Q3 Gold Production and Revenue Increased 72%

CONCORD, NH - Jaguar Mining Inc. reported a summary of its preliminary Q3 2008 operating performance. All figures are in U.S. dollars unless otherwise indicated.
In Q3 2008, the Company produced a record 34,935 oz of gold at an average cash operating cost of $461/oz compared to 20,334 oz at an average cash operating cost of $346/oz during the same period last year. Q3 2008 quarterly gold production increased 72% above the comparable quarter in 2007. Costs for Q3 2008 were higher with the inclusion of the Paciencia operation, which entered the commissioning phase in the quarter, and the weaker U.S. dollar against the Brazilian real. Excluding the impact of Paciência, approximately 59% of the increase in average cash operating costs can be attributed to the weakness of the U.S. dollar.
Q3 2008 gold sales rose to 29,926 oz at an average price of $862/oz, nearly 38% above the comparable Q3 2007 gold sales of 21,546 oz at an average price of $694/oz. Revenue in Q3 2008 increased 72% to $25.8 million from $15.0 million in Q3 2007.
In Q3 2008, Turmalina produced 19,321 oz of gold at an average cash operating cost of $358/oz compared to 13,502 oz at an average cash operating cost of $280/oz in Q3 2007. Costs were higher due principally to the weaker U.S. dollar versus the Brazilian real.
During Q3 2008, the following was achieved at Turmalina: Ore production totaled 128,354 tonnes at an average grade of .20 g/t. Ore processed through the mill totaled 128,041 tonnes at an average feed grade of 5.42 g/t. The average plant recovery reached the design rate of 90%. Steps initiated by management to limit dilution within the mine, a factor which negatively impacted ore grades during the first half of this year, have brought results back on plan during the second half of Q3 2008. Mine development achieved plan totaling 1,038 meters during Q3 2008. Two preliminary drill holes into the main ore body at Turmalina confirmed the mineralization extends to a depth of at least 900 meters.
In Q3 2008, Paciencia produced 10,640 oz of gold at an average cash operating cost of $523/oz. Commissioning operations at Paciencia were initiated in Q3 2008 with the following results: Ore production totaled 96,020 tonnes at an average grade of 3.32 g/t as expected from the development ore. Ore processed through the mill totaled 130,766 tonnes with an average feed grade of 3.11 g/t. Plant recovery was on plan at 92%. Mine development totaled 866 meters during Q3 2008, slightly below plan. Mine production and feed grades are increasing in-line with the production plan. Consistent with that plan, management believes operations during Q4 2008 will reach the commercial design rate.
In Q3 2008, Sabara produced 4,974 oz of gold at an average cash operating cost of $729/oz compared to 6,832 oz at an average cash operating cost of $473/oz in the same period in 2007. Cash operating costs in the most recent quarter were primarily impacted by lower grades and exchange rates. The feed grade of ore processed in Q3 2008 averaged 1.52 g/t compared to 1.91 g/t in Q3 2007. Stripping operations from the higher grade Serra Paraiso mineralized zone were initiated in late-Q3 2008 and ore is now moving to the Sabara processing plant. Management currently plans to reduce mining operations in Zone A at Sabara in early 2009 in favor of higher grade ore from Serra Paraiso.
Daniel Titcomb, Jaguar's President and CEO stated, "Our operations in Brazil continue to meet our expectations. The commissioning phase at Paciência is coming to an end and we expect to declare that operation 'commercial' in short order. After modifying the mining sequence at Turmalina, while maintaining the sublevel stoping mining method, dilution has diminished significantly and run-of-mine grades are in-line with the mine plan. Our exploration teams continue to discover new mineralized zones near our mines and further out on strike. Our expansion projects are on-track, and, with Paciência's commissioning nearing completion, we have once again demonstrated our team's ability to develop new grassroots operations."
The company's address is 125 North State Street, Concord, NH 03301, (603) 224-4800, fax: (603) 228-8045, email: [email protected].