BRAZIL – TSX-listed JAGUAR MINING has completed a feasibility study at its Turmalina gold project 140 km northwest of Belo Horizonte that indicates a capital cost of US$19.2 million. However, it has halved its gold production forecast for 2005 to 25,000 ounces due to plant delays elsewhere.
The Turmalina project currently has mineral reserves of 1.9 million tonnes at 6 g/t Au, or 370,000 oz, with a mine life of 5.5 years. Jaguar is eyeing production of 60,500 oz per annum, at cash costs of US$176/oz, beginning in late 2006. Total production cost including capex, has been estimated at US$234/oz.
Jaguar (www.JaguarMining.com) is also conducting an infill drill program to upgrade around 200,000 oz of additional measured and indicated resources, which could potentially extend the mine life. The Turmalina property is the site of a former mine with a 200-m-deep access ramp.
Meanwhile, Jaguar’s gold output for the quarter ending in June totalled 6,839 oz at cash costs of US$366/oz, taking total production for the first half of the year ahead of original forecasts of 10,000 oz to 12,157 oz. However, delays at Jaguar’s Sabara plant and AngloGold’s Queiroz plant have resulted in the company halving its 2005 production forecast to 25,000 oz. Jaguar said the plant delays should not change production forecasts of 75,000 oz for 2006.