Jaguar Mining drills 15.35 m of 0.44 g/t Au at CPA

Executive Summary

• Jaguar Mining Inc. provided an update on its exploration program at the Chame gold target, part of the CPA project in Minas Gerais, Brazil, releasing initial assay results from the first two drill holes.
• The company has completed five diamond drill holes (FCM001–FCM005) totaling 1,531.85 metres; assay results for holes FCM003–FCM005 are pending.
• Initial results confirmed widespread but low-grade gold mineralization, with geological interpretation suggesting the holes intersected marginal portions of the system due to structural controls and potential coarse gold characteristics.

Key Details

• Drill Program Status: Five diamond drill holes completed (FCM001 through FCM005) for a total of 1,531.85 metres.
  • Holes FCM003 to FCM005 account for 939.55 metres of the total and are awaiting assay results.
• Initial Assay Results:
  • Hole FCM001: Intersected 15.35 metres grading 0.44 g/t Au.
  • Hole FCM002: Returned 4.09 metres grading 0.33 g/t Au.
• Geological Interpretation:
  • Results confirmed widespread gold mineralization but did not reproduce the higher-grade values previously seen in surface trench TR02.
  • The low-grade envelope appears controlled by a shadow downplunge lineation.
  • Holes FCM001 and FCM002 likely intersected marginal portions of the mineralized system, characterized by weak sulphides and strong carbonation.
  • Visible gold was observed in core from FCM001 but did not translate to high analytical results, suggesting erratic or coarse gold; this may require specialized sample preparation (e.g., screen fire assay) or increased sample mass.
• Visual Logging Insights:
  • Hole FCM003: Exhibited intense sericitization and sulphide alteration.
  • Hole FCM004: Showed alteration styles more proximally associated with potentially higher-grade mineralization.
• Historical Data & Verification:
  • Historical drilling by Morro Velho (1988) indicated significant gold mineralization but lacks NI 43-101 compliance due to unavailable original cores.
  • Jaguar plans to execute twin holes to verify historical results and support future resource-style work.
• Exploration Strategy & Future Work:
  • Gap Investigation: A cross-section reveals an approximately 840-metre-long gap between the Chame target and the Santa Isabel mine along a prospective mineralized corridor; this gap is planned for investigation.
  • Planned Drilling: An additional 1,000 metres of drilling is planned to evaluate the Chame target gold trend structure.
  • Stepout Drilling: Potential 25-to-50-metre stepout holes are being considered based on interpretations of FCM003 and FCM004.
  • Targeting: Refinement of the geological model and targeting strategy is ongoing.
• Project Context:
  • Chame is located approximately 3 km southeast of the CPA complex.
  • The CPA complex hosts the Santa Isabel mine, which is slated to reopen in 2026, and a processing plant currently on care and maintenance.
  • Jaguar holds the second-largest gold land position in the Iron Quadrangle with over 46,000 hectares.

Notable Quotes

• "The geology team has worked very hard to advance the understanding of the Chame gold target in a relatively short time and, for that, we are proud of their accomplishments at this priority target," commented Armando Massucatto, Jaguar's general manager of exploration.
• "Despite the operational challenges of placing drills in this uneven terrain, the drilling has allowed us to successfully advance the geological interpretation, improving our understanding of the structural controls on mineralization, leading to an interpretation tests the potential continuity between the Chame and Santa Isabel mineralized structures."