May 11, 2010
Jaguar Mining reported that during the three months ended March 31, 2010, the Turmalina Mine in Brazil produced 16,987 ounces of gold at an average cash operating cost of $551 per ounce compared to 18,770 ounces at an average cash operating cost of $349 per ounce during the three months ended March 31, 2009. Cash costs were higher in the March 2010 quarter due to unfavourable exchange rates, higher dilution and lower grades resulting in less gold produced. A scheduled 10-day maintenance shut-down also contributed to higher cash costs. Jaguar's Paciência mine complex, composed of three underground mines (Santa Isabel, Palmital and NW1), produced 14,236 ounces of gold at an average cash operating cost of $646 per ounce compared to 14,099 ounces at an average cash operating cost of $490 per ounce during the three months ended March 31, 2009. Cash operating costs were higher for the three months ended March 31, 2010 primarily due to a significantly stronger R$, which caused an increase in cash operating costs of $147 per ounce compared to the same three months in the previous year, and mining costs tied to the ramp-up of operations from the NW1 Mine and costs related to a 10-day scheduled maintenance. These factors offset the higher grades achieved at the Santa Isabel Mine.
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