Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

October 12, 2006 08:00 ET

Sherwood Completes 119 Hole Drill Program at Minto, Including 79 Holes in Area 2

5.4% Copper & 1.9 g/t Gold over 4.7m in 06SWC-117 --- 2.0% Copper & 0.8 g/t Gold over 13.5m in 06SWC-108

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that its 2006 drill program at the 100% owned Minto project in the Yukon was complete, with 119 holes drilled, including 79 holes in Area 2. The highlight of the 2006 drilling was the discovery of high grade copper-gold mineralization at the Area 2 target, approximately 130m from the open pit currently undergoing waste stripping in preparation for the commencement of commercial production in the second quarter of 2007. Recent assay results from Area 2 continue to define additional high-grade copper-gold mineralization, while results from 59 additional completed drill holes remain outstanding.

Highlights from the latest drill holes in Area 2 are set out in the table below, while complete results are attached.



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From To Interval Interval Copper Gold Silver
Hole ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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06SWC-106 110.8 124.3 13.5 44.3 1.46 0.51 4.1
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06SWC-108 148.9 162.4 13.5 44.3 2.01 0.82 6.4
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Including 156.4 162.4 6.0 19.7 2.63 1.20 9.8
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06SWC-112 100.0 116.0 16.0 52.5 1.78 0.80 5.8
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Including 106.6 116.0 9.4 30.8 2.22 1.03 7.8
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06SWC-113 142.5 159.7 17.2 56.4 1.42 0.56 5.9
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Including 142.5 149.5 7.0 23.0 2.16 1.03 9.5
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06SWC-117 47.0 51.7 4.7 15.4 5.36 1.91 29.6
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"I am very encouraged by the extent of the high grade mineralization at Area 2," said Stephen Quin, President and CEO of Sherwood. "Drilling extended far beyond of our initial target area and the results received to date indicate excellent potential for the definition of a significant resource at Area 2, a resource that could materially extend the operating life of the Minto Mine at higher grades than planned in years seven and later. We plan to complete a resource estimate and pre-feasibility study with the objective of converting this material to mineral reserves before we commence production in 2007."

Drilling at Area 2 typically intercepts what Sherwood geologists now interpret to be the equivalent to the main ore zone at the adjacent Minto deposit. It has comparable grades, thicknesses and depths of burial to that of the deposit currently being developed as an open pit mining operation. In addition to the main horizon, there is typically one high grade and at least one moderate grade horizon above the main horizon while multiple, additional zones of low to high grade mineralization lie below the main horizon and present additional resource opportunities.

2006 Diamond Drill Program Details

In 2006, Sherwood completed a total of 24,252 metres (79,567 feet) of NQ diamond drilling in a two-phase program. Phase 1 comprised 4,129 metres of resource definition drilling within the main deposit for the recent bankable feasibility study and a limited amount of exploration drilling. Three of the five exploration holes completed at that time targeted Area 2 and resulted in the discovery of what has proven to be a significant mineralized system. Phase 2 was planned as a 16,500m exploration program focused on several exploration targets outside of the main Minto deposit. Given the outstanding results from Area 2, the program was expanded to 20,123m. A summary of the 2006 drilling is set out in the table below.



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No. of No. of No. of
Area Purpose Holes Metres Feet
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Minto Deposit Resource Delineation and 20 2,433 7,982
Confirmation
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Area 2 Discovery/exploration & 79 18,376 60,289
resource delineation
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Other Targets Testing targets other 20 3,443 11,296
than Area 2
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Totals 119 24,252 79,567
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Area 2

As outlined in a news release dated September 11, 2006, Sherwood's exploration team re-evaluated the original Area 2 target identified by prior owners and identified two opportunities: the original deeper mineralization and an untested opportunity for shallower mineralization not previously evaluated due to wide drill spacing and holes stopped too short to test the favourable horizon - a possible extension of the main Minto deposit to the south.

The initial target was defined by a magnetic high similar in intensity to that associated with the main Minto deposit. Drilling in 2006, however, extended mineralization well beyond the limits of the magnetic anomaly, defining high grade copper-gold mineralization over an area at least 40% larger than predicted based on the magnetics. In addition, drilling at Area 2 encountered not one but multiple mineralized horizons stacked on top of each other, the upper two of which are thought to be the southern continuation of the main Minto deposit. Given time constraints, after an initial pass at testing these multiple zones of stacked mineralization, drilling was restricted to definition drilling of the upper zones of mineralization located at depths of between 50m and 160m below surface, similar to the depth of the current reserves at the main Minto deposit. The Area 2 mineralization remains open to expansion in a number of areas.

Once all assay results are received, Sherwood plans to complete a resource estimate and commence a pre-feasibility study on the upper zones at Area 2 with the objective of defining additional high grade copper-gold reserves.

The deeper mineralization at Area 2, which remains open to the south and southwest, will be further evaluated in future programs, as will the adjacent Connector target, since they may represent the same mineralized system. In 1974, drilling at Connector intercepted 7.6m grading 5.3% Cu and 2.6 g/t Au in drill hole A137-74. Connector, and the deeper mineralization beneath Area 2, represent an attractive high-grade target for future exploration once Sherwood completes its evaluation of near surface targets.

Recent Drill Results

Sherwood completed 20,123 metres of NQ size drilling in 119 holes during Phase 2 of the 2006 exploration program. Results are available for five new exploration drill holes from Area 2 and three other holes on separate exploration targets. Due to heavy demand at the assay laboratory, there is a back log of assays pending for an additional 58 holes from Area 2 and one additional exploration hole from another target.

Area 2 Results

During 2006, drilling at Area 2 intercepted high grade copper-gold mineralization with grades, thicknesses and depths of burial similar to the main Minto deposit, within a wider envelope of more moderate grade mineralization extending down to at least 300m below surface. After its initial evaluation of the area, Sherwood focused on two horizons that lie above the 690m elevation, or at depths of burial in the range of 50m to 160m below surface (comparable to the main Minto open pit). These two horizons present a near term opportunity to define open-pittable, high-grade resources with head grades in the range of 2% copper plus significant gold by-products credits, which could extend high grade milling operations beyond the six years currently contemplated.

To date, the near surface high grade copper-gold mineralization at Area 2 has been traced over an elliptical shaped area measuring approximately 350m in a northwest-southeast direction and up to 260m (average about 180m) in a northeast-southwest direction, an area about 40% larger than the original magnetic anomaly that was targeted. This compares to the aerial extent of the Minto deposit currently being developed, which measures approximately 450m by 180m.

Hole 06SWC-106 is located near the south-western limit of the current drill area at Area 2. Starting at 111m down a vertical drill hole an interval of 13.5m (44.3ft) is interpreted as the equivalent of the Minto Deposit Main zone and grades 1.46% Cu and 0.51 g/t Au. A second interval starting at 242.5m from surface grades 1.09% Cu and 0.53 g/t Au over 11.m (36.1ft).

Hole 06SWC-108 is located in the west-northwest portion of Area 2 and intercepted the two upper horizons. Highlights of this hole include an interval of 10.7m (35.1ft) grading 0.66% Cu and 0.08 g/t Au starting at 121m vertically below surface. A second much stronger interval, which is interpreted as the equivalent of the Minto Deposit Main zone, starts 149m from surface and grades 2.01% Cu and 0.82 g/t Au over 13.5m (44.3ft) including 6.0 (19.7ft) metres of 2.63% Cu and 1.20 g/t Au.

Hole 06SWC-112 is also located in the east-northeast portion of the Area 2 deposit. It intersected the equivalent of the Minto main zone starting at 100m vertically below surface for an interval of 16.0m (52.5ft) grading 1.78% Cu and 0.80 g/t Au including a sub-interval of 9.4m (30.8ft) grading 2.22% Cu and 1.03 g/t Au.

Hole 06SWC-113 is located in the north-central part of the current drilling. It entered the main zone at 142.5m where it graded 1.42% Cu and 0.56 g/t Au over 17.2m (56.4ft) including a higher grade core of 7.0m (23ft) grading 2.16% Cu and 1.03 g/t Au. Lying between surface and the main zone are two upper levels of moderate copper grade including 4.6m (15.1ft) of 0.89% Cu and 0.14 g/t Au starting at 97m down the hole and 8.8m (28.9ft) of 0.67% Cu and 0.05 g/t Au starting at 114m.

Hole 06SWC-117 is located in the extreme northeast corner of the current drilling. At a shallow depth of 47 metres vertically below surface it intersected a very high grade upper interval of 4.7m (15.4ft) grading 5.36% Cu and 1.91 g/t Au. A second interval which is the interpreted main zone starts at 94.9m vertically from surface and grades 0.51% Cu and 0.21 g/t Au over 7.5m (24.6ft).

All drill holes are vertical while the mineralized horizons are sub-horizontal to gently inclined to the northwest so the intersected intervals are at or near to true thicknesses.

The current drill intersections in this news release are discussed in reference to drill-hole plans located at http://sherwoodcopper.com/oct10_map.jpg. Drill cross-sections will be added to the Company website at a future date.

Other Exploration Targets

DEFNW Prospect

The main Minto deposit is cut off on the north side by the DEF fault, a high angle, north dipping structure. As previously disclosed, the DEFNW target represents a possible off-faulted extension to the main Minto deposit. Three holes, 06SWC-083, -084 & -086 were drilled to test this conceptual target, 06SWC-083 and -086 into magnetic highs and 06SWC-084 into a magnetic low.

06SWC-086 drilled vertically into a magnetic high area and intersected two short and weakly mineralized intervals with the highest grade being 2.9 metres of 0.50% Cu. The results for holes 06SWC-083 and -084 were previously announced.

The DEFNW target remains a priority for follow-up in future drill campaigns as the best mineralization in this area (5.1m grading 1.2% Cu and 0.70 g/t Au in 06SWC-084, as previously announced) is associated with a pronounced magnetic low instead of the usual positive correlation with magnetic highs typically observed elsewhere on the property and targeted by this drill hole.

DEF Prospect

As noted above, the main Minto deposit is cut off on the north side by the DEF fault zone, which has at least one splay. Hole 06SWC-049, drilled by Sherwood in early 2006, intersected high grade mineralization in the block of rock located between the main DEF fault structure and the subsidiary splay and intercepted high grade copper-gold mineralization (starting at 93.8 metres down the hole 06SWC-049 graded 3.59% Cu and 2.56 g/t Au).

06SWC-089 was targeted west of hole 06SWC-049 but only intersected sporadically anomalous, economically insignificant copper oxide mineralization. No further drilling is anticipated for this target as planned mining activity will expose the area and provide easier access for future evaluation.

Ridgetop Prospect

Ridgetop is a target area centered on a 1.1km long magnetic anomaly located on a ridge approximately 1km south of the current Minto open pit. Previous owners drilled 15 holes during the early 1970's, all of which intersected favourable host rocks and copper-gold mineralization ranging from anomalous to high grade, including 15.7m of 3.16% Cu and 1.66 g/t Au in A5-73 near the east end of the prospect, and 3.01% Cu and 0.87 g/t Au over 6.3m in 94-06, near the west end.

In order to better target sulphide mineralization and not just magnetic targets, a gradient IP program was commissioned for the 2006 season. Prior to the commencement of that survey, Sherwood drilled two holes at Ridgetop to characterize the geology to assist in interpreting the geophysical data. The IP survey is currently in progress and results will be integrated with other Minto exploration data over the winter in preparation for a 2007 exploration program.

06SWC-104 is the second of the two characterization holes drilled at Ridgetop. It intersected wide intervals of foliated granodiorite (the favourable host rock for the main deposit and Area 2) with anomalous to interesting mineralization, including a relatively shallow intersection starting at 43.8m down the vertical hole where a 2.0m (6.6ft) section returned 0.98% Cu and a substantially thicker but much deeper interval starting at 212m down the hole which returned 0.65% Cu over 12m (39.4ft). Based upon the current understanding of Ridgtop, this hole was located approximately 50 metres east of the favourable targets.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. As announced on July 10, 2006 and updated August 28, 2006, Sherwood has completed a feasibility study for the development of the Minto Project as a high grade, open pit copper-gold mine, which study demonstrated robust returns. Sherwood has engaged its engineering, procurement, construction management, mining and general contractors for the development of a mining operation at Minto. Development is now well underway and production is forecast to commence in the second quarter of 2007.

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.

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 Minto project site are carried out under the supervision of Brad Mercer, P. Geol., Exploration Manager with Sherwood.

The analytical method for the copper, gold and silver analyses is multistage acid digestion of the samples followed by atomic absorption spectroscopy for copper and fire assay with atomic absorption spectroscopy finish for gold and silver carried out by ALS Chemex in North Vancouver. When visible gold is noted in drill core samples or regular fire assay values appear abnormally high, the pulp and screen metallic assay method is used to determine the total gold content and gold contents of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. This determination is accepted as the most representative value and is used in the assay database for resource calculations. Blank and standard samples are used for quality assurance and quality control, and any check samples that assay outside the expected ranges results in the entire batch being re-assayed. After the completion of planned drill programs at Minto, random check assays will be carried out by Acme Analytical of Vancouver.

Assay intervals reported herein are drill core lengths unless otherwise stated. Because the deposit is essentially flat lying and most drill holes reported to date are vertical, true widths are generally expected to be the same as reported core lengths.

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.



Details of Drill Results
To accompany Sherwood Copper News Release Dated September 11, 2006

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Inter- Inter- Cop- Sil-
From To val val per Gold ver
Hole ID Interval ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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AREA 2
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06SWC-105 Assays Pending
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06SWC-106 Interval 1 110.8 124.3 13.5 44.3 1.46 0.51 4.1
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And Interval 2 242.5 253.5 11.0 36.1 1.09 0.53 4.2
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06SWC-107 Assays Pending
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06SWC-108 Interval 1 121.3 132.0 10.7 35.1 0.66 0.08 1.4
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And Interval 2 148.9 162.4 13.5 44.3 2.01 0.82 6.4
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Including 156.4 162.4 6.0 19.7 2.63 1.20 9.8
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06SWC-109 Assays Pending
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06SWC-110 Assays Pending
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06SWC-111 Assays Pending
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06SWC-112 Interval 1 100.0 116.0 16.0 52.5 1.78 0.80 5.8
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Including 106.6 116.0 9.4 30.8 2.22 1.03 7.8
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06SWC-113 Interval 1 97.3 101.9 4.6 15.1 0.89 0.14 3.3
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And Interval 2 114.0 122.8 8.8 28.9 0.67 0.05 1.2
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And Interval 3 142.5 159.7 17.2 56.4 1.42 0.56 5.9
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Including 142.5 149.5 7.0 23.0 2.16 1.03 9.5
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06SWC-114 Assays Pending
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06SWC-115 Assays Pending
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06SWC-116 Assays Pending
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06SWC-117 Interval 1 47.0 51.7 4.7 15.4 5.36 1.91 29.6
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And Interval 2 94.4 101.9 7.5 24.6 0.51 0.21 1.9
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06SWC-118 Assays Pending
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06SWC-119 Assays Pending
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06SWC-120 Assays Pending
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06SWC-121 Assays Pending
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06SWC-122 Assays Pending
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06SWC-123 Assays Pending
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06SWC-124 Assays Pending
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06SWC-125 Assays Pending
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06SWC-126 Assays Pending
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06SWC-127 Assays Pending
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06SWC-128 Assays Pending
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06SWC-129 Assays Pending
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06SWC-130 Assays Pending
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06SWC-131 Assays Pending
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06SWC-132 Assays Pending
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06SWC-133 Assays Pending
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06SWC-134 Assays Pending
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06SWC-135 Assays Pending
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06SWC-136 Assays Pending
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06SWC-137 Assays Pending
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06SWC-138 Assays Pending
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06SWC-139 Assays Pending
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06SWC-140 Assays Pending
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06SWC-141 Assays Pending
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06SWC-142 Assays Pending
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06SWC-143 Assays Pending
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06SWC-144 Assays Pending
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06SWC-145 Assays Pending
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06SWC-146 Assays Pending
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06SWC-147 Assays Pending
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06SWC-148 Assays Pending
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06SWC-149 Assays Pending
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06SWC-150 Assays Pending
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06SWC-151 Assays Pending
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06SWC-152 Assays Pending
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06SWC-153 Assays Pending
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06SWC-154 Assays Pending
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06SWC-155 Assays Pending
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06SWC-156 Assays Pending
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06SWC-157 Assays Pending
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06SWC-158 Assays Pending
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06SWC-159 Assays Pending
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06SWC-160 Assays Pending
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06SWC-161 Assays Pending
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06SWC-162 Assays Pending
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06SWC-163 Assays Pending
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06SWC-164 Assays Pending
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06SWC-165 Assays Pending
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06SWC-166 Assays Pending
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06SWC-167 Assays Pending
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06SWC-168 Assays Pending
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Other Areas
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DEFNW
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06SWC-86 Interval 1 129.4 133.9 4.5 14.8 0.37 0.03 1.6
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And Interval 2 138.4 141.3 2.9 9.5 0.50 0.10 1.5
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DEF
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06SWC-89 No Significant Intersections
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Ridgetop
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06SWC-104
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Interval 1 43.8 45.8 2.0 6.6 0.98 0.08 2.0
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And Interval 2 212.0 224.0 12.0 39.4 0.65 0.32 2.5
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Interval 3 240.8 246.8 6.0 19.7 0.41 0.12 1.7
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Contact Information

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