Impact: Positive
Jaguar reported assays from ongoing drilling at the BA zone of its Pilar mine, part of its Caeté Mining Complex in Brazil. Drilling is testing the depth extensions of the BA zone, which has been the focus of drilling at Pilar over the last two years. Weighted average grade from the latest batch of assays is 7.5 g/t Au over 5.5m, in line with the previous set of results reported in August last year (read note). We view this update positively as these results confirm both the geometric and grade continuity of the BA zone down plunge, which bodes well for mine life extension and supports management’s guidance that the BA zone could contribute ~50% to the mine’s total production. An updated MRE at Pilar is in the final stages of review. A follow-up drill program is scheduled for Q2, as part of its 5-year exploration plan to grow resources organically. Management has an exploration target of 500k oz Au at Pilar.