Toronto 022 - Jaguar Mining Inc. ('Jaguar' or the 'Company') (TSX: JAG, OTCQX: JAGGF) today announced production results for the three months ('Q4 2021') and twelve months ended December 31, 2021.
The Company also announced its annual production guidance for financial year (FY) 2022 that is focused on sustainable quality-ounce production and maximizing free cash flow generation. Balance sheet strength and free cash flow maximization has enabled the Company to invest $18 million in exploration and growth projects and pay $13.4 million in dividends. This focus is enabling Jaguar in 2022 to significantly increase capital allocation towards exploration and growth projects that are expected to bring new gold deposits into production. The Company will provide more details in the near term.
FY 2021 and Q4 2021 Production Results
Q4 2021 consolidated gold production increased 2% to 22,903 ounces, compared to Q4 2020 production of 22,533 ounces. Annual consolidated gold production for 2021 decreased 8% with 83,878 ounces compared to 2020 production of 91,118 ounces.
Q4 2021 consolidated tonnage processed was 213,000 tonnes at 3.81 g/t; an increase of 9% in grade and a decrease of 7% in tonnes from the fourth quarter of 2020 with 228,000 tonnes at 3.50 g/t. Annual consolidated tonnage for 2021 processed was 856,000 tonnes at 3.47 grams per tonne (g/t), an increase of 6% in tonnes and a decrease of 13% in grade from 2020's 804,000 tonnes processed at 3.98 g/t.
Q4 2021 primary development metres of 1,426 and secondary development metres of 1,189; totalling 2,615 metres which is a 3% increase on Q4 2020 development of 2,538 metres. Annual 2021 development of 4,722 primary and 4,835 secondary metres for a total of 9,557 metres, which is a decrease of 2% on FY 2020 total metres developed of 9,725. These development rates provide sustainable progress on the ramp, ore development and exploration drives.
Q4 2021 Diamond Drill metres were at 27,136 a 26% increase from Q4 2020 drilling of 21,501 metres. Diamond Drill metres for FY 2021 increased 17% to 80,043 metres from 68,397 metres in FY 2020.
Treasury position as of December 31, 2021, with cash of $40 million compared to cash of $39 million on December 31, 2020 and $38 million on September 30, 2021, demonstrating strong generation of free cash flow. During Q4 2021 the Company also, Invested total capital expenditures of $10 million (sustaining capital $6.5 million and growth capital $3.5 million), compared to $11 million total capital expenditures in the same period in 2020; During the quarter, the Company paid a dividend of $2.3 million.
Vern Baker, President and CEO of Jaguar Mining stated: 'As Jaguar has come out of the pandemic and the associated issues created by COVID-19, it has become clear that the sustainable production profile for Jaguar in the nearer term is going to average approximately 22,500 ounces per quarter. Q3 and Q4 performance has shown that we can produce, explore, pay dividends, increase our bank balance, and invest in the growth of the company when we maintain production at these levels. Production in Q4 2021 returned to the levels achieved in the second half of 2020 at both mines.
Pilar production is stable at 12.5k oz per quarter. Exploration and definition work at Pilar indicate that economic ore extends well below level 18 (current mining at level 13. Mining within the Southwest zone is allowing the mine to develop economic mining areas at higher levels in the mine (Level 9 and above).
Turmalina demonstrated production of 10k oz per quarter in Q4. The C-Orebody at Turmalina provided a larger proportion of our ounce production than in prior quarters. The A-orebody has shown reduced capacity to produce at depth and production efforts are moving higher in the mine where reduced haulage distances and better access times will afford the opportunity to reduce costs. Development in the C-Northwest corridor to open up additional mining options at shallow depths should also benefit the mine's cost structure. Drilling the A-Orebody at depth is continuing in order to identify options for increasing economic production from that area.
'It is very clear that the Jaguar team can operate both mines sustainably and grow the Company with an average production rate of 22,500 ounces per quarter. Jaguar's operating focus is on producing quality ounces that maximize free cash flow per ounce. The team believes there are several opportunities to further reduce all-in-sustaining costs and maximize margins at this sustainable rate. The team also sees the tremendous opportunities that our exploration efforts will bring to the company in the future.'
Guidance for 2022 is 86,000 - 94,000 ounces produced at an AISC range of $1150 - $1250 per ounce (US$1:BRL5.50).
The Iron Quadrangle
The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiaba, and Sao Bento. Jaguar holds the third largest gold land position in the Iron Quadrangle with over 50,000 hectares.
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. 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 Caete Mining Complex (Pilar and Roca Grande Mines, and Caete Plant). The Company also owns the Paciencia Gold Mine Complex, which has been on care and maintenance since 2012. The Roca Grande Mine has been on temporary care and maintenance since April 2019.
Contact:
Vernon Baker
Tel: 16-847-1854
Email: vernon.baker@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 and 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.
JAGUAR MINING INC. 
