Jaguar Mining produces 16,663 ounces of gold in Q1 2022, Brazil

Jaguar Mining Inc. [JAG-TSX; JAGGF-OTCQX] reported production results for the first quarter of 2022. Financial results for Q1 2022 will be reported and filed on SEDAR by May 10, 2022. All figures are in U.S. dollars, unless otherwise expressed.

Q1 2022 operating highlights include consolidated gold production that decreased 8% with 16,663 ounces in Q1 2022 compared with 18,160 ounces in Q1 2021. Average head grade improved to 3.19 g/t gold in Q1 2022 compared with 3.10 g/t gold in Q1 2021.

Pilar gold production decreased 6% with 9,082 ounces in Q1 2022 compared with 9,643 ounces in Q1 2021. Turmalina gold production decreased 11% with 7,581 ounces in Q1 2022, compared with 8,517 ounces in Q1 2021.

Total development of 2,620 metres for the first quarter of 2022, an increase of 30% compared with the same period in 2021 with 2,016 metres. Total definition, infill and exploration drilling increased 65% to 25,771 metres in Q1 2022 compared with 15,598 metres in Q1 2021. The additional drilling is expected to allow Jaguar to continue expanding mineral resources in 2022.

Treasury position as of March 31, 2022, with cash of $34.8-million compared with cash of $40.3-million on Dec. 31, 2021. During the quarter, the company paid a dividend of $2.8-million.

Vern Baker, president and CEO, stated: “Our teams did a good job of development and exploration work after a very challenging beginning for the quarter due to intense flooding in the region resulting in the shutdown of both mines for five days and having an impact on the infrastructure in the region that is still ongoing. At the same time our teams experienced an increase from zero absenteeism due to COVID-19 at the end of the year to more than 60 people in less than three weeks. Heavy rain and COVID-19 impacted our teams through February.

“Management focus was able to maintain development rates and exploration efforts, but ore production did not return to targeted production rates until the end of the quarter. Current positioning should see Q2 return to targeted ounce production rates, with an opportunity to recoup some of Q1 ounce shortfalls during the remainder of the year. We still expect to produce within our guidance of 86,000 to 94,000 ounces although on the lower side.

“Despite the challenges faced by Turmalina during the quarter, the mine was able to develop at an average of well over 500 metres per month. This includes metres in the Project NW that are opening new mining areas and progressing toward the Faina resource. Pilar also experienced a difficult beginning to the quarter, but development progressed well including Project SW which is opening new mining areas higher in the mine. Exploration efforts continued with significant drilling in both mines and on the surface. Drilling to upgrade the Faina Resource to the Measured and Indicated level was initiated and more than 4,000 metres drilled. This core will also be used for continuing metallurgical tests. While this was a challenging quarter in respect to ounces produced, we are positioned to perform for the remaining quarters of the year while we continue to build a strong base to grow our company.”

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiaba, and Sao Bento. Jaguar holds the third largest gold land position in the Iron Quadrangle with over 50,000 hectares.

Jaguar Mining is operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims. The company’s principal operating assets are located in the Iron Quadrangle include the Turmalina Gold Mine Complex and Caete Mining Complex (Pilar and Roca Grande Mines, and Caete Plant).