Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

May 16, 2006 06:30 ET

Sherwood's Feasibility Study for Minto Copper-Gold Project Imminent; Exploration Drilling Commenced, Mine Development Waste Removal Underway

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 16, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that the bankable feasibility study for the development of its 100% owned high-grade Minto copper-gold deposit is nearing completion and is anticipated to be complete and announced in early June, 2006. In parallel with the feasibility, project development activities continue, with civil construction activities well underway and waste pre-stripping recently commenced. In addition, exploration drilling in Area 2 is in progress, with the first two holes completed to depths of more than 350m, and a second drill about to commence activities this week.

"The feasibility study evaluating the development of the Minto copper-gold project in the Yukon is in the final stages of completion," said Stephen Quin, President & CEO of Sherwood. "In the meantime, we are rapidly advancing the development of the mine site, have commenced waste pre-stripping and our exploration program is in full swing."

Feasibility Study

The bankable feasibility study for the development of the Minto copper is nearing completion under the direction of Hatch Ltd., independent consulting engineers. This study is for the development of a significantly expanded, more productive mining operation than the previous concept for the Minto deposit, which was developed in a period of low copper prices and capital constraints. Principal among the changes are a 50% throughput increase (from 1,560 tonnes per day to 2,400 tonnes per day) that would be completed during the first year of operations, a doubling of the camp size to accommodate the expanded operations, and significantly more waste pre-stripping to allow mining of higher grade material earlier, all with the objective of producing more copper sooner. Finalizing the incorporation of some of these changes has taken longer than anticipated and the feasibility study is now scheduled to be completed in early June 2006.

Development Activities

Development of the Minto mine commenced in early April 2006 and is now well underway.

In order to accommodate the expanded mining operation that is the subject of the feasibility study currently nearing completion, mining equipment has been used to expand the camp area in order to accommodate the expanded camp, reopen the 1970's airstrip, develop a location for operational fuel storage and generators, and expand the level area around the plant to accommodate the plant expansion. In addition, upgraded haul roads have been developed to provide access for large scale mining equipment to various parts of the property. Photographs of on-going site activities are available on the Company's website at www.sherwoodcopper.com.

Waste pre-stripping has commenced in the pit area, and will be on-going for the next 10 months in order to open up the highest grade portion of the copper mineralization for extraction and processing in the first year of operations. Lower grade material (less than 1% copper) will be stockpiled for later processing.

In addition to the above, Sherwood has begun placing orders for long lead time pieces of equipment in order to ensure their availability, and to ensure Sherwood can meet its development schedule of copper production during the second quarter of 2007.

Exploration

As announced May 4, 2006, Sherwood plans to conduct a major exploration program during 2006 to expand high grade resources and to test new targets. The first drill is operational and has already completed its second deep (350+m) hole in Area 2, where Sherwood intercepted multiple mineralized zones with significant copper-gold values earlier in 2006 (see news releases dated March 23 and April 4, 2006 for details). This drill rig will continue working on Area 2 for most of the summer with the objective of delineating resources in a satellite deposit by year-end. The second drill will commence drilling next week and will evaluate the potential of several exploration targets to host new copper-gold deposits, as detailed in the May 4 news release.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. In the late 1990's, a feasibility study was completed by prior owners, permits obtained and construction of an open pit mine commenced. Construction was suspended after expenditures of approximately $10 million, due to depressed copper prices. During that period, the mill foundations were poured, the ball and SAG mills were purchased and moved to site, the mine accommodations were constructed and the site was connected to a permitted Yukon River crossing by a 29km production standard access road.

Sherwood

Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in an already permitted, partially constructed, high-grade, open pit copper-gold project located in Canada with infrastructure and exploration potential on the property.

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

This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See the Company's filings for a more detailed discussion of factors that may impact expected results.

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 Quin
    President
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)
    www.sherwoodcopper.com