Operations

Gurupi Project

Overview Operations • Turmalina • Paciência • Caeté Development • Gurupi Project Exploration • Iron Quadrangle • Pedra Branca Project Reserves & Resources

In January 2011, Jaguar completed and filed a NI 43-101 compliant feasibility study on its Gurupi Project located in the state of Maranhão, Brazil.

The feasibility study confirmed an estimated 69,887,500 tonnes of indicated mineral resources at an average grade of 1.12 grams per tonne totaling 2,518,170 ounces of gold and 18,676,700 tonnes of inferred mineral resources at an average grade of 1.03 grams per tonne totaling 616,630 ounces of gold. Probable gold reserves, which are included in the reported mineral resource estimate, are estimated at 63,756,700 tonnes at an average grade of 1.14 grams per tonne totaling 2,327,930 ounces. The average stripping ratio is estimated at 3.94.

A summary of the feasibility study economic results is as follows:

Assumed average gold price:	$1,066 per ounce
Average mill feed grade:	1.10 grams per tonne of gold
ROM total tonnage:	63,756,700 tonnes
Estimated mining rate:	5 million tonnes per year over the life-of-mine
Metallurgical recovery:	85.6%
Total gold production:	1,932,920 ounces
Annual average production:	148,690 gold ounces
Mine life:	13 years
Start production:	2013
Capital cost:	$278 million (pre-operational); $345.7 million (life-of-mine)
Average cash operating cost:	$445 per ounce of gold
Average total cash cost:	$676 per ounce of gold
Assumed exchange rate:	R$1.80 per $1.00 through 2012; R$1.90 per $1.00 2013 through 2030
NPV @ 6%:	$337.0 million
After-tax IRR:	29.1%
Cumulative Cash Flow:	$639.3 million after tax
Payback:	3.1 years

The feasibility study was prepared by TechnoMine Services, LLC under the supervision of its Principal, Ivan C. Machado, M.Sc., P.E., P.Eng. Mr. Machado is a Qualified Person as defined in NI 43-101.

Jaguar is continuing with the work necessary to receive the appropriate environmental licenses for the Gurupi Project. During 2011, the Company intends to conduct a 30,000-meter drill program on targets in close proximity to the main ore bodies identified in the feasibility study. Based on existing drilling results from these nearby targets, Jaguar's management believes the mineral resource base for the Gurupi Project could significantly increase. This additional program is estimated to cost approximately $12 million, including infrastructure, development, drilling, metallurgical testing and technical analysis.