Unleashing the Gold Potential of Brazil

Transcription

1 Unleashing the Gold Potential of Brazil Building a Mid-Tier Gold Company Q This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. Such statements are only predictions, and the Company's actual financial conditions and results of operations could differ materially from those that may be contemplated by these forward looking statements and the assumptions upon which they are based as a result of those risks and uncertainties. For a discussion of important factors affecting the Company, see the Cautionary Note regarding Forward-Looking Statements and Risk Factors in the Company's Annual Information Form for the year ended December 31, 2005 filed on SEDAR and available at

2 Corporate Profile Gold Producer in Brazil: 2005 Produced 18k oz 75k oz capacity year end Measured & Indicated: 2.6 mm oz Total Resources: 3.3 mm oz 2006 Produce 55k oz 1 135k oz capacity year end 1 Reserve Targets: Short-term 700k oz 1 Q3 1.5 mm oz 1 Total Resource Target: Q3 4.0 mm oz 1 (New Acquisitions CVRD and IAMGold) 2

3 Corporate Data Share Listing: TSX JAG, JAG.WT Shares Outstanding: Basic: 45.2 mm Fully Diluted: 58.4 mm Management/Founders: 22.9% Cdn. $ Recent Share & Warrant Price: $5.70 & $2.70 Market Capitalization: $250 mm In-the-Money Warrants: $34.3 mm Cash & Credit Available: $65 mm 3

4 Jaguar s Action Plan Consolidator of world class district Resource conversion: low cost In production: oxides help finance sulfides Production growth: 200,000 oz/yr in Potential to double resources 1 Strategic relationships: AngloGold, CVRD Financially conservative 4

5 Belo Horizonte Minas Gerais Rio São Paulo Belo Horizonte Excellent infrastructure People/services 5

6 Brazil Comparison Exploration Investment per Country Brazil Canada Australia Archean Shield (10 6 km 2 ) US$/ha Source: Official Statistics Government of Brazil 6

7 Quadrilátero Ferrífero Major mining region: Gold Iron ore, CVRD Massive greenstone belt: 60 mm oz produced AngloGold & Eldorado: > 300,000 oz/yr Regional gold capex: > US$150mm Excellent infrastructure No Garimpeiros/illegal mining 7

8 Quadrilátero Ferrífero (Jaguar s Position 62,500 acres) 8

9 Good Vertical Potential 9

10 District s Evolution of Discoveries Anglo Gold s MINA Grande 16 Million Ounces Surface Area 2,000 m m 600 M Potential at Depth Understood 2,453 m 10

11 Proven Operating Leaders Lúcio Cardoso, Deputy COO Built and ran Crixás Mine Juvenil Felix, COO CEO of Anglo Brazil, 18 years 11

12 Experienced Board New Director Gil Clausen Bill Andy Tony Juvenil Gary Dow Burns Griffiths Felix German +22 years, mining industry Placer Dome Washington Group Augusta Resource Corp. 12

13 Operations & Resources Total resources: 3.3 mm oz Measured & Indicated: 2.6 mm oz Inferred: 712,000 oz Feed grades & production profile 2008 Oxides: g/t, 30% Sulfides: +/- 5-7 g/t, 70% Production capacity, early 2006: 3,000 tonnes/day oxides 400 tonnes/day sulfides 13

14 Operating & Projected Plants/Mines Turmalina Region Under Construction 1,200 tpd CIL Sabará Region - Operating 3,000 tpd Oxides 400 tpd Sulfides BELO São Bento Mine Cuiabá Mine NEW PROJECT- From -CVRD Jaguar Projects 25 KM, 600,000 OZ Sulfide Plant Sulfide Mine Oxide Plant Oxide Mine Paciência Region In Feasibility 1,500 tpd CIL S. Bárbara B Region In Feasibility 1,500 tpd CIL 14

15 Turmalina Key Points Mineral Reserves: 1.9MM 6.0 g/t Au Gold Contained: 370,000 oz Mining Rate: 360,000 tonnes per year Process Recovery: 90% Annual Production: 60,500 oz per year Mine Life: 5.5 years Capital Cost: $19.4 million approx. Total Cash Cost: $176/oz Total Cost: $234/oz Assumptions: Gold US$375/oz & FX R$

16 Turmalina: Plan view Turmalina Sabará Belo S. Barbará Paciência Sulfide Plant Sulfide Mine Oxide Plant 4.5 km Target 1 Target 2 Target 3 Oxide Mine Satinoco Turmalina 16

17 Turmalina Project Ramp Open Pit Turmalina Orebody Turmalina Plant 17

18 Realizing Turmalina s Potential New Mineralized Zone Satinoco Phase I - Feasibility 370k oz Reserve Construction Jan 06 Operate Q4 06 Phase II In Fill Complete 562k oz Resource New Reserves Q2 06 Phase III New Oz. 23k meters diamond drilling Resource Reserve Q2 06 Results 18

19 Turmalina Long Section 19

20 Turmalina Main Zone Cross-Section 20

21 Realizing Turmalina s Potential 10.4g/t 15.75g/t 21

22 Turmalina Drill 22

23 Caeté Oxide Processing Plant 1,500 tonnes per day, 23,000 oz/yr 23

24 Caeté Leach Pads 24

25 New Sabará Plant 23,000 oz/yr Reducing Costs by $100/oz 1 New Plant Zone A 400,000 TPY Processing 184,000 oz reserves 225,000 T Pad Capacity 5.5 years mine life Operating Dec 05 25

26 New Sabará Plant & Zone A Mine 26

27 Sabará Crusher Construction 27

28 Sabará Crusher 28

29 Queiroz CIL Plant - Sulfides CIL Sulfide Ore Circuit 400 TPD Refractory Ore Roasting Circuit Catita Portal Operational Q

30 Pilar Ramp Underway Reserves Q Pilar Mine Santa Bárbara Plant Turmalina Sabará Belo S. Barbará Paciência Sulfide Plant Sulfide Mine Oxide Plant Oxide Mine 30

31 Paciência: Plan view - Exploration 2 km Turmalina Sabará Belo S. Barbará Target 1 12 km Paciência Sulfide Plant Sulfide Mine Oxide Plant Oxide Mine Target 2 Target 3 Target 4 Target 5 31

32 Good Lateral Potential 40 km São Vicente lineament PACIÊNCIA 12-km strike Recent Drill Results Hole # Width (m) g/t F F F F F Santa Isabel Mine 1 mm oz 32

33 Paciência JAG Mining Team 33

34 Underground Development Jaguar now has 5 Jumbos at work 34

35 Realizing Paciência s Potential Exploration Underground Program Level II Development Resources Reserves Q Santa Isabel 1+ mil oz. 5 35

36 Mid-Tier Status on Track 300 Phase I - Oxides Phase II - Sulphides 300k oz Jaguar Mining Listing First Gold Pour 18k oz Sabará Plant Start-up 55k oz 1 Turmalina Start-Up 125k oz 1 Santa Bárbara Start-Up 215k oz 1 Paciência Start-Up Roças Grandes Start-Up

37 Four Projects Going Underground! Catita/Queiroz: Production Q Santa Bárbara Pilar: Production Q Turmalina: Production Q Paciência: Production Q

38 Projected Production/Capacity 1 * Includes Roças Grandes 350 Gold Production and Capacity (000's oz) Capacity Gold Production 135,000 oz 75,000 oz 55,000 oz 200,000 oz 125,000 oz 215,000 oz 320,000 oz 300,000 oz 300,000 oz 0 18,000 oz

39 Valuation Today $20 $40 JAG - $70 $100 39

40 Peer Group Comparisons & Valuation Forecast 2009 Gold Production ('000 oz) Jaguar Desert Sun Eldorado Alamos Viceroy Sino Gold Jaguar Forecast 2009 Cash Costs (US$/oz) Desert Sun Eldorado Alamos Viceroy Sino Gold Adj Market Cap/'09 Production (US$/oz) Adj Market Cap/Resource Ounce (US$/oz) Jaguar Desert Sun Eldorado Alamos Viceroy Sino Gold Jaguar Desert Sun Eldorado Alamos Viceroy Sino Gold Source: Company/Broker Reports 40

41 DSM Valuation Applied to Jaguar Comparison by Richard Gray, Blackmont 1.45 x NAV of US$4.00: $331/oz reserves: Assumed 600,000 oz Expect 700,000 oz, end of Q1 $91/oz total inventory: Assumed 3.2mm oz Expect 4mm oz, end of 2006 C$6.75/share C$6.60 C$

42 Summary of Strengths Low finding costs- $5-$17/oz of M&I 1 Fast, low cost conversion to reserve - $5-$8 1 Rapid production growth Exploration potential at depth & on strike 1 Outstanding infrastructure Experienced and successful management 42

43 Creating Value Becoming Mid-Tier Producer Jaguar Mining Inc. 43

44 Notes and Forward-Looking Statements NOTES 1 The ability of the Company to produce 55,000 ounces of gold in 2006, to have production capacity of 135,000 ounces by the end of 2006, to have a reserve of 700,000 ounces in the short-term and 1.5 million ounces in Q3 2006, to have a resource of 4.0 million ounces in Q3 2006, to produce 200,000 ounces of gold per year in 2008, to double its resources, to reduce costs by $100 per ounce as a result of the new Sabará Plant, to complete the Santa Bárbara/Pilar feasibility study in Q2 2006, to produce 125,000 ounces of gold in 2007, to produce 215,000 ounces of gold in 2008, to produce 300,000 ounces of gold in 2009, to begin production at Turmalina in Q4 2006, to begin production at Santa Bárbara/Pilar in Q3 2007, to begin production at Paciência in Q4 2007, to have production capacity of 200,000 ounces by the end of 2007, to have production capacity of 300,000 ounces by the end of 2008 and 320,000 ounces by the end of 2009, to have low finding costs, to have low conversion costs, and to have exploration potential at depth and on strike is subject to various risks and uncertainties. See below for the Forward-Looking Statements. The Company's ability to meet its targets and to execute on its strategy is subject to the various risks and the assumptions that can be found in the "Forward-Looking Statements" below. FORWARD-LOOKING STATEMENTS This presentation contains Forward-Looking Statements concerning Jaguar s 2006 objectives, the measured and indicated resources, their average grade, the commencement period of production, cash operating costs and completion dates of feasibility studies, gold production and sales targets, capital expenditure costs, future profitability and growth in reserves. Forward-Looking Statements can be identified by the use of words, such as "are expected", "is forecast", approximately or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-Looking Statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, or performance to be materially different from any future results or performance expressed or implied by the Forward-Looking Statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cash and total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health and safety of mine workers, the availability of labour and equipment, the possibility of labour strikes and work stoppages and changes in general economic conditions. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. These Forward-Looking Statements represent our views as of the date of discussion. The Company anticipates that subsequent events and developments may cause the Company's views to change. The Company does not undertake to update any Forward-Looking Statements, either written or oral, that may be made from time to time by or on behalf of the Company subsequent to the date of this discussion. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculation of mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company s Forward- Looking Statements, see the CAUTIONARY NOTE regarding Forward-Looking Statements and "RISK FACTORS" in the Company's Annual Information Form for the year ended December 31, 2005 filed on System for Electronic Document Analysis and Retrieval ( SEDAR ) and available at Further information about the Company is available on SEDAR and on its corporate website 44