Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

January 23, 2006 09:00 ET

Sherwood Discovers High Grade Copper & Gold Mineralization North of Minto Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) -

New Drill Program Focused on Increasing Gold Grades to Commence at End of January

Sherwood Copper Corporation (TSX VENTURE:SWC) today announced the final assay results from the 2005 resource confirmation and expansion drill program carried out at the 100% owned, high-grade Minto copper-gold project in the Yukon. Most of these last holes were drilled for geotechnical purposes and were not targeted at mineralization but some nevertheless intersected the mineralized horizon, including a high grade intercept in hole 05SWC-049 north of the DEF fault, which was previously thought to be the northern limit to mineralization in the vicinity of the deposit.

Highlights of the final drill results are provided below and full results are attached.



Inter- Inter-
Hole Hole From To val val Copper Gold Silver
ID Type (m) (m) (m) (feet) (%) (g/t) (g/t)
--------- -------- ----- ----- ----- ----- ------ ----- ------
05SWC-039 Confir- 53.6 86.0 32.4 106.3 1.25 0.68 5.2
mation
Including 63.5 72.8 9.3 30.5 2.01 1.32 8.5
And 79.9 86.0 6.1 20.0 2.46 1.30 11.9
05SWC-040 Step-out 95.0 113.8 18.8 61.7 0.98 0.46 3.2
Including 101.0 110.0 9.0 29.5 1.35 0.71 4.6
05SWC-047 Geo- 104.9 113.8 8.9 29.2 2.26 1.75 10.1
technical
05SWC-049(i) Geo-
technical 93.7 99.1 5.4 17.6 3.59 2.56 22.2

(i) Intercept north of DEF fault


Results continue to confirm the previous resource estimates, while gold grades continue to be higher than indicated from the 1970's drilling. As announced December 19, 2005, an additional 12-15 drill hole program will commence at the end of January with the objective of confirming higher gold grades in the northern third and highest grade portion of the Minto deposit not tested in the summer of 2005. Results from the February 2006 drilling will be included in an updated resource estimate for use in the feasibility study currently underway.

"The confirmation and step out drill holes continue to demonstrate the strength and upside potential of the high grade Minto copper-gold project," said Stephen Quin, President & CEO of Sherwood. "The high copper and gold values intersected north of the DEF fault are very encouraging and open up new exploration opportunities for evaluation over the coming months. In the meantime, we are looking forward to seeing the results of the upcoming drill program - higher gold grades across the untested portion of the deposit could further enhance an already robust deposit."

2005 Drill Program

The 2005 drill program was designed with three objectives: (1) to independently confirm the existing resource, (2) to upgrade most of the approximately 8% of inferred resource within the proposed pit boundaries to the indicated category and (3) to expand the overall resource on the margin of the existing resource. Approximately 6,772m of drilling were completed in 2005 in 57 drill holes. Included in the total number of holes drilled are nine geotechnical holes drilled to assist in pit optimization work, some of which intersected mineralization even though their primary purpose is characterizing rock quality in the proposed pit walls.

Holes 05SWC-037 & -040 were step-out holes on the southwest margin of the deposit, and indicate the mineralization remains open in that direction, while hole 05SWC-039 was an in fill hole in the area of Minto Creek and confirms the continuity of mineralization in that area. Drill hole 05SWC-041 was a geotechnical hole drilled outside the mineralization to test a suspected structure along the western boundary of the deposit and which intersected moderate grade copper mineralization over a significant thickness near the boundary of the current resource. Holes 05SWC-042 to -045 are geotechnical holes to test overburden characteristics while holes 05SWC-046 to -049 are geotechnical holes designed to test pit wall areas. Only holes 05SWC-047 & -049 were also intended to continue into the mineralized horizon.

The high grade intersection in 05SWC-49 is a partially oxidized, sulphide-rich intersection that lies north of the DEF fault, which is the north boundary of the main deposit. It sits at a higher elevation than the main deposit and is not contiguous with it. It may constitute a new exploration target; however there is insufficient drilling in this region to be able to fully assess the significance of this new intersection. An historical drill hole (2.85% Cu over 1.4m) located approximately 60 metres west of 05SWC-49 appears to correlate with this intercept. The mineralization is open to the east.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. In the late 1990's, a feasibility study was completed by prior owners, permits obtained and construction of an open pit mine commenced. Construction was suspended after expenditures of approximately $10 million, due to depressed copper prices. During that period, the mill foundations were poured, the ball and SAG mills purchased and moved to site, the mine accommodations constructed and the site was connected to a permitted Yukon River crossing by a 29km production standard access road. All of this infrastructure has been well maintained and would be available for future operations. The Type A and Type B Water Licences were recently renewed and permit a resumption of construction once a production decision has been made.

As announced June 27, 2005, prior to the 2005 drill program, the Minto Project contained measured and indicated resources of 9.2 million tons at a grade of 1.8% copper, 0.016oz/t gold and 0.2oz/t silver, and an additional inferred resource of 0.8 million tons grading 1.4% copper, 0.013oz/t gold and 0.2oz/t silver. The mineral resources for the Minto Project were estimated by Giroux Consulting. Gary Giroux, P.Eng. is the Qualified Person under National Instrument 43-101 responsible for the estimate.

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. Geo., 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 a gravimetric finish for gold and silver carried out by ALS Chemex in North Vancouver. Blank and standard samples are used for quality assurance and quality control, and all check samples were within expected ranges. Check assays are carried out by Acme Analytical of Vancouver.

Assay intervals reported are drill core lengths. 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. The intent of this last phase of 2005 drilling was to garner geotechnical information for pit wall stability and several holes were angled to cross planned open pit walls. Nevertheless some of these angled holes did intersect mineralization so the table below reports the estimated true thicknesses as well as the core interval.

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.



Sherwood Copper Corporation
---------------------------
Table of Results to Accompany News Release #06-02

Inter-Inter-
Hole Hole From To val val Copper Gold Silver
ID Type (m) (m) (m)(feet) (%) (g/t) (g/t)
--------- -------- ----- ----- ----- ----- ------ ----- ------
05SWC-037 Step-out 90.8 104.0 13.3 43.6 0.67 0.26 2.3
05SWC-039 Confir- 53.6 86.0 32.4 106.3 1.25 0.68 5.2
mation
Including 63.5 72.8 9.3 30.5 2.01 1.32 8.5
And 79.9 86.0 6.1 20.0 2.46 1.30 11.9
05SWC-040 Step-out 95.0 113.8 18.8 61.7 0.98 0.46 3.2
Including 101.0 102.5 9.0 29.5 1.35 0.71 4.6
05SWC-041 Step-out 153.5 164.0 10.5 34.4 0.70 0.18 1.8
Including 158.0 164.0 5.9 19.4 0.87 0.30 2.3
05SWC-042 Geo-
technical - overburden test hole for pit slope
characterization
05SWC-043 Geo-
technical - overburden test hole for pit slope
characterization
05SWC-044 Geo-
technical - overburden test hole for pit slope
characterization
05SWC-045 Geo-
technical - overburden test hole for pit slope
characterization
05SWC-046 Geo-
technical - north pit wall -
No significant intersection expected
05SWC-047 Geo-
technical
- west pit
wall 104.9 113.8 8.9 29.2 2.26 1.75 10.1
05SWC-048 Geo-
technical - north pit wall -
No significant intersection expected
05SWC-049 Geo-
technical 93.8(i)99.1(i) 5.3(i) 17.6 3.59 2.56 22.2
And - north pit
wall 132.8 167.3 34.5 113.2 0.46 0.07 1.5
Including 152.3 161.3 9.0 29.5 0.63 0.05 1.55

(i) Intercept is north of DEF fault



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Contact Information

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