Business
Jaguar Mining Announces Closing of Gurupi Gold Property Acquisition
Jaguar Mining Announces Closing of Gurupi Gold Property Acquisition
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\nDec. 2, 2009 (Canada NewsWire Group) -- CONCORD, NH, Dec. 2 /CNW/ -- Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (JAG: TSX/NYSE) announced today that it has closed its previously announced acquisition of MCT Mineração Ltda. (\"MCT\") from Companhia Nacional de Mineração (\"CNM\"), an indirect, wholly-owned subsidiary of Kinross Gold Corporation (\"Kinross\"). Jaguar now has 100% equity ownership of MCT, which holds all of the mineral licenses for the Gurupi Project, a gold project located in the state of Maranhão, Brazil. In addition, Kinross has granted a right of first refusal to Jaguar on an adjacent exploration property. The Company satisfied the US$39 million purchase price for MCT by issuing to CNM 3,377,354 Jaguar common shares, representing approximately 4.07% of Jaguar's outstanding common shares (on a non-diluted basis) as of the date hereof after giving effect to the issuance of such shares.No commercial production of gold has taken place on the Gurupi property. AMEC plc completed a feasibility study in 2005 for Kinross, which yielded measured and indicated gold resources of 35,884,000 tonnes at an average grade of 1.35 grams per tonne totaling 1,559,800 ounces. Jaguar is preparing an updated resource model and feasibility study on the property utilizing alternative stripping ratios and pit designs, as well as other factors including gold price assumptions. The Company intends to file an updated technical statement of resources on the Gurupi Project shortly. As previously announced, the Company expects to release the details of the feasibility study in Q1 2010, which will also include a development plan for the Gurupi Project.Mr. Daniel R. Titcomb, Jaguar's President and CEO stated, \"We are very pleased to have completed the acquisition of the Gurupi Project and look forward to sharing with our shareholders the development plan for this new opportunity to further expand our gold production beyond our current plan. This investment further emphasizes Jaguar's confidence in Brazil as a great country in which to have mining operations, especially in today's environment where investors seek to minimize political risk. The Gurupi Project is an important addition to extend our asset base in Brazil.\"About JaguarJaguar is one of the fastest growing gold producers in Brazil with operati...