Sherwood Copper Corporation
TSX VENTURE : SWC
TSX VENTURE : SWC.DB

Sherwood Copper Corporation

June 05, 2008 17:35 ET

Sherwood Copper Holds Successful Annual Meeting & Reports on Strategic Objectives

High grade Minto copper-gold mine performing well and Kutcho copper project advances

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) reported the results of its Annual General Meeting of shareholders, where all resolutions put before shareholders were approved. Re-elected to the board of directors were Stephen Quin, President & CEO, Bruce McLeod, Chairman, Larry Bell, Colin Benner, Jim Crombie, John Gammon and Roy Hudson. Ray Antony did not stand for re-election and Sherwood expressed its appreciations for his years of invaluable service to the company both as a director and chair of the audit committee, a role assumed by Larry Bell subsequent to the meeting.

Strategic Plans

Following the meeting, Stephen Quin, President & CEO, laid out Sherwood's strategic objective, which is to become a profitable intermediate base metal producer by:

- Fully optimizing its existing assets through a relentless pursuit of value;

- Using exploration to fuel growth from within;

- Take advantage of exploration success to support a cycle of reserve increases and production expansions;

- Using mergers and acquisitions to accelerate growth.

With the high grade Minto copper-gold mine in the Yukon running at design capacity, Sherwood is now focussed on pursuing value opportunities through the optimization of the operations, focusing on increasing throughput and performance above the design levels achieved and reducing costs. Current and near term opportunities include a rescheduled open pit mine plan (discussed in the May 30, 2008 press release), pushing throughput above design of 2,400tpd (which opportunity has been demonstrated by running the plant at above 3,400tpd on occasion), installation of a gravity plant to recover native gold and connection to grid power later in 2008 to lower costs.

In addition to optimizing the main deposit at Minto, Sherwood aims to continue its aggressive exploration program to continue defining additional high grade copper-gold deposits, such as the discovery and definition of the Area 2 deposit in 2006, the discovery of the Area 118 deposit and the definition of the Ridgetop deposit in 2007, and the discovery of several additional mineralized areas awaiting further exploration. Area 2, Area 118 and Ridgetop are currently undergoing definition drilling.

Rapid advancement of new areas from discovery through resource definition and into reserves (in 18 months for Area 2) provides opportunities to rapidly translate exploration success into production growth. Sherwood aims to continue its strategy of demonstrating and implementing incremental increases in production, as with the Area 2 deposit which was converted to reserves in a pre-feasibility study (as reported on December 12, 2007) and which is in the process of being permitted for production. Sherwood is currently drilling Area 118 and Ridgetop to standards that could support conversion to reserves should these deposits prove economic. The objective is to provide the next round of production growth, as well as following up on some of the other discoveries and targets identified in 2007 such as Airstrip, Copper Keel and others, to introduce additional prospects into the exploration pipeline. Sherwood's objective for the Minto Mine is to sustain production levels of 60-70 million pounds of copper production per annum, plus significant gold and silver by-products for a minimum of 8-10 years. This objective of increased production is supported by the ability to significantly increase mill throughput (to 3,500tpd or more) with minimal capital investment.

In order to accelerate growth for Sherwood beyond that set out above for the Minto Mine, Sherwood is looking to mergers and acquisitions to both increase and accelerate its production growth profile. The recently completed acquisition of the high grade Kutcho copper project in NW British Columbia is an example of that strategy being implemented. Sherwood is in the process of completing a NI43-101 compliant Preliminary Economic Assessment ("PEA") on the main deposit at Kutcho, targeting near term production of approximately 50 million pounds of copper per year, with significant by-product zinc, silver and gold. The PEA only focuses on part of one of the three known deposits at Kutcho, and Sherwood aims to subsequently evaluate options for the significant additional resource in the other deposits, as well as resuming exploration on the balance of the property.

Beyond the Kutcho acquisition, Sherwood continues to evaluate merger and acquisition opportunities on more advanced projects or currently producing companies that could increase its contemplated production profile, and potentially even add production ahead of the start of any mine at Kutcho.

Readers of this press release should note that the implementation of a number of the objectives set out herein, including the expansion of the Minto Mine and development of a new mine at Kutcho, are dependent on the successful completion of further technical studies and/or permitting, and both projects will involve continued stakeholder consultation, especially with local First Nations, to whom Sherwood intends to deliver meaningful benefits resulting from the successful operation of these mines.

A copy of the presentation given at the Annual General Meeting is available on the company's website.

About Sherwood Copper

Sherwood Copper's objective is the profitable production of base and precious metals from high grade, open pit mines in Canada. Sherwood's first operating mine, the high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. Aggressive exploration on the Minto property has yielded significant success, providing Sherwood the opportunity to 'grow from within' by expanding the resource and reserve base, potentially leading to further production increases. To further accelerate its production growth, Sherwood intends to pursue merger & acquisition opportunities that fit its business model and, in May 2008, Sherwood acquired 100% ownership in Western Keltic Mines, owner of the high-grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Sherwood expects to lever off its successful development of the Minto Mine and rapidly advance the Kutcho project to a production decision.

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

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed form time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

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 - Investor Contact
    Stephen P. Quin
    (604) 687-7545
    or
    Sherwood Copper Corporation - Investor Contact
    Brad Kopp
    (604) 687-7545
    (604) 689-5041 (FAX)
    Website: www.sherwoodcopper.com