Jaguar Mining Turmalina Exploration Results Extend Orebody C Down Plunge and Laterally Along Strike, Updates Infill Drilling

TSX: JAG

TORONTO, Feb. 27, 2019 /PRNewswire/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced drilling results from 19 holes over 4,523m as part of its growth exploration drill program on Orebody C, and 46 holes over 4,708m from infill drilling (39 holes at C-SE and 7 holes at C-Central) completed since June 2018 (Refer News Release February 26 and June 18, 2018) at Turmalina Gold Mine ("Turmalina"). The growth drilling focused on targeting Orebody C extensions down plunge and laterally along strike, and to upgrade mineral resources to mineral reserves.

Turmalina Exploration Highlights

• Drill results confirm the structure hosting Orebody C extends to depth beyond mine level 8,500m down plunge (400m vertically) from current operations and remains open at depth
  
  
• Drill results confirm changes in the plunge direction of the higher-grade ore shoot as mapped structurally in mine development on levels 3 and 4 in Q3 2018
  
  
• 4 growth exploration holes intersected grade x thickness of > 10 GM including an intercept of 7.08 g/t Au over 3.85m (ETW 3.2m)
  
  
• Completed infill drilling on Orebody C to upgrade and covert mineral resources to mineral reserves between levels 3 and 5
  
  
• Key infill drilling intersections on Orebody C-SE include 5.76 g/t Au over 29.63m (ETW 22.69m), 6.40 g/t Au over 14.80m (ETW 12.56m) and 5.65 g/t Au over 26.54m (ETW 19.09m)
  
  
• Infill drilling continued to define wide; high-grade intercepts in 19 intersections with a grade x thickness of > 10 GM including 15 intersections with grade x thickness > 25 GM, 5 intersections with grade x thickness > 50 GM and 3 intersections with grade x thickness > 100 GM
  
  
• 8 infill holes targeting Orebody C-Central based on the new plunge interpretation include two higher grade intersections from the drilling in this area completed to date of 18.35 g/t Au over 8.76m (ETW 8.23m) and 9.95g/t Au over 2.29m (ETW 2.0m). Intersections appear to define a high-grade plunging mineralized shoot, which extends over a strike length of approximately 50m

Definitions: ETW – estimated true width, g/t Au – grams per tonne gold, m – metres, Grade (g/t Au) x Thickness (m) = GM (gram – meters)

Ben Guenther Interim CEO, Jaguar Mining commented: "We continue to improve our geological understanding of Orebody C through structural mapping, targeted growth drilling and prioritized infill drilling. This strategic approach enables us to plan and develop shallow mineralization that will provide Turmalina with additional ore faces and operational flexibility. Development of C Central will also provide exploration platforms for C NW and extend the orebody laterally to increase longer term production capability.  We look forward to reporting our update Mineral Resources and Mineral Reserves during March 2019."

Jon Hill, Expert Advisor, Geology and Exploration, Jaguar Mining Management Committee commented: "During 2018 exploration programs focused on upgrading mineral resources to mineral reserves on both principle orebodies at Turmalina. Concurrently, the Company has significantly advanced the understanding of the structural and related geological controls on Orebody C mineralization through detailed geological mapping of current and ongoing underground development. The recognition of a new plunge control to the distribution of the higher grade and wider mineralized zones clearly broadens the potential to find additional higher-grade mineralized "pay shoots" at shallower depths along the strike of the host structure and, more significantly, depth extensions, down plunge from the C-Central and C-NW historically mined open pits."

"The recent high-grade intercept on orebody C-Central with a grade x thickness value > 150 GM is encouraging as we begin to evaluate previously under-tested areas assuming the newly identified plunge control. This work is being prioritized as any increase in grade, tonnes and ounces per vertical meter added in shallow areas of the mine may leverage access from existing infrastructure and provide more flexibility in the mine plan and ultimately potential for higher production".  

Turmalina Orebody C Growth Exploration and Infill Drilling Results

Growth exploration drilling, targeting down dip extensions from level 4, continues to confirm the structure hosting Orebody C extends to depth beyond mine level 8 approximately 500m down plunge and 400m vertically from current operations. Importantly, this drilling successfully tested and confirmed the changes in the plunge direction of the higher-grade ore shoot highlighted by earlier drilling and subsequently geologically – structurally mapped in the mine development on levels 3 and 4 in Q3-2018 (Refer June 18, 2018 news release).

The new plunge direction assumed is N75/48 (azimuth / dip) (previous N45/55). This high-grade plunge direction approximates the observed Orebody A high-grade zone plunge of N65/48.

Further drilling is planned for Q2 and Q3 2019 to fully test this ore-shoot between level 4 and level 8 once a new drilling platform has been prepared for this purpose from the C-ramp on level 5. (Refer figure 2).

Infill drilling on Orebody C focusing on upgrading mineral resources to mineral reserves between levels 3 and 5 was prioritized in Q3 and Q4 to inform the Mineral Resources and Mineral Reserves update during March 2019.

This infill drilling continued to define wide; high-grade intercepts consistent with those previously reported (Refer news releases dated June18, 2018 and February 26, 2018). In the results released today 19 intersections with a grade x thickness of > 10 GM including 15 intersections with grade x thickness > 25 GM, 5 intersections with grade x thickness > 50 GM and 3 intersections with grade x thickness > 100 GM. (Refer figure 3, table 2).

The observed change in the plunge control of the higher grade and wider parts of the Orebody Host Structure has positive implications for interpreting and targeting additional shallow mineralization further along the strike of the Orebody C structure where clear potential exists for the identification and delineation of additional high grade shoots below the C-Central and C-NW open pits.

Results are reported from 8 infill holes targeting Orebody C-Central along strike from Orebody C-SE (using the mine drill rig) drilled as part of an ongoing drilling programme testing the potential for additional shallow, structurally controlled "payshoots" associated with the new plunge interpretation. Two higher grade intersections are reported from this drilling completed to date; 18.35 g/t Au over 8.76m (ETW 8.23m) and 9.95g/t Au over 2.29m (ETW 2.0m). These two holes define a high-grade plunging mineralized shoot, which extends over a strike length currently estimated to be of the order of 50m in this area.

Further drilling and evaluation work targeting Orebodies C - Central and C-NW is in progress with the aim of identifying and delineating mineable material close to existing development that is currently within 150m on Orebody C-SE level 4.  (Refer figure 4 and table 2).

Of Note, results and data from 18 infill drill holes out of the 46 infill drill hole results included in this report were drilled after the database closed for the estimation at the end of 2018 Mineral Resources and Mineral Reserves. The hole numbers and coordinate data for these 18 holes are included in Appendix 2.

Turmalina Gold Mine Drill Results and Intercepts

Table 1. Growth Exploration Drilling Results Orebody C. (OREBODY – CSE)

Table 2. Infill Drilling Results Orebody C – Turmalina

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

* Infill Drilling Results Orebody C - CENTRAL

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), FAUSIMM, 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) and a Reflex Gyrosmart 642.

Mean grades are calculated using a variable lower grade cut-off (generally 0.5g/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 from growth exploration drillholes are transported in securely sealed bags and sent for physical preparation to the independent ALS Brazil (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.

The infill drilling results presented on this news release are from drill holes completed by both Major Drilling on contract and Jaguar Mining Inc´s own drilling machines. The infill samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the Roça Grande Mine, Caeté, Minas Gerais.

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 of a gold producer 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 Mining Complex (Pilar and Roça Grande Mines, and Caeté Plant). The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. The Roça Grande Mine has been on temporary care and maintenance since April 2018. 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.

Appendix 1

Drill Hole location data for holes reported in this Press-Release - Orebody C Growth Exploration Drilling.

Appendix 2

Drill Hole location data for holes reported in this Press-Release Infill Drilling Orebody C (C-SE and C-CENTRAL).

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SOURCE Jaguar Mining Inc.