TSX: JAG
TORONTO, Aug. 20, 2018 /CNW/ - Jaguar Mining Inc. ("Jaguar"
or the "Company") (TSX: JAG) today provided an update on recent management changes and progress on operating performance.
As previously announced, Benjamin Guenther was appointed Interim Chief Executive Officer
effective August 15, 2018. Ben brings more than 40 years of mining industry experience, with
extensive knowledge of mining in Brazil.
On behalf of Jaguar Mining's Board, Chairman Dick Falconer commented, "The entire Jaguar Mining
Board would like to thank Ben for taking the role as Interim Chief Executive Officer through this critical period. We are
confident that under his leadership, operational teams will take the right steps to improve Company performance including
delivering on our targets for production, lower costs and increase operational cash flow. We appreciate Ben's continued
support as the Board conducts a thoughtful and comprehensive search for Jaguar's next CEO."
In addition, the Company has made progress on strengthening the senior operational team in Brazil with the recent appointment of Kevin Weston as Vice President
Operations in July 2018. Mr. Weston is a Mining Engineer with nearly four decades of international
gold and base metal mine management, as well as operational and gold processing experience. He has been successful in turning
around challenging mining operations as well as achieving key targets during extended commissioning phases.
"As we focus on 2018 production and cost targets, we have made important changes to strengthen our operations team in
Brazil. We are extremely pleased to welcome Kevin, who brings deep and proven experience with
challenging operations, and look forward to his insight and positive impact across all of our mines," said Mr. Guenther. "Over
the coming weeks, Kevin's top priority will be to focus on reviewing opportunities and implementing key changes at Turmalina to
deliver on critical targets to drive improved performance."
The Company also takes this opportunity to provide an update on the strong performance at Pilar and its key priorities at
Turmalina over the near-term.
Pilar Gold Mine Update
- Pilar Gold Mine ("Pilar") continues to see solid results and remains on track to achieve the
higher end of production guidance in line with management expectations. Grades have more than doubled in the past two years, as
the current working levels approach the higher-grade areas of orebodies BF and BFII.
- The mine management team performs well and is capable to adjust when challenging conditions are present. The solid
performance of the team is the result of very good execution of the mine plan.
- Mine development and stope preparation inventories provide flexibility in maintaining consistent production rates.
- A new grade control program implemented at Pilar helped reduce dilution and improved reconciliations with reserve
model.
- The orebody capacity provides confidence that the mine will continue to grow production in 2018 and a further growth is
expected in 2019.
Turmalina Gold Mine Update
Geotechnical issues in the higher-grade area of Turmalina required modifying the mining sequence in the second quarter of
2018. This resulted in lower ore tonnage and grade as mine production was redirected to a lower grade area. Lack of mining
flexibility required mining stopes prior to completing ore control drilling which contributed to a lower than expected grade
profile.
In addition to a strengthened operating team with a Vice President of Operations in Brazil,
management is focused on near-term priorities to deliver safe sustainable production performance and return to growing
Turmalina's production to its historical profile.
Top near-term priorities at Turmalina include:
- Modifying the mining approach to minimize the number of unfilled open stopes. Converting from blind back stopes to
cut-and-fill stoping below sill pillars to ensure minimal exposure from unfilled stope walls.
- Utilization of top down drilling to ensure better quality control on drilling, reduce dilution, improve mining recovery,
and allow backfilling with waste rock.
- Strict adherence to backfilling in the stoping cycle to reduce unfilled open stopes.
- Use of better blasting techniques to reduce vibration into the rock mass.
- Improving ore control drilling, planning and execution to improve confidence in the ore production plan.
- Improving development planning and execution to give a high confidence in the mine production schedule.
The paste backfill plant has been commissioned and paste backfilling has begun in the upper levels of the Turmalina mine. In
addition, a grade control program similar to Pilar has been implemented to reduce dilution.
The revised mine plan and schedule for the remainder of 2018 has been reviewed in detail which will allow Jaguar Mining to
achieve the updated 2018 guidance of 80,000 to 85,000 ounces without any incremental costs.
The completion of these near-term priorities is critical to ensuring the flexibility and consistency in Turmalina's production
plan. As it makes progress on these priorities, the Company expects in the near term that Turmalina will deliver:
- Improved gold production driving positive operational cash flow by the fourth quarter of 2018.
- Stabilized mine production over the coming quarters.
- Improved mine inventories over time to provide mining flexibility.
- Allow the mine to return to the historical higher production levels given the ore body capacity.
"Our top priority remains delivering key operational improvements at Turmalina as a path to returning to a growing and
sustainable production profile more reflective of our large base of mineral resources. Importantly, as we see the favourable
trends in increasing grades continuing at Pilar, we are optimistic that we will have a good second half of the year. We expect to
meet our cost targets and production targets, as well as improved operating cash flows," concluded Mr. Guenther.
Newly Appointed Management Bios
Benjamin Guenther, Interim Chief Executive Officer
Benjamin Guenther has been appointed as Interim Chief Executive Officer. Mr. Guenther was
appointed to the Board of Jaguar Mining in November 2017 and until recently was the Chairman of the
Technical Committee of the Board. He is a mining engineer with a wide range of management and executive experience with over 40
years in the mining industry.
Mr. Guenther retired from AngloGold Ashanti in 2017. During his 22 years with AngloGold Ashanti his roles included: Executive
Officer-Corporate Technical Group, Executive Officer–International Technical, SVP Operational Strategy and Asset Management,
SVP-North America and Americas Technical, and General Manager. He has worked closely with AngloGold Ashanti mines in Brazil over a period of 18 years advising, coaching, and supporting the management teams on operational
strategies, operational performance, and capital growth project development and execution. He served as project steering
committee chairman for expansion and new mine projects including Brazil during this period. He
served on the boards of numerous alliance partners (public and private), joint ventures, and subsidiaries. He has been involved
in a number of turn around projects and brings this experience to Jaguar.
Mr. Guenther has been working as a consultant since retiring from AngloGold Ashanti. Mr. Guenther graduated from the
Colorado School of Mines.
Kevin Weston, Vice President, Operations
Kevin Weston was appointed Vice President, Operations in July
2018. Mr. Weston is a Mining Engineer with nearly four decades of experience in all facets of the mining industry
following graduation from McGill University in Montreal. Mr. Weston
has extensive international experience having worked in Zimbabwe, Tunisia, Mexico and Nicaragua, and brings
significant underground mining knowledge, as well as wide experience with operating gold processing plants.
Over his career, Kevin has been recognized as a turnaround specialist having taken the Kemess Open Pit mine while under
receivership to a viable operation, stabilized and achieved nameplate tonnage at the Casa Berardi gold concentrator, restructured
the balance sheet of a private mining contractor in Northern Quebec, developed a safety culture
at the Myra Falls Mine following it having the worst safety record in the Canadian Mining Industry, oversaw the Minto Open Pit
copper mine in the Yukon and the G9 base metals mine and concentrator as they achieved their
design capacities following extended commissioning phases.
Qualified Persons
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").
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 made 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," "anticipates,"
"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. This news release contains forward-looking information
regarding, among other things, expected sales, production statistics, ore grades, tonnes milled, recovery rates, cash operating
costs, definition/delineation drilling, the timing and amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining
activities, currency fluctuations, capital requirements, project studies, mine life extensions, restarting suspended or disrupted
operations, continuous improvement initiatives, and resolution of pending litigation. The Company has made numerous assumptions
with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated
timeline for the development of 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; 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 an 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 the forecast plans
regarding its operations and financial performance; uncertainties with respect to the price of gold, labour 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 environmental hazards, tailings dam failures, industrial accidents and workplace safety problems,
unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, procurement fraud and gold bullion
thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).
Accordingly, readers should not place undue reliance on forward-looking information.
For additional information with respect to these and other factors and assumptions underlying the forward-looking
information made in this news release, see the Company's most recent Annual Information Form and Management's Discussion and
Analysis, as well as other public disclosure documents that can be accessed under the issuer profile of "Jaguar Mining Inc." on
SEDAR at www.sedar.com. The forward-looking information set forth herein
reflects the Company's reasonable expectations as at the date of this news release and is subject to change after such date. The
Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by law. The forward-looking information contained in this news
release is expressly qualified by this cautionary statement.
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SOURCE Jaguar Mining Inc.
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