Sherwood Copper Corporation
TSX VENTURE : SWC
TSX VENTURE : SWC.DB

Sherwood Copper Corporation

October 23, 2008 06:00 ET

Sherwood Reports Further High Grade Intercepts From Its Kutcho Copper Project

2.4% copper over 27.5m, including 5.3% copper over 7.3m in WK08-155 3.4% copper over 12.5m, including 4.3% copper over 5.7m in WK08-159 1.7% copper over 33.4m, including 2.2% copper over 21.0m in WK08-157

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today announced the fourth batch of assay results from its 2008 drill program at the high grade Kutcho Copper Project, located in north-western British Columbia. This program is defining a continuous, thick, zone of high grade mineralization within the "Main" deposit, one of three massive sulphide deposits identified at Kutcho, which Sherwood controls through its wholly owned subsidiary, Kutcho Copper Corp.

Highlights from this latest batch of seventeen holes are tabulated below, while complete results are attached. Results for previously reported holes are in news releases that are available on the Company's website.



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Inter- Inter-
From To val val Copper Zinc Gold Silver
Hole ID (m) (m) (m) (ft) (%) (%) (g/t) (g/t)
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WK08-149 94.2 122.7 28.5 93.5 1.68 0.90 0.30 32.7
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including 96.4 118.2 21.8 71.5 2.06 1.01 0.33 39.8
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WK08-153 109.9 131.1 21.2 65.6 1.81 2.25 0.24 24.7
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including 125.2 128.9 3.7 12.1 2.21 1.72 0.28 30.1
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WK08-155 106.9 134.4 27.5 90.2 2.43 2.14 0.55 45.1
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including 117.7 130.4 12.7 41.7 4.19 1.88 1.00 78.3
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WK08-157 87.9 121.3 33.4 109.6 1.68 1.96 0.28 29.8
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including 98.9 119.9 21.0 68.9 2.21 2.73 0.43 44.3
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WK08-159 37.7 50.2 12.5 41.0 3.39 3.41 0.46 41.1
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38.8 44.5 5.7 18.7 4.32 3.91 0.75 57.1
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"Drilling at the Kutcho Copper Project continues to define a crescent shaped zone of thick, near surface, high grade mineralization within the Main deposit," said Stephen Quin, President and CEO of Sherwood Copper. "We appear to be successfully linking up high grade areas within the Main deposit into one continuous zone, with holes WK08-155 and -157 filling in a major gap within the previous mineral resource with some of the best intersections seen to date," he said. "These results, combined with those announced previously, should result in the Kutcho Main deposit delivering a robust, high grade, near surface copper resource with significant zinc, gold and silver by-products." The Kutcho Main deposit is a volcanogenic massive sulphide deposit that outcrops in the south and dips at about 50 degrees to the north, the same direction as the hill side, which would keep strip ratios modest in an pit open mining situation.

2008 Drill Program

The 2008 drill program was designed to increase confidence levels within the Main deposit mineral resource, to infill gaps identified in the previous resource model and to test potential to expand and link up high grade areas within the Main deposit. A second priority is to provide ample sample material for an extensive metallurgical program, all in support of advancing the Kutcho Copper Project toward completion of a feasibility study.

Seventy-eight new holes (81 were collared but three were abandoned) were successfully completed within the Main deposit resource area in 2008, adding to the 221 existing holes upon which the previous NI43-101 indicated mineral resource was based, as reported on June 12, 2008. By better defining and linking up the high grade mineralization within the overall resource, Kutcho Copper aims to define a smaller tonnage, higher grade deposit with the objective of defining a more economically robust project. Once all of the assay data from the 2008 program is in hand, an updated mineral resource estimate will be prepared. Geological modelling (in preparation for this NI43-101 compliant resource) is proceeding well and completion of the resource estimate is expected before the end of 2008. This updated estimate will include approximately 35% more drill holes than the previous estimate, including numerous new drill intercepts in the central and western portions of the Main deposit, where drill spacing has been cut approximately in half, providing much greater confidence in the resource estimate and in the continuity of the high grade mineralization therein. All holes are HQ-size core to provide a larger assay sample for better statistical reliability and to provide ample material for metallurgical testing.

2008 Drill Program Statistics

The 2008 drill program finished in August 2008 with 9,905 metres of HQ-size core drilling in 81 holes (including 3 abandoned holes). Full assay results are now received and announced for 72 of the 78 completed holes while results are pending on only six holes. Follow the link below to view a long section displaying the 2008 results released to date.

www.sherwoodcopper.com/i/pdf/2008-10-23KutchoMainDepositLongsection.pdf

Kutcho Copper Project

Sherwood views Kutcho's high grade, near surface copper resources, with their substantial by-product credits of zinc, silver and gold, as a potential opportunity to develop an economically attractive open pit mining operation similar in scale to its Minto Mine. The previously announced Preliminary Economic Assessment ("PEA") set out a base case for development of the Kutcho Copper Project by focusing on the Main deposit, but outlined a number of opportunities to materially enhance the merits of project. Sherwood is continuing the process of optimizing the Kutcho Copper Project by focusing on these opportunities, including the definition of higher grade resources. Further, there is additional upside potential from the possible exploitation of underground resources not considered in the PEA and through the discovery of additional deposits in this prospective volcanogenic massive sulphide terrain.

About Sherwood Copper

Sherwood Copper's objective is the profitable production of base and precious metals from high grade, open pit mines in Canada. Sherwood's first operating mine, the high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. Aggressive exploration on the Minto property has yielded significant success, providing Sherwood the opportunity to 'grow from within' by expanding the resource and reserve base, potentially leading to further production increases. To further accelerate its production growth, Sherwood intends to pursue merger & acquisition opportunities that fit its business model and, in May 2008, Sherwood acquired 100% ownership in Western Keltic Mines (now Kutcho Copper Corp.), owner of the high-grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Sherwood expects to lever off its successful development of the Minto Mine and rapidly advance the Kutcho project to a production decision. Sherwood has also agreed to combine with Capstone Mining, subject to requisite shareholder and regulatory approvals, creating a new low cost, growth oriented copper producer with two high grade mines and a strong balance sheet.

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & CEO for Sherwood Copper Corporation. The exploration activities at the Kutcho Project site are carried out under the supervision of Brad Mercer, P. Geol., and V.P. Exploration with Sherwood.

The analytical method for copper, zinc and silver includes aqua regia digestion followed by ICP-AES (atomic emission spectroscopy). If either copper or zinc reports over 2500ppm (0.25%), ore grade analysis is conducted for copper, zinc and silver. Gold is measured using fire assay followed by atomic absorption spectroscopy. When visible gold is noted in drill core samples or regular fire assay values exceed 5 grams per tonne, the pulp and screen metallic assay method is used to determine total gold content and gold content of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. The result of the pulp and screen metallic assay is accepted as the most representative value and used in the assay database for resource calculations. All analytical work is carried out by ALS Chemex in North Vancouver. Blanks and standard reference materials are used for quality assurance and quality control. If more than two check samples assay outside the expected ranges, the entire work order is re-assayed. After the completion of planned drill programs at Kutcho, random check assays will be carried out by Acme Analytical of Vancouver.

Additional Information

Additional information on Sherwood and its Minto & Kutcho projects can be obtained on Sherwood's website at http://www.sherwoodcopper.com.

On behalf of the board of directors

SHERWOOD COPPER CORPORATION

Stephen P. Quin, President & CEO

Forward Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.



Details of Drill Results
To accompany Sherwood Copper News Release Dated October 23, 2008

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Inter- Inter-
From To val val Copper Zinc Gold Silver
Hole ID (m) (m) (m) (ft) (%) (%) (g/t) (g/t)
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WK08-089 to 144 Previously Released
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WK08-145 84.0 110.4 26.4 86.6 1.19 0.34 0.22 14.0
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including 92.3 105.4 13.1 43.0 1.98 0.40 0.37 24.1
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including 93.1 95.7 2.6 8.5 5.38 0.38 1.09 76.9
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WK08-146 140.1 153.3 13.2 43.3 2.05 5.41 0.24 27.8
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including 140.7 150.9 10.2 33.5 2.49 3.81 0.26 31.7
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WK08-147 Abandoned
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WK08-148 151.4 164.0 12.6 41.3 1.62 2.56 0.22 20.3
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including 152.8 161.1 8.3 27.2 2.14 3.82 0.28 25.8
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WK08-149 94.2 122.7 28.5 93.5 1.68 0.90 0.30 32.7
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including 96.4 118.2 21.8 71.5 2.06 1.01 0.33 39.8
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WK08-150 177.0 189.8 12.8 42.0 1.61 1.51 0.43 35.5
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including 177.0 184.9 7.9 25.9 2.06 2.43 0.63 44.1
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WK08-151 70.2 78.5 8.3 27.2 0.86 1.80 0.12 12.8
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WK08-152 110.7 123.4 12.7 41.7 1.33 2.46 0.19 18.9
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WK08-153 109.9 131.2 21.3 69.9 1.81 2.25 0.24 24.7
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including 113.0 123.4 10.3 33.8 2.43 2.76 0.32 33.2
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and 125.2 129.9 4.7 15.4 2.21 1.72 0.28 30.1
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WK08-154 83.2 96.5 13.3 43.6 1.69 1.99 0.25 38.3
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including 85.5 95.0 9.5 31.2 2.08 2.69 0.32 48.5
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WK08-155 106.9 134.4 27.5 90.2 2.43 2.14 0.55 45.1
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including 117.7 130.4 12.7 41.7 4.19 1.88 1.00 78.3
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including 119.8 127.1 7.3 24.0 5.26 1.01 0.95 87.2
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WK08-156 121.4 134.9 13.5 44.3 1.81 2.14 0.24 25.3
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including 121.4 124.6 3.2 10.5 3.52 3.07 0.49 44.9
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including 126.8 128.8 2.0 6.6 4.15 8.58 0.67 96.7
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and 150.0 153.1 3.1 10.2 2.31 1.72 0.22 24.1
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WK08-157 87.9 121.3 33.4 109.6 1.68 1.96 0.28 29.8
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including 98.9 119.9 21.0 68.9 2.21 2.73 0.43 44.3
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WK08-158 116.3 125.6 9.3 30.5 2.67 3.76 0.31 30.8
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WK08-159 37.7 50.2 12.5 41.0 3.39 3.41 0.46 41.1
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38.8 44.5 5.7 18.7 4.32 3.91 0.75 57.1
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WK08-160 Results are pending
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WK08-161 75.2 91.4 16.2 53.1 1.19 3.01 0.25 20.2
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including 78.3 84.5 6.2 20.3 1.87 5.68 0.30 32.0
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WK08-162 114.3 131.0 16.7 54.8 0.76 0.43 0.18 11.9
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including 115.8 122.6 6.8 22.3 1.33 0.44 0.30 22.1
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and 136.0 150.6 14.6 47.9 1.39 1.77 0.28 20.7
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including 136.0 146.3 10.3 33.8 1.79 1.98 0.37 28.5
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WK08-163 118.5 124.5 6.0 19.7 0.69 3.69 0.16 12.5
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including 118.5 121.1 2.6 8.5 1.05 8.28 0.22 18.2
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WK08-164 to 168 Results are pending
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Sherwood Copper Corporation
    Stephen P. Quin
    Investor Contact
    (604) 687-7545
    or
    Sherwood Copper Corporation
    Neil MacRae
    Investor Contact
    (604) 687-7545
    (604) 689-5041 (FAX)
    Website: www.sherwoodcopper.com