Okay, good morning, everybody. I'm Luis Tondo, I'm a mine engineer. Perhaps my best achievement in the gold space has been to engineer, build, and start up the Paracatu Expansion for Kinross, which is the largest mine operation still today in Brazil. This year, they are going to produce over 600,000 ounces. I took over the CEO role in Jaguar. I'm the third month now, and I'm pleased to discuss with you what is our vision going forward. Disclaimers. So, for those that are not very familiar with Jaguar, it's a TSX-listed company. We have three operations, or three complexes, as we call it. By complex, I call a mine and a plant in Minas Gerais State, which is the mining hub in Brazil. The Caeté Complex, which has got the Pilar Mine and the Caeté Plant, that's in production.
The Paciência Complex, which is the Santa Isabel Mine and the Paciência Plant, that has been on care and maintenance since 2012. Nowadays, what we are doing, we are evaluating for a potential restart next year. Finally, the MTL, or Turmalina Complex, which is the Turmalina Mine and the Turmalina Plant, that's planned to restart operation in quarter one next year. In terms of resource, we have 1.7 million ounces of Measured and Indicated and 1.7 million ounces of Inferred, more or less with the same grade, around four grams per ton of gold. In terms of reserves, we have 764,000 ounces at four grams per ton as well. We are located in the Iron Quadrangle in Brazil. The Iron Quadrangle is a very famous geological environment. That's where Vale started all their iron operations back in the day.
It's a very prolific greenstone belt in Minas Gerais, very good to find iron and gold. Jaguar has been in production in the last 20 years, so very consistent production over the years. The team we are restructuring now, we have myself, Armando, and Juliana with over 30 years of experience. Armando is here today, is our Chief Geologist. Armando is behind the five-year exploration plan that I'll talk about. So, later, if you have any discussions or questions, you can find him. Juliana worked for me in Paracatu as well, and she was responsible for getting all the permits in place for us to do that project, that expansion. And then we have the younger part of the team, which is Marina, Eric, and Carla. Although they are younger than us, they've been with Jaguar more than 8 years-10 years, so they know the company very well.
They know all the challenges and how to solve them. And I encourage you to have a look and read the biography of our board of directors, and you come to the conclusion that it's a very, very balanced, skilled board, which is very supportive to what we are preparing or planning to do. So, what's the strategy here? We are talking about three pillars of growth. The first pillar being maximizing our core assets and resources. The second one is to leverage our exploration portfolio. And finally, the third one will be to pursue strategic opportunities or inorganic growth. Let's talk about the first pillar first. So, today, we are producing only with the Pilar Mine. We are on track to produce 40,000 ounces at the end of the year. And we had an issue with the Turmalina Mine, which was in December last year.
We had our dry stacking pile, we had a slump, so the authorities stopped us. That was an event that shouldn't have happened, but it did happen. So, we were very proactive on dealing with the consequences. And basically, the major consequence was to take care of the community that was close to that pile that had to be relocated. And after that, what we've done was to negotiate with the authorities different penalties or fines in a lawsuit that was imposed into the company. So, in total, we are talking about something like $27 million of penalties that are now negotiated. Some will have to be paid in the next 12 months, but most of that we can defer payment up to five years. So, that's not going to affect our balance sheet. And we are advancing to stabilize that pile.
That pile now is in the process of being closed. And what we managed to do also is to get the approval from the mining agency to restart preparatory work in the Turmalina Mine. So, we believe by year-end, we'll be ready to start extracting ore from that mine. So, I think we are on track to restart production in quarter one next year from Turmalina. That's the profile then for our growth of our production. So, in 2025, we're going to be producing the 40,000 ounces from Pilar Mine. But then in 2026, we are going to double that to 80,000 ounces just because we are getting Turmalina back into operation. And in the following year, we will start the Onças de Pitangui project. That project is an asset that came when Jaguar acquired the Brazilian assets of IAMGOLD in Brazil. It's a very good project.
It's going to add 42,000 ounces per year in addition to what we have from Pilar and Turmalina. So, what we want to achieve here in three to five years is to, after we ramp up the Onças de Pitangui project, we're going to be in the range of 140,000 ounces per year. So, that's what I'm talking about, maximizing the existing assets, the production from existing assets. Let's talk about the second pillar, which is leveraging our position in the Iron Quadrangle with this exploration plan, which will take five years. This plan is thought to be developing something like 220,000 meters of drilling over five years. And that's, again, to maximize our potential that we have of mining rights, which is about 46,000 hectares of mineral tenements in the Iron Quadrangle. We are just second to AngloGold Ashanti in terms of the size of land that we hold.
How was that program developed? Over the years, Armando and his team have identified something like 400 targets to follow up with the exploration. So, the difficulty here is not to find a target, but how will you prioritize them? And what we managed to do here is to identify those targets in each one of the complexes that, number one, would be closer to existing infrastructure and that had more information that we quickly can convert into resource and reserves so that we can bring that into production as soon as we can. So, this is the detailed plan. We have five years, as I said. Each year, we have the meterage that is going to be planned, which target we are going to be drilling, and the amount of ounces that they are going to be investigating.
Roughly, we are talking about investigating and achieving, on average, one million ounces per year. So that's a very significant endowment, which will be between 4.5 million ounces and 7.8 million ounces of gold. Very significant exploration potential there. Just a very highlight where we have the complexes. And what you can see in these lineaments are the targets. One thing that is to be noted, we have at least two world-class deposits in the same region. One is the Morro Velho Mine that has produced 11 million ounces for AngloGold Ashanti. The other one is Cuiabá Mine that's still in production. Those mines are in the same lineament and have the same geology of most of the targets that we're going to be exploring. We believe they have a very good chance of finding a significant amount of gold there.
This is just a quick slide to show our BA Zone. It's our zone in our Pilar Mine. Recently, we published a news release with a stellar result of about 12 grams per ton over 25 meters, and that's just to show that that mine is also open, downplunge, and that's the type of exploration that we also are conducting inside our own existing mines, and finally, one of our priorities, which we start drilling this year, is the Chamé target. We put a news release this week about that. That's a potential open-pittable asset that we are going to be following up, and that was a result of work that Armando and his team did by doing some trenching to surface and collecting chip samples in old Portuguese open pits, pits that were made back in 250 years ago with very high grades.
What we see in the picture are at least two lenses of very high grade and a halo between them, which have a lower grade, like 0.4 grams, 0.5 grams per ton, which at the end of the day, if this is confirmed, will allow us to do some bulk mining. And just by looking at the dimensions, the true width of this structure, which is going to be around 100 meters, and considering that it has got one kilometer of strike, the potential to find only in this target is over a million ounces. We are very excited about that, and that's why we're starting drilling towards the end of the year with this target. That's the top one priority. Okay, the third pillar is what we call the opportunities for M&A. What I'm showing there in Brazil, we are in Minas Gerais.
The other states that are colored are the ones that have got some projects or assets from junior companies that are listed that have NI 43-101 reports done, so resource identification. Some have even reserves. Some have done pre-feasibility or feasibility studies. That's the niche of opportunity that we are going to be looking at and to a potential acquisition, and the idea is then if we can find the right asset and have the right conditions, we could add that into the portfolio so that, as I mentioned, we already have production from our assets. We are doing exploration to identify more resources, and if you can have a project that is going to be built, we are filling up our pipeline, and I think that's the right combination for us to implement the growth profile that we are planning.
For the investors in this room that want to get involved, I think that's the time to get involved. If you take some parameters like the P/NAV or P/CF, you'll see that we are trading with a very high discount, part because of the issues that we had in Turmalina last year. So, that's the time to get involved. In summary, we have an experienced leadership team. We now believe we have a robust strategy. We are operating in a tier-one jurisdiction. We have strong financials because we are producing, we are generating cash. And we are doing things with responsible ESG principles, with safety. And we are taking very well care of our community. So, I think we are all set for achieving what we want to achieve in our growth profile. Thank you, and I'm open for questions.
Do we have any questions?
We have time for one question if there is one from the audience. Jamie.
Just a quick question. So, I missed the first part of the presentation. So, Jamie Strauss from Digbee. I missed the first part of the presentation, so apologies. But the development growth from here into your newer projects, what is the timeline of that?
Between three years- five years, we believe we can start producing over 100,000 ounces of gold based on existing assets, identifying more resources from the exploration projects, and maybe getting a new project from inorganic growth.
Thanks very much.
Another question from the back here.