Jaguar Mining Company (TSX: I; OTCC: JagfIt was reported that a planned directional drilling program at the company’s Pilar gold mine began earlier this week. The 5,000-metre specialist drilling operation will explore three mineralized zones beneath the existing Pilar mine workings which now extend to a depth of 1,100 meters (1.1 km).
The drilling operations, which will be conducted across three zones, designated as the BA Zone, the LPA Zone and the BF Zone, will be completed in three phases. The program is part of the five-year, 227,200 meter exploratory drilling program the company announced last month, in which both Geosol and major drilling companies are participating, to focus on green and brown field exploration. The Pilar drilling program is expected to continue for the next 10-12 months.
“The aim of Pilar’s directional drilling program is to significantly expand the mineral resource potential at depth, thus extending the life of the mine beyond the current eight years,” commented CEO Luis Albano Tondo. “The Pilar Mine is an established backbone of Jaguar’s gold production, producing more than 40,000 ounces in 2025 with similar production expected in 2026.
Tondo continued: “Jaguar’s overall strategic plan is defined as three pillars of growth. The first pillar focuses on maximizing the company’s core assets and resources, which means we want to capitalize on operating mills that all have excess capacity. To this end, we have the second pillar which includes green and brownfield exploration, which this drilling program at the Pilar mine falls under. The third pillar targets accretive acquisition opportunities.”
“While each of these growth pillars is important, extending the life of the Pilar mine is one of the key elements in achieving the long-term success of this strategy and allowing Jaguar to reach its ultimate goal of becoming a major gold producer in the Brazilian Iron Quadrangle region where we operate.”
Both existing mining and conventional drilling at the Pilar Mine have demonstrated that both grade width and mineralization are increasing in depth. Recent drilling results have successfully targeted the deep extensions of the BA zone within the Pillar mine, demonstrating that high-grade mineralization remains predictably strong and persistent at depth. These results support a key element of the company’s strategy to de-risk and convert its existing exploration targets into formal mineral resources.
“Currently, the geometry of the BA, LPA and BF ore bodies at the Pilar mine shows an east-west (EW) elongation trend. As a result, the narrow folds observed at upper levels gradually transition to more open geometries at depth, leading to an increase in the mineralized zone. In addition, the mineral horizons show a noticeable thickening associated with a decrease in structural shrinkage,” explained Masakato. “With respect to grade distribution, both mining exposures and drilling data indicate an overall increase in grade at depth compared to the upper levels of the deposit. A direct result of this elongation is the additional mineral lens geometry and a corresponding increase in grade variability. However, when both mineralized area and grade are considered together, the ratio of ounces per vertical meter (oz/vm) continues to increase, indicating gains in both mineral mass and grade duration at depth.”
Whereas conventional drilling drives straight down in a single vertical path, often requiring multiple drilling rigs and a larger drilling area to reach a large target, directional drilling deliberately directs the drill bit, allowing operators to bend, angle and branch multiple wells from a single surface location to precisely intercept complex ore bodies.
The Pilar Mine is located in the Quadrilátero Ferrífero, a world-class prolific greenstone belt in the state of Minas Gerais, Brazil. This area is known for the presence of large deposits of iron and gold, which are found within the Archean and Pleoproterozoic sequences. Jaguar’s strategic land package in this region continues to provide significant exploration opportunities.
Jaguar Mining operates in Brazil through three gold mining complexes and a large portfolio of land with significant exploration potential from mineral claims. The company’s main operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais, and includes the MTL complex (Tourmaline mine and plant) and the Caeti complex (Pilar and Roca Grande mines, Caeti plant). The Roça Grande mine has been undergoing temporary care and maintenance since April 2019.
The company also owns the Paciência complex (Santa Isabel mine) which has been under care and maintenance since 2012 and is now undergoing development works to bring it back into operation in 2026.
