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

Sherwood Copper Corporation

August 05, 2008 12:44 ET

Sherwood Reports Higher Copper Production Forecast for 2009 & Updated Resource Estimates

Copper Production increased 35% to 70 million lbs in 2009 by Rescheduling Production to bring Higher Grades Forward Updated Mineral Resource Estimates indicate Significant Potential at Lower Cut-off Grades

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today announced that it has completed a National Instrument 43-101 compliant Technical Report that details two significant developments at its high grade Minto copper-gold mine in Yukon, Canada. Firstly, through rescheduling the open pit currently being mined on the Minto Main deposit, higher grade copper production has been brought forward from 2010 to 2009 as compared to prior guidance. Secondly, the Technical Report details the updated mineral resource estimates previously announced on June 17, 2008, which increased mineral resources by approximately 50% over those announced a year ago and which should provide the basis for further increases in mine life and/or production. However, in addition (and for the first time), details of the mineral resources at cut-off grades lower than 0.5% copper are provided, which indicate significant potential for large tonnages of medium grade mineral resources at the Minto Mine.

"The increased production in 2009 is a further example of Sherwood's relentless pursuit of value for its shareholders," said Stephen Quin, President & CEO of Sherwood. "More production sooner should mean more value for our shareholders," he said. "Further, the previously announced 50% increase in mineral resources at the high grade Minto Mine is a very positive development. The significantly increased mineral resource suggests potential for a longer mine life and/or further increases in production, beyond the rescheduled production announced today. However, the first time disclosure of substantial mineral resources at lower cut-off grades, which still results in mineral resource grades well above any operating copper mine in western Canada, provides a glimpse of what could be a materially larger opportunity at the Minto Mine, and is something that warrants continued investigation."

Highlights

Highlights of the information contained in the Technical Report include the following, based on the assumptions set out below:

1. Higher grade production moved forward from 2010 to the end of 2008 and all of 2009, resulting in 55 million pounds of copper production in 2008 and 70 million pounds of copper production in 2009, a 35% increase in that year;

2. Operating costs, after by-product credits and offsite costs such as concentrate shipping, insurance, treatment and refining charges, of C$0.80 to C$0.89 per pound, life of mine;

3. Pre-tax net present value of $364 million to $659 million at a 0% discount rate, depending on metal prices and, at the same discount rate, after tax net present value of $311 million to $522 million;

4. Pre-tax net present value of $273 million to $386 million at a 10% discount rate, and an after tax NPV of $241 million to $372 million at the same discount rate;

5. At a 0.5% copper cut-off, measured and indicated resources of 19.28 million tonnes grading 1.42% copper, 0.51g/t gold and 5.4g/t silver, containing 604.5 million pounds of copper, 310,000 ounces of gold and 3.3 million ounces of silver;

6. At the same cut-off, an additional inferred resource of 15.07 million tonnes grading 0.88% copper, 0.25g/t gold and 0.25g/t silver containing 293.6 million pounds of copper, 120,000 ounces of gold and 1.26 million ounces of silver;

7. These resources represent a 50% increase over those announced a year ago and a 140% over those announced two years ago and do not incorporate the results of any of the 2008 drilling;

8. Proven and probable mineral reserves of 9.13 million tonnes grading 1.93% copper, 0.74g/t gold and 7.7g/t silver containing 389.2 million pounds of copper, 216,900 ounces of gold and 2.3 million ounces of silver;

9. These reserves are based on 2006 drilling and mineral resource estimates and hence do not incorporate the 50% increase in resources announced herein, nor any of the results of the 2008 drilling currently underway;

10. Given that significant lower to medium grade mineralization was intersected up and down drill holes from the higher grade intercepts used to estimate the mineral resources at a 0.5% copper cut-off, and that almost all of this lower to medium grade mineralization would fall within any pit targeting the higher grade mineralization, this would potentially result in more tonnes and a lower strip ratio within the planned open pits were a lower cut-off grade used to estimate resources;

11. At a 0.2% copper cut-off, mineral resources are estimated at 30.36 million tonnes grading 1.03% copper, 0.35g/t gold and 3.8g/t silver, containing 689.4 million pounds of copper, 340,000 ounces of gold and 3.75 million ounces of silver;

12. Additional inferred mineral resources, at the same cut-off, are estimated at 42.6 million tonnes grading 0.53% copper, 0.13g/t gold and 1.6g/t silver containing 496.5 million pounds of copper, 180,000 ounces of gold and 2.18 million ounces of silver;

13. These mineral resource estimates exclude any of the results of 2008 drilling, which is in-fill drilling these areas to upgrade the confidence level in the mineral resources, as well as stepping out to potentially expand the mineral resources since the area drilled to date represents only a portion of the overall mineralized system identified at the Minto Mine;

14. A new pre-feasibility study will evaluate opportunities to convert as much as possible of the mineral resources defined in 2007 and 2008 into reserves, as well as to further increase mill throughput, which study should be complete by mid-2009;

15. Sherwood is targeting sustained production in the range of 60-70 million pounds of copper per year from its Minto Mine.

Technical Report

The Technical Report was completed for Minto Explorations Ltd. ("MintoEx") under the supervision of SRK Consulting (Canada) Inc. ("SRK"), and represents an update to the Pre-feasibility Study ("PFS") completed under SRK's supervision, the results of which were announced on December 12, 2007 and filed on SEDAR on December 18, 2007. The Technical Report uses actual performance and cost information up to the end of June 2008 and re-forecasts costs and performance for July 2008 onwards based on actual experience as well as expectations based on that experience. The Technical Report will be filed on SEDAR within 1-2 days of the date of this release.

Rescheduled Production Profile

As previously disclosed, Sherwood's wholly owned subsidiary, MintoEx, has been working towards a rescheduled extraction profile for the open pit on its high grade Main Zone at the Minto Mine, as compared to the production profile set out in the December 2007 PFS. The PFS forecast peak copper production in 2010. However, as a result of schedule modifications to the open pit on the Main Zone, the high production in 2010 has been brought forward into the latter part of 2008 and the balance in 2009. The remainder of the Main Zone and all of the Area 2 deposit are scheduled to be mined consecutively thereafter. This rescheduled mine plan is based on resources drilled to the end of 2006 and does not evaluate any of the resource additions delineated in 2007 nor does it incorporate the results of 2008 drilling. The revised production schedule is summarized in the table below.

To view the table for Minto Mine - Rescheduled Production Details please click on the following URL: http://media3.marketwire.com/docs/Minto%20Mine%20Production%20Details.pdf

Based on successful exploration in 2007, which increased resources by approximately 50% over those considered in this Technical Report, and the results of 2008 drilling, Sherwood is targeting sustained production of 60-70 million pounds of copper per annum in a high grade scenario (using a resource estimate with a 0.5% copper cut-off).

Sherwood is progressing towards this production objective by working to convert the 2007 resource additions to reserve standards in 2008, testing for increases to these resource areas in 2008 and conducting the required resource estimation, mine planning, metallurgical and environmental work required to prepare a new pre-feasibility study before the middle of 2009 while, in parallel, undertaking the required permitting activities to allow this increased production. Mine planning will be focused on displacing lower grade ore in the current production schedule with higher grade mineralization discovered subsequently to the PFS, and postponing the use of stockpiles to bridge the production between mining of the Main Zone and the Area 2 deposit with low-strip ratio, higher grade mineralization from the new resource areas discovered in 2007-08. In addition, prior evaluations have suggested that the current ore processing facilities could potentially be expanded to 4,000 to 5,000 tonnes per day with only modest modifications.

The combination of more higher-grade mineral resources and higher throughput should make Sherwood's objective of 60-70 million pounds of sustained copper production from the Minto Mine achievable.

Updated Project Economics

In parallel with its rescheduled mine production, MintoEx and SRK took the opportunity to update operating and capital costs to reflect actual performance up to and including the end of June 2008, and to reforecast performance, operating costs, capital requirements and commodity prices based on experience to date and reasonable expectations going forward. As has been previously reported, the mineral reserves extracted to date from the Minto Main Zone are meeting or exceeding expectations, the process plant is now running at above design capacity on a sustained basis, a permit amendment was recently issued to allow processing of the Main Zone at up to 3,200 tpd of ore, there are now nine months of commercial production cost data available on which to base cost and performance expectations, and grid power is expected to be available during the fourth quarter of 2008, significantly reducing operating costs. These developments, along with others not listed here, have allowed a comprehensive reassessment of the project economics, which are detailed in the Technical Report and highlights presented below.



Technical Report - Metal Prices Used for Committed Forward Sales
Already in Place
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Metal Units 2007 2008 2009 2010 2011 Average
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Copper US$/lb 3.08 2.88 2.49 2.19 2.12 2.50
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Gold US$/oz 648 654 653 653 720 667
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Silver US$/oz 11.76 11.90 11.90 11.90 13.68 12.26
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Technical Report - Metal Prices Used for Uncommitted Sales - Case
1 Only
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-------------------------------------------------------------------
Metal Units 2008 2009 2010 2011 2012 2013 2014 2015 2016
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Copper US$/lb 3.67 3.53 3.37 3.21 3.08 2.96 2.80 2.60 2.40
-------------------------------------------------------------------
Gold US$/oz 900 900 900 900 900 900 900 900 900
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Silver US$/oz 17.50 17.50 17.50 17.50 17.50 17.50 17.50 17.50 17.50
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Cases 2 and 3 were run at 15% and 30% lower metal prices than used for Case 1. The other main economic factors used in the cash flow analysis were:

1. CAD:USD exchange rate of 1:1 (parity) for 2008; 1.05:1 for 2009; and 1.10:1 beyond 2009

2. A discount rate of 10%;

3. Variable metal pricing, with copper having declining forward pricing (backwardation) and gold and silver were kept flat as opposed to escalating (contango) as the forward curve indicates;

4. Nominal 2008 dollars; and

5. No inflation.

Costs, revenues and taxes were calculated for each period in which they occurred rather than at the actual date of payment. For example, taxes were calculated each month in the model even though they are actually paid only once per year, in the year following the year accrued. It must be noted that the net present value ("NPV") calculations in the financial model were done using 2008 as the starting year and do not take into account approximately $150M in capital spent in 2006 and 2007 for plant and mine construction. This methodology is appropriate but only looks at the project going forward from the beginning of 2008 and, therefore, shows high returns.



-----------------------------------------------------------
NPV (C$ million)
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Case 1 Case 2 - 15% lower Case 3 - 30% lower
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Discount Rate Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
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0.0% 659 522 511 416 364 311
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5.0% 552 445 432 358 313 272
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10.0% 471 386 372 313 273 241
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15.0% 408 339 325 278 241 215
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Additional details on the financial parameters for each of the three cases are attached to this news release, while comprehensive information on assumptions and outcomes are contained in the Technical Report.

"The financial analysis for the Minto Project demonstrates a robust project in all scenarios," said Mr. Quin. "Using the current forward curve for copper and flat precious metal prices, the Minto Mine generates an exceptionally positive cash flow. There are opportunities to further increase project NPV through the conversion of the mineral resources discovered and delineated in 2007 and 2008 to reserves, the process for which is underway."

Mineral Resources at a 0.5% Copper Cut-off

Updated mineral resource and mineral reserve estimates were announced on June 17, 2008 and the Technical Report provides additional details in respect of those estimates. Net of all adjustments, contained copper in the mineral resource estimate increased by 50% and precious metals by approximately 40% as a result of drilling in 2007. This follows on from a 60% gain in contained copper in mineral resource estimates based on drilling in 2006, for a 140% gain in copper resource estimates in two years. The mineral resource tonnages are being reported inclusive of the mineral reserves.



Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.5% copper cut-off)
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Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 11,460 1.77 0.66 6.85 447,990 240 2,520
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Indicated (I) 7,830 0.91 0.29 3.24 156,470 70 820
----- ---- ---- ---- ------- -- ---
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Sub-total (M+I) 19,280 1.42 0.51 5.38 604,460 310 3,340
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Additional
Inferred 15,070 0.88 0.25 2.61 293,560 120 1,260
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(i)Rounded to the nearest ten thousand


This resource estimate contains an estimated 604.5 million pounds of copper, 310,000 oz of gold and 3.3 million oz of silver in the measured and indicated mineral resource categories using a 0.5% copper cut-off, with an additional 293.6 million pounds of copper, 120,000 oz of gold and 1.26 million oz of silver in the inferred mineral resource at that same cut-off, representing an increase of 50%, 40% and 38% in total contained copper, gold and silver, respectively.

"Given that the available mineral resource estimate has increased by 50% since the resource estimate used in the PFS and that a 25,000m drill program is underway to upgrade the confidence in and expand these resources, a new pre-feasibility study is warranted to evaluate the economic potential of these new resources, once the 2008 drill program is completed," said Mr. Quin. "There is excellent potential for both an increased mine life and further increases in production given the tremendous exploration success at the high grade Minto copper-gold mine."

Sherwood has retained SRK to supervise the preparation of a new pre-feasibility study that will incorporate the results of the 2007 and 2008 drill programs, updated resource estimates, mine planning, metallurgical testing and environmental studies. The new study is expected to be completed by mid-2009.

Mineral Reserves

Mineral reserve estimates remain as announced June 17, 2008 and can be summarized as follows, representing the previously announced reserve for the Minto Main deposit and the Area 2 deposit, less mining that has taken place in 2006 and 2007. See the June 17 news release for additional details. Note that reserves have not been updated to incorporate the higher mineral resources contained in this news release; this will be done as part of a new pre-feasibility study, as discussed below.



Minto Mine - Mineral Reserves by Classification for All Deposits
(at a 0.62% copper cut-off)
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Cont- Cont-
ained ained
Contained Gold Silver
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Proven 8,219 2.01 0.77 7.98 364,400 203.6 2,110
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Probable 910 1.24 0.46 5.40 24,800 13.3 159
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Total (P&P)(ii) 9,129 1.93 0.74 7.73 389,200 216.9 2,267
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(i) Rounded to the nearest thousand
(ii) Totals may not add exactly due to rounding


Mineral Resources at Lower Cut-off Grades

Whereas there is very little lower grade mineralization in and around the Minto Main deposit, currently being mined, the southern deposits such as Area 2, Area 118 and Ridgetop host extensive zones of lower to medium grade mineralization above and between higher grade zones for which resource estimates have been announced to date. Since this lower grade mineralization lies up and down the existing drill holes, and does not represent lateral projections to any significant degree and would most likely fall within any pit designed to extract the higher grade zones, Sherwood has, for the first time, assessed the mineral resources at lower cut-offs than those previously considered. Mineral resource estimates at a 0.2% copper cut-off and 0.3% copper cut-off are summarized below, while details of mineral resource estimates at all cut-off grades calculated and the estimation methodology are detailed in the Technical Report.



Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.2% copper cut-off)
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 13,880 1.53 0.56 5.85 466,810 250 2,610
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Indicated (I) 16,480 0.61 0.18 2.15 222,570 90 1,140
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Sub-total (M+I) 30,360 1.03 0.35 3.84 689,380 340 3,750
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Additional
Inferred 42,600 0.53 0.13 1.59 496,500 180 2,180
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(i)Rounded to the nearest ten thousand


Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.3% copper cut-off)
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 13,170 1.59 0.59 6.13 463,050 250 2,600
--------------------------------------------------------------------------
Indicated (I) 13,600 0.69 0.21 2.42 206,860 90 1,060
--------------------------------------------------------------------------
Sub-total (M+I) 26,770 1.14 0.39 4.25 669,910 340 3,660
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Additional
Inferred 31,530 0.63 0.16 1.87 435,800 160 1,890
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(i)Rounded to the nearest ten thousand


These mineral resource estimates contain between 669.9 to 689.4 million pounds of copper, 340,000 oz of gold and 3.7 to 3.8 million oz of silver in the measured and indicated mineral resource categories using a 0.2 and 0.3% copper cut-off, with an additional 435.8 to 496.5 million pounds of copper, 160,000 to 180,000 oz of gold and 1.9 to 2.2 million oz of silver in the inferred mineral resource at the same cut-offs.

"While the overall grades in the resource estimates above are lower than currently being mined at the Minto Mine, they average approximately twice that of currently operating copper mines in British Columbia," said Mr. Quin. "These resources would require additional work to demonstrate positive economics; nevertheless, they do suggest an interesting opportunity for a considerably larger scale operation than would be contemplated at the higher cut-off grades currently being used. Further, these resource estimates encompass only a modest portion of what may be a much larger mineralized system. Further drilling is required to evaluate the potential continuity of the large untested areas between the currently defined mineral resources."

Sensitivities

Both the pre-tax and after taxation cash flow models show the project is most sensitive to changes to the copper grade. This sensitivity is somewhat mitigated in the mine plan by the significant use of stockpiles to allow the early extraction of higher grade ore and the ability to blend different grades to provide a consistent mill feed. These two features of the life-of-mine plan are important in maximizing the economics of the project. In Case 1, a 20% drop in copper grade yields a $112 M (29%) drop in after-tax NPV10%. Diligent grade control practices will be important in achieving undiluted mill feed, especially in Area 2 where the mineralized zones are smaller and more numerous than those found in the Main pit.

Metal prices demonstrate the second greatest sensitivity. In Minto's case, the metal prices are buffered by the fact that a significant portion (approximately 50%) of its production is already hedged until late 2011, so a reduction or increase in the market price has a tempered affect on the NPV. Even with this forward sale arrangement, a 20% decrease or increase in copper price changes the after-tax NPV10% by 25%.

A 20% reduction in operating cost yields a $45 M (12%) increase in after-tax NPV10%. Many of Minto's major operating expenses including mining, explosives, treatment charges and refining charges and concentrate transport are covered by contracts and, therefore, offer considerable protection from variances in the next 2 to 4 years.

As most of the capital expenses for the mine and expansions have already been incurred, the project is not sensitive to CAPEX.

Project Risks

The following risks have been identified for the Minto Mine:

1. Exchange rates, metal prices and external influences: MintoEx has no control over exchange rates and their impact on the economics of the operation is significant. Metal prices are also not controllable, other than by forward sales contracts, and can have an appreciable effect on project return.

2. Process Capacity: The ability of the mill to be modified to 3,500 tpd is a risk, as there may be certain unit operations that could create bottlenecks to the operation that have not been identified.

3. Water management: Both the lack of water and the overabundance of water are potential issues for the mine. A lack of water may be an issue during the in-pit co-deposition of tailings in the Main pit as water will be lost. An overabundance of water could attract higher water treatment costs.

4. Grade control: The Area 2 deposit is made up of several zones of ore that are not as continuous and thick as the Main zone. As a result, a very thorough and proactive grade control program will be necessary to reduce dilution. The NPV of this project is very sensitive to copper grade, so excessive dilution will have a serious negative impact on the project economics.

5. Permitting: The plan for the mining of the Area 2 deposit, and handling of the tailings and waste rock generated therefrom, requires modifications to existing permits, which may not be granted or may take longer than expected.

Project Opportunities

The following opportunities have been identified for the Minto Mine:

1. Optimization of mine plan: The mine plan has not been fully optimized and it is likely that further scheduling work will smooth out some of the grade and ore extraction variations and provide higher grade ore sooner, with delayed waste mining.

2. Resource additions: The resource updates contained in this report show considerable additional mineralization that has not been considered in the life-of-mine plan summarized in this report. Extensive drilling is underway in 2008 to upgrade the confidence in these new resources, to attempt to increase them and to test new targets. A further update to the life-of-mine plan will be completed once the 2008 results are available, and offers opportunities for further increases in grades, potential rescheduling of the different zones to optimize project economics, etc.

3. Exploration target potential: There are several interesting exploration targets on the Minto property. MintoEx has plans to further explore these targets with the hope that they will become resources and eventually reserves. There is absolutely no guarantee these targets will ever be economic to extract; however, the past exploration record at Minto is a positive indication of further potential.

4. Underground mine potential: MintoEx has identified some deeper exploration targets that may have the potential for underground mining. If these targets are added to Minto's resources, a study should be undertaken to determine if the deposits are sufficient in grade and volume to support underground development.

5. Waste deposition in the Minto Valley: The Minto valley to the west and south-west of the Main pit offers a viable waste rock dump alternative that will provide the mine with a significant cost savings, by reducing the distance and elevation of the waste rock truck hauls.

6. Processing efficiency: As the Minto ore is better understood, the processing plant may be further optimized to increase recovery, improve concentrate grade or increase throughput.

7. Cost efficiencies: MintoEx operating personnel are evaluating areas where costs can be improved. The largest cost centre is mining, followed by processing.

Plan for a Comprehensive Updated PFS

As noted above, Sherwood is in the process of completing an extensive drill program designed to (a) upgrade the confidence level in the resources detailed above, (b) to expand those resources and (c) to test new targets. Based on the results of the 2008 drill program, Sherwood will complete new resource estimates that will support mine planning to bring these resources into production plans. The objective of these mine plans will be to bring higher grades forward, possibly by mining more than one deposit in parallel, and by deferring lower grade and stockpiled material until the end of the mine life. In parallel, Sherwood aims to conduct metallurgical testing on each of the new deposits discovered, as well as carry out environmental programs. These new resources, mine plans, metallurgical and environmental studies, along with any other information will be used to support a comprehensive updated pre-feasibility study, supervised by SRK, scheduled for completion by mid-2009. As also noted above, this study will evaluate further increases to the throughput rate for the process mill. Overall, by focussing on higher grades and higher throughputs, Sherwood's objective is to demonstrate sustained production at a rate of 60-70 million pounds of copper per year in this study.

At the same time as carrying these activities related to the preparation of a new pre-feasibility study, Sherwood aims to continue the evaluation of the potential of the Minto property to host a significantly larger, more moderate grade deposit.

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 north-western British Columbia. Sherwood intends to lever off its successful development of the Minto Mine and advance the Kutcho project to a production decision.

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, who has reviewed the content of this press release. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration with Sherwood. The mineral resources discussed in this news release were estimated by Lions Gate Geological Consulting Inc. (LGGC). Susan Lomas, P. Geol. of LGGC is the Qualified Person under National Instrument 43-101 responsible for the estimates and has reviewed the information in this release in respect of mineral resource estimates. Mineral reserves were calculated by MintoEx geology and engineering staff under the supervision of Dan Russell, P. Eng., Manager of Mining at the Minto Mine, who is the Qualified Person under National Instrument 43-101 responsible for the mineral reserve estimate, as detailed in the June 17, 2008 news release. David Hendriks, P.Eng., of TechPro provided the metallurgical information used in the Technical Report based on actual operating experience at the Minto Mine and prior test work reported in the PFS. The operating and capital cost information used in the Technical Report were provided by MintoEx operating personnel, under the supervision of Kevin Weston, Chief Operating Officer of Sherwood, and Randall Thompson, General Manager of the Minto Mine. The economic analysis information from the Technical Report referenced in this news release was reviewed by Gordon Doerksen, P.Eng. of SRK.

Minto Main deposit reserve estimate was compiled using the updated mineral resource model provided by LGGC, hereby referred to as the "Model". The Model was imported into Mintec's MineSight® software for the reserve calculation. The mineral resource estimate was verified using MineSight® to ensure the import was successful. The mineral reserve calculation was bounded by the 2007 year-end survey surface (122007 YE Pit Surface.msr) and the most current ultimate pit design surface (ph5 nov1.msr). Furthermore, a cut-off grade of 0.62% Copper was used. The absence of these factors is justified on account of historical performance showing good mining reconciliation against the past model. The mineral reserve summary is based on measured and indicated mineral resource classifications in the model only, totalled within ore zones 2, 4, 5, and 8 in the Minto Main deposit (as established by in the December 2007 Pre-feasibility Study), and bounded by the aforementioned surfaces and assumptions. Mineral resource categories and definition of ore zones in the Model were established by the relevant QP's for each resource model, as defined herein.

Details of the historical Area 2 mineral resource and mineral reserve estimate are provided in the Technical Report for the Minto Pre-feasibility study, available on SEDAR, the results of which were announced on December 12, 2007. The current Area 2 mineral reserves are based on this historic mineral resource and have not been updated to reflect the increased Area 2 mineral resource discussed in this release nor the results of drilling in 2008.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

Additional Information

Additional information on Sherwood and its Minto Project 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.

To view the Sherwood Copper Summary of Cash Flow for Cases 1-3 table accompanying this release, please click on the following URL: http://media3.marketwire.com/docs/SWC%20Summ.%20Cash%20Flows.pdf

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
    President & CEO
    (604) 687-7545
    or
    Sherwood Copper Corporation
    Chris Curran
    Investor Contact
    (604) 687-7545
    (604) 689-5041 (FAX)
    Website: www.sherwoodcopper.com