JZR Gold

Investor Insight

JZR Gold has garnered attention for its strategic focus on the Vila Nova gold project in Amapá, Brazil. As the company moves toward near-term cash flow generation through innovative tailings reprocessing, JZR Gold is well-placed to become a viable player in Brazil’s gold mining industry.

Overview

JZR Gold (TSXV:JZR) is focused on advancing its Vila Nova gold project in Amapá, Brazil to create sustainable shareholder value. Recognizing the need for efficient operations, JZR Gold has chosen to commence its Vila Nova pilot mill, designed to process tailings from historical gold mining activities. The project holds approximately 9 million tonnes (Mt) of gold tailings, with an estimated average grade of 2.7 grams per tonne (g/t), translating to a projected contained gold content of over 700,000 ounces. The near-term cash flow generated from mill operations will fund further exploration work aimed at expanding JZR’s gold resources.

The pilot mill will initially focus on reprocessing 2 million tonnes of tailings from past mining activities. These tailings represent substantial residual gold that was left unextracted during previous operations. With a target daily processing rate of 800 tonnes, the mill is expected to yield approximately 2 kilograms (kg) of gold per day, based on a recovery rate of approximately 89 percent.

JZR’s processing method does not use harmful chemicals; instead, it employs gravitational processing, which involves crushing, grinding and centrifugation. This environmentally friendly approach enables JZR to meet both regulatory and community standards while minimizing its environmental impact.

The revenue from the Vila Nova pilot mill is expected to begin in the first quarter of 2025. This cash flow will not only cover operational expenses, but also fund subsequent exploration phases. By reinvesting the initial revenue into exploration, JZR Gold can expand its resource base and delineate additional high-grade gold targets. This phased approach reflects the company’s focus on incremental growth and value creation without requiring substantial external financing.

JZR Gold has obtained all the necessary permits to conduct bulk sampling at the Vila Nova site, allowing the company to extract up to 600,000 tonnes of tailings annually. This capacity provides the flexibility to ramp up operations if needed, ensuring the company can respond to both market demand and operational needs. The permitting process in Brazil is rigorous, and JZR’s ability to secure these permissions reflects its commitment to regulatory compliance and sustainable resource management.

Company Highlights

• Near term cash-flow from gold tailings operation at flagship Vila Nova gold project in Amapá, Brazil.
• An estimated 9 million tonnes of gold tailings have been identified with grades averaging 2.7 g/t for a projected contained gold content of over 700,000 ounces.
• The Vila Nova project has a fully permitted 800-ton-per-day pilot mill to process high-grade gold tailings for near-term cash flow.
• JZR Gold has invested more than US$7 million in infrastructure and drilling at the Vila Nova project.
• The Vila Nova project is situated in an underexplored region with significant geological upside and proximity to established mining operations.
• Initial operations at Vila Nova are expected to yield approximately 2 kilograms of gold per day.

Key Project

Vila Nova Gold Project

The Vila Nova project is JZR Gold’s flagship venture, situated in the mineral-rich yet underexplored region of Amapá, Brazil. This region has attracted significant interest due to its geological similarities to other major gold-producing areas, including parts of West Africa and Ontario, Canada. Amapá has a long mining history, but much of its potential remains untapped, making Vila Nova a critical asset for JZR Gold.

Located in the Mazagão municipality of Amapá, Vila Nova lies within the Vila Nova Greenstone Belt, a region known for hosting orogenic gold deposits. These deposits are typically found along fault lines or shear zones and can yield significant mineral resources at depth. The Vila Nova deposits are found along a north-south shear zone, close to the contact between metasediments and amphibolites, offering strong geological continuity and potential for resource expansion.

The presence of nearby mining operations, such as the Tucano and Gaivotas mines, further highlights the region’s potential. These sites, along with Vila Nova, collectively form one of the most substantial gold-producing zones in Amapá. Vila Nova’s proximity to the city of Macapá, located roughly 145 kilometers away and accessible by highway, enhances its logistical advantages, with Macapá offering both major airport access and essential infrastructure.

JZR Gold’s Vila Nova pilot mill, which is fully permitted, is key to the company’s strategy of achieving early cash flow. Through gravitational processing, the mill is expected to yield approximately 2 to 3 kg of gold daily. These reprocessing activities not only provide cash flow, but also enable JZR to avoid the environmental costs associated with conventional mining techniques. The company has invested more than US$7 million in developing Vila Nova’s infrastructure, including core drilling, sampling and trenching of tailings to prepare the site for full-scale operations.

While tailings reprocessing is the initial focus, Vila Nova offers ample potential for primary exploration as well. The geological characteristics of the Vila Nova Greenstone Belt suggest that additional gold resources could be discovered through deeper exploration. By using cash flow from the tailings operation, JZR Gold can undertake targeted drilling and geological surveys to expand its resource base, thereby increasing the project’s overall value.

Management Team

Robert Klenk – CEO and Director

As CEO, Robert Klenk brings more than 20 years of experience in corporate finance and resource management to JZR Gold. His leadership emphasizes operational efficiency and shareholder value, guiding JZR’s efforts in establishing Vila Nova as a profitable, environmentally conscious mining operation. He has been the CEO of JZR Gold since April 2017, restructuring the company and acquiring the Vila Nova project in Brazil. He holds an MBA in finance from the University of British Columbia and a Bachelor of Science in finance from the University of Illinois. During his career, he has worked at the Chicago Board Options Exchange, West Coast Energy, and as an investment advisor for Merrill Lynch, CIBC Wood Gundy and Canaccord Genuity in Vancouver.

Ron Tewitz – Chief Operating Officer and Director

Ron Tewitz is responsible for overseeing day-to-day operations at Vila Nova. His extensive experience in project management and mining operations ensures JZR Gold’s activities are executed with precision, safety and regulatory compliance. Tewitz was appointed director of JZR Gold in December 2020.

Graham Carter – Director

Graham Carter provides strategic oversight and contributes to long-term planning. His experience in corporate governance and resource development complements JZR’s growth-oriented approach.