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Jaguar Mining Continues to Intercept Significant Gold Mineralization at Orebody C; Pilar and Turmalina Principal Orebodies Report Increasing Grades and Thickness

Jaguar Mining Continues to Intercept Significant Gold Mineralization at Orebody C; Pilar and Turmalina Principal Orebodies Report Increasing Grades and Thickness

TSX: JAG

TORONTO, June 18, 2018 /CNW/ - Jaguar Mining Inc ("Jaguar" or the "Company") (TSX: JAG) today announced growth exploration drilling results from 13 underground holes at Turmalina Gold Mine ("Turmalina") targeting depth extensions to Orebody C. The Company also reported results from infill drilling and recent underground access development at Turmalina on Orebodies A and C and Pilar Gold Mine ("Pilar") on Orebodies BF and BFII.Figure 1. Growth Exploration Drilling Results and Grade x Thickness Plot – Orebody C (CNW Group/Jaguar Mining Inc.)

Turmalina Exploration Highlights

  • Turmalina Orebody C growth drilling, targeting down dip extensions, confirms gold mineralization 300m below current operations and open for expansion
  • Significant high grade, wide and thick intercepts reflect down plunge extensions of the central high-grade payshoot at Orebody C currently being accessed for mining. Key intercepts include 7.77 g/t Au over 4.50m (ETW 4.25m), 9.22 g/t Au over 5.85m (ETW 5.11m) and 4.91 g/t Au over 15.10m (ETW (14.65m)
  • Infill drill results on Orebodies A and C confirm wide high-grade intercepts. Orebody A key intercepts include 10.92 g/t Au over 17.29m (ETW 17.22m) and 17.23 g/t Au over 5.42m (ETW 5.35m)
  • Orebody C key intercepts include 12.61 g/t Au x 4.16m (ETW 3.52m) and 3.36 g/t Au over 14.27m (ETW 14.27m)including 6.17 g/t Au over 5.32m (ETW 5.32m)

Pilar Exploration Highlights

  • Infill drilling confirms wide, thicker and higher grade intercepts at BF and BFII Orebodies. Key intercepts include 22.8 g/t Au over 6.3m (ETW 5.5m), 12.2 g/t Au over 13m (ETW 12.7m), 6.5 g/t Au over 29.7m (ETW 28.8m) and 12.9 g/t Au over 8.4m (ETW 8.2m)

Definitions: ETW – estimated true width, g/t Au – grams per tonne gold, m – metres, Grade (g/t Au) x Thickness (m) = GM (gram – meters)

Rodney Lamond, President and CEO, Jaguar Mining commented: "We continue to make excellent progress accessing and defining higher grade, thicker portions of principle orebodies at both Turmalina and Pilar mining operations. The continued success of growth exploration initiatives, with many holes intercepting gold mineralization, particularly on Orebody C at Turmalina, support our view that we have a significant gold system. The addition of Orebody C to our mineral resources inventory, including shallow high-grade mineralization, provides Turmalina additional ore faces and operational flexibility going forward and gives us confidence in our ability to deliver on production expectations. At Pilar, the wide, high-grade mineralization now accessed through development further demonstrates and supports our strong belief that Pilar's increased production profile is achievable and sustainable. We continue to invest in maximizing the geological information that new drilling and development bring through our mine geological-structural mapping initiative and these observations will help drive our short and long-term planning."

Turmalina Key Highlights

Results from a 13 growth exploration drill holes targeting down dip extensions to Orebody C below level 3 confirm continuity of the structure to beyond 8 level some 300m below current operations.

Recent drill results show several very high grade, wide drill intercepts with grade x thickness values > 30 including 7.77 g/t Au over 4.50m (ETW 4.25m), 9.22 g/t Au over 5.85m (ETW 5.11m) and 4.91 g/t Au over 15.10m (ETW (14.65m). These intercepts reflect the down plunge extensions of the central high-grade payshoot currently being-accessed for mining on levels 3 and 4. Four drill intercepts with Grade x Thickness values > 10 GM are also reported.

Orebody A

Results from infill drilling and access development from the main ramp on Levels 11.3 and 11.4 confirmed the high grades and thickness profiles as predicted from the geological-resource models previously reported (Refer press release to February 26, 2018). Results from 11 infill holes are reported of which seven holes have intersections with grade x thickness of > 10 GM including two exceptional intercepts reporting 10.94 g/t Au over 17.29m (ETW 17.22m) and 17.23 g/t Au over 5.42m (ETW 5.35m).

Orebody C

Results from infill drilling and access development on levels 3 and 4 confirmed the high grades and thickness profiles as predicted from the geological-resource models and reported in the previous press-release (Refer press release to February 26, 2018). Results from 22 infill holes are reported of which 14 holes have intersections with a grade x thickness of > 10 GM including four intercepts with grade x thickness > 30 GM. The two best intercepts reported are 12.61 g/t Au x 4.16m (ETW 3.52m) and 3.36 g/t Au over 14.27m (ETW 14.27m) including 6.17 g/t Au over 5.32m (ETW 5.32m).

Importantly, this infill drilling and geological – structural mapping on Orebody C access development has allowed better definition and delineation of the orebody plunge which is now more to the SE (similar to that of Orebody A) and helped define payshoot parameters for the higher grades and thicknesses within the overall mineralized structure hosting this orebody. This information will inform mine design and planning to optimize the extraction of these high-grade areas.

Pilar Key Highlights

Results from infill drilling and underground development on level 10 has exposed wider and materially higher-grade mineralization in principal Orebodies BF and BFII.

Results from six infill holes targeting the principle orebodies on this level are reported. Of the 14 individual mineralized intercepts reported from these holes, four have grade x thickness intervals > 100 GM and a further nine have grade x thickness intervals > 50 GM.

Key results include 22.8 g/t Au over 6.3m (ETW 5.5m), 12.2g/t Au over 13m (ETW 12.7m), 6.5 g/t Au over 29.7m (ETW 28.8m) and 12.9 g/t Au over 8.4m (ETW 8.2m)

Pilar commenced a mine wide, geological-structural mapping programme aimed at detailed mapping of all available underground exposure at a scale of 1:100. Mapping of the BF and BFII Orebodies on level 10.2 has demonstrated the high grades exposed on this level are-related to the fold hinges and limbs of two superimposed (by faulting) anticlines, which define the BF and BFII Orebodies. The plunges of these anticlines have been verified by mapping and structural measurements that will aid in targeting further exploration of these important high-grade structures to depth. (Please refer to Figure 4).

As part of the previously reported growth exploration program at Pilar, drill-hole PPL443 was received reporting strongly mineralized intervals within the targeted down plunge extensions to the principal ore zones below 10 level. Key intercepts include were 2.7 g/t Au over 32.4m (ETW 18.2m) including 6.0 g/t Au over 3.1m (ETW 1.7m) and 8.1 g/t Au over 4.0m (ETW 2.1m) and 3.4 g/t Au over 24.7m (ETW 15.9m) including 13.4 g/t Au over 1.9m (ETW 1.2m) and 7.2 g/t Au over 4.6m (ETW 2.6m).

Jon Hill, Expert Advisor, Geology and Exploration, to the Jaguar Mining Management Committee commented: "We are pleased to see closer spaced drill-results and mapping validate the predicted resources inventory as the mining sequence progresses. It is even better when grade and contained metals estimations are exceeded as the orebodies defined by drilling are physically accessed for extraction. As we complete more detailed closer spaced drilling and development, and as mining progresses, drill results demonstrating increasing grade-thickness and ounce per vertical meter have become the norm at Pilar and Turmalina. The positive results reported today again demonstrate confidence in the predictive geological models in use that will allow longer-term life of mine scenario planning to be completed. Drill programs in 2018 remain focused on converting and upgrading the growing mineral resources inventory and upgrading mineral reserves while systematically exploring a growing portfolio of targets within the Company's strategic tenement portfolio."

Turmalina Gold Mine Drill Results and Intercepts

Table 1. Growth Exploration Drilling Results Orebody C

Turmalina Gold Mine
Growth Exploration Drill Results Orebody C

Hole ID

From

To

Down Hole
Interval (m)

Estimated True
Width (m)

Gold Grade  

(g/t)

GT
(ETW)

FTS1480

172.9

177

4.10

3.62

5.50

19.91

FTS1481

178.2

184.3

6.10

5.61

2.37

13.30

FTS1482

174.3

180.15

5.85

5.11

9.22

47.11

FTS1483

193.05

194.05

1.00

0.80

4.47

3.58

FTS1484

182.15

185.25

3.10

2.37

1.47

3.48

FTS1485

206.45

209.3

2.85

2.49

3.97

9.89

FTS1486

185

200.1

15.10

14.65

4.91

71.93

FTS1487

217.85

219.95

2.10

1.95

6.62

12.91

FTS1488

181.4

188.03

6.63

6.46

1.96

12.66

192.3

199.3

7.00

6.82

5.51

37.58

FTS1550

201.65

202.9

1.25

0.90

1.10

0.99

FTS1551

149.05

150

0.95

0.89

1.01

0.90

FTS1556

206.7

209.4

2.70

2.45

5.11

12.52

FTS1557

187.75

192.25

4.50

4.25

7.77

33.00

FTS1552

No impact

Table 2. Infill Drilling Results Orebody A – Turmalina

Please note assay results reported in the tabulation below were analyzed at Jaguar's Caeté Laboratory.

Turmalina Gold Mine
Infill Drill Results Orebody A

Hole ID

From

To

Down Hole
Interval (m)

Estimated True
Width (m)

Gold Grade  

(g/t)

GT
(ETW)

FTS1580

103.20

120.49

17.29

17.22

10.94

188.39

FTS1581

72.24

77.46

5.22

5.20

2.71

14.09

FTS1582

61.26

63.59

2.33

2.31

4.02

9.29

FTS1583

51.55

55.84

4.29

4.83

5.54

26.76

FTS1584

37.67

39.53

1.86

1.84

2.76

5.08

55.13

60.55

5.42

5.35

17.23

92.18

FTS1585

67.01

68.32

1.31

1.30

2.14

2.78

FTS1586

81.95

85.97

4.02

3.94

8.90

35.07

FTS1593

56.75

60.97

4.22

3.03

3.12

9.45

FTS1594

44.66

48.06

3.40

3.03

2.53

7.67

FTS1595

41.68

43.74

2.06

2.00

5.14

10.28

FTS1596

43.05

47.10

4.05

3.90

7.30

28.47

Table 3. Infill Drilling Results Orebody C

Please note assay results reported in the tabulation below were analyzed at Jaguar's Caeté Laboratory.

Turmalina Gold Mine

Infill Drill Results Orebody C

Hole ID

From

To

Down Hole
Interval (m)

Estimated True
Width (m)

Gold Grade 

 (g/t)

GT
(ETW)

FTS1499

26.27

28.29

2.02

1.71

3.49

5.97

FTS1501

38.17

40.95

2.78

1.17

2.61

3.05

FTS1502

60.22

62.39

2.17

2.07

2.10

4.35

FTS1509

28.77

29.52

0.75

0.55

3.27

1.80

FTS1515

123.52

127.68

4.16

3.52

12.61

44.39

FTS1516

126.15

128.36

2.21

1.93

7.04

13.59

FTS1517

64.67

70.35

5.68

4.22

5.42

22.87

73.48

74.48

1.00

0.74

2.96

2.19

FTS1518

50.13

51.13

1.00

0.80

4.63

3.70

66.56

80.83

14.27

14.27

3.36

48.00

Including

70.11

75.43

5.32

5.32

6.17

32.80

FTS1519

72.08

85.70

13.62

11.55

3.47

40.08

FTS1532

161.02

162.92

1.90

1.74

1.50

2.61

FTS1534

59.70

60.91

1.21

1.08

6.52

7.04

FTS1536

42.41

47.54

5.13

4.20

4.24

17.81

FTS1538

47.91

48.91

1.00

0.79

3.01

2.38

FTS1539

63.87

64.97

1.10

0.93

6.09

5.66

92.24

95.29

3.05

2.58

6.00

15.48

FTS1540

68.15

69.15

1.00

0.85

1.45

1.23

75.55

76.75

1.20

1.02

1.63

1.66

79.19

80.39

1.20

1.02

2.27

2.32

FTS1541

No intersection

FTS1542

53.07

57.20

4.13

3.85

1.73

6.66

FTS1543

55.75

59.10

3.35

3.16

4.61

14.57

FTS1547

62.45

68.35

5.90

3.46

4.66

16.12

92.01

100.79

8.78

6.52

4.04

26.34

FTS1548

75.13

80.02

4.89

4.10

5.20

21.32

FTS1549

79.77

86.57

8.74

7.32

3.31

24.23

FTS1571

110.07

115.94

5.87

4.29

4.05

17.37

Pilar Drill Results and Intercepts

Table 4. Infill Drilling Results Level 10

Pilar Gold Mine

Infill Drill Results Level 10

Hole ID

From

To

Down Hole
Interval (m)

Estimated True
Width (m)

Gold Grade  

(g/t)

GT
(ETW)

PPL484

41.5

65.8

24.3

20.8

3.1

65.4

PPL537

64.9

71.2

6.3

5.5

22.8

124.0

PPL409

44.9

58.6

13.7

13.0

5.2

67.1

PPL498

30.0

43.0

13.0

12.7

12.2

154.3

PPL455

51.0

66.8

15.8

15.0

5.3

79.9

PPL500

32.9

61.7

28.8

19.1

3.6

68.7

PPL479

72.3

81.6

9.3

3.4

7.2

24.8

PPL530

99.2

108.0

8.9

8.6

7.0

60.2

PPL502A

23.3

43.0

19.7

17.3

4.3

73.7

PPL495

26.1

34.4

8.4

8.2

12.9

106.2

PPL472

39.2

68.9

29.7

28.8

6.5

185.8

PPL536A

14.6

26.0

11.4

10.2

8.6

88.1

PPL470A

44.6

55.7

11.1

10.5

5.1

53.2

FSB604

1.1

15.0

13.9

13.5

6.1

82.5

Table 5. Growth Exploration Drilling Results Pilar

Pilar Gold Mine

Growth Exploration Drill Results

Hole ID

From

To

Down Hole

Interval (m)

Estimated True
Width (m)

Gold Grade 

 (g/t)

GT
(ETW)

PPL443

490.6

523.0

32.4

18.2

2.7

48.6

Including

3.1

1.7

6.0

10.4

535.0

540.0

5.0

3.1

2.4

7.4

541.0

556.0

15.0

7.9

3.6

28.7

Including

4.0

2.1

8.1

17.0

558.0

561.0

3.0

2.2

2.8

6.2

569.0

572.0

3.0

1.5

2.3

3.4

582.0

586.0

4.0

2.3

4.2

9.4

590.0

614.7

24.7

15.9

3.4

53.1

Including

1.9

1.2

13.4

16.3

618.0

632.0

14.0

7.7

4.6

35.3

Including

4.6

2.6

7.2

18.4

Grade Control

During late 2017 and early 2018 Jaguar, as part of its ongoing Operational Excellence program completed a thorough review of Grade Control practices and procedures at its mining operations. This review highlighted several areas for improvement which resulted in the design and roll-out of a Grade Control Intervention at Pilar Mine during May. In parallel with the Mine Mapping Program and other associated Operation Excellence initiatives, the Grade Control Interventions has delivered clear improvements at Pilar. This includes material improvements in the reduction of dilution, planned versus produced grade reconciliations, and reduced operational variability in ROM planned and delivered Plant Feed Grades. A Grade Control Intervention has also recently commenced at Turmalina.

Qualified Person

Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, BSc (Hons) (Economic Geology - UCT), Senior Expert Advisor Geology and Exploration to the Jaguar Mining Management Committee, who is also an employee of Jaguar Mining Inc., and is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Quality Control

Jaguar continues to use a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.

HQ, NQ, and BQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration. All diamond drill hole collars are accurately surveyed using a Total Station instrument and down-hole deviations are surveyed using non-magnetic equipment (SPT Stockholm Precision Tools with GyroMaster™ Solid State North Seeker).

Mean grades are calculated using a variable lower grade cut-off (generally 0.5g/t Au). No upper gold grade cut has been applied to the data. However, the requirement for assay top cutting will be assessed during future resource work.

Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is stored in a secure location. The drill core samples are transported in securely sealed bags and sent for physical preparation to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil. The analysis is conducted at ALS Global's respective facilities (fire assay are conducted by ALS Global in Lima, Peru, and multi-elementary analysis are conducted by ALS Global in Vancouver, Canada). ALS has accreditation in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.

The infill drilling results presented on this news release are performed by Jaguar drilling machines and the samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the Roça Grande Mine, Caeté, Minas Gerais.

For a complete description of Jaguar's sample preparation, analytical methods and QA/QC procedures, please refer to the "Technical Report on the Roça Grande and Pilar Operations, Minas Gerais State, Brazil", a copy of which is available on the Company's SEDAR profile at www.sedar.com.

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 south-eastern 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, Cuiabá, and São Bento. Jaguar holds the second largest gold land position in the Iron Quadrangle with just over 25,000 hectares.

About Jaguar Mining Inc.

Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazilwith three gold mining complexes and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares. 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 Caeté Mining Complex (Pilar and Roça Grande Mines, and Caeté Plant). The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. The Roça Grande Mine has been on temporary care and maintenance since April 2018. Additional information is available on the Company's website at www.jaguarmining.com.

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