Our next presenter is Luis Albano Tondo, the CEO of Jaguar Mining.
Okay. Is that that wrong here?
You might be in the next door. Yes. There's room one right here, sir.
Okay. Good afternoon, everybody. That is going to be a good warm-up for Pierre Lassonde talk, I guess. We are talking about Jaguar Mining in Brazil. We are located in Brazil. I will do some forward-looking statements, so be aware of the disclaimers. Where is Jaguar? We are a mid-tier gold producer in Brazil. We are located in the Minas Gerais state, for those that are familiar to the country. Around Belo Horizonte, the capital, we have three complexes. By complex, I mean at least an underground mine and a plant. The Caeté complex is in production right now. The Paciência complex has been care and maintenance since 2012. We are reassessing now for reopening the mine. The MTL complex, Turmalina mine and Turmalina plant, it was in production up to December last year when we had an incident of a dry stacking pile slump. I will talk about that.
We are TSX listed. We are in this, what is called the Iron Quadrangle, which is a very prolific greenstone belt in Brazil. Historically, the register tells us that as much as 50 million ounces have been produced over the years from this Iron Quadrangle, but you'll be surprised to see how much unexplored ground we still have in there. Jaguar has got 20 years of production history. It was founded back in 2002. In terms of measured indicated resource, we have 1.66 million ounces, another 1.68 million ounces of inferred resource, both with a grade around 4 g per ton. That is converted to 764,000 ounces at 4 g per ton of reserves. I'm the new CEO of the company. I joined the company five months ago. I'm a Mine Engineer.
I started my career in Brazil with Rio Tinto in the Paracatu mine, where I spent almost 20 years in different operating roles over there. I was there when Kinross took over, and I got to build the big expansion for Paracatu. Today, that mine, this year, they are going to produce still 600,000 ounces of gold. They still have some more years to go. In my team, I have Marina, Eric, and Carla, which are former employees of Jaguar, so they know the company pretty well. I recently brought Juliana. Juliana was my permitting manager when I built the Paracatu expansion. We will need permitting, as you are going to see, for growing the company. Finally, Armando is our Chief Geologist. He is behind the five-year exploration plan that I am going to talk about. I encourage you to look at our Board of Directors biography.
We have a very good diversity of skills there. Between Management and Board, we believe we are well set for growing the company. What is the strategy for Jaguar? We divided that in three pillars. The first pillar is to maximize our core assets, meaning extracting the most we can from our current mines and plants. By the way, all the plants from Jaguar have got spare capacity. My target here is to find more ore to fill up those plants. The second pillar is going to be the leveraged exploration portfolio. Jaguar has got as much as 46,000 hectares of mineral rights in the Iron Quadrangle, and we are going to take advantage of that. Finally, the third pillar is going to be to pursue strategic opportunities, meaning M&A. The first pillar is organic growth. The third pillar is going to be inorganic growth.
In the middle, I'm going to have more exploration to find more resources. Let's dive into the first pillar. The first pillar talks about production. Pilar has produced in the first nine months of this year up to 31,000 ounces of gold at a grade of 3.9 g per ton at a cost of BRL 1,845 per ounce. That has generated an adjusted EBITDA of almost BRL 60 million. Talking about Turmalina, the issue that we had back in December, that was a dry stacking pile slump. The slump did not go very far, did not kill anybody, did not contaminate any river or any creek, but it did cause some, let's say, issues with the community nearby. The community was alerted before the slump. We had to reallocate them. Some will be able to come back to their houses, others do not.
We have to negotiate some compensation for all these people. I think the company was very proactive to do that. We did a number of negotiations. The first was the community compensation, which cost BRL 10 million. The other was an environmental fine that had to be settled, another BRL 11 million. We have a lawsuit against the company. Whenever we have an incident like that in Brazil, we're going to have a lawsuit against the company. We negotiated that to be BRL 7 million. In total, we are talking about BRL 27 million cost all this incident. The good thing is that all the payments, they can be made in installments from one to five years. That means that it won't affect our balance sheet because we're also cash flowing as we are producing. What is going on right now?
We are closing down the stockpile that had the slump. As soon as we finish the stabilization work, we provide the geotechnical report. The authorities will lift the embargo. I think we are on track to start production from Turmalina back in quarter one next year. The other good thing is that I talked to the environmental agents when I joined and asked them to allow us to get inside the underground mine because the underground mine had not been affected at all. The idea was to prepare the mine so that by the time they lift the embargo, next day we can start extracting ore. That is why I firmly believe that we are going to be in good shape for quarter one restart.
What that's going to do in terms of our production profile, this year, 2025, as I told you, from Pilar, we are producing 40,000 ounces. Next year, we're going to almost double that with Turmalina being back to production, plus having some ounces coming from the Santa Isabel mine that is in care maintenance up to now, but we are reassessing its opening. For the following year, 2027, that's when we start a new project, which is called the Onças de Pitaingui Project. You can see here a view of the Onças de Pitaingui Project. It's a greenfield project, so we're going to have to open the portal for that mine. The good thing is that we do not need a plant because this site is like 40 km from the Turmalina plant.
It has got 284,000 ounces of reserve at 4.16 g per ton of gold, good metallurgy, like 91% recovery. That will add 42,000 ounces per year extra on top of our production from Pilar and Turmalina. Going back to the graph, you can see that in 2027, we start seeing the first ounces from Pitaingui. I am allowing some ramp-up on that project. In 3-5 years, the plan is to go past the 100,000 ounces production profile and up to 120,000 up to five years. That is going to be the first time Jaguar actually sustained a production at that level. That is a firm plan that we have for doing that. Moving forward, let's talk about the second pillar, which is leverage our exploration portfolio. This is a map that shows the Iron Quadrangle again.
Maybe you can see there we have at least two world-class deposits in that region, Cuiabá mine and Morro Velho mine. Both belong to AngloGold Ashanti. Morro Velho is closed now, but has produced as much as 11 million ounces. Cuiabá has produced 10 million ounces and have more 10 to go still in production. What is interesting is that when you look at closely, you see that all Jaguar targets that we have are in the same geological lineaments of Morro Velho and Cuiabá.
When I joined, I asked my Chief Geologist, "Why can't we find another Cuiabá or another Morro Velho in our tenements?" He said, "I think it's possible, but we need to do some systematic drilling, which had never been done in Jaguar." I said, "How come we've been 20 years as a company?" The reality is that all the work that exploration has done over the years was to focus in the underground, existing underground mines to define the resources and reserves, which they were successful. That also means that what we have now in our hands is unexplored ground that we're going to take forward in terms of strategy for the company. I asked, "Okay, give me a plan for this." That's what he came up with. It's a five-year exploration plan.
You can see that we have detail of each target we're going to be doing drilling in each year. In total, we are talking about doing 220,000 meters of drilling over five years. The target is to find at least or to define an endowment of 1 million ounces per year. In total, the total endowment that we can see in this area goes between 4.5-8 million ounces of new resources, which would mean triple the amount of resources that we already have. I'll give you an example. One of the targets is the Chame target. It's going to be an open pit mining opportunity. What you can see in this picture is the footprint of two excavations. Those are old excavations. By old, I'm talking about something done 250 years ago by the Portuguese, the colonizers.
Obviously, these people were looking for high grade. When you get on the bottom of these excavations and you take chip samples, what you find is high-grade material, 2, 3, 9 g per ton up to 27 g per ton of gold that were measured on these samples. What is most interesting is that the geologist did some trenching, cross-cutting the excavations. What they found is that although lower grade, like Paracatu, 0.5 g per ton, all continuous mineralization. This whole thing can be seen as a package of mineralized material between the high-grade zones and the low-grade zones, which are really a halo of mineralization. That is a cross-section that shows the same picture. Here you can see two lenses that go deeper as the high-grade zones. In between them, you have these lower-grade zones.
When you compose the grade that could be in that region, you'll find that the grade would be around 1-1.5 g per ton, which for an open pit is pretty good. When you calculate, and that's 100 m through width, and the strike length of this zone is up to 1 km . When you do the calculation about the amount of material that you could have there and the contained gold, you come to the conclusion that only in this target we could find 1 million ounces of endowment. That's what we're going to be following up. Chame, you can see on the bottom of the picture, is very close to the Santa Isabel mine. That means that as soon as I can find more ounces, I can then shift them to an existing plant.
All this area, and this is only one target. You can see in the same lineament, you have much more targets. We are talking about a 15 km strike length. The total area has got an endowment of between 2-3 million ounces. Finally, Pilar mine, we also have exploration potential going deep. That is very typical to the Iron Quadrangle. The mines can go up to, like Morro Velho, up to 2.5 km deep. In Pilar, we are 1.1 km deep. Next year, we are also targeting to do some directional drilling in the deeper zones.
If you consider the ounces per vertical meter that we have in the lower mines and lower levels of the mine, and you calculate the amount of potential that we can have downplunge, that could mean another 500,000 ounces in the Pilar mine, which is an existing mine that is in operation. The third pillar to finish off is M&A. We are in Minas Gerais state. The other states that are colored are the ones that we are considering some assets that we can acquire. The target here is to find an asset that could at least sustain 100,000 ounces of production per year. There are some junior companies that have similar projects like that. What we are targeting are the ones that are more advanced, like they have resource definition, at least a PFS or a Feasibility Study done.
These companies are in process of doing licensing. In Brazil, that can be very tricky. We have three licenses that are required. The first one is the hardest one to get, which is the environmental license. Then you have to apply for the installation license. What happens is that most companies, they got stuck in between them. We believe we have the expertise in our team to unlock these problems. Obviously, these juniors are trading very low. It is a cheap target for us. That is what we are doing. We have some NDA already looking at two targets. I cannot disclose who they are, but I think this is going to come sooner or later. Those are the three pillars of strategy to grow the company. Jaguar is still trading with a very high discount to its peers.
I encourage you, if you haven't embarked on this story, it's still time to do it. That's our shareholder structure. We have Eric Sprott as a major shareholder holding as much as 47% of the company. He's been a very good supporter. Thank you for your assistance.
Thank you for your time. That concludes our morning session of presentations. In about 15 minutes, we'll have Pierre Lassonde having a conversation with Daniela Camboni. Thank you.