- Jaguar Mining (TSX:JAG), a Canadian gold stock active in Brazil, has announced preliminary production results for Q2 2023
- Consolidated gold production decreased 24 per cent to 16,750 ounces compared with 22,028 ounces in Q2 2022
- The decrease stems from changes in orebody geometry that resulted in lower mineral grades
- Jaguar Mining is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil
- Jaguar Mining stock (TSX:JAG) last traded at 2.28 per share
Jaguar Mining (TSX:JAG), a Canadian gold stock active in Brazil, has announced preliminary production results for Q2 2023.
Q2 operating highlights
- Consolidated gold production decreased 24 per cent to 16,750 ounces compared with 22,028 ounces in Q2 2022. Tonnes milled decreased to 203,000 tonnes compared with 228,000 in Q2 2022
- Pilar gold production decreased 33 per cent to 8,876 ounces compared with 13,212 ounces in Q2 2022
- Turmalina gold production decreased 11 per cent to 7,874 ounces compared with 8,816 ounces in Q2 2022
- Total definition, infill and exploration drilling came to 10,419 m, a decrease of 66 per cent compared with 30,605 m in Q2 2022, when the company conducted a major infill drilling program on the Faina Resources
- Ended Q2 with cash of US$23.9 million, a decrease from its Q1 cash position of US$25.8 million
- The company is reporting no material change to its mineral resources or mineral reserves
“The company faced another difficult quarter as both mines encountered issues with dynamic orebodies leading to lower grades and tonnes than was expected in the areas we mined,” Vern Baker, president and CEO of Jaguar Mining, said in a statement.
“At the Pilar Mine, the primary orebodies showed a change in geometry that no longer fit our current mining method in portions of the orebody. This created both dilution and extraction issues leading to the loss of some planned mining blocks as well as lower than expected grades in mined blocks,” Baker added. “By the end of the second quarter, our planning team had adapted plans for modifying the mining system to account for the ore being both narrower and flatter than prior experience.
“At the Turmalina Mine, the areas mined in the second quarter showed significantly more variability than was planned leading to lower than expected grades. The Turmalina grade control program is being modified to improve stope design and grade control.”
Development continued at the Faina Project through Q2 with more than 300 metres driven to upgrade the resource from last year´s diamond drilling. The company expects to reach potential ore zones in Q4 when development from resource to reserve will begin.
Given the challenging quarter, Jaguar will institute cost-cutting measures to optimize 2023 cash flow and is temporarily suspending its forward-looking guidance for fiscal 2023 regarding costs and expected ounces of production.
Billionaire mining investor Eric Sprott currently owns more than 48 per cent of Jaguar stock through 2176423 Ontario, Ltd.
Q2 operating results
Jaguar Mining is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil. Its assets include three gold mining complexes and a large land package with significant upside exploration potential.
The gold mining stock’s principal operating assets are in the Iron Quadrangle, a prolific greenstone belt that contains world-class multi-million-ounce gold deposits.
Jaguar Mining Inc. (TSX:JAG) last traded at $2.28 per share.
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