Jaguar Mining Inc. ("Jaguar") (JAG - TSX) reports its financial and operational results for the quarter ended March 31, 2005. All figures are in United States dollars.
Q1 2005 Highlights
- Quarter-end cash balance of $26.6 million.
- Working capital of $28.9 million.
- Sabará Zone B and the Caeté Plant exceeded expectations, producing 5,308 oz of gold at a cash cost of $311/oz.
- Sold 4,785 oz of gold at an average price of $432/oz.
- Net loss of $1,967,337 or $0.06 per share.
- Commenced operations at the Catita Mine.
- The new Sabará Plant met all legal and permitting requirements and is on track for completion in August.
- Good exploration success at Turmalina Property, drilling budget expanded.
- 2005 feasibility program is on track for converting resources to reserves.
Q1 2005 Results
The net loss for Q1 2005 was $1,967,337 or $0.06 per common share outstanding, as compared to a net loss of $915,617 or $0.05 per share for Q1 2004. Jaguar ended Q1 with $26.6 million of cash and $28.9 million of working capital. The average number of common shares outstanding in the quarter was 30,498,389.
Gold sales of $2,067,000 reflected the sale of 4,785 oz at an average realized price of $432 per oz. The Company does not hedge gold sales. Production of 5,308 oz of gold at a cash cost of $311/oz exceeded the budget of 3,228 oz at a cash cost of $350/oz. Q1 will typically have lower production because of weather factors.
Jaguar made good progress in Q1 2005. Operations improved with the diminishing rains. Mining, ore transport, crushing, stacking and processing tonnage all increased and exceeded budget at the end of the quarter.
The average feed grade in Q1 2005 was 2.42 grams/tonne in 85,354 tonnes of ore processed at an average cash cost of $19.30/tonne. The recovered grade averaged 1.9 g/t, ranging from 1.7 g/t to 2.0 g/t with an average recovery rate of 80% as budgeted. Feed grades are projected to continue, increasing as higher grade material is mined at Catita. The Caeté Plant is consistently processing 1,500 tonnes/day of ore.
Catita Mine Start-up
The Catita Mine initiated limited mining at the end of Q1, about three months behind schedule because of a temporary delay in obtaining a required permit. In 2005, Catita will produce gold oxide ore for Jaguar's 100% owned Caeté Plant and non-refractory gold sulfide ore that will be processed under long-term contract at the Queiroz Plant of AngloGold Ashanti.
Sabará Plant Permitting Completed
During Q1, Jaguar completed the required legal and permit processes to start construction of the new gold oxide processing plant at Sabará. The Sabará Plant will be similar to the existing Caeté Plant and will process 1,500 tonnes/day. Jaguar expects to exit 2005 with a total of 3,000 tonnes/day of wholly-owned gold oxide processing capacity at the two oxide plants and an additional 800 tonnes/day of sulfide processing capacity at Queiroz, for a total of 3,800 tonnes/day.
Generated Significant Exploration Success
Jaguar is very pleased with the exploration program at the Turmalina Property and is adding another 5,000 meters of core drilling to its 2005 budget at Turmalina.
During Q1, Jaguar reported non-refractory cut sulfide grades at Turmalina of 15.24 g/t over 19.2 m, 6.56 g/t over 12.95 m and 18.86 g/t over 23.8 m. Subsequent to the end of Q1, further results in separate holes included 14.8 g/t over 14.3 m, 13.00 g/t over 14.60 m, 11.45 g/t over 2.6 m, 10.4 g/t over 4.3 m, 9.8 g/t over 5.8 m, 8.61 g/t over 1.2 m, 7.37 g/t over 4.6 m, 7.21 g/t over 3.8 m and 6.61 g/t over 9.15 m. The team also identified a new zone, Satinoco, 300 m from the two existing zones that it is actively exploring. Turmalina is open at depth and laterally.
Jaguar continues to explore at Paciência and Santa Bárbara - Pilar as part of the feasibility study program. The work has confirmed Jaguar's resource assumptions and the properties remain open at depth and laterally.
Jaguar periodically issues press releases discussing its exploration results, which are also available on the company's website and on SEDAR. Ivan C. Machado, M.Sc., P.E., P.Eng., Principal of Salt Lake City based TechnoMine Services LLC, serves as Jaguar's Qualified Person and reviewed all the results in accordance with NI 43-101.
Advancing Toward Bankable Feasibility Studies
Jaguar continues to make good progress toward its goals of expanding production and completing a Bankable Feasibility Study ("BFS") for Turmalina, Paciência and Santa Bárbara -- Pilar in 2005. Jaguar expects to complete an independently reviewed BFS at Turmalina in the June and at Paciência in August. The Santa Barbara -- Pilar BFS should be completed by the end of 2005. The technical team in Brazil is very experienced and has built and operated numerous gold mines.
Subsequent to the end of Q1, Gil Clausen joined the Board of Directors to replace Robert Jackson, who remains as Executive Vice President of Corporate Development. Mr. Clausen is a highly qualified mining engineer with 25 years of operating and engineering experience. He is currently the President and CEO of Augusta Resource Corporation and is located in Denver, Colorado.
Jaguar has scheduled a conference call for Tuesday, May 17 at 11:00 am EDT to discuss its Q1 2005 interim financial and operational results. North American participants can access the call toll-free by dialing 877-885-6386. International participants should call 706-679-7391. The conference ID is 6316753. An audio replay will be available approximately two hours after the call ends through June 17, 2005, and can be accessed by calling 800-642-1687 from North America or 706-645-9291.
For further information, please contact Daniel Titcomb, President and Chief Executive Officer or James Roller, Chief Financial Officer on (603) 224-4800 or Robert Jackson, EVP, Corporate Development on (416) 725-4343.
The statements that are not historical facts are forward-looking statements and involve known and unknown risks and uncertainties, which could cause actual results to vary considerably from these statements. Readers are cautioned not to put undue reliance on forward-looking statements. 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.