Golden Goose Resources Corp. press release

Jaguar Mining Increases Reserves 81%; Large Growing Base of Higher Grade Reserves, Near Surface at Turmalina, To Drive Gold Production Growth and Extend Mine Life

2019-03-01

CSE - Canadian National Stock Exchange · Gold · Lithium · Silver · Copper · Canada

Canada NewsWire

TORONTO, March 1, 2019

TSX: JAG

TORONTO, March 1, 2019/CNW/ -Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased to report Mineral Resources and Mineral Reserves estimates as at December 31, 2018for its Pilar Gold Mine ("Pilar") and Turmalina Gold Mine ("Turmalina"), each prepared in accordance with CIM definitions (2014) as required by National Instrument 43-101 ("NI 43-101"). Mineral Resources and Mineral Reserves updates are supported by NI 43-101 Technical reports that twill be filed on SEDAR within 45 days.

Year End 2018 Consolidated Jaguar Mineral Reserves Highlights

Consolidated Pilar and Turmalina Mines Proven and Probable (2P) Reserves increased 81% year-over-year (net of 2018 depletion) to 439,000 oz's of gold at a weighted average grade of 4.39 g/t Au (Table 1)

Turmalina Proven and Probable tons increased by 74% and grade increased by 12% to 1408 tons at 5.05 g/t containing 228,000 oz´s of gold

Pilar Proven and Probable Reserve tons increased by 83% and grade decreased by 8% to 1784 tons at 3.68 g/t containing 211,000 oz´s of gold

Consolidated Proven Reserves increased 123% to 245,000 oz´s of gold at a weighted average grade of 4.01 g/t Au

Consolidated Probable Reserves increased 47% to 194,000 oz´s of gold at a weighted average grade of 5.00 g/t Au

At both Pilar and Turmalina now have 4 years of Proven and Probable Reserves at current mining rates and over 3 years at target production rates

Ben Guenther, Interim CEO of Jaguar Mining stated: "We achieved solid growth in our 2018 year-end Proven and Probable gold ounces that increased by 81% to a large base of 439,000 ounces compared to 2017, in addition to depletion. We are especially pleased that results have delivered a meaningful increase in both Proven and Probable tons and grade at Turmalina. Turmalina Orebody A and Orebody C both have significant life at favorable grades of 5.47 and 4.73 g/t respectively. Both Turmalina and Pilar have over 4 years of Proven and Probable Reserves at current mining rates and over 3 years at our target production rates. The 2018 focus was on Resource-Reserve Conversion via infill drilling at both operations after significantly increasing our Resource Inventory in 2016-2017 through the growth exploration program."

"Looking forward, the increase in Mineral Reserves greatly improves our confidence in the production capability to support a return to a growing gold production profile and the potential to extend the mine life at Turmalina and Pilar."

Table 1. Consolidated Jaguar Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:

| Jaguar (Pilar and Turmalina Gold Mines) - Change in Mineral Reserves 2017-2018 | | | | | | | | Gold Ounces (000's) | Gold Grade (g/t) | | | | | | | As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) | | Proven Reserves | 245 | 110 | 123% | 4.01 | 4.18 | -4% | | Probable Reserves | 194 | 132 | 47% | 5.00 | 4.26 | 17% | | Total 2P | 439 | 242 | 81% | 4.39 | 4.22 | 4% |

Year-End 2018 Pilar Gold Mine Mineral Resources and Mineral Reserves Highlights (Refer to Tables 2 – 5 below)

Total Pilar Measured Resources increased 37% to 435,000 oz's of gold, net of depletion, grading 4.40 g/t Au

Total Indicated Resources increased 7% to 231,000 oz's of gold, net of depletion, grading 3.87 g/t Au

Total Measured and Indicated ("M&I") Resources increased 25% to 666,000 oz's of gold, net of depletion grading 4.20 g/t Au

Prioritizing resource – reserve conversion in 2018, Inferred Resources decreased 63% to 161,000 oz's of gold grading 3.61 g/t Au

Total Proven and Probable ("2P") Mineral Reserves of 211,000 oz's of gold, up 69%, grading 3.68 g/t Au

Significant increase in 2P reserves reflect replacement of 2018 Mineral Reserve depletion through production and addition of new Mineral Reserves via infill drilling and development and confirm more than years of future production at current production levels

38,000 oz's of the above 2P Mineral Reserves reflect reserves contained in remnant material located in upper portions of the mine accessible from the existing ramp and level development

Year- End 2018 Turmalina Gold Mine Mineral Reserves and Resources Highlights (Refer Tables 6 – 9)

Total Measured Resources increased 15% to 305,000 oz´s of gold, net of depletion, grading 5.37 g/t Au

Total Indicated Resources increased 75% to 272,000 oz´s of gold, net of depletion, grading 5.70 g/t Au

Total Measured and Indicated ("M&I") Resources increased 37% to 577,000 oz´s of gold, grading 5.52 g/t Au

Prioritizing resource – reserve conversion in 2018, Inferred Resources decreased 51% to 148,000 oz's of gold with a 21% decrease in grade to 4.31g/t Au

Total Proven Mineral Reserves increased 252% to 102,000 oz´s of gold, grading 4.33 g/t Au

Total Probable Mineral Reserves have increased 43% to 126,000 oz's of gold, grading 5.82 g/t Au

Total Proven and Probable ("2P") Mineral Reserves have increased 95% to 228,000 oz's of gold, grading 5.05 g/t reflecting replacement of 2018 Mineral Reserve depletion through production and addition of new Mineral Reserves via infill drilling

Orebody C grade and tonnage increases underpin an 81% increase in shallow, high-grade Mineral Reserves to 123,000 oz's at 4.73 g/t Au which now surpasses the Orebody A 2P Mineral Reserve of 105,000 oz´s at 5,47 g/t Au (refer Table 8)

47,000 oz´s of the above 2P Mineral Reserves reflect reserves contained in remnant material located in upper portions of the mine accessible from existing ramp and level development

Jaguar Mining prepared the Mineral Resource and Reserve estimates under the supervision of Reno Pressacco, P.Geo, and Jeff Sepp, P.Eng. of Roscoe Postle Associates Inc. ("RPA"). RPA is an independent mining consultant and Mr. Pressacco and Mr. Sepp are Qualified Persons within the definition of NI 43-101. The effective date of the estimates is December 31, 2018. An independent technical report documenting the Mineral Resource and Mineral Reserves estimates for the Pilar mine, prepared in accordance with NI 43-101, will be filed on SEDAR within 45 days of the date of this press release.

About Pilar and Turmalina

Pilar is an underground gold mine and is part of the Caeté Gold Complex that also includes the underground Roça Grande gold mine (currently on care and maintenance) and mill operation. The Caeté Complex is located in the municipalities of Caeté and Santa Bárbara, respectively, in the state of Minas Gerais, Brazil, and is approximately 100 km from Belo Horizonte, the capital city of the state of Minas Gerais. Turmalina is an underground gold mine and plant complex, also located in the state of Minas Gerais; approximately 130 km northwest of Belo Horizonte(see Figure 1).

Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2018

(Refer to Tables 2–5 below)

Proven & Probable Reserves:1,784 million tonnes grading 3.68 g/t Au, containing 211,000 oz. Au Measured & Indicated Resources:4,934 million tonnes grading 4.20 g/t Au, containing 666,000 oz. Au Inferred Resources:1,385 million tonnes grading 3.61 g/t Au containing 161,000 oz. Au

Table 2

Pilar Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:

| Pilar Gold Mine - Change in Mineral Reserves | | | | | | | | Gold Ounces (000's) | Gold Grade (g/t) | | | | | | | As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) | | Proven Reserves | 143 | 81 | 77% | 3.79 | 3.78 | 0% | | Probable Reserves | 68 | 44 | 55% | 3.47 | 4.45 | -22% | | Total | 211 | 125 | 69% | 3.68 | 3.99 | -8% |

Table 3

Pilar Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:

| Pilar Gold Mine - Change in Mineral Resources | | | | | | | | Gold Ounces (000's) | Gold Grade (g/t) | | | | | | | As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) | | Measured Resources | 435 | 317 | 37% | 4.40 | 4.47 | -2% | | Indicated Resources | 231 | 216 | 7% | 3.87 | 4.22 | -8% | | Total - M&I | 666 | 532 | 25% | 4.20 | 4.37 | -4% | | Inferred Resources | 161 | 433 | -63% | 3.61 | 5.69 | -37% |

Table 4

Pilar Gold Mine Mineral Reserves Summary as at December 31, 2018, by Orebody:

| Pilar Gold Mine - Mineral Reserves, December 31, 2018 | | | | | | | | | | | Ore Body | Proven Reserves | Probable Reserves | Proven and Probable Reserves | | | | | | | | ROM (t) | Au | Oz | ROM (t) | Au | Oz | ROM (t) | Au | Oz | | | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | | | BA | 81 | 5.16 | 13 | 23 | 2.89 | 2 | 104 | 4.66 | 15 | | BF | 383 | 3.72 | 46 | 239 | 3.98 | 31 | 622 | 3.82 | 77 | | BFII | 633 | 3.71 | 75 | 304 | 2.97 | 29 | 937 | 3.47 | 104 | | TORRE | 43 | 3.72 | 5 | 42 | 4.58 | 6 | 85 | 4.15 | 11 | | Others | 36 | 3.05 | 3 | - | - | - | 36 | 3.05 | 3 | | Total | 1,176 | 3.79 | 143 | 608 | 3.47 | 68 | 1,784 | 3.68 | 211 |

| | | | Notes: | | | 1. | CIM (2014) definitions were followed for Mineral Reserves | | 2. | Mineral Reserves were estimated at a break-even cut-off grade of 1.90 g/t Au | | 3. | Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce | | 4. | Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar | | 5. | A minimum mining width of 2 m was used | | 6. | Numbers may not add due to rounding | | 7. | There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Reserve estimates. |

Table 5

Pilar Gold Mine Mineral Resources Summary at December 31, 2018, by Orebody:

| Pilar Gold Mine - Mineral Resources, December 31, 2018 | | | | | | | | | | | | | | Ore Body | Measured Resources | Indicated Resources | Total Measured & Indicated Resources | Inferred Resources | | | | | | | | | | Tonnes | Au | Oz | Tonnes | Au | Oz | Tonnes | Au | Oz | Tonnes | Au | Oz | | | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | | | BA | 521 | 4.13 | 69 | 82 | 3.62 | 9 | 603 | 4.03 | 78 | 98 | 3.03 | 9 | | BF | 815 | 4.47 | 117 | 459 | 5.24 | 77 | 1 274 | 4.78 | 194 | 398 | 3.29 | 42 | | BFII | 953 | 4.96 | 152 | 161 | 3.49 | 18 | 1 114 | 4.77 | 170 | 533 | 4.43 | 76 | | BFIII | 16 | 3.97 | 2 | 25 | 3.22 | 3 | 41 | 3.79 | 5 | 4 | 3.71 | 1 | | Torre | 373 | 3.99 | 48 | 273 | 3.95 | 35 | 646 | 4.00 | 83 | 300 | 3.02 | 29 | | Others | 401 | 3.65 | 47 | 855 | 3.24 | 89 | 1256 | 3.37 | 136 | 52 | 2.39 | 4 | | Total | 3 079 | 4.40 | 435 | 1 855 | 3.87 | 231 | 4 934 | 4.20 | 666 | 1 385 | 3.61 | 161 |

| | | | Notes: | | | 1. | CIM (2014) definitions are followed for Mineral Resources | | 2. | Mineral Resources were estimated at a break-even cut-off grade of 1.8 g/t Au | | 3. | Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce | | 4. | Mineral Resources are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar | | 5. | A minimum mining width of 2 m was used | | 6. | Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples | | 7. | Mineral Resources are inclusive of Mineral Reserves | | 8. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability | | 9. | Numbers may not add due to rounding | | 10. | There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Resource estimates. |

Pilar Gold Mine Mineral Reserves and Resources

Infill Drilling and evaluation of remnant material completed in 2018 successfully replaced depletion. Mineral Reserves are now equivalent to more than three years of production at current and planned production rates resulting in total 2P Mineral Reserves of 211,000 ounces of gold (1,784,000 tonnes at an average grade of 3.68 g/t Au) which are 69% higher compared to 2P Reserves of 125,000 ounces as at December 31, 2017.

Mineral Reserves at Pilar are based on the main orebodies currently in production centered on Levels 9, 10 and 11 (BA, BF and BFII). Further work is in progress to convert the M&I Resource inventory to 2P Reserves on material from other orebodies and remnant material that are accessible from ramp and access development throughout the mine.

The database, used to prepare the estimates, with a cut-off date of December 31, 2018, comprises 1,658 drill holes and 20,698 channel samples. The estimate was generated from a block model constrained by three-dimensional (3D) wireframe models. A capping value varying from 10 to 60 g/t Au was applied for all eight orebodies. Wireframe models of the mineralization and excavated material for Pilar were constructed by Jaguar and reviewed by RPA. A separate wireframe was prepared for each orebody and was used to constrain the grade estimates into the block model.

Mineralized material for each orebody was classified into the Measured, Indicated, or Inferred Mineral Resource categories based on the search ellipse ranges obtained from the variography study, the observed continuity of the mineralization, the drill hole and channel sample density, and previous production experience from these orebodies.

The Mineral Resources are inclusive of Mineral Reserves. For those portions of the Mineral Resources that comprise the Mineral Reserve, stope design wireframes were used to constrain the Mineral Resource reports. Additional Mineral Resources are present that reside beyond the Mineral Reserves. For these areas, 3D clipping polygons were prepared to aid in the estimation of the Mineral Resources. The clipping polygons were prepared in either plan or longitudinal views, as appropriate. The clipping polygons were drawn to include continuous volumes of blocks whose estimated grades were above the stated cut-off grade, and were not located in mined out areas. The clipping polygons were used to appropriately code the block model and estimate the Mineral Resources.

For the December 31, 2018, estimates, the Company prepared an updated geological and block model under the supervision of RPA. The Mineral Resources and Mineral Reserves for 2018 will be supported by a NI 43-101 technical report to be filed on SEDAR within 45 days of this press release.

Turmalina Gold Mine Mineral Reserves and Resources

(Refer to Tables 6-9 below)

Proven & Probable Reserves:1,408 million tonnes grading 5.05 g/t Au, containing 228,000 oz. Au Measured & Indicated Resources:3,253 million tonnes grading 5.52 g/t Au, containing 577,000 oz. Au Inferred Resources: 1,066 million tonnes grading 4.31 g/t Au containing 148,000 oz. Au

Table 6

Turmalina Gold Mine Mineral Reserves Summary December 31, 2018, compared to December 31, 2017:

| Turmalina Gold Mine - Change in Mineral Reserves | | | | | | | | Gold Ounces (000's) | Gold Grade (g/t) | | | | | | | As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) | | Proven Reserves | 102 | 29 | 252% | 4.33 | 5.90 | -27% | | Probable Reserves | 126 | 88 | 43% | 5.82 | 4.18 | 39% | | Total | 228 | 117 | 95% | 5.05 | 4.50 | 12% |

Table 7

Turmalina Gold Mine Mineral Resources Summary December 31, 2018, compared to December 31, 2017:

| Turmalina Gold Mine - Change in Mineral Resources | | | | | | | | Gold Ounces (000's) | Gold Grade (g/t) | | | | | | | As at December 31 | 2018 | 2017 | Change (%) | 2018 | 2017 | Change (%) | | Measured Resources | 305 | 265 | 15% | 5.37 | 5.70 | -6% | | Indicated Resources | 272 | 155 | 75% | 5.70 | 3.86 | 48% | | Total - M&I | 577 | 420 | 37% | 5.52 | 4.86 | 14% | | Inferred Resources | 148 | 305 | -51% | 4.31 | 5.49 | -21% |

Table 8

Turmalina Gold Mine Mineral Reserves as at December 31, 2018, by Orebody:

| Turmalina Gold Mine - Mineral Reserves, December 31, 2018 | | | | | | | | | | | Ore Body | Proven Reserves | Probable Reserves | Proven and Probable Reserves | | | | | | | | ROM (t) | Au | Oz | ROM (t) | Au | Oz | ROM (t) | Au | Oz | | | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | | | Ore Body ANW | 116 | 6.40 | 24 | 192 | 6.60 | 40 | 308 | 6.52 | 64 | | Ore Body ASE | 229 | 4.64 | 34 | 65 | 3.36 | 7 | 294 | 4.36 | 41 | | Ore Body CSE | 388 | 3.53 | 44 | 418 | 5.85 | 79 | 806 | 4.73 | 123 | | Total | 733 | 4.33 | 102 | 675 | 5.82 | 126 | 1,408 | 5.05 | 228 |

| | | | Notes: | | | 1. | CIM (2014) definitions were followed for Mineral Reserves | | 2. | Mineral Reserves were estimated at a break-even cut-off grade of 2.5 g/t Au | | 3. | Mineral Reserves are estimated using an average long-term gold price of US $1,300 per ounce | | 4. | Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar | | 5. | A minimum mining width of 2 m was used | | 6. | Numbers may not add due to rounding | | 7. | There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Reserve estimates. |

Table 9

Turmalina Gold Mine Mineral Resources Summary as at December 31, 2018, by Orebody:

| Turmalina Gold Mine - Mineral Resources, December 31, 2018 | | | | | | | | | | | | | | Area | Measured Resources | Indicated Resources | Total Measured & Indicated Resources | Inferred Resources | | | | | | | | | | Tonnes | Au | Oz | Tonnes | Au | Oz | Tonnes | Au | Oz | Tonnes | Au | Oz | | | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | | | Ore Body A | 894 | 6.86 | 197 | 339 | 7.61 | 83 | 1,233 | 7.06 | 280 | 372 | 4.81 | 58 | | Ore Body B | 353 | 3.34 | 38 | 192 | 4.26 | 26 | 545 | 3.65 | 64 | 18 | 6.46 | 4 | | Ore Body C | 520 | 4.20 | 70 | 955 | 5.31 | 163 | 1,475 | 4.91 | 233 | 676 | 3.97 | 86 | | Total | 1,767 | 5.37 | 305 | 1,486 | 5.70 | 272 | 3,253 | 5.52 | 577 | 1,066 | 4.31 | 148 |

| | | | Notes: | | | 1. | CIM (2014) definitions are followed for Mineral Resources | | 2. | Mineral Resources were estimated at a break-even cut-off grade of 2.1 g/t Au | | 3. | Mineral Resources are estimated using an average long-term gold price of US $1,500 per ounce | | 4. | Mineral Resources are estimated using an average long-term foreign exchange rate of 3.7 Brazilian Reais: 1 US Dollar | | 5. | A minimum mining width of 2 m was used | | 6. | Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples | | 7. | Mineral Resources are inclusive of Mineral Reserves | | 8. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability | | 9. | Numbers may not add due to rounding | | 10. | There are no known environmental, permitting, legal, title, socio-economic, political or other risk factors which could materially affect the Mineral Resource estimates. |

Infill Drilling and evaluation of remnant material completed in 2018 successfully replaced depletion. Mineral Reserves are now equivalent to more than three years of production at current and planned production rates resulting in total 2P Mineral Reserves of 228,000 ounces of gold (1,408,000 tonnes at an average grade of 5,05 g/t Au) which are 95% higher compared to 2P Reserves of 117,000 ounces as at December 31, 2017.

Orebody C grade and tonnage increases underpinned an 81% increase in shallow – high grade Mineral Reserves to 123,000 oz´s.at 4.73 g/t Au which now surpasses the total Orebody A 2P Mineral Reserve of 105,000 oz´s. (refer to Table 8).

Mineral Resource estimates at December 31, 2018, reflect an updated geological and block model prepared by Jaguar staff under the supervision of RPA. This updated block model incorporates the results from the on-going diamond drilling campaigns completed since late 2017.

This Mineral Resource includes total Measured and Indicated Resources of 577,000 ounces of gold (3,253 million tonnes at an average grade of 5.52 g/t Au) and Inferred Resources of 148,000 ounces of gold (1,066 million tonnes at an average grade of 4.31 g/t Au).

Orebody C Mineral Resource grades have increased following new infill drilling intercepts and from development channel sampling completed in 2018, in particular on Levels 3 and 4. (Please refer to Press Release 27thFebruary 2019).