JAGGF - Jaguar Mining Reports Early Exploration Success from Iron Quadrangle Drilling

New Discoveries at Corrego Brandão & Zona Basal Near Existing Plant Infrastructure

TORONTO, ON / ACCESSWIRE / February 16, 2021 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) is pleased to announce two new discoveries at the Corrego Brandão ("CB") and Zona Basal ("ZB") targets. The Company's expanded exploration program in the Iron Quadrangle ("IQ"), announced September 2020, is reporting early success at the two targets with important oxide intersections and with clear potential to host sulphide mineralization extending to depth. Although both discoveries are greenfields in nature, they have the potential for near term, open pit mineable resource additions. Corrego Brandão is located near the Caeté Mill complex ("CCA") while Zona Basal is located near the Turmalina Mine and Mill ("MTL").

Drilling programs at both sites commenced in Q4-2020 (see news release September 9, 2020) and are ongoing with three (3) drill rigs deployed. The Company is targeting a consolidated maiden resource from CB and ZB during 2021. While a number of assay results are still pending, impacted by Covid-19 related issues at ALS, processing times are now expected to return to normal reporting timeframes.

In this release Jaguar reports results from 17 (2,000m) of 36 holes (4,916.76m) drilled over the two sites in ongoing reconnaissance Phase I programs.

Figure 1 - Location of Exploration Projects Zona Basal and Corrego Brandão relative to MTL and CCA Operations and Processing Facilities

Highlights of the drill program reported to date include:

Oxide Intersections

• Corrego Brandão: near surface oxide intercept of 7.91 g/t Au over a drilled width of 20.10m.
• Zona Basal: near surface oxide intercepts of 2.38 g/t Au over a drilled width 20.45m and 2.00 g/t over a drilled width of 15.40m.

Sulphide Intersections

• Corrego Brandão: sulphide intercept of 3.11 g/t Au over a drilled width of 6.45m.

Vern Baker, CEO, Jaguar Mining commented: "The early success of these two exploration programs is extremely encouraging. Both of these properties are showing potential for near surface, low-cost ounces, and as we develop the understanding of the underlying control structures, they also provide the opportunity to find mineralized deposits that can provide long-term sustainable production. We are confident that the organic growth of our resources will allow us to sustain and grow production within our existing infrastructures. Thanks are due to the Jaguar exploration team which has shown the ability to move multiple programs ahead while maintaining excellent geologic discipline."

Jon Hill, Vice President, Geology and Exploration, Jaguar Mining commented: "At Jaguar we are highly encouraged by these early drilling results from our priority, near mine and plant infrastructure projects. The team deserves special credit for the immense progress made in a very short timeframe. While very early in the discovery cycle, the near-term value creation potential of the two projects presented today, is an important part of Jaguar's future production profile and mine life. The team will continue to focus on progressing these projects with the requisite care and discipline required while advancing the next targets in Jaguar´s quality Iron Quadrangle portfolio."

Phase I (Reconnaissance) Drill Campaign

Table 1 - Drilling Statistics to date by Target

Corrego Brandão (CB) Target

CB target results are reported from 5 holes (548m) of a drilling program which commenced in late November 2020 and where to date, 14 holes (1664.36m) have been completed.

Phase 1 was designed to follow up highly encouraging auger drilling results (refer to News Releases June 4, 2019, September 9, 2020) targeting an extensive (>5km strike length) gold, arsenic, and antimony in soil anomaly. The first diamond drill hole reported oxide mineralization grading 7.91 g/t Au over a width of 21m which confirmed and extended the drilled interval defined by the previous high-grade auger hole interval.

The highest grades intercepted in the initial diamond (and auger) drilling at CB are related to a highly magnetic - iron rich mafic lithological unit, initially described as a chlorite rich banded iron formation (BIF) contained within a folded mafic to ultramafic greenstone sequence. This host BIF unit is interpreted to have a true width of some 6 to 10m and while it appears to be mineralized across this width, very high grades are associated with both the upper and lower contacts of the host unit.

In addition to the first hole FCBR001, a total of 13 step out holes have been drilled to date, aimed primarily at the definition of the extent, geometry, and geological controls of this mineralization. Of these, 8 step out holes focused on defining the shallow - oxide potential of the target and results from the first two such step out holes FCBR002 and FCBR003 are reported below.

To the west along strike, 5 wide spaced holes (991m) have been drilled to test extensions in this direction and target the magnetic mineralized BIF horizon and associated strong surface gold, arsenic and antimony in soil anomalism into the unweathered hypogene (fresh rock) zone. The targeted magnetic BIF horizon with associated gold mineralization was intersected at depths of approximately 100m below surface in these holes and results from the first two holes, FBCS001 and FBCS002 are also reported below.

Table 2 - Gold Assay Results for Corrego Brandão drilling

SOURCE: Jaguar Mining Inc.