Tools’ Gyro Path NSG equipment and SPT Stockholm Precision Tools with GyroMaster Solid State North-seeking gyro.
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 Roça Grande Mine, 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.