Jaguar Mining (TSX: JAG) has received federal authorization to begin preparatory work for the restart of its Turmalina underground 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 (US$59 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.
Jaguar Mining’s shares rose 3.8% to C$4.41 on the Toronto Stock Exchange Monday, giving the company a market capitalization of C$348 million.
Turmalina is part of Jaguar’s larger MTL mining complex, which is located about 130 km northwest of Belo Horizonte. The Turmalina processing plant, with a 2,000 tonne-per-day grinding capacity, is within 200 metres of the C-zone portal.
Prior to its shutdown in 2024, the mine had produced 23,710 oz. of gold, accounting for a third of the company’s annual production.
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