Jaguar Mining Announces Closing of Gurupi Gold Property Acquisition

 

CONCORD, NH - Jaguar Mining Inc. reported that it has closed its previously announced acquisition of MCT Mineracao Ltda. ("MCT") from Companhia Nacional de Mineraco ("CNM"), an indirect, wholly-owned subsidiary of Kinross Gold Corporation ("Kinross"). Jaguar now has 100% equity ownership of MCT, which holds all of the mineral licenses for the Gurupi Project, a gold project located in the state of Maranhao, Brazil. In addition, Kinross has granted a right of first refusal to Jaguar on an adjacent exploration property.

No commercial production of gold has taken place on the Gurupi property. AMEC plc completed a feasibility study in 2005 for Kinross, which yielded measured and indicated gold resources of 35,884,000 tonnes at an average grade of 1.35 grams per tonne totaling 1,559,800 ounces. Jaguar is preparing an updated resource model and feasibility study on the property utilizing alternative stripping ratios and pit designs, as well as other factors including gold price assumptions. The Company intends to file an updated technical statement of resources on the Gurupi Project shortly. The Company expects to release the details of the feasibility study in Q1 2010, which will also include a development plan for the Gurupi Project.

Daniel R. Titcomb, Jaguar's President and CEO stated, "We are very pleased to have completed the acquisition of the Gurupi Project and look forward to sharing with our shareholders the development plan for this new opportunity to further expand our gold production beyond our current plan. This investment further emphasizes Jaguar's confidence in Brazil as a great country in which to have mining operations, especially in today's environment where investors seek to minimize political risk. The Gurupi Project is an important addition to extend our asset base in Brazil."

Jaguar is one of the fastest growing gold producers in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais and has plans to develop a new property in northern Brazil in the state of Maranhao. Jaguar is actively exploring and developing additional mineral resources at its 93,000-acre land base in Minas Gerais and on an additional 182,000 acres in the state of Ceara in the Northeast of Brazil through a joint venture.

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