Jaguar Mining secures federal permit to restart the Turmalina mine

[Ben Graham]

Jaguar Mining Inc. (TSX: JAG) has received federal authorization to begin preparatory work for the restart of its Turmalina gold mine in Minas Gerais, Brazil, with operations expected to resume in the first quarter of 2026.

The permit allows the company to develop a second access route to the Faina and C-8 orebodies and make modifications to the underground ventilation system. It does not cover work to stabilize the tailings pile, a critical step before full-scale operations can resume.

A municipal permit issued earlier this year remains in effect, granting similar authorizations for a renewable three-month period. Jaguar is also finalizing a terms of agreement with the Public Prosecutor’s Office to conduct a technical safety audit and settle a related civil lawsuit stemming from a tailings slide in December 2024.

In 2025, the company negotiated a reduction in environmental fines from R$320 million to R$60 million, with part of the funds allocated to social and environmental projects in Minas Gerais. It also reached a R$57 million compensation agreement with the Public Defender’s Office to assist residents affected by the incident.

On Monday morning, Jaguar Mining’s shares were up 5% at C$4.25 on the Toronto Stock Exchange, giving the company a market capitalization of C$354 million.

The Turmalina underground mine is part of Jaguar’s MTL mining complex located in the state of Minas Gerais, approximately 130 km northwest of the city of Belo Horizonte.

The Turmalina processing plant is onsite, has a 2,000 tonnes per day grinding capacity, and is located within 200 metres of the C-zone portal.

In 2023, the mine produced 33,117 oz. of gold, accounting for about half of the company’s production.