Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

December 18, 2006 07:00 ET

Sherwood Copper Corporation: High Grade Copper-Gold Drill Intercepts from Area 2, Minto Project, Yukon

5.1% Copper & 2.6g/t Gold over 8.1m within 13.4m interval of 3.4% Copper & 1.7g/t Gold in 06SWC-146

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 18, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced assay results for nine more Area 2 drill holes, including exceptionally high gold and silver grades in bornite-rich mineralization on the northwest, close to the main Minto pit.

"These exceptionally high copper and gold values associated with bornite-rich mineralization are very reminiscent of the high grade core of the main Minto deposit," said Stephen Quin, President and CEO of Sherwood. "This style of mineralization is what drives the economics of the main Minto deposit and contributes to the overall robustness of the project. We are pleased to see a zone of this same type of mineralization developing at Area 2 and look forward to receiving more assays from this area early in the New Year," he said.

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



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Hole ID Interval From To Interval Interval Copper Gold Silver
(m) (m) (m) (ft) (%) (g/t) (g/t)
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06SWC-146 Interval M 155.0 168.4 13.4 44.0 3.41 1.68 12.4
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Including 155.0 163.1 8.1 26.6 5.12 2.60 19.0
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06SWC-142 Interval L 85.1 96.8 11.9 38.7 3.59 1.99 14.4
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Including 85.1 91.0 5.9 19.4 4.34 2.30 17.6
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06SWC-136 Interval M 158.0 164.1 6.1 20.0 2.85 1.14 8.8
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06SWC-134 Interval M 147.2 159.2 12.0 39.4 2.03 0.80 4.9
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These results include assays for drill holes in the northwest portion of Area 2 where relatively high concentrations of the copper-rich mineral bornite were logged in drill core. The copper-sulphide mineral 'bornite' is an important ore constituent in the main Minto mineral reserve, where it tends to contain more gold, has better precious metal recoveries and produces a higher grade copper concentrate than chalcopyrite-dominated mineralization. Sherwood will be evaluating the recoveries and concentrate grades for Area 2 as part of the Pre-feasibility Study underway for Area 2.

Area 2 Drill Results

Included in this release are results for nine additional Area 2 drill holes, bringing the total number of holes at Area 2 with released results to 57 of 79 holes completed. Due to a significant backlog at the assay lab, holes are not necessarily being assayed in order and results are still pending for 22 more holes from Area 2 (including several from the high-grade, bornite-rich northwest portion) plus two holes from other exploration targets. The remaining results are expected early in the New Year.

Drill results to date from Area 2 typically intercept what Sherwood geologists have designated as Area 2 Interval M. Locally, Interval M separates into two sub-intervals separated by waste. The composite of Interval M has comparable grades, thicknesses and depths of burial to that of the main Minto deposit currently being developed as an open pit mining operation. In addition to Interval M, there may be one or more high to moderate grade horizons above Interval M (Intervals K and L) while multiple, additional zones of low to high grade mineralization lie below Interval M and present additional resource opportunities (Intervals N, O, P, Q, etc.).

Located in the south central core of Area 2, hole 06SWC-142 was drilled to infill a gap in drilling and to increase the confidence level for resource modelling in a high grade area at relatively shallow depths in Interval L and moderate grade mineralization at moderate depths in Interval M. Starting at 85.1m down a vertical drill hole, an Interval L intercept of 11.9m (38.7ft) grades 3.59% Cu and 1.99g/t Au, including an impressive 5.9m (19.4ft) of 4.34% Cu and 2.30g/t Au. At 142.7m down the hole is a 12.0m (39.4ft) wide Interval M which grades 1.62% Cu and 1.05g/t Au.

Located in the northwest corner of the current drill perimeter starting at 155.0 metres down vertical hole 06SWC-146 is an intersection of main zone (Interval M) measuring 13.4m (44.4ft) and grading 3.41% Cu plus 1.68g/t Au. The top 8.1m (26.6ft) of this zone grades an impressive 5.12% Cu and 2.60 g/t Au. 06SWC-146 lies approximately 30 metres northwest of a previously released hole, 06SWC-140 which intersected a main zone interval comprised of nearly the exact same thickness at 13.6m (44.6ft) . It was also high grade, at 2.4% Cu and 1.00 g/t Au with a sub-interval of 4.6m (15.1ft) grading 3.36% Cu and 1.28 g/t Au.

Hole 06SWC-134, on the same northwest-southeast oriented cross-section, is located approximately 28m southeast of 06SWC-140 and 58m southeast of 06SWC-146. Similar to 06SWC-146, it intersected a near identical thickness of main zone mineralization grading 2.03% Cu and 0.80g/t Au over 12.0m (39.4ft) .

Located approximately 32m to the southwest of 06SWC-146, on the adjacent geological cross-section, is 06SWC-136. It also intersected a high grade main zone interval grading 2.85% Cu and 1.14 g/t Au over 6.1m (20.0ft) .

Located approximately 58m east of 06SWC-146, hole 06SWC-129 intersected good thicknesses of both Interval L and Interval M indicating that these zones remain open in that direction. However, both holes graded less than 0.5% copper. Located 23m southwest of 06SWC-146, hole 06SWC-130 did not intersect significant mineralization. More drilling is required in both areas to determine the significance of these holes.

Holes 06SWC-139; -141; -143 are all located at the extreme east perimeter of drilling where they all intersected either relatively thick but low grade mineralization or higher grade but relatively narrow intervals of mineralization. The mineralized system appears to be petering out in that direction, but more drilling is required.

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://www.ccnmatthews.com/docs/dsher1218.jpg. Drill cross-sections will be added to Sherwood's website at a future date.

Payment of Fees through Share Issuance

Pursuant to arrangements entered into over the past 12 months, Sherwood has reached an agreement with two arms length, independent consultants whereby Sherwood will issue a total of 30,700 common shares to the consultants in return for services provided by the Consultants valued at $95,000.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory, Canada. 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 of operations. Mine construction is substantially advanced and Construction Manager JDS Energy & Mining is supervising development activities, with Hatch providing engineering and procurement services. Clark Builders has been retained as general contractors and is constructing the process and related facilities, Pelly Construction is completing the contract mining and numerous other contractors have been engaged for specialized areas of activities. Development activities at the Minto Project are proceeding rapidly and production is forecast mid-2007, with an accelerated schedule targeting start up in Q2, 2007. Project financing and forward sales agreements for a significant portion of the first four years of production were announced October 26, 2006.

Sherwood Copper

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.

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 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
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To accompany Sherwood Copper News Release Dated December18, 2006
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Hole ID Interval From To Interval Interval Copper Gold Silver
(m) (m) (m) (ft) (%) (g/t) (g/t)
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AREA 2
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06SWC-129 Assays Pending
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06SWC-129 Interval L 80.3 93.2 12.9 42.3 0.41 0.03 0.8
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Interval M 139.2 144.6 5.4 17.7 0.30 0.11 1.2
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06SWC-130 No significant intersections
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06SWC-131 Previously Released
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06SWC-132 Previously Released
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06SWC-133 Previously Released
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06SWC-134 Interval L 97.2 101.7 5.5 18.0 0.70 0.04 1.2
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Interval M 147.2 159.2 12.0 39.4 2.03 0.80 4.9
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06SWC-135 Previously Released
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06SWC-136 Interval M 158.0 164.1 6.1 20.0 2.85 1.14 8.8
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Interval N 169.8 174.0 4.2 13.8 1.43 0.53 5.7
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06SWC-137 Previously Released
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06SWC-138 Previously Released
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06SWC-139 Interval L 37.2 59.6 22.4 73.5 0.37 0.12 1.3
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Interval M 94.5 100.9 6.4 21.0 0.64 0.22 2.3
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06SWC-140 Previously Released
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06SWC-141 Interval K 4.9 16.5 11.6 38.1 0.51 0.09 1.8
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Interval L 41.8 46.3 4.5 14.8 0.42 0.13 1.3
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? 81.8 82.4 0.6 2.0 3.76 1.68 15.0
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Interval M 92.0 98.7 6.7 22.0 0.98 0.32 3.2
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06SWC-142 Interval L 85.1 96.8 11.9 38.7 3.59 1.99 14.4
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Including 85.1 91.0 5.9 19.4 4.34 2.30 17.6
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Interval M 142.7 154.7 12.0 39.4 1.62 1.05 5.4
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Interval N 169.1 172.4 3.3 10.8 1.80 0.66 5.2
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Interval O 219.9 235.2 15.3 50.0 0.29 0.07 0.6
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Interval P 253.1 265.5 12.4 40.7 0.56 0.14 1.5
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06SWC-143 Interval L 25.2 38.1 12.9 42.3 0.31 0.07 1.1
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Interval M 83.8 84.6 0.8 2.6 1.49 1.01 8.3
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Interval N 117.0 117.7 0.7 2.3 1.17 0.11 1.7
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06SWC-144 Assays Pending
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06SWC-145 Assays Pending
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06SWC-146 Interval L 91.1 98.6 7.5 24.6 0.89 0.09 1.4
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Interval M 155.0 168.4 13.4 44.0 3.41 1.68 12.4
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Including 155.0 163.1 8.1 26.6 5.12 2.60 19.0
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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 Previously Released
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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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Contact Information

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