Sherwood Copper Corporation

Sherwood Copper Corporation

November 20, 2006 07:00 ET

Sherwood Copper Commences Independent Pre-feasibility Study on Area 2 at Minto Project

Study to Determine Economic Viability of Recently Discovered High-Grade Copper-Gold Mineralization New Drill Hole from Area 2 Returns 5.8% Copper + 3.1g/t Gold Over 6.0m in 06SWC-118

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that it has engaged SRK Consulting (Canada) Inc. to conduct an independent pre-feasibility study on the Area 2 mineralization discovered and drill delineated in 2006. The objective of the pre-feasibility study is to support the definition of a mineral reserve at Area 2. Based on a positive result from this pre-feasibility study, this potential mineral reserve would be incorporated into the production plans for the high-grade Minto copper-gold mine, which is currently being developed for production in 2007. In addition, Sherwood announced results for two additional holes from Area 2, including a 6.0m intercept grading 5.8% copper, 3.1g/t gold and 25.7g/t Ag within a broader 7.9m intercept grading 4.9% copper; 2.7g/t gold and 21.5g/t Ag, reinforcing the high-grade nature of Area 2.

"A pre-feasibility study on Area 2 will allow Sherwood to continue its rapid pace of development at its high-grade Minto copper-gold project," said Stephen Quin, President & CEO of Sherwood Copper. "Our objective is to boost reserves and extend the high-grade mine life of the Minto Project by advancing the newly discovered high grade Area 2 mineralization through a pre-feasibility study over the coming months. The excellent results received to date, such as those released today, clearly demonstrate the presence of a significant quantity of mineralization with similar grades, similar thicknesses and similar depths of burial to the main deposit," he said. "Given that the capital cost would be paid off by the main deposit, we are optimistic that Area 2 could materially enhance the value of the Minto Project."

Area 2 Pre-Feasibility Study

As announced November 2, 2006, drilling at Area 2, immediately south of the high-grade pit currently being developed, has resulted in the discovery a significant body of high-grade copper-gold mineralization with similar grades, similar thicknesses and similar depths of burial to the main pit. While a significant number of drill results remain outstanding, based on the results received to date and visual estimates for the remaining holes, Sherwood has sufficient confidence to launch the process to complete a pre-feasibility study targeting the incorporation of Area 2 into the Minto Mine production plans.

The work program leading up to the completion of the pre-feasibility study will include resource estimation, geotechnical evaluations, mine planning, metallurgical testing, capital and operating cost estimates, environmental assessment and other work, which will be undertaken or supervised by independent consultants SRK Consulting (Canada) Inc. The objective of the pre-feasibility study is to support the definition of a mineral reserve at Area 2 that would be amenable to processing utilizing the infrastructure currently being constructed for the main Minto deposit. The study is targeted for completion around the time production commences from the main deposit. The pre-feasibility study will also evaluate the merits of any potential expansions or re-optimization of what could be two adjacent or even overlapping open pits.

Area 2 Drill Results

Sherwood has received results for two additional drill holes from Area 2, bringing the total number of holes received and released to 50 out of 79 holes completed. Due to a significant backlog at the assay labs, holes are not necessarily being assayed in order. Highlights from the two new drill holes are summarized below.

Inter- From To Interval Interval Copper Gold Silver
Hole ID val (m) (m) (m) (ft) (%) (g/t) (g/t)
O6SWC-118 L 88.7 96.6 7.9 25.9 4.85 2.69 21.5
Including 6.0 19.7 5.81 3.12 25.7
And M 137.1 156.1 19.0 62.3 1.59 0.51 4.3
Including 138.6 147.6 9.0 29.5 2.00 0.60 5.0
And Q 266.7 283.6 16.9 55.4 0.73 0.30 3.5
06SWC-138 M 156.7 168.1 11.4 37.4 2.14 0.89 6.5

06SWC-118 penetrates the west side of the strong magnetic bulls-eye anomaly about which the Area 2 deposit is centered. The very high grade copper-gold intercept in Interval "L" correlates well with other high grade intercepts centered about this magnetic anomaly. The main zone, Interval "M", is very thick, measuring 19 metres in this region, with a substantial sub-interval of 9 metres grading 2% copper.

06SWC-138 is situated near the northwest corner of the drilled area at Area 2 and the main zone intercept (Interval M) is very encouraging since the 11.4 metre intersection grades more than 2.1% Cu and nearly 1g/t gold, with the system still open to the west.

Minto Project Activities

Development activities at the Minto Project are proceeding rapidly, with the mine approaching 40% built, waste pre-stripping approximately 50% complete, and the project on track for the commencement of production in the second quarter of 2007. As announced August 28, 2006, the feasibility study indicates production averaging 41 million pounds of copper and 17,295oz of gold per year at cash costs of US$0.57 per pound over the first six years. Construction Manager JDS Energy & Mining is supervising the development activities, with Hatch providing engineering and procurement services. Clark Builders has been retained as general contractors to construct the process facilities, Pelly Construction is completing the contract mining and numerous other contractors have been engaged for specialized areas of activities.

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 and construction management, mining and general contractors for the development of a mining operation at Minto, all of whom are actively involved in the development of the Minto Mine. Project financing and forward sales agreements for a significant portion of the first four years of production were announced October 26, 2006.


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 developed infrastructure and substantial exploration potential within the current property.

On behalf of the board of directors


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
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corporation
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)