TSX: JAG
TORONTO, Aug. 20, 2018 /PRNewswire/ -- 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.
For further information please contact: Hashim Ahmed, Chief Financial Officer, Jaguar
Mining Inc., hashim.ahmed@jaguarmining.com, 416-847-1854