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Jaguar Mining Inc. (JAG) announced that the feasibility study at its Caete project located in the Sabara region of Brazil, which was expected in the third quarter of 2007, is now being delayed until the first quarter of 2008, according to Blackmont analyst Richard Gray.

He added that start-up at the project has also been pushed from the fourth quarter of 2008 to the second quarter of 2009.

"The delay at Caete is due primarily to the availability of power, which allows the company to include significantly deeper drilling in the feasibility and allows the construction team to finish at Pacienca (start-up in Q2/08) before moving to Caete," Mr. Gray said in a note to clients.

The analyst trimmed his 2008 production forecast as a result of the delay from 180,000 ounces to 160,000 ounces, reducing his 2008 cash flow per share from 82¢ to 78¢.

He left his "buy" rating and C$9.50 price target unchanged, however, saying Jaguar remains his top junior producer pick.

JAG 1-yr chart:

Source: Blackmont Still Favors Jaguar Despite Caete Project Delay