Jaguar Mining Stock

Jaguar Mining Inc., a gold mining company, engages in gold production and in the acquisition, exploration, development and operation of gold mineral properties in Brazil.

The company operates three gold mining complexes, and a major land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares (ha).

The company’s operating mining complexes, Turmalina and Caeté, and the Paciência Mine Complex (on care and maintenance) are located in or adjacent to the Iron Quadrangle region of Brazil, a greenstone belt located east of the city of Belo Horizonte in the state of Minas Gerais. Its portfolio also includes the Pedra Branca Project in the state of Ceará.

The Caeté Gold Mine Complex has two underground mines, including Pilar Gold Mine (Pilar) and Roça Grande Gold Mine (RG). Pilar primarily uses sublevel open stopping with backfill. In 2018, RG was placed on care and maintenance.

In 2020, the company announced that it has signed an option agreement (the ‘Iron Quadrangle Agreement’) with IAMGOLD Corporation on a package of 28 exploration tenements covering an area of approximately 27,141.75 Ha in the prolific Iron Quadrangle, located in Minas Gerais.

Material Mineral Properties

Turmalina Mining Complex

The Turmalina Mining Complex is located in the Conceição do Pará municipality in the state of Minas Gerais, approximately 130 km northwest of Belo Horizonte and 6 km south of Pitangui.

The property includes nine contiguous mineral rights concessions granted by the Agência Nacional de Mineração (ANM) that cover an area of 5,034 ha.

The Turmalina Mining Complex consists of an underground mine and a carbon-in-leach (CIL) processing plant (the ‘Turmalina Plant’). Turmalina has a 3,000 tpd CIP process facility with three lines of grinding mills, one of which is operated to cater to production volumes of 1200 tpd. Studies are underway to find opportunities to fill the unused capacity via brownfield exploration and remnant mining.

Caeté Mining Complex

The Caeté Mining Complex, which includes the Pilar and Roça Grande Mines and the Caeté Plant, is located in the state of Minas Gerais, Brazil, 50 to 100 km east of the city of Belo Horizonte. The property is constituted of 20,023 ha of mining and exploration concessions. The property is owned through the company’s wholly owned subsidiary, MSOL.

Pilar: The Pilar Orebody is located at the base of the Nova Lima Group, a stratigraphic horizon with a predominance of meta-mafic and meta-ultramafic volcanic rock packages, but also represented by both clastic and chemical metasedimentary sequences. The meta-volcanic rocks are primarily represented by talc schists, meta-basalts, metadunnites, meta-peridotites and serpentinites.

Roça Grande: The Roça Grande (RG) mine is hosted in the upper unit of the Nova Lima Group. Dominant rock types at RG are metavolcaniclastics (tuffs) represented by quartz-sericite-chlorite schists with variable amounts of carbonaceous material, banded iron formations, metacherts and graphitic schists.

Non-Material Mineral Properties

Gurupi Project

The Gurupi Project is located in the state of Maranhão, Brazil. Mineração Chega Tudo (MCT) Ltda. controls the Gurupi Project through a total of 32 mineral concessions totaling 137,419 ha. The Cipoeiro and Chega Tudo deposits, which were the subject of a January 2011 feasibility study filed by the company, are located in two of these 32 mineral concessions.

Paciência Mining Complex

The Paciência mining complex consists of an underground mine and a CIP processing plant (the ‘Paciência Plant’).

Sabará

During 2011 and 2012, Sabará remained on care-and-maintenance. In 2013, the Sabará operation was shut down and remediation work began to restore the Sabará plant area and the open pit areas with re-vegetation. The company continued to restore the Sabará plant area during 2017 to 2021, and this work would continue until completion, expected in 2022.

Pedra Branca Project

The Pedra Branca Project is located in the State of Ceará in northeastern Brazil and includes 24 exploration licenses, totaling 38,925 ha covering a 38-km section of a regional shear zone. Final exploration reports and a Preliminary Economic Analysis have been delivered to ANM for three of these licenses.

The Pedra Branca Project is 100% owned by the company. Based on the acquisition agreement of the project entered into with Glencore Xstrata plc. (Glencore), Glencore holds rights to a net smelter royalty of one percent on future gold production and rights of first refusal on any Base Metal Dominant Deposit (as defined in the amendment) discovered, which if exercised, would allow Glencore to hold 70% of equity in a newly formed legal entity to hold such rights upon payment of three hundred percent (300%) of the company’s exploration expenditures incurred exclusively on the relevant Base Metal Dominant Area of the property.

As of December 31, 2020, Jiulian Resources Inc. (renamed South Atlantic Gold) has not yet met the earn-in exploration expenditure requirements, which would vest its ownership interest in the Pedra Branca Project and, therefore, the company continues to hold a 100% ownership interest in the project.

Foreign Operations

All of the company’s mineral projects are owned and operated through Mineração Serras do Oeste Ltda. (MSOL), its wholly owned subsidiary. Its wholly owned properties are located in the states of Minas Gerais and Ceará in Brazil. The company is dependent on its foreign operations for the exploration and development of gold properties and for production of gold. Certain of the company’s assets are domiciled in Brazil based solely on their geographic location.

Customers and Suppliers

The company sells its refined gold in the gold spot market and therefore, does not have any fixed customers of its final product. It engages various suppliers in relation to its mining, processing, transportation and sale of refined gold bars. All the company’s suppliers have signed contracts with it.