Underground Operations Met 2009 Plan, + 53% Growth

 

CONCORD, NH - Jaguar Mining Inc. reported that in Q4 2009, the Company produced 39,890 ounces of gold at an average cash operating cost of $539 per ounce compared to 37,916 ounces at an average cash operating cost of $396 per ounce during the same period last year, a production increase of 5%. A sharp rise in the Brazilian real vs. the US dollar accounted for over one-half of the increase in average cash operating costs over average cash operating costs reported in Q4 2008, while lower grades at Turmalina accounted for the balance. Q4 2009 production was below expectations and cash operating costs were above management's expectations for the quarter due primarily to lower than anticipated grades at the Turmalina operation.

For the fiscal year ended December 31, 2009, Jaguar produced 155,102 ounces of gold at an average cash operating cost of $468 per ounce compared to 115,348 ounces at an average cash operating cost of $429 per ounce for 2008, a production increase of 34%.

Jaguar's initial 2009 gold production plan, established in late-2008, targeted 2009 gold production of between 165,000 to 175,000 ounces, which included 20,000 ounces for the Sabara operation. However, in 2009 the Sabara operation was idled for eight months and only produced 6,460 ounces compared to 18,199 ounces produced in 2008. After completing a review of the Sabara operation in early-January, management intends to classify its Sabara facility as a Discontinued        Operation in 2010 and record a charge to Q4 2009 earnings of approximately $3.4 million. The Company is considering its alternatives with respect to Sabara, which could include, among other things, seeking a buyer for the operation along with the oxide mineral concessions that can supply that processing facility.

Underground mine development at Jaguar's operations in the Iron Quadrangle during Q4 2009 reached an all-time high of 4.5 km in a quarter, bringing year-to-date development to 14.9 km, 24% above planned, and total in-place development to nearly 45 km. This amount of development will strengthen the Company's ability to convert resources into reserves on-schedule, as well as provide at least 18 months of advanced mine access.

The company’s address is 125 North State Street, Concord, NH 03301, (603) 224-4800, fax: (603) 228-8045, email: [email protected].