Jaguar Mining Inc.

Jaguar Mining Inc.

March 01, 2005 16:34 ET

Jaguar Mining: Meeting Mid-Cap Production Objectives, While Realizing Exploration Potential


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: JAGUAR MINING INC.

TSX SYMBOL: JAG

MARCH 1, 2005 - 16:34 ET

Jaguar Mining: Meeting Mid-Cap Production Objectives,
While Realizing Exploration Potential

CONCORD, NEW HAMPSHIRE--(CCNMatthews - March 1, 2005) - Jaguar Mining
Inc. ("Jaguar") (TSX:JAG) Daniel Titcomb, Chief Executive Officer of
Jaguar Mining Inc., is pleased to discuss Jaguar's strategy and
objectives for the remainder of 2005.

The company expects significant progress in 2005 towards our near term
goal of being a 200,000 ounce mid-cap gold producer by 2008. We remain
tightly focused on the Iron Quadrangle greenstone belt in Minas Gerais,
Brazil, an area rich in gold and exploration potential, while our
company's finances are strong, having recently completed a C$37 million
equity issue.

Jaguar's executive and operational teams are having a busy year with
multiple priorities to: a) produce 50-70,000 ounces in 2005, b) complete
extensive multi-project feasibility programs, and c) drill to
demonstrate the exploration potential of Jaguar's numerous gold
properties.

Specifically, Jaguar's primary objectives for 2005 are to:

1. Produce 50,000 to 70,000 ounces of gold, recognizing that some
variability exists because of the permitting process. In the currently
producing Sabara Region, we expect to:

a. Initiate additional oxide ore production to supply the new 1,500
tonne per day Sabara processing plant, which should be operating by
mid-year.

b. Begin sulfide ore production to supply non-refractory ore to the
Queiroz plant of AngloGold Ashanti.

c. Expand the current oxide processing operations at the existing Caete
plant using additional oxide reserves.

d. Begin development of the Pilar Mine, including production of oxide
development ore.

e. Lay the groundwork for a further significant increase in production
in 2006.

2. Complete independent bankable feasibility studies on part of the
existing 2.4 million ounces of measured and indicated resources and
800,000 ounces of inferred resources in the Sabara, Turmalina, Paciencia
and Santa Barbara Regions.. Assuming positive feasibility work, Jaguar
currently contemplates building a 1,200 tpd Carbon-in-Leach ('CIL')
plant at Turmalina, a 1,500 tpd to 4,000 tpd CIL plant at Paciencia and
a 1,200 tpd to 1,500 tpd CIL plant at the Pilar Mine in the Santa
Barbara Region.

Jaguar believes that it can reach a production rate exceeding 200,000
oz/year by late 2007 or 2008, using its current resources.
Implementation work on the projects will start upon the successful
conclusion of this year's feasibility program.

3. Continue the current Iron Quadrangle exploration program. Given that
the Iron Quadrangle is characterized by strong vertical continuity of
economic gold mineralization to more than 2,000m depth, we are
optimistic that our good geological location and large land holding will
lead to exploration success. Most of Jaguar's current resources are open
at depth and less than 300m below surface. This raises the prospect of
identifying additional resources, both laterally and vertically, on each
existing property. Jaguar currently has seven diamond drills working and
will release drill results at regular intervals during the year.

4. Complete its program of integrating the experienced operating and
technical staff of its Brazilian associate into its expanding
operations. Jaguar had about 60 employees in Brazil in late 2003 and
expects to employ about 330 experienced mining industry staff by
mid-2005. The company expects that the extensive project management
experience of its senior management in Brazil will begin to show results
in 2005.

5. Implement accounting and management control procedures consistent
with meeting the requirements of Sarbanes-Oxley, and any similar
legislation in Canada, and adopt a strong Corporate Governance mandate.

6. Complete the current review for a possible listing of Jaguar Mining
Inc. on one of the primary U.S. stock exchanges.

7. The company has budgeted to spend approximately US$20 million in 2005
on exploration and capital programs.

We are proud of what Jaguar has achieved in two years and we hope that
successfully reaching our 2005 goals will reward our shareholders this
year.

Jaguar is the Area Consolidator for Gold Properties

Jaguar is a gold producer in the Iron Quadrangle region of Brazil. It is
using its knowledge, experience and excellent local relationships to
acquire and develop good quality, non-core assets from senior mining
companies. Jaguar has 3.2 million ounces of total resources, of which
2.4 million ounces are measured and indicated. It owns 63,500 acres of
gold properties, which is the second largest gold property portfolio in
the region, and continues to seek acquisitions to strengthen its
position. Jaguar has 30,983,389 common shares outstanding (45,226,229
fully diluted).

The statements that are not historical facts are forward-looking
statements and involve known and unknown risks and uncertainties, which
could cause actual results to vary considerably from these statements.
Readers are cautioned not to put undue reliance on forward-looking
statements. Jaguar's securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered, sold or
resold in the United States or to a U.S. person absent registration or
an applicable exemption from the registration requirements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jaguar Mining Inc.
    Daniel Titcomb
    President
    (603) 224-4800
    or
    Jaguar Mining Inc.
    Robert Jackson
    EVP, Corporate Development
    (416) 725-4343