Jaguar adds to resources in Brazil

Jaguar Mining (JAG-T) continues to firm up its Turmalina project in Brazil as the target date for production closes in.

The Concord, New Hampshire-based company with all of its assets in Brazil, plans to have Turmalina in produciton by the fourth quarter of this year.

On June 8 the company announced an increase in its measured and indicated gold resources to 732,848 oz. contained in 3,326,363 tonnes of ore grading 6.85 grams per tonne. That is an increase from the previous resource estimate of 562,000 oz. contained in 2,495,000 tonnes grading 7.0 grams per tonne.

Jaguar says the drill program extended the Main and the Northeast zones of the deposit. While the deepest hole sunk was 525 metres, the company says the two zones remain open at depth.

In addition, Jaguar has discovered a parallel structure — dubbed Satinoco — just 200 metres from the Main zone. This zone has been drilled and mineralization has been confirmed according to Jaguar. It is projected to add further to the resource base.

The company also noted in the release that 92% of the original measured and indicated resources were converted into reserves.

Currently, Turmalina’s mineral reserves are 370,000 oz. of gold contained in 1.9 million tonnes of ore grading 6 grams gold per tonne.

Turmalina will be an underground mine and its inferred resource stands at roughly 683,000 tonnes grading 6.99 grams gold per tonne for roughly 154,000 grams of gold.

Jaguar produces gold in the Iron Quadrangle region of Brazil and is targeting a production profile of over 200,000 oz. per year by 2008.

The company continues to acquire gold resources from senior mining companies and controls 72,000 acres of gold concessions.

At midday in Toronto, the company’s shares were up 7% or 31 to $4.46 on just 8,300 shares.