Jaguar Mining Intercepts Wide High-Grade Gold Mineralization from Initial Growth Exploration at Turmalina; Confirms Extension to Principal Orebodies

TSX: JAG

TORONTO, Nov. 28, 2017 /PRNewswire/ -- Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced initial results from the first 18 underground drill holes (5,454m) from the Company's Growth Exploration Program at Turmalina Gold Mine ("Turmalina") in Minas Gerais, Brazil, targeting the down-plunge continuity of the principal mineralized Orebodies A and C (see press release September 20, 2017). Results reported are for the first 14 holes (4,368m) on Orebody A, as well as 4 holes (1,068m) on Orebody C, and represent approximately 50% completion of an overall exploration program of 11,355m. Three diamond drill rigs are currently focused on completing the remaining 50% of this program. Further results will be released over the coming months with an upgraded mineral resource expected to be published during 2018.

Highlights and Key Intercepts

• Drilling results include multiple intercepts with wide and high-grade mineralization and confirm significant depth extensions to principal Orebodies A and C that remain open for expansion.
  
  
• Orebody A key intercepts: 17.72g/t Au over 13.7m (ETW 10.2m) including 40.81g/t over 5.2m (ETW 3.87m), 4.46g/t Au over 19.05m (ETW 11m) including 16.37g/t Au over 2.2m (ETW 1.27m) and 6.39g/t Au over 5.65m (ETW 5m) (see Table 1 and Appendix 1).
  
  
• Orebody C key intercepts: 29.15g/t Au over 1.75m (ETW 1.65m), 3.51g/t Au over 4.10m (ETW 3.95m) and 4.57g/t Au over 3.85m (ETW 3.46m), which is the deepest intercept on this orebody to-date close to level 9, or 300 m below current operational infrastructure on level 3. (see Table 2 and Appendix 2).
  
  
• Orebody A drill results demonstrate continuity of high-grade gold mineralization to below level 15 approximately 300m below the current deepest operations on level 11.
  
  
• Deepest intercept reported to date is on level 16 with 3.80g/t Au over 11.05m (ETW 4.30m) including 5.25g/t Au over 3.55m (ETW 1.38m).
  
  
• The downward extension of Orebody C is ideally positioned approximately 250 meters away from the principal ramp infrastructure of Orebody A (see Figures 2 and 3).

Definitions: ETW – estimated true width      g/t Au – grams per tonne gold      m – metres

Rodney Lamond, President and Chief Executive Officer, Jaguar Mining commented "We are very pleased to announce these positive results and the successful start of our growth exploration drilling program at Turmalina. Drilling from the first 18 holes focused on targeting down-plunge extensions to the high-grade Orebody A at depth, while also targeting extensions of Orebody C at shallower depths. These results confirm significant wide, high-grade gold mineralization within the primary orebodies at Turmalina. The multiple high-grade intercepts validate the geological model and confirm significant upside potential to grow the resource base at Turmalina. To date in 2017, we have successfully completed more than 20,000 meters of a targeted diamond drilling exploration and growth program across of our core assets. Our priority was to focus on upgrading and converting our resources and on growth drilling to increase and add new resources. We look forward to reporting updated mineral resources and mineral reserves in early 2018 that will reflect the excellent results we have achieved throughout this year."

Growth Exploration Program Key Highlights

• Drilling completed to date has successfully intersected both Orebody A and Orebody C between Levels 11 to 15 and levels 5 to 9 respectively.
  
  
• Results from initial step out holes on Orebody A include several wide, high-grade gold intercepts representing the thickened central portion of Orebody A, as well as quality intercepts from contiguous narrower parts of the Orebody A structure. In addition, the first four holes targeting depth extensions to Orebody C have demonstrated orebody continuity to level 9, approximately 300m below the current operational infrastructure on level 3. These positive results validate the projected mineralization plunge and grade envelopes well beyond current mine production infrastructure on both principal orebodies.
  
  
• Importantly, these intercepts were achieved from both targets in their respective predicted down-plunge projected positions up to 300m below current operational infrastructure and resource limits, and at grades and thicknesses consistent with historical production and resource grades. Grade, tonnage and ounces-per-vertical-metre are expected to be maintained at historical levels (see Figures 1, 2, 3 and 4).
  
  
• Intercept widths and grades vary, as expected, according to the location of the pierce points along the targeted structures that host Orebody A. The wider, higher-grade zones reflect a drill intersection cutting an area where the separate host shear structures that define this orebody merge. This consistent, wide, high-grade zone extends some 40m along strike, can attain widths in excess of 12m and has a plunge of 50 degrees to the northeast. This wider zone (payshoot) is reflected above 30 GT (grade x thickness) on the GT plot (see Figure 1).
  
  
• Narrower intersections with more variable grades occur where pierce points are intersecting either one or two of the host shears, which may be separated by low grade mineralization or waste where these segments of the overall mineralized structure are manifested as distinct separate structures (see Figures 1 and 2).
  
  
• Growth exploration drilling is initially targeting the down-plunge depth extensions to higher grades associated with the narrower southeast and thicker central portions of Orebody C identified for the first time earlier in 2017 (see press release February 8, 2017). Production development and infill drilling completed this year centred on levels 3 and 4 confirmed and enhanced the drilled widths and grades on these levels.
  
  
• To guide the growth exploration drilling, intersections from infill and production—grade control drilling conducted by Jaguar during 2017 were used to prepare grade thickness models in conjunction with initial structural work to project this orebody to depth down plunge 300m vertically below level 3. The intercepts used to prepare the grade thickness plots on Figure4 are tabulated in Appendix 3.

Jon Hill, Senior Expert Advisor (Geology and Exploration) to the Jaguar Mining Management Committee commented: "Today's excellent results demonstrate material extensions to both principal Orebodies A and C, clearly underpin the long-term future of Turmalina, and support the value of sustained investment in exploration. The results from Orebody C are particularly encouraging as only four holes have been completed to date, and these have sampled a relatively small portion of the known potential strike length of the mineralized horizon as observed closer to surface. We continue to explore this horizon going forward."

Drill Results and Intercepts –Turmalina

Drill results reported below and in Appendices 1 and 2 provide the potential to add substantial new mineral resources at Turmalina and include the following key intercepts:

Orebody A

• FTS1434 intercepted 4.71g/t Au over 9.80m (ETW 8.5m)
• FTS1435 intercepted 6.39g/t Au over 5.65m (ETW 5.0m)
• FTS1436 intercepted 5.27g/t Au over 6.75m (ETW 6.11m)
• FTS1440 intercepted 17.72g/t Au over 13.70m (ETW 10.2m)
• (Including 40.81g/t Au over 5.2m (ETW 3.87m)
• FTS1444 intercepted 4.46g/t Au over 19.05m (ETW 11.2m)
• (Including 16.37g/t over 2.2m (ETW 1.27m)

Orebody C

• FTS1470 intercepted 1.38g/t Au over 3.85m (ETW 3.85m)
• FTS1471 intercepted 3.51g/t Au over 4.10m (ETW 3.95m)
• FTS1472 intercepted 29.15g/t Au over 1.75m (ETW 1.65m)
• FTS1473 intercepted 4.57g/t Au over 3.85m (ETW 3.46m)
• (Including 7.75g/t over 2.1m (ETW 1.89m)

Please see Tables 1 and 2, Figures 1, 2, 3 and 4, and Appendices 1 and 2 for more details.

• Drilling is being undertaken from a hanging wall development drive specifically prepared and completed for this program on Level 10-1. Drilling targeting Orebody A is designed to intersect this orebody between Levels 12 to 16, up to 300m vertically below the current development (see Figures 1 and 2).
  
  
• At shallower levels, drilling is targeting projected down-plunge extensions to Orebody C, which, once confirmed, will allow access for mining from existing infrastructure between Levels 4 and 10 (see Figures 3 and 4).
  
  
• Regular updates on progress with results will be released over the coming months prior to reporting updated Mineral Resources in 2018.

Qualified Person

Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, BSc (Hons) (Economic Geology - UCT), Senior Expert Advisor Geology and Exploration to the Jaguar Mining Management Committee, who is also an employee of Jaguar Mining Inc., and is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Quality Control

Jaguar continues to use 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. All diamond drill hole collars are accurately surveyed using a Total Station instrument and down-hole deviations are surveyed using non-magnetic equipment (SPT Stockholm Precision Tools with GyroMaster™ Solid State North Seeker).

Mean grades are calculated using a variable lower grade cut-off (generally 0.5 g/t Au). No upper gold grade cut has been applied to the data. However, the requirement for assay top cutting will be assessed during future resource work.

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 samples are transported in securely sealed bags and sent for physical preparation to the independent ALS Brasil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil. The analysis is conducted at ALS Global's respective facilities (fire assay are conducted by ALS Global in Lima, Peru, and multi-elementary analysis are 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 the "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.

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the second largest gold land position in the Iron Quadrangle with just over 25,000 hectares.

About Jaguar Mining Inc.

Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes, and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares. The Company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex. The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Additional information is available on the Company's website at www.jaguarmining.com.

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements and information are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking information set forth in this news release is qualified by the cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information contained in forward-looking statements can be identified by the use of words such as "are expected", "is forecast", "is targeted," "approximately," "plans," "anticipates," "projects," "continue," "estimate," "believe," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will" be taken, occur or be achieved. All statements, other than statements of historical fact, may be considered to be or include forward-looking information. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. This news release contains forward-looking information regarding potential and, among other things, expected future mineral resources, potential mineral production opportunities, geological and mineral exploration statistics, ore grades, current and expected future assay results, and definition/delineation/exploration drilling at the Pilar Gold Mine and the Turmalina Gold Mine in Brazil, as well as forward-looking information regarding costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, capital requirements, project studies, mine life extensions, and continuous improvement initiatives. The Company has made numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated timeline and for the development of the drill program at the Pilar Gold Mine (and its expanded exploration footprint) and the Turmalina Gold Mine; its mineral properties; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained and renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general business and economic conditions. Forward-looking information involves a number of known and unknown risks and uncertainties, including among others: the risk of Jaguar not meeting its plans regarding its operations and financial performance; uncertainties with respect to the price of gold, labor disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, development and production industry, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company and described herein. In addition, there are risks and hazards associated with the business of gold exploration, development, mining and production, including without limitation environmental hazards, tailings dam failures, industrial accidents and workplace safety problems, unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Table 1

Tabulation of selected drilling results with Grade x Thickness (GT) values greater than 10 from Orebody A Growth Exploration Program. Full results reported to date are tabulated in Appendices 1 and 2.
Please note assay results reported were analyzed at ALS.

Table 2

Tabulation of drilling results received to date from the Orebody C Growth Exploration Program.
Please note assay results reported were analyzed at ALS.

Figure 1

Figure 1 shows the location of growth exploration diamond drill holes reported to date relative to the current mine infrastructure and the projected down-plunge position of Orebody A. The ongoing program is targeting mineralization between Levels 11 to 16 on Orebody A up to 300m vertically below current development. Grade thickness (GT) contours based on drilling results received to date and representative horizontal sections showing the positions of reported drill intersections relative to the projected orebody wireframe positions are also presented (see Figure 2).

Figure 2

Figure 2 shows representative horizontal sections on levels 10, 12 and 15, highlighting the positions of reported drill intersections relative to the projected Orebody A wireframe positions.

Figure 3

Figure 3 shows the location of growth exploration diamond drill holes reported relative to the current mine infrastructure and the projected down-plunge position of Orebody C. The program targeted mineralization between Levels 5 to9 on Orebody Cup to 300m vertically below current development. Grade thickness (GT) contours are based on drilling results received to date as well as historical drilling from operational areas on levels 3 and 4. Horizontal sections showing the positions of reported drill intersections relative to the projected orebody wireframe positions are presented in Figure 4 and Appendices 3 and 4.

Figure 4

Figure 4 shows representative horizontal sections on levels 4, 5 and 9, highlighting the positions of reported drill intersections relative to the projected Orebody C wireframe positions. For further details on level 4, see Appendix 4.

Appendix 1

Orebody A Consolidated Drill Results - Please note assay results reported were analyzed at ALS.

Appendix 2

Orebody C Consolidated Drill Results - Please note assay results reported were analyzed at ALS.

Appendix 3

Tabulation of drill hole location data for the initial 18 holes from the Turmalina Growth Exploration Program

Appendix 4

Turmalina Historical Drill Hole Data used to prepare grade thickness (GT) plots for Orebody C presented in Figures 1, 2, 3, and 4

Please note assay results reported in the tabulation below were analyzed at Jaguar's Caeté Laboratory.

Appendix 5

Grade thickness (GT) plots for Orebody C presented in Figures 1, 2, 3 and 4

Please note assay results reported were analyzed at Jaguar´s Internal Caeté Laboratory.

For further information: Rodney Lamond, President & Chief Executive Officer, Jaguar Mining Inc., rodney.lamond@jaguarmining.com, 416-847-1854; Hashim Ahmed, Chief Financial Officer, Jaguar Mining Inc., hashim.ahmed@jaguarmining.com, 416-847-1854