License Granted, Mineral Rights Increased to 20 km along the Sao Vicente
JAG - TSX
CONCORD, NH, June 7 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG-TSX) provided an update today of its Paciência Santa Isabel
Project under development in the state of Minas Gerais, Brazil. Jaguar owns
100% of the project, which is on schedule with a target date of late-Q1 2008
for commissioning of the new 70,000 oz per year facilities. Jaguar was awarded
the Implementation License ("LI"), which allows for full development and start
Jaguar was successful in consolidating a 21,000-acre area in the
Paciência region that had previously been held by five different companies.
During 2006 and 2007, Jaguar negotiated with these companies for mineral
rights located at the Moeda Conglomerate and at the Paciência/Sao Vicente
trend. The Company now controls contiguous mineral rights covering 20 km along
the 40 km prolific Sao Vicente lineament where approximately 25 million ounces
of gold has been produced. The area hosts a large portion of the outcrops of
the Moeda Conglomerate. A considerable amount of drilling work was performed
on these mineral rights by previous owners, which are well respected mining
companies. The existing data reaches only to a depth of 200 m.
Based on the well-known geological features of similar ore bodies in the
area, continuity at depth, consistency of grade and density is the norm.
Management believes the potential for significant gold resources exist down to
a depth of 400 m. Jaguar is conducting additional exploration to increase its
resource base. A detailed illustration of Jaguar's mineral rights in the
Paciência region, which identifies the new acquisitions, can be found on the
Company's web site under the Investor Relations tab for today's press release.
Commenting on this latest development, Daniel Titcomb, Jaguar's President
and CEO stated, "Acquiring these significant mineral rights at Paciência is a
huge win for our shareholders and highlights the focus of our operating team
in Brazil. We believe our ability to consolidate much of the mineralized
properties on the prolific Sao Vicente lineament will likely increase the
production rate to over 100,000 oz per year and extend the operating life of
the Paciência Project for many years."
As part of a recent agreement with another mining company, Jaguar
exchanged mineral rights in the Sabara region that contained oxide ore for
mineral rights in the Paciência region, increasing the Company's potential of
expanding its sulfide operations in the region. As discussed during the
Company's first quarter earnings conference call held May 10, 2007, the
exchange of mineral rights in the Sabara region, which the Company intended to
mine during 2007, will have an impact on expected cash operating costs at
Jaguar's oxide mining operation in this region during the remainder of this
year. A replay of this conference call is available on the Company's web site.
Current Exploration Program
In the first four months of 2007 Jaguar completed a total of 809 m of
underground development at the Santa Isabel mine. The Company expects to
complete approximately 9,200 m of drilling in the Paciência region out of a
total program of 43,200 m in all regions in the Iron Quadrangle.
Development work related to a second entrance (the North entrance) began
in May 2007. This new access ramp is located 2.2 km from the Santa Isabel mine
entrance. From this new entrance, Jaguar will conduct diamond drilling to
verify the data supplied by the previous property owners.
The development of a second mine entrance entails opening a 4.5 m x 4.5 m
main ramp, 450 m in length, to reach the 850 m elevation. From this level,
Jaguar will construct a 100 m drift to access the drill hole intersections in
the mineralized zones identified through surface drilling. Over the next 18
months, an additional 1,000 m of development will take place on strike driving
toward the Santa Isabel mine at the second level.
Paciência Processing Plant Update
The Company broke ground in April for development of the new processing
plant, which will process ore from the Santa Isabel mine during the first
phase of the project. The processing plant is located 650 m south of the Santa
Isabel mine entrance and approximately 2.2 km from the North entrance. During
June, the Company will begin pouring foundations for grinding circuits with
steel erection to follow. The ball mills are undergoing refurbishment in
Brazil and are expected to be delivered to the site during the middle of the
The Paciência Project mineral rights map and photos of the ground works
can be found at:
Jaguar previously released the full details of the Paciência Project in
February 2007. As construction progresses, the Company will be providing
additional photos on its web site on an on-going basis under the Gold
Projects/Paciência Region tab to track the construction progress.
Jaguar is one of the fastest growing gold producers in Brazil with
operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar
is actively exploring and developing additional mineral resources at its
72,000 acre land base in Minas Gerais and on an additional 159,000 acres in
the state of Ceara in the Northeast of Brazil through a joint venture.
Additional information is available on the Company's website at
The concept of potential gold resources increasing from continuity at
depth presented herein has been reviewed 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 independent Qualified Person in accordance with NI
43-101. There has not been sufficient exploration and/or studies and
evaluations to define mineral resources additional to those whose technical
reports were already filed with SEDAR and the Company is not yet in a position
to file any technical report in accordance with National Instrument 43-101. It
is uncertain if further exploration will result in the classification as a
Forward Looking Statements
This press release contains forward-looking statements concerning
Jaguar's objectives in the years ahead, 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 labor and equipment, the
possibility of labor 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, 2006 filed on System
for Electronic Document Analysis and Retrieval ("SEDAR") and available at
For further information:
For further information: Investors and analysts: Bob Zwerneman, Director
of Investor Relations, (603) 224-4800, firstname.lastname@example.org; Media inquiries:
Valéria Rezende DioDato, Director of Communication, (603) 224-4800,