Jaguar Mining produced 83,878 oz gold in 2021, Brazil

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Jaguar Mining Inc. [JAG-TSX; JAGGF-OTC] reported production results from its operations in Brazil for the three months (Q4 2021) and 12 months ended December 31, 2021. All figures are in U.S. dollars, unless otherwise expressed.

The company also announced its annual production guidance for financial year (FY) 2022 that is focused on sustainable quality-ounce production and maximizing free cash flow generation. Balance sheet strength and free cash flow maximization has enabled the company to invest $18-million in exploration and growth projects and pay $13.4-million in dividends. This focus is enabling Jaguar in 2022 to significantly increase capital allocation toward exploration and growth projects that are expected to bring new gold deposits into production. The company will provide more details in the near term.

Q4 2021 consolidated gold production increased 2% to 22,903 ounces, compared with Q4 2020 production of 22,533 ounces. Annual consolidated gold production for 2021 decreased 8% with 83,878 ounces compared with 2020 production of 91,118 ounces.

Q4 2021 consolidated tonnage processed was 213,000 tonnes at 3.81 g/t; an increase of 9% in grade and a decrease of 7% in tonnes from Q4 2020 with 228,000 tonnes at 3.50 g/t. Annual consolidated tonnage for 2021 processed was 856,000 tonnes at 3.47 g/t tonne, an increase of 6% in tonnes and a decrease of 13% in grade from 2020’s 804,000 tonnes processed at 3.98 g/t.

Q4 2021 primary development metres of 1,426 and secondary development metres of 1,189; totalling 2,615 metres which is a 3% increase on Q4 2020 development of 2,538 metres. Annual 2021 development of 4,722 primary and 4,835 secondary metres for a total of 9,557 metres, a decrease of 2% on FY 2020 total metres developed of 9,725 metres. These development rates provide sustainable progress on the ramp, ore development and exploration drives.

Q4 2021 diamond drill metres were at 27,136, a 26% increase from Q4 2020 drilling of 21,501 metres. Diamond Drill metres for FY 2021 increased 17% to 80,043 metres from 68,397 metres in FY 2020.

At December 31, 2021, cash of $40 million compared to cash of $39 million on December 31, 2020 and $38 million on September 30, 2021, demonstrating strong generation of free cash flow. During Q4 2021, the company invested $10 million (sustaining capital $6.5 million and growth capital $3.5 million), compared to $11 million total capital expenditures in the same period in 2020. During the quarter, the company paid a dividend of $2.3 million.

Vern Baker, President and CEO, stated: “As Jaguar has come out of the pandemic and the associated issues created by COVID-19, it has become clear that the sustainable production profile for Jaguar in the nearer term is going to average approximately 22,500 ounces per quarter. Q3 and Q4 performance has shown that we can produce, explore, pay dividends, increase our bank balance, and invest in the growth of the company when we maintain production at these levels. Production in Q4 2021 returned to the levels achieved in the second half of 2020 at both mines.

“Pilar production is stable at 12.5k oz per quarter. Exploration and definition work at Pilar indicate that economic ore extends well below level 18 (current mining at level 13. Mining within the Southwest zone is allowing the mine to develop economic mining areas at higher levels in the mine (Level 9 and above). Turmalina demonstrated production of 10k oz per quarter in Q4. The C-Orebody at Turmalina provided a larger proportion of our ounce production than in prior quarters.”

Guidance for 2022 is 86,000 to 94,000 ounces produced at an AISC range of $1,150-$1,250/oz (US$1:BRL5.50).

In Brazil, Jaguar Mining has three gold mining complexes and a large land package with exploration potential. Its principal operating assets are in the Iron Quadrangle, a prolific greenstone belt in Minas Gerais State that includes the Turmalina Gold Mine Complex and Caete Mining Complex (Pilar and Roca Grande Mines, and Caete Plant).


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