May 11, 2010 (Canada NewsWire Group) --
Total Reserves Increased 115% to 4.3 Million Ounces of Gold
JAG - TSX/NYSEJaguar Mining Inc. ("Jaguar" or "the Company") (JAG: TSX/NYSE) provided a summary today of the pre-feasibility study conducted by AMEC Americas Limited ("AMEC") for the Company's Gurupi Project ("the Project"), a gold asset located in the state of Maranhão,
In 2005, AMEC completed an internal feasibility study for Kinross, which reported measured and indicated mineral resources of 35,884,000 tonnes at an average grade of 1.35 grams per tonne of gold totaling 1,559,800 ounces at gold price assumptions of
Resources and Reserves
Based on the technical report prepared by Pincock Allen & Holt ("PAH") and filed on SEDAR in early
The technical report recently completed by AMEC in
<< Project Summary*: ------------------- Mill Feed Grade: 1.10 g/t Au Mining Rate: 5.0 million tonnes per year average life-of-mine Process Recovery: 89.7% Annual Average Production: 154,000 ounces of gold per year Mine Life: 13 years Start Production: 2013 Capital Cost: Pre-operational: $224.6 million Life-of-mine: $289.4 million Average Cash Cost: $519 per ounce of gold Assumed Exchange Rate: R$1.85 equals $1.00 Pre-tax IRR Gold at US$950/oz: 25.0% Cumulative Cash Flow: $497.4 million after tax Payback: 3.7 years >>
*AMEC's pre-feasibility study "Base Case" assumes
The Company is proceeding with the permitting and licensing of the Project based on the technical report as prepared by AMEC.
Jaguar's team has developed a preliminary internal study, which has been reviewed by Ivan C. Machado, M.Sc., P.E., P.Eng., Principal of
The study is underway and addresses the following:
<< a. The possible inclusion of High Pressure Grinding Rolls ("HPGR") replacing SAG milling and Intensive Gravity technology into the overall process design, which the Company continues to evaluate and; b. Developing the Project in two phases: initially producing 3.6 million tonnes per year of ROM in Phase 1 for 3.5 years and increasing the mine output to the average 5.0 million tonnes per year. Phase 2, which is the life-of-mine average assumed in the pre-feasibility study. >>
The two-phase approach in the development of the Project addressed in the internal study is estimated to reduce the initial pre-operational capital for the Project to
Qualified Persons ("QP")
The mineral resource estimates disclosed herein in connection with the Project were reviewed by Jeremy L. Clark and Barton G. Stone, C.P.G. of PAH.
Q1 2010 Earnings Release and Conference Call Details
Jaguar will release its Q1 2010 Earnings after the market close today and will hold a conference call tomorrow,
<< From North America: 800-218-5691 International: 213-416-2192 Replay: From North America: 800-675-9924 International: 213-416-2185 Replay ID: 51210 Webcast: www.jaguarmining.com >>
About Jaguar Mining
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 completing an internal study by the end of 2010, adding a fourth major gold operation that will increase the Company's production above 650,000 ounces by 2015 and developing alternatives to raising equity capital for the Project. These forward-looking statements can be identified by the use of the words "intends", "plans", "expects", "expected" and "will". 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.
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