Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

April 10, 2006 10:59 ET

Sherwood Commences Development of Minto Copper-Gold Mine & Updates Feasibility Study Status

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2006) -

Planned Mill Expansion and New Mine Plan will Access Higher Grade Resources Sooner

Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that development of Sherwood's 100% owned high-grade Minto copper-gold deposit has commenced and provided an update on the status of the feasibility study.

"With the commencement of development, Sherwood has passed a major milestone in the advancement of its high grade Minto copper-gold project in the Yukon," said Stephen Quin, President & CEO of Sherwood. "Our feasibility study will be for a larger mine accessing higher grades much earlier than previous plans, which will allow us to produce more copper sooner, so we can take advantage of current record high copper prices."

Development Update

Sherwood continues to make progress towards its objective of copper-gold production by mid-2007, and is working towards achieving its accelerated goal of production in early second quarter, 2007. The accelerated option was made possible by the early warrant exercise completed on February 21, 2006, which provided funds to retain and mobilize key contractors for mining, construction and EPCM, several months earlier than originally planned.

Civil construction work at the Minto site has commenced, with mining equipment rehabilitating the access road to the airstrip and the airstrip itself, construction of access roads to waste dumps, site preparation work for the camp expansion and fuel tank farm, provision of office facilities and other tasks. These activities are being undertaken by Pelly Construction, Sherwood's selected mining contractor, under the supervision of JDS Energy & Mining and Clark Builders, Sherwood's construction manager and general contractor, respectively.

Pelly Construction's mining fleet is on site and being assembled, and will soon be ready to commence work on the waste pre-stripping. Waste pre-stripping is anticipated to commence once civil construction and access roads to the waste dumps have been completed. Construction of the water management facilities is underway and construction of the water retention dam will commence thereafter.

Feasibility Study Status

As announced at the end of 2005, Sherwood retained Hatch Ltd., independent consulting engineers, to complete a feasibility study on the development of a high grade copper-gold mine at Minto, with the study to a standard that would support bank financing. In 2000, Hatch completed a cost review of the 1995 feasibility study on the Minto Project on behalf of prior owners, which study indicated direct capital costs in the order of C$24.7 million and total costs, including indirect costs and contingencies, of C$33.2 million.

Based on the several upside opportunities identified during the acquisition due diligence that could enhance the Minto Project's return on investment, Sherwood is incorporating a number of changes that should result in a significantly expanded project to that contemplated in 1995. Principal among the changes are a 50% mill expansion (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 with the objective of producing more copper sooner.

Resource estimates are currently being updated to incorporate the results of the successful 2006 infill drill campaign, and this new resource will be used to update the mine plan to optimize production grades and tonnages prior to completion of the feasibility study. The feasibility study is anticipated to be completed in early May 2006.

Drilling

The results for drill hole 06SWC-064 were inadvertently left out of the last press release. This hole was drilled into the higher-grade, bornite-rich portion of the Minto deposit (see map for hole location at http://www.sherwoodcopper.com/_resources/map_gallery/Fig7_Drill_Hole_Plan.pdf). It intersected a broad zone of high grade mineralization as expected and is summarized in the table below.



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Hole ID From To Interval Copper Gold Silver
(m) (m) (m) (%) (g/t) (g/t)
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06SWC-64 85.7 109.0 23.3 3.15 1.02 11.5
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Including 85.7 93.0 7.3 4.01 1.26 14.3
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This completes the reporting of drill results for the 2006 winter drill program. Preparations are currently being made to start an exploration program by the end of April concentrating on targets outside of the resource area but within a maximum of three kilometres of the planned open pit, with a particular emphasis on the Area 2 target, where multiple, stacked zones of mineralization were intercepted with significant copper and gold grades. See news release #17 dated April 4, 2006 for details of the Area 2 intercepts.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. In the mid- to 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, mine accommodations 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 (888) 338-2200
    or
    Sherwood Copper Corporation
    Investor Relations
    (604) 687-7545 or (888) 338-2200
    (604) 689-5041 (FAX)
    www.sherwoodcopper.com