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

Sherwood Copper Corporation

May 01, 2008 07:00 ET

Sherwood Copper's Western Keltic Starts 2008 Drilling at Kutcho Copper Project

Drill Program part of an overall strategy to rapidly demonstrate robust project economics

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) and its 93% owned subsidiary, Western Keltic Mines Inc. (TSX VENTURE:WKM), today announced the start of a major drill program on Western Keltic's Kutcho copper-zinc project in Northwest British Columbia. The objectives for this drill program include (a) better definition of the higher grade, shallower mineral resources to support a feasibility study that will focus on higher grades in the early years of a proposed open pit mining operation and (b) collection of samples for feasibility level metallurgical test work of a simplified, lower cost, conventional flotation recovery circuit.

"Less than a month from assuming management and control of Western Keltic, we have two drills on site and drilling has commenced," said Stephen Quin, President & CEO of Sherwood Copper and Western Keltic. "We aim to rapidly push the re-scoping and redesign of the Kutcho Copper Project to demonstrate robust project economics that could justify the development of a profitable mine. In parallel with the current drill program we are working with our consultants to scope out a smaller, higher grade mining operation that can be developed faster and at a lower capital cost than previously proposed, using an approach more akin to our successful development of our high grade Minto copper-gold mine in the Yukon."

Kutcho Copper Project

Western Keltic's Kutcho Copper Project hosts three known polymetallic base metal volcanogenic massive sulphide ("VMS") deposits. The combined National Instrument 43-101 compliant (Measured & Indicated categories) mineral resource was reported to total 17.69 million tonnes grading 1.71% copper, 2.36% zinc, 27.5g/t silver and 0.34g/t gold (see Western Keltic news release dated June 25, 2007 for additional details and disclosure). The bulk of this resource is contained in the partially outcropping Main Deposit, which contains 15.65 million tonnes grading 1.65% copper, 2.15% zinc, 26.1g/t silver and 0.32g/t gold in the Measured & Indicated categories. The Main Deposit resource at Kutcho is comparable to the Measured and Indicated resource at Sherwood's Minto Mine, which totalled 16.56 million tonnes grading 1.54% copper, 0.56g/t gold and 6.0g/t silver (see Sherwood news release dated December 12, 2007 for additional details and disclosure), based on drilling to the end of 2006.

Sherwood, through Western Keltic, is actively re-evaluating and re-scoping the Kutcho Project with the objective of repeating Sherwood's development and operating successes at the Minto Mine at the newly acquired Kutcho Project. Sherwood is working to redesign and optimize the previous owner's development plan into a more robust combination of a high grade open pit mine with a fit-for-purpose mill and infrastructure, while minimizing capital and operating costs and the development timeline, resulting in a more robust project able to take advantage of the current commodity cycle.

Sherwood's consultants, SRK Consulting (Canada) Inc. are preparing a Preliminary Economic Assessment (PEA) on the redesigned and re-scoped Kutcho project, which should be complete by mid-2008. As with Sherwood's prior rapid advancement of its Minto project to production, Western Keltic's new management aims to run multiple activities in parallel in order to reduce the total time to commercial production. Hence the drill program to support feasibility related activities has been commenced prior to the completion of the PEA. Sherwood will continue to look for avenues to accelerate the development of the Kutcho project into an operating mine, to the benefit of all stakeholders.

2008 Drill Program

Over the next three months, Western Keltic plans to drill a minimum of 12,000m of HQ and NQ core utilizing two drills. The principal objectives of the drill program are to:

- Infill gaps in previous resource drilling programs;

- Better define and test higher grade trends for expansion within the Main Deposit;

- Demonstrate grade continuity in order to support a better resource classification;

- Provide material for extensive metallurgical testing that will relate to a revamped mine plan;

- Provide geotechnical and hydrogeological information for open pit design and for assessment of infrastructure locations;

- Provide information to support project permitting activities and to develop a mine closure plan.

Western Keltic Board and Officer Changes

Following Sherwood's acquisition of 93% of Western Keltic, the board of directors of Western Keltic was reconstituted to comprise Stephen P. Quin, President & CEO of Sherwood Copper, D. Bruce McLeod, Executive Chairman of Sherwood Copper and John Hick, an independent director continuing from the prior board. As previously announced in a March 10, 2008 press release, the new board either terminated the employment or accepted the resignation of all Western Keltic's officers and appointed Stephen P. Quin as President, Richard Godfrey as Chief Financial Officer and Brenda Nowak as Corporate Secretary.

About Sherwood Copper

Sherwood Copper's current focus is 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 March 2008, Sherwood acquired more than 93% ownership in Western Keltic Mines, owner of the high-grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Sherwood aims to repeat its successful development of the Minto Mine at the Kutcho project.

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

On behalf of the board of directors

WESTERN KELTIC MINES INC.

Stephen P. Quin, President

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