TSX-listed Jaguar Mining produced 18 819 oz of gold during the quarter ended June 30, including record output from the Pilar gold mine, in Brazil.
The company milled 171 604 t at an average head grade of 3.77 g/t gold, compared with output of 19 768 oz in the second quarter of 2017, when it milled 216 684 t at an average grade of 3.18 g/t gold.
The Pilar gold mine produced a record 10 995 oz, up 43% on the 7 702 oz in the same quarter of 2017.
The Turmalina gold mine, also in Brazil, produced 7 824 oz, which is a 28% year-on-year decrease; however, production is expected to increase in the second half of 2018 as accelerated primary waste development advances.
Jaguar reported that preliminary cash costs improved by 17% year-on-year to $713/oz sold.
Jaguar president and CEO Rodney Lamond commented that the company made solid progress with its operating results in the first half of 2018, which include record production at Pilar, increasing average grade as per expected levels and significantly higher primary and secondary development combining to increase future production levels.
“Our 17% lower operating cash costs enabled us to generate strong operating cash flow and continue investing in our growth exploration programs that will drive strong performance going forward.”
Pilar continues to demonstrate tremendous upside. Lamond now expects lower operating cash costs per ounce sold.
“We also repaid about $4-million of debt in the first half of 2018 and converted our fully secured Sprott Resource Lending loan to an unsecured, lower cost credit facility with Auramet,” he added.