Jaguar Mining Provides Update of Operations, Exploration and Certain Corporate Initiatives

    Analyst Tour of Operations Will Showcase Jaguar's Tremendous Potential

    JAG - TSX/NYSE Arca

    CONCORD, NH, Oct. 17 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG: TSX/NYSE Arca, JAG.NT: TSX) provided an update today of its
operating performance in 3Q, as well as information about its current
exploration program and certain corporate developments. The Company also
provided a new corporate presentation which will be discussed with visitors
attending Jaguar's analyst trip in Brazil, which begins today. This
presentation is available on the Company's web site under the investor
relations tab at

    Recent operating highlights include:

      -  During 3Q 2007, the Company produced 20,334 oz of gold at an average
         cash cost of $346/oz compared to 12,044 oz at an average cash cost
         of $373/oz during the same period last year;

      -  Gold production at Turmalina during 3Q 2007 totaled 13,502 oz at an
         average cash cost of $280/oz. Turmalina was under construction
         during the same period in 2006 and did not produce gold until
         January, 2007. Costs for 3Q were higher than planned primarily due
         to higher energy costs and stronger-than-expected exchange rates for
         the Brazilian Real;

      -  The Company's optimization program at Turmalina, which was completed
         during 3Q, successfully increased gold metallurgical recovery to 90%
         in September. Prior to the optimization effort, gold recovery at the
         Turmalina Plant had dipped below design rates due to the unexpected
         presence of trace elements, which required modifications to the
         leaching circuit. The optimization program is expected to benefit
         other Jaguar operations in the future;

      -  In a 30-day-period following the successful completion of the
         optimization program at Turmalina, the operation achieved internal
         targets for tonnes processed, metallurgical recovery and ounces

      -  Management currently estimates gold production at Turmalina during
         2007 will total approximately 51,500 oz at an average cash cost
         between $260-270/oz.;

      -  Gold production from Sabara during 3Q 2007 totaled 6,832 oz at an
         average cash cost of $473/oz compared to 8,106 oz at an average cash
         cost of $288/oz. Lower ore grades during 3Q 2007, which were
         expected and previously announced, were primarily responsible for
         the reduced output and higher costs at Sabara compared to the prior
         year for this limited-life oxide operation;

      -  Management currently estimates gold production at Sabara during 2007
         will total approximately 24,000 oz at an average cash cost between

      -  Construction progress at the Paciência Project remains on budget and
         on schedule. The overall project is 70% complete and continues on
         track for a 1Q 2008 date to begin commissioning. Photos of the
         latest construction progress at Paciência can be viewed on the
         Company's website under the Gold Projects tab;

    Daniel Titcomb, Jaguar's President and CEO stated, "After its people,
Jaguar's most valuable asset is our exceptional exploration potential. We
believe this is what analysts who are attending our site tour this week in
Brazil will come to understand during their visit. With the start of our
recently announced 'Go-Deep' drill program at Turmalina, Pilar and Roça
Grande, the latter two of which will supply the Caeté Project, our exploration
and operating teams remain excited about our prospects. At each location, we
expect to significantly add resources and reserves and extend the lives of
operations well beyond the periods estimated in the initial feasibility
studies. Moreover, our preliminary third quarter production results continue
to demonstrate our operating team's ability to identify, develop and produce
gold competitively."

    Exploration Update

    Jaguar's aggressive drill program continues to produce very promising
results at all of the current targets under consideration. A discussion of
each region or area of focus follows:

    Paciência Project

    The Paciência Project represents the largest concession package in the
Quadrilatero near Belo Horizonte, Brazil. Earlier this year, Jaguar
successfully concluded a land swap agreement with another gold producer
whereby Jaguar expanded the concession package at Paciência to a contiguous
20 km area adjacent to the Sao Vicente lineament. This land area was first
mined in the 17th century by the Portuguese and the old works are highly
visible, even from satellite photography. Jaguar's efforts today are along
this same strike at depths deeper than the Portuguese could access without
modern mining equipment.
    The Paciência Project will initially draw ore from the St. Isabel mine,
which Jaguar is in the final stages of developing. The ore produced at the St.
Isabel mine will be transported to the above-ground CIP processing plant under
construction. The Company has recently opened a second mine entrance
approximately 2 km to the North of the St. Isabel mine entrance and has
successfully breached the 'fresh rock' section where excavation will take
place to connect to the ramp system at the St. Isabel mine at the second
level. Exploration will be conducted along with the development effort to add
additional tonnes vertically as well as horizontally and further increase the
resource base for Paciência. Recent drill results for several concession areas
are illustrated in the new corporate presentation available on the Company's
web site. This information is further discussed below.

    NW01 Target (Marzagao) - A total of 24 holes have been drilled to depths
of 200 m in the NW 01 target just to the North of the new mine entrance with
gold intersections ranging from 2.5 g/t to 15.6 g/t. The intervals for these
holes range from 0.8 to 4.4 m. The size and characteristics of this
mineralized zone are similar to the St. Isabel mine where we currently have
identified 428,000 oz of resources. Jaguar plans to drill additional holes at
this target with the intent of delineating a resource to meet National
Instrument 43-101 standards.

    Conglomerates - A second zone of mineralization at the Paciência Project,
not related to the Sao Vicente lineament where Jaguar has a resource and
reserve base, is referred to as the Conglomerates. The zone entails several
concessions, which are located approximately 5 km to the East of the St.
Isabel mine main entrance. In 1989 and 1990, two previous concession owners
conducted exploration drilling consisting of 75 underground and surface drill
holes and underground development. These efforts gave rise to a
third-party-estimated resource of over 200,000 oz based on an average grade of
5.72 g/t. These resources are not included in Jaguar's latest mineral
inventory of gold resources as these efforts pre-dated the NI 43-101
standards. In order to estimate the resources held in the conglomerates
consistent with NI 43-101 standards, Jaguar is conducting in-fill drilling
inside the target zones.
    Conglomerates represent a very large portion of production in certain
countries, particularly South Africa, and are also found in some parts of
Brazil. At these operations, the deposits are generally homogenous across the
mineralized horizon and can extend along strike for considerable distances. If
such a condition exists at the Paciência (conglomerates), Jaguar's management
believes the resource potential could be quite large.

    Caeté Project

    The Company continues to advance the Caeté Project feasibility study,
which is expected to be completed by the end of 1Q 2008. As part of that
effort, the Company is planning to drill 22,000 m between the Roça Grande and
Pilar targets by the end of the year. Most of that effort will be conducted at
Roça Grande, where seven drill rigs are currently in operation. At the Pilar
target, two drill rigs are operating and will also conduct deep drilling to
define the continuity of the structure. The new corporate presentation
includes new intercept data from the latest drilling results.
    Management believes the current drilling program will initially identify
approximately one million ounces of gold resources as part of the feasibility
study. This estimate is based on a total tonnage of approximately 7.0 million
tonnes at an average grade of 5.1 g/t.

    Turmalina Expansion

    Jaguar recently completed the underground crosscut to access the Satinoco
ore body through the existing ramp developed by the Company to mine the Main
and Northeast ore bodies at Turmalina. This can be seen graphically in the
presentation referenced earlier. Within the cross cut section of the Satinoco
mineralized zone, economic grades of gold were discovered from channel
samples. The Company is now starting development inside the structure and will
be drilling additional holes along strike.
    Earlier in the year, the Company completed approximately 12,000 m of
surface in-fill drilling and provided information compliant with NI 43-101
standards on measured, indicated and inferred resources for the Satinoco zone.
Further work, including block modeling, is being performed to bring the
resources into the mine plan for the Turmalina Expansion announced in
September by the Company. The results are expected to be completed by the end
of 2007.

    Company Signs Confidentiality Agreements with Gold Producers

    Over the past few months, the Company has signed confidentiality
agreements with several gold producers to provide such companies access to
information concerning the Company's exploration program, operations,
financial, legal and other pertinent information. The Company emphasizes that
entering into agreements of this nature is quite common in the industry and
investors should not consider the presence of such agreements as an indication
that the Company is undertaking any efforts to sell the Company or that any
takeover of the Company may be forthcoming.

    About Jaguar

    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

    Satinoco and Caeté drill results and resource estimation were 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. SGS Geosol Laboratories of Belo
Horizonte, Minas Gerais provided independent sample preparation and assay
services, using standard industry practices

    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. The potential quantities and grades noted for the NW01
Target are conceptual in nature as there has been insufficient exploration to
define a mineral resource and it is uncertain whether further exploration will
result in the target being delineated as a mineral resource. The Company also
relied on information concerning the Conglomerates at the Paciência as
accurate and reliable from the previous concession owners and does not warrant
that the information supplied reflects a potential resource. 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

    %CIK: 0001333849

For further information:

For further information: Investors and analysts: Bob Zwerneman, Director
of Investor Relations, (603) 224-4800,; Media inquiries:
Valéria Rezende DioDato, Director of Communication, (603) 224-4800,

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