Jaguar Mining Provides Q4 2009 Update of Operations
Underground Operations Met 2009 Plan, + 53% Growth Over 2008;
Establishes 2010 Production Guidance of 200,000 - 217,000 oz, 29-40% Above 2009
Consolidated Operations (Turmalina, Paciência and Sabara)
- In Q4 2009, the Company produced 39,890 ounces of gold at an average
cash operating cost of $539 per ounce compared to 37,916 ounces at an
average cash operating cost of $396 per ounce during the same period
last year, a production increase of 5%. A sharp rise in the
Brazilian real vs. the US dollar accounted for over one-half of the
increase in average cash operating costs over average cash operating
costs reported in Q4 2008, while lower grades at Turmalina accounted
for the balance. Q4 2009 production was below expectations and cash
operating costs were above management's expectations for the quarter
due primarily to lower than anticipated grades at the Turmalina
operation (see below).
- For the fiscal year ended December 31, 2009, Jaguar produced 155,102
ounces of gold at an average cash operating cost of $468 per ounce
compared to 115,348 ounces at an average cash operating cost of $429
per ounce for 2008, a production increase of 34%.
- Jaguar's initial 2009 gold production plan, established in late-2008,
targeted 2009 gold production of between 165,000 to 175,000 ounces,
which included 20,000 ounces for the Sabara operation. However, in
2009 the Sabara operation was idled for eight months and only
produced 6,460 ounces compared to 18,199 ounces produced in 2008.
This resulted in a shortfall of overall production as compared to the
Company's production plan. Excluding the Sabara (heap leach)
operation, Jaguar's 2009 gold production from its sulfide operations
(Turmalina and Paciência) totaled 148,642 ounces, well within the
range expected by management for these two operations, and
represented an increase of 53% as compared to 97,149 ounces in 2008.
- Excluding the 1,408 ounces of gold produced at Sabara in Q3 2009
(July only), the Company's Q4 2009 gold output was 288 ounces below
Q3 2009 production, or by 0.7%. A discussion of Q4 2009 production
for each operation is presented below.
- After completing a review of the Sabara operation in early-January,
management intends to classify its Sabara facility as a Discontinued
Operation in 2010 and record a charge to Q4 2009 earnings of
approximately $3.4 million. The Company is considering its
alternatives with respect to Sabara, which could include, among other
things, seeking a buyer for the operation along with the oxide
mineral concessions that can supply that processing facility.
- Q4 2009 gold sales rose to 35,944 ounces at an average price of
$1,099 per ounce compared to Q4 2008 gold sales of 35,138 ounces at
an average price of $793 per ounce. The Company had additional in-
process inventory of approximately 5,500 ounces at the end of
December, which will move into sales in Q1 2010.
- Underground mine development at Jaguar's operations in the Iron
Quadrangle during Q4 2009 reached an all-time high of 4.5 km in a
quarter, bringing year-to-date development to 14.9 km, 24% above
planned, and total in-place development to nearly 45 km. This
amount of development will strengthen the Company's ability to
convert resources into reserves on-schedule, as well as provide at
least 18 months of advanced mine access.
Turmalina Operations
In Q4 2009, Turmalina produced 21,184 ounces of gold at an average cash operating cost of
For FY 2009, Turmalina produced 82,070 ounces of gold at an average cash operating cost of
The following was achieved at Turmalina during Q4 2009:
- Mine production totaled 179,783 tonnes of ore at an average run-of-
mine ("ROM") grade of 4.34 grams per tonne compared to 126,777 tonnes
of ore at an average ROM grade of 6.01 grams per tonne in Q4 2008.
Grades and tonnage into the mill were impacted by significantly above
normal rainfall. The mine plan sequencing included surface mining at
a high-grade oxide zone at the D ore body, which was shut down during
much of Q4 2009. The overall production plan for Q4 2009 called for a
sizeable contribution from the oxides at the D ore body, which is
blended with sulfide ore from the underground operations. To maintain
tonnage into the mill, lower grade development ore held in the
stockpile was used to offset the loss of the high-grade D ore body.
This situation gave rise to the lower ROM grades into the mill, lower
gold output than planned and the higher cash operating costs posted
in Q4 2009.
- Ore processed through the mill totaled 178,609 tonnes at an average
feed grade of 3.93 grams per tonne compared to 128,438 tonnes at an
average feed grade of 5.93 grams per tonne in Q4 2008 and 153,324
tonnes at an average grade of 5.27 grams per tonne in Q3 2009. The
higher mill throughput is attributed to the recently completed mill
expansion at Turmalina where operations are slightly exceeding the
design capacity.
- For FY 2009, ore processed through the mill totaled 587,949 tonnes at
an average feed grade of 4.81 grams per tonne compared to 480,814
tonnes at an average feed grade of 5.46 grams per tonne.
- The plant recovery rate averaged 89% in Q4 and for FY 2009, up
slightly from 88% in FY 2008.
- Mine development totaled 1.29 km in Q4 and 5.0 km for FY 2009.
- Management believes that installed underground development within the
Turmalina mine is adequate to achieve the mine plan for a period of
18 months.
Paciencia Operations
In Q4 2009, Paciência produced 18,707 ounces of gold at an average cash operating cost of
For FY 2009, Paciência produced 66,671 ounces of gold at an average cash operating cost of
The following was achieved at Paciência during Q4 2009:
- Consolidated ore production totaled 188,021 tonnes at an average ROM
grade of 3.70 grams per tonne compared to 114,785 tonnes at an
average ROM grade 3.29 grams per tonne in Q4 2008.
- Ore processed through the mill totaled 178,479 tonnes with an average
feed grade of 3.41 grams per tonne compared to 146,666 tonnes with an
average feed grade of 3.43 grams per tonne in Q4 2008. For FY 2009,
ore into the mill at Paciência totaled 645,556 tonnes at an average
feed grade of 3.42 grams per tonne.
- The plant recovery rate averaged 93% in Q4 2009, ahead of plan, and
FY 2009 compared to 92% in Q4 2008 and FY 2008.
- Mine development in Q4 2009 totaled 2.5 km and 8.7 km for FY 2009.
Sabara Operations
The Company continued to leave the Sabara operation idle during Q4 2009 given the heavy rainfall and supply sources of oxide ore available for leaching. No ore was produced or shipped to the plant during Q4 2009.
Jaguar intends to classify the non-core Sabara facility as a Discontinued Operation in 2010, which will result in a charge against earnings of approximately
Caeté Project
Construction of Jaguar's new Caeté Project is on-schedule for completion in
Cash Position
As of
2010 Outlook
The Company's actual production and average cash operating costs for 2009 and estimated for 2010 are as follows:
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Actual Actual Estimated Estimated
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Operation 2009 2009 FY 2010 FY 2010
Production Cash Production Cash
(oz) Operating (oz) Operating
Costs Costs
($/oz) ($/oz)
-------------------------------------------------------------------------
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Turmalina 82,070 $424 95,000 - 101,000 $480 - 490
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Paciência 66,671 $502 75,000 - 81,000 $495 - 510
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Caeté - - 30,000 - 35,000 $500 - 510
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Total 148,742 $459 200,000 - 217,000 $489 - 500
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Sabara* 6,360 $680 -
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Total 155,102 $468 200,000 - 217,000
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* Facility will be classified as Discontinued Operation in 2010.
Note: Estimated 2010 cash operating costs based on R$1.75 per $1.00.
The 2009 exchange rate was R$2.04 per $1.00.
Analyst Meeting -
The Company is holding an Analyst Meeting at the Intercontinental Hotel in
The link for the web cast, along with copies of all materials being presented at the meeting, can be found on the Company's home web page at www.jaguarmining.com.
In addition, the Company has provided an update of its corporate presentation, which can also be found on the home web page of the Company's website.
Q4 2009 Earnings Release and Conference Call
The Company plans to release its Q4 2009 financial and operating results after the market close on
About Jaguar
Jaguar is one of the fastest growing gold producers in
Forward Looking Statements
This press release contains forward-looking statements, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, concerning the Company's objectives, such as estimated 2010 gold production and cash operating costs, management's intention to classify Sabara as a Discontinued Operation in 2010 and begin commissioning of the Caeté Project in
These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cash and total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health and safety of mine workers, the availability of labor and equipment, the possibility of labor strikes and work stoppages and changes in general economic conditions. 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 information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
These forward-looking statements represent our views as of the date of discussion. The Company anticipates that subsequent events and developments may cause the Company's views to change. 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. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculation of mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE" regarding forward-looking statements and "RISK FACTORS" in the Company's Annual Information Form for the year ended
%CIK: 0001333849
For further information: Investors and analysts: Bob Zwerneman, Vice President Corporate Development and Director of Investor Relations, (603) 224-4800, [email protected]; Media inquiries: Valéria Rezende DioDato, Director of Communication, (603) 224-4800, [email protected]
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