PDAC - EXPLORATION BREAKFAST · PDAC - EXPLORATION BREAKFAST MARCH 5, 2018 ... Exploration...
Transcript of PDAC - EXPLORATION BREAKFAST · PDAC - EXPLORATION BREAKFAST MARCH 5, 2018 ... Exploration...
PDAC - EXPLORATION BREAKFAST MARCH 5, 2018
TSX:JAG Registration & Breakfast – 7:00 amExploration Presentation – 7:30 am
TSX:JAG
This presentation contains “forward-looking information,” within the meaning of applicable Canadian securities legislation.
Forward-looking information contained in forward-looking statements relate to, among other things, the objectives, goals,
strategies, beliefs, intentions, plans, estimates and outlook of Jaguar Mining Inc. (“Jaguar” or the “Company”). Forward-looking
statements can generally be identified by the use of words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “goal,” “will,”
“may,” “target,” “potential” and other similar expressions. In addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are forward-looking information. Forward-looking statements are based
on estimates and assumptions made by Jaguar in light of its experience and perception of historical trends, current conditions
and expected future developments, as well as other factors Jaguar believes are appropriate in the circumstances. These
estimates and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and
contingencies, many of which, with respect to future events, are subject to change. Although Jaguar believes that the
expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on such
statements. In making the forward-looking statements in this presentation, Jaguar has made several assumptions, including, but
not limited to assumptions concerning: production costs; statements with respect to the future price of gold, the estimation of
mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of
exploration activities, permitting time lines, currency exchange rate fluctuations, requirements of additional capital, government
regulation of mining operations, environmental risks, costs of closure of various operations and changes to the political stability
or government regulation in the country in which Jaguar operates. Actual results may differ materially from those expressed or
implied in the forward-looking statements contained in this presentation. Important factors that could cause actual results to differ
materially from these expectations are discussed in greater detail under the heading “Risk Factors” in Jaguar’s annual
information form for the year ended December 31, 2016, are available on www.sedar.com. When relying on forward-looking
statements to make decisions with respect to Jaguar, carefully consider these risk factors and other uncertainties and potential
events. Jaguar undertakes no obligation to update or revise any forward-looking statement, except as required by law. Although
Jaguar has carefully prepared and verified the Mineral Resource and Mineral Reserve figures presented herein, such figures are
estimates, which are, in part, based on forward-looking information and no assurance can be given that the indicated level of
gold will be produced. Estimated Mineral Reserves may have to be recalculated based on actual production experience. Market
price fluctuations of gold as well as increased production costs or reduced recovery rates and other factors may render the
present Proven and Probable Mineral Reserves unprofitable to develop at a particular site or sites for periods of time.
All Figures are in US dollars unless otherwise stated.
FORWARD LOOKING STATEMENTS
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TSX:JAG
833,000 tonnes
ore milled
JAGUAR AT A GLANCE
PEDRA BRANCA PROJECTProject Status: Exploration
Metal: Gold
Land Holding: 93,000 acres
TURMALINA GOLD COMPLEXMining/Metal: UG/gold
Plant Capacity: 2,000 TPD
Prod’n FY 2017: 45,466 oz
COC FY 2017: $706/oz sold
CAETÉ GOLD COMPLEXMining/Metal: 2 UG/gold mines –
Pilar & Roça Grande
Plant Capacity: 2,000 TPD
Prod’n FY 2017: 38.685 oz
Pilar Mine
Prod’n FY 2017: 34,017 oz
COC FY 2017: $939/oz sold
Roça Grande Mine
Prod’n FY 2017: 4,668 oz
COC FY 2017: $1,404/oz sold
PACIENCIA GOLD COMPLEXMining/Metal: UG/gold
Plant Capacity: 2,000 TPD
Status: Care & Maintenance
Exploration & Production Activities – FY 2017
2nd Largest Gold Tenement Holder in Iron Quadrangle
3.47 grams gold/tonne
average head grade
91%
recovery rate
84,151 ounces
gold produced
Measured & Indicated Resources
7,868,000 tonnes
4.45 grams gold/tonne
1,125,000 ounces gold
Proven & Probable Reserves
2,099,000 tonnes
4.64 grams gold/tonne
313,000 ounces gold
Potential for Additional Value Accretion
✓ Deep exploration & development on-going in Iron Quadrangle
✓ Paciência care & maintenance under review
✓ Pedra Branca greenfield exploration potential
✓ Gurupi value monetization via earn-in and NSR
Operating units
On care & maintenance
Greenfield projects
IRON QUADRANGLE REGIONMost Active & Prolific Mining District
>50 million ounces gold produced
315 years continuous gold production
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ACHIEVING FIVE YEAR STRATEGIC PLAN – Annual Gold Production (ounce)
FY 2017
Gold Production
2018
Guidance
Exploration
Pipeline
Additional
Growth
45,466
34,017
84,151
4,668
Roça Grande
Gold Mine
Pilar Gold Mine
Turmalina
Gold Mine
90,000 – 105,000
150,000
10% Annual
Growth in
Mineral
Resources
200,000
Resuming
Production
Paciência
Gold Mine
FIVE YEAR
STRATEGIC PLAN
$500+ per ounce soldOperational Cash Margin
200,000 ouncesAnnual Gold Production
TSX:JAG
$1,086 $1,203
$1,011 $1,098
$1,323 $1,262
$1,168 $1,101
$742 $758 $645
$735
$924 $857 $809 $743
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
AISC COC
$1,387 $1,369 $1,079 $1,099
$1,201
$942 $980
$755 $719 $837
2013 2014 2015 2016 2017
AISC COC
PERFORMANCE & COSTS – US$/oz sold
Quarterly Consolidated COC & AISC in US$/oz sold
Annual Consolidated COC & AISC in US$/oz sold
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Prod.
(oz)21,197 24,222 25,782 25,408 22,292 19,769 20,781 21,311
Avg.
Grade3.78 g/t 3.76 g/t 3.83 g/t 3.61 g/t 3.50 g/t 3.18 g/t 3.36 g/t 3.87g/t
Prod.
(oz)95,595 92,057 90,421 96,608 84,151
Avg.
Grade3.07 g/t 3.03 g/t 3.62 g/t 3.77 g/t 3.47g/t
16.8%
19.6%
12.8%
14.6%
Note: Q4/FY 2017 COC and AISC are preliminary figures. Final data will be released on or around March 29, 2018.
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EXPLORATION PRESENTATION
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EXPLORATION - A new dawn at Jaguar Mining
Dawn at Pilar mine
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IMPLEMENTING STRATEGY TO GROW MINERAL RESOURCES AND RESERVES
Expanding
Core Asset
Resources
To Extend
Life of Mine
EXPLORATION GROWTH PIPELINE INITIATIVE
• Long-term strategic priority to grow Mineral Resources and Mineral Reserves 10%
annually to increase Life of Mine (LoM)
• Focus on increasing M&I Resources at the Company’s existing mines and brownfield
exploration targets
• Currently undertaking major growth capital investment of up to $8 million (announced
October 2016)
- Invested approximately $6 million spend to date
- 31,200 metres of diamond drilling for expanded growth programs to test deep down-
plunge continuities of orebodies at Turmalina (A and C) and Pilar (BA, BFII and BF)
- 8,500 metres of surface diamond drilling at Pacheca and Cubas targets located near
Pilar
• Plan to re-deploy operational cash flows towards activities that support Mineral
Resource and Mineral Reserve growth
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EXPLORATION – Jaguar Mining in Iron Quadrangle
Pilar MineR&P= 1.0 Moz (600 m depth)
RG MineR&P = 0.4 Moz (500 m depth)
Passagem MineContained Gold= 1.09 Moz
Córrego do Sítio MineContained Gold= 5.42 Moz
São Bento MineContained Gold= 1.77 Moz
Cuiba MineContained Gold= 5.62 Moz
Lamego MineContained Gold= 1.24 Moz
Morro Velho MineContained Gold= 10.71 Moz
Raposos MineContained Gold= 2,18 Moz
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EXPLORATION – The biggest gold mines in Iron Quadrangle
Dawn in Pilar mine
Jaguar Mining Sites and Neighboring Mines Continuity at Depth in the Iron Quadrangle (Figures from 2012)
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EXPLORATION – Jaguar Mining Inc - Mineral Rights
CCA Pilar 4,083.78 ha
CCA RG 11,115.71 ha
CPA 6,676.26 ha
PB 38,921.63 ha
MTL 4,996.17 ha
TOTAL 65,793.55 ha
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Jaguar Mine Locations – Iron Quad
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TURMALINA GOLD MINE – Orebody Locations
Longitudinal Section from Turmalina Hanging Wall
Turmalina Mineral Rights Location Map
*Refractory Ore Deposits
Shear Zone
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JAGUAR MINERAL
RIGHTS
Main Shear Zone trend
hosting gold deposits
Pontal Deposit
Faina Deposit
Turmalina Mine
Turmalina Plant
Zona Basal
Target
Updated Resources (December 2016)
M+I ResourcesTonnes
(´000)
Grade
(g/t)
Oz Au
(´000)
Orebody A 1,163 6.28 235
Orebody B 496 3.51 56
Orebody C 1,078 3.72 129
Faina* 261 6.87 58
Pontal* 410 4.72 62
Total
Turmalina3,408 4.93 540
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TURMALINA GOLD MINE – UG Exploration 2017/2018 DDH program
2017/2018 DDH programProgrammed
A orebody – 24 DDH – 7712.95 meters
C orebody - 40 DDH – 9050 meters
Focused to check down plunge ore continuity.
A orebody C orebody
2018 DDH programRealized
A orebody – 24 DDH – 7658m (100% complete).
C orebody - 16 DDH – 3492m (40% complete – 2
drill rigs in progress).
Add resource 440m below the last development level
in A orebody and 300 meters in C oreboby.
New resources will be publish in 2018
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TURMALINA GOLD MINE – UG Exploration – DDH results
Longitudinal Projection of Mineralization Turmalina Gold Mine
Press release November 28,
2017
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TURMALINA GOLD MINE – UG Exploration – DDH results
Longitudinal Projection of Mineralization Turmalina Gold Mine
press release November 28,
2017
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TURMALINA GOLD MINE – UG Exploration – DDH results
Longitudinal Projection of Mineralization Turmalina Gold Mine
Refer to next slide
Longitudinal Projection of Mineralization Turmalina Gold Mine
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TURMALINA GOLD MINE – UG Exploration – DDH results
Longitudinal Projection of Mineralization Turmalina Gold Mine
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TURMALINA GOLD MINE – UG Exploration – DDH results
Longitudinal Projection of Mineralization Turmalina Gold Mine
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DDH 2018 program
5560 meters programmed
40% conclude to date
Conclusion forecast: 2018/05
TURMALINA GOLD MINE – UG Exploration – C orebody
C orebody
450m
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MTL-Plant
Ground IP & mag Geophysics
Test continuity from A oreboy to Faina
(white rectangle)
Faina surface drilling zone
– check down dip continuity
and reclassify resources
TURMALINA GOLD MINE – Faina Target – high potential
Faina target
A orebody
C orebody
Pontal target
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PontalOrebody COrebody B Orebody A
CN Towerfor scale
Faina
SE NW
Faina Surfacedrilling zone
Surface diamond drilling to
test Ground IP & mag Geophysics
TURMALINA GOLD MINE – Faina Target
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TURMALINA GOLD MINE – Faina target - potential
9.7 m @ 10.2 g/t
Resource (approx 500k Oz)
(2016 MTL Resource Statement)
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PILAR MINE – UG Exploration – 2017 DDH program
2017/2018 DDH program
Pilar 6445 meters planned
Focused to check down plunge ore continuity. 2017/2018 DDH program
14 DDH with 6267.95 meters (100% completed)
Focused on exploring down plunge
mineralization continuity.
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PILAR MINE – UG Exploration – 2017 DDH program - results
press release November 28,
2017
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PILAR MINE – UG Exploration - 2017 DDH program - results
Visible gold – DDH PPL 443
press release Feb 26, 2018
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Pilar mine geometry – Pilar mine are
polideformed terrain and is a high
complex re-fold geometry.
The dip axis fold change (45° to 65°)
and maintain South dip direction
Fold limbs are opening in depth.
PILAR MINE – UG Exploration – Mine geometry
Pilar mine geometry –
new model after
underground DDH
Exploration program
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Consistent geochemestry soil anomaly is going
to northeast.
Same trend with Pacheca target – old
Portuguese excavation
New geochemistry soil sampling was
programmed for Q3 2018
Potential target
PILAR GOLD MINE – New Land Acquisition – Pacheca North
Pacheca target – Portuguese old diggns
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The newly acquired Mineral Exploration License increases
the total registered RG Mine concession area by 1,000 ha
Regional geology
Roça Grande GOLD MINE – New Land Acquisition – Morro da Mina
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Fortaleza - CE
2.55 million peopleFortaleza - CE
2.55 million people
PEDRA BRANCA PROJECT (CE) - Location
Regional Geology
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PEDRA BRANCA PROJECT (CE)
Regional geology Local Geology
DDH results
2018 program
- Aerial Topography survey
- Detail geological and strucutural
mapping
- Check trenches assay and
complemntary trench sampling
- RC drills program
TSX:JAG
MRMR JAGUAR UPDATE
WORK COMPLETED
• Updated Pilar Reserves and Resources to 31st December 2017 with added information from growth exploration drilling BA, BF and BFII Orebodies and Infill drilling completedduring the period.
• Interim update of Turmalina Resources based on growth exploration drilling on Orebody A.
• Cash Flow Model for Pilar 2018-2020 updated with new reserves data.
• Press – Release Draft for publication 1st March.
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MRMR JAGUAR 2017 - SUMMARY
• Pilar Reserves – 125,000 ounces in Proven and Probable inventoryrepresenting replacement of two years depletion plus modest additionswhich provide three years of reserves going forward at current mining rates.
• Pilar Resources – net additions (after depletion) of 270,000 ounces @ > 5g/t Au represents higher quality of ounces in resource going forward on BF and BFII.
• Turmalina Resources – net additions (after depletion) of 187,000 ounces @ > 5g/t Au representes high quality of ounces in Orebody A goingforward.
• Jaguar Resources – net additions of 457,000 ounces on back of successfulgrowth exploration.
• Growth drilling on Orebody C ongoing with Resources to be updated in Q3-2018
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Pilar Gold Mine - Mineral Reserves, December 31, 2017
Ore Body
Proven Reserves Probable Reserves Proven and Probable
Reserves
Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body BA 93 2.47 7 102 5.39 18 195 3.99 25
Ore Body BF 263 4.07 34 15 4.12 2 278 4.07 36
Ore Body BFII 285 3.98 37 157 4.23 21 442 4.07 58
Ore Body LFW 6 3.02 1 7 2.51 1 13 2.73 1
Ore Body LPA 19 3.49 2 19 3.49 2
Ore Body Torre 26 2.78 2 26 2.78 2
Total 666 3.78 81 307 4.45 44 974 3.99 125
Pilar - Proven and Probable Reserves 974000t @ 3.99 g/t Au – 125000 ounces Au
MRMR PILAR - P & P Reserves as at 31st December 2017
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Pilar - Measured and Indicated Resources 3.792Mt @ 4.37 g/t Au – 532,000 ounces AuInferred Resources Pilar2.367Mt @ 5.69 g/t Au – 433,000 ounces Au
Pilar Gold Mine - Mineral Resources, December 31, 2017
Ore Body
Measured Resources Indicated ResourcesTotal Measured
& Indicated ResourcesInferred Resources
Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body BA 457 4.53 67 187 5.28 32 644 4.75 98 57 4.50 8
Ore Body BF 635 4.72 96 74 4.73 11 709 4.72 108 1 360 6.71 293
Ore Body BFII 488 4.73 74 259 4.56 38 747 4.67 112 828 4.38 117
Ore Body Torre 231 4.93 37 233 4.41 33 464 4.67 70 62 4.15 8
Ore Body LFW
(200’s)208 3.18 21 34 3.19 3 242 3.18 25 - -
-
Ore Body LHW 74 2.89 7 7 2.85 1 81 2.89 8 - -
-
Ore Body LPA110 4.17 15 - - - 110 4.17 15 - -
-
Ore Body SW - - - 795 3.82 98 795 3.82 98 60 3.46 7
Ore Body LFW
(700’s)- - - - - - 0 0.00 0 - -
-
Total 2 203 4.47 317 1 589 4.22 216 3 792 4.37 532 2 367 5.69 433
MRMR PILAR - M+I+I Resources as at 31st December 2017
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LegendTopography
Development
OreBodies (boundary)
Inferred
Indicated
Resources
Measured
Longitudinal Projection of Resources - 2017 Longitudinal Projection of Resources - 2016
LegendTopography
Development
OreBodies (boundary)
Inferred
Indicated
Resources
Measured
Pilar Gold Mine - Longitudinal Projection of Resources Evolution
Open continuity
MRMR PILAR Changes 2016 - 2017
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Pilar Gold Mine - Change in Mineral Reserves
Gold Ounces (000’s) Gold Grade (g/t)
As at December 31 2017 2016 Change (%) 2017 2016 Change (%)
Proven Reserves 81 2 3950% 3.78 2.47 53%
Probable Reserves 44 140 (69%) 4.45 4.62 (4%)
Total 125 142 (12%) 3.99 4.56 (13%)
Pilar Gold Mine - Change in Mineral Resources
Gold Ounces (000’s) Gold Grade (g/t)
As at December 31 2017 2016 Change (%) 2017 2016 Change (%)
Measured Resources 317 84 277% 4.47 4.14 8%
Indicated Resources 216 399 (46%) 4.22 4.62 (9%)
Total - M&I Resources 532 482 10% 4.37 4.53 (4%)
Inferred Resources 433 212 104% 5.69 5.45 4%
MRMR PILAR Changes 2016 - 2017
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Turmalina Gold Mine - Mineral Resources, December 31, 2017
Ore Body
Measured Resources Indicated ResourcesTotal Measured
& Indicated ResourcesInferred Resources
Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz Tonnes Grade Gold oz
(000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) (000's)
Ore Body A905 7.22 210 99 5.94 19 1 004 7.09 229 659 5 107
Ore Body B350 3.32 37 182 4.33 25 533 3.67 63 24 5 4
Ore Body C190 2.91 18 961 3.57 110 1 152 3.46 128 1 044 6 194
Total1 446 5.70 265 1 243 3.86 155 2 689 4.86 420 1 727 5.49 305
Measured and Indicated Resources Turmalina 2.689Mt @ 4.86 g/t Au – 420,000 ounces AuInferred Resources Pilar1.727Mt @ 5.49 g/t Au – 305,000 ounces Au
MRMR TURMALINA - M+I+I Resources as at 31st December 2017
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Turmalina Gold Mine - Longitudinal Projection of Resources Evolution
Longitudinal Projection of Resources - 2017 Longitudinal Projection of Resources - 2016
LegendTopography
Development
OreBodies (boundary)
Inferred
Indicated
Resources
Measured
LegendTopography
Development
OreBodies (boundary)
Inferred
Indicated
Resources
Measured
Open continuity
Drilling exploration2018
MRMR TURMALINA Changes 2016 - 2017
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Turmalina Gold Mine - Change in Mineral Resources
Gold Ounces (000’s) Gold Grade (g/t)
As at December 31 2017 2016 Change (%) 2017 2016 Change (%)
Measured Resources 265 246 8% 5.7 5.36 6%
Indicated Resources 155 174 (11%) 3.86 4.12 (6%)
Total - M&I Resources 420 420 0% 4.86 4.77 2%
Inferred Resources 305 118 158% 5.49 4.81 14%
MRMR TURMALINA Changes 2016 - 2017
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Cummulative Inception-to-date Production & Resources
• Total production since inception-to-date ~1.2Moz• Remaining resource base ~1.7Moz (~10+ years LOM)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2013 2014 2015 2016 2017
Total Prod. M&I inf