TSX-V: JAG
TORONTO, Dec. 21, 2015 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (JAG:TSX-V) today announced that on
December 4, 2015 Mill #2 at the
Turmalina mine was shutdown due to excessive vibration for
unscheduled repairs, while Mill #1 and mining activities continue
to operate normally. Mill #2 is expected to be repaired and
fully operational on or about January
2, 2016.
As a result of the unscheduled repairs at Mill #2, a now longer
than expected timeframe to make repairs and the previous deferral
of required repairs at Turmalina's Mill #3, Turmalina will realize
a shortfall in tonnes processed and consequently gold production
during the fourth quarter 2015. While Mill #2 is repaired,
the Company has been stockpiling ore that would have been otherwise
processed and anticipates processing that ore in January
2016. The Company does not anticipate that this delay will
impact projected production volumes over the coming months.
On a consolidated basis, the Company now expects full year gold
production of approximately 89,500 ounces in 2015, while
previous guidance indicated consolidated production of 92,000
ounces for 2015.
Rodney Lamond, President and
Chief Executive Officer of Jaguar commented, "It is unfortunate
that we had to interrupt the strong performance at Turmalina mine
to complete the unscheduled repairs to Mill # 2. It is also
unfortunate that there will be a negative impact on the full year
gold production guidance due to the repairs and due to the closing
of the year, as stockpiled mine production will be processed in the
proceeding month."
The Company's consolidated year to date gold production
reported September 30, 2015, was 67,253 ounces respectively,
compared to 69,600 ounces in 2014. Turmalina increased
production by 23% in the third quarter and produced 13,994 ounces
of gold compared to 11,336 ounces while the average head grade
at Turmalina was 4.77 grams per tonne compared to 3.69 grams
per tonne reported tin he same quarter during
2014.
About Jaguar Mining Inc.
Jaguar is a gold producer
with mining operations in a prolific greenstone belt in the state
of Minas Gerais, Brazil.
Additionally, Jaguar wholly owns the large-scale Gurupi Development
Project in the state of Maranhão, Brazil. In total, the Company owns mineral
claims covering an area of approximate 197,000-hectares. Additional
information is available on the Company's website at
www.jaguarmining.com.
FORWARD-LOOKING STATEMENTS
Certain statements in
this press release constitute "Forward-Looking Statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
management's assessment of Jaguar's future plans and operation.
Certain statements throughout this press release constitute
forward-looking statements (forecasts) under applicable securities
laws relating to future events or future performance.
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. Forward-Looking Statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results or performance to be materially different from any
future results or performance expressed or implied by the
Forward-Looking Statements. Management does not have firm
commitments for all of the costs, expenditures, prices or other
financial assumptions used to prepare the financial outlooks or
assurance that such results will be achieved. The actual results of
Jaguar will likely vary from the amounts set forth in the financial
outlooks and such variation may be material. Jaguar and its
management believe that the financial outlooks have been prepared
on a reasonable basis, reflecting the best estimates and judgments,
and represent, to the best of management's knowledge and opinion,
the Company's expected production, grades, tones milled, recovery
rates, cash operating costs, and definition/delineation drilling,
in addition to overall expenditures and results of operations
during 2015. However, because this information is highly subjective
and subject to numerous risks, including the risks discussed below,
it should not be relied on as necessarily indicative of future
results. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by Jaguar and described in the
forward-looking information. The forward-looking information
contained in this press release is made as of the date hereof and
Jaguar undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, unless required by
applicable securities laws. The forward-looking information
contained in this press release is expressly qualified by this
cautionary statement.
Forward-Looking Statements involve known and unknown risks,
uncertainties and other factors may cause the actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. Such risk
factors include, among others the risk of Jaguar's not meeting the
forecast plans regarding its operations and financial performance,
as well as those factors disclosed in the Company's current Annual
Information Form and Management's Discussion and Analysis, as well
as other public disclosure documents, available on SEDAR at
www.sedar.com. Although the Company has 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. The forward-looking statements contained
herein are presented for the purposes of assisting investors in
understanding the Company's plan, objectives and goals and may not
be appropriate for other purposes. Accordingly, readers should not
place undue reliance on forward-looking statements.
These Forward-Looking Statements represent the Company's
views as of the date of this press release. The Company anticipates
that subsequent events and developments may cause the Company's
views to change. Factors, which could cause results or events to
differ from current expectations, include, among other things,
actions taken against the Company by governmental agencies and
securities and other regulators and other factors not currently
viewed as material that could cause actual results to differ
materially from those described in the Forward-Looking Statements.
The Company does not undertake to update any Forward-Looking
Statements, either written or oral, that may be made from time to
time by or on behalf of the Company subsequent to the date of this
discussion except as required by law.
Non-IFRS Measures.
This press release provides certain financial measures that
do not have a standardized meaning prescribed by IFRS. Readers are
cautioned to review the above stated footnotes where the Company
expanded on its use of non-IFRS measures.
Footnotes
- Cash operating costs and cash operating cost per ounce
are Non-IFRS measures. In the gold mining industry, cash operating
costs and cash operating costs per ounce are common performance
measures but do not have any standardized meaning. Cash operating
costs are derived from amounts included in the Consolidated
Statements of Comprehensive Income (Loss) and include mine site
operating costs such as mining, processing and administration as
well as royalty expenses, but exclude depreciation, depletion
share-based payment expenses and reclamation costs. Cash operating
costs per ounce are based on ounces produced and are calculated by
dividing cash operating costs by commercial gold ounces produced;
US$ cash operating costs per ounce produced are derived from the
cash operating costs per ounce produced translated using the
average Brazilian Central Bank R$/US$ exchange rate. The Company
discloses cash operating costs and cash operating costs per ounce
as it believes those measures provide valuable assistance to
investors and analysts in evaluating the Company's operational
performance and ability to generate cash flow. The most directly
comparable measure prepared in accordance with IFRS is total
production costs. A reconciliation of cash operating costs per
ounce to total production costs for the most recent reporting
period, the three months ended September 30,
2015 is set out in the Company's third quarter 2015 MD&A
filed on SEDAR at www.sedar.com.
- All-in sustaining cost is a non-IFRS measure. This
measure is intended to assist readers in evaluating the total costs
of producing gold from current operations. While there is no
standardized meaning across the industry for this measure, except
for non-cash items the Company's definition conforms to the all-in
sustaining cost definition as set out by the World Gold
Council in its guidance note dated June 27, 2013. The
Company defines all-in sustaining cost as the sum of production
costs, sustaining capital (capital required to maintain current
operations at existing levels), corporate general and
administrative expenses, and in-mine exploration expenses. All-in
sustaining cost excludes growth capital, reclamation cost accretion
related to current operations, interest and other financing costs
and taxes. A reconciliation of all-in sustaining cost to total
production costs for the most recent reporting period, the three
months ended September 30, 2015 is set out in the
Company's third quarter 2015 MD&A filed on SEDAR
at www.sedar.com.
SOURCE Jaguar Mining Inc.