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

Sherwood Copper Corporation

July 17, 2007 07:00 ET

Sherwood Identifies Two Extensive Copper-Gold Systems at Minto Project, Yukon

2.6% Copper over 5.7m (18.7ft) within 32.7m (107ft) interval of 0.9% Copper at surface in 07SWC-183

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today announced results for the first 12 diamond drill holes from the Phase 2 - 2007 exploration program which have resulted in the identification of two significant copper-gold systems at the Ridgetop and Area 118 targets at its Minto copper-gold mine in the Yukon.

Early Phase 2 drilling concentrated on testing the Ridgetop (7 holes) and Area 118 (13 holes) targets. At Ridgetop, located approximately 1km south of the Minto open pit mine, assay results received to date confirm the presence of near surface (3-12m deep) copper-gold mineralization, including chalcocite enrichment zones, over significant thicknesses. At Area 118, located approximately 350m south of the current open pit and immediately adjacent to the Area 2 deposit, drilling and limited assay data received to date confirm an aerially extensive zone of stacked mineralized horizons, similar to those tested last year at Area 2. The newly defined Area 118 mineralization extends over more than 200m by 500m and is open in all directions. With encouraging results from both areas, further work is planned once assay results and interpretations have caught up to the drill progress.

Recent Phase 2 drilling highlights are set out in the table below, while complete 2007 results from Phase 1 and 2 are attached.



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Inter-Inter-
Interval From To val val Copper Gold Silver
Hole ID Target ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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07SWC-181 Ridgetop Unnamed 14.7 27.5 12.9 42.3 0.58 0.86 5.8
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Including 23.1 27.5 4.4 14.4 1.08 2.30 14.7
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07SWC-182 Ridgetop Unnamed 12.2 25.6 13.4 44.0 1.29 0.03 1.4
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07SWC-183 Ridgetop Unnamed 3.1 6.0 2.9 9.5 3.62 0.05 1.9
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and Unnamed 30.1 35.8 5.7 18.7 2.59 0.08 2.4
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Area
07SWC-187 Area 118 118M 195.5 201.1 5.6 18.4 1.04 0.47 3.4
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07SWC-188 Area 118 Unnamed 249.4 255.2 5.8 19.0 2.09 1.47 20.0
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Area
07SWC-191 Area 118 118M 199.4 211.4 12.0 39.4 0.93 0.30 3.4
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Incl-
uding 199.4 203.8 4.4 14.4 1.37 0.45 5.6
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"Results from both of our initial exploration targets at the Minto Mine are proving very encouraging," said Stephen Quin, President and CEO of Sherwood. "At Ridgetop, shallow, wide-spaced exploration holes confirmed our geological assessment of potential for significant zones of near surface copper mineralization, with potential for very low strip ratios. In addition, at Area 118, thirteen very wide spaced reconnaissance drill holes have resulted in the discovery of a potentially extensive new zone of mineralization," he said. "This is early days for both targets, which remain wide open to expansion. Drills will return to these areas once we have all the assays and preliminary interpretations completed. In the meantime we are testing some of our other priority targets," he added.

Phase 2 - 2007 Drill Program

The 2007 Phase 2 drill program is proceeding well, with 25 exploration holes (5,728m) and 5 geotechnical holes (963m) completed to date. Assay results are pending on 18 holes and drilling is currently in progress on the edge of the Area 2 resource and at the IROD target, which is approximately 850m southwest of the main Minto deposit. The 5 geotechnical holes were additions to the program related to the expanded scope of the Area 2 pre-feasibility study and the Minto open pit mine optimization work.

As announced March 5, 2007, the Phase 2 exploration program is the major component of 2007's exploration activities and consists of an expansion of the existing geophysical surveys and more than 60 drill holes (for 13,500m). The objective for the drill program is to (1) expand resources at Area 2 and (2) to aggressively test several other highly prospective multi-anomaly targets (where there are coincident IP chargeability highs, soil geochemical anomalies, magnetic anomalies and positive drill intercepts) such as 'Ridgetop', 'Area 118' and 'Airstrip'. Wide-spaced 1970's drilling in several of these targets intersected significant copper-gold mineralization including drill hole intercepts grading more than 3% copper over at least 5 metres as shown on the attached map (to view the targets please click on: http://www.ccnmatthews.com/docs/swc0717targets.jpg). All the targets to be tested in 2007 are shown on the attached map (to view the IP please click on: http://www.ccnmatthews.com/docs/swc0717ip.jpg) and are discussed in more detail in the March 5 news release. Follow this link to current drill hole locations discussed in this news release (to view the drill hole location map please click on: http://www.ccnmatthews.com/docs/swc0717drillhole.jpg).

Ridgetop

The eastern part of Ridgetop was one of several ASARCO discoveries from the early 1970's not followed up at the time. While the Ridgetop area was the principal focus of ASARCO's exploration efforts in the 1970's, the discovery of the Minto deposit about 1km to the north soon became the focus of exploration activities. Assay data from 1971-72 drilling indicated the potential for thick intervals of near surface, moderate grade copper mineralization, but was not followed up. The ASARCO drill logs indicated that the elevated copper grades were associated with chalcocite enrichment in partially oxidized sulphide mineralization near surface. Similar chalcocite mineralization is found in the southern portion of the main Minto deposit, where it is amenable to conventional flotation, with its high copper content potentially resulting in very high grade copper concentrates. This information led Sherwood to test Ridgetop on a wide spaced, reconnaissance basis.

Seven holes were collared in eastern and south-eastern Ridgetop area to assess this potentially near surface zone of moderate grade copper - gold mineralization since it might be amenable to open pit mining with very low waste to ore strip ratios. The eastern Ridgetop holes were drilled to confirm the thickness and grade of the near surface copper mineralization reported by ASARCO in the 1970's (including 64.4m of 1.12% copper in A11-72). Three Phase 2 drill holes were completed in the north-eastern part of the Ridgetop area to test this near surface mineralization and confirm the presence of supergene-style chalcocite copper enrichment. The thickness (30.5 to 42.5 metres) and shallow depths (3 to 12m below surface) of mineralization intersected in holes 07SWC-182, -183 & -184 is encouraging. The presence of significant amounts of chalcocite was confirmed, and along with historical results, suggests significant potential for future resource gains at shallow depths.

Four drill holes in the south-eastern area of Ridgetop (07SWC-180, -181, -185 & -186) targeted IP chargeability anomalies with mixed results. Two holes (07SWC-185 & -186) intersected fault complicated sections but only geochemically anomalous mineralization. 07SWC-181 returned significant near surface mineralization similar to the north-eastern Ridgetop holes. This latter hole also intersected a higher grade of gold mineralization than expected for the associated copper grade; a subinterval of 4.4 metres graded 2.3g/t gold and 1.08% copper.

Sherwood believes that the shallow mineralization in 07SWC-181 may have been missed in 07SWC-180 because the interval is so near surface and it may have been ground away while collaring the hole, before core drilling commenced.

Area 118

To date 13 exploration holes have been completed at Area 118 within a large area measuring more than 500m by 200m, located immediately adjacent to Area 2 on its southwest margins. Only two historical holes were ever drilled in this area and both holes suggest that the mineralized horizons discovered and tested last year at Area 2 may also be present in the Area 118 region. Sherwood's geologic model suggests that the two areas may in fact be part of the same system, separated by a fault or possibly an open fold hinge. Drilling to date has confirmed the presence of multiple, stacked mineralized horizons over the most aerially extensive target yet identified on the entire Minto property. While assay results are available for only 5 of the 13 drill holes drilled to date, these results support more step-out and infill drilling.

Drilling at Area 118 is targeted on a persistent, north-dipping horizon located between 175 to 215m below surface. Drilling so far typically intersects one or more additional mineralized intervals above this principal horizon, including some very thick intersections of nearer surface but generally more moderate grade mineralization. For example, hole 07SWC-189 cut 42m grading 0.51% copper between 59.7m to 101.7m above the main target horizon.

Highlights of the limited data received to date also include 07SWC-187, where a 5.6m intersection grades 1.04% Cu and 0.47g/t Au. In hole 07SWC-191, a 12.0m section assayed 0.93% copper and 0.30g/t gold, including 4.4 metres grading 1.37% copper and 0.45g/t gold. Hole 07SWC-188 intersected a 5.8m interval below the principal horizon of interest and starting at 249.4 metres grades 2.09% copper and 1.47 g/t gold. This latter intercept is potentially significant since it appears to correlate with a deep, high grade intersection in southern Area 2 (where an ASARCO hole, A137-74 returned an impressive 7.6 metres of 5.29% copper and 2.61g/t gold). Hole 07SWC-188 lies more than 160m to the northwest of A137-74.

Area 2

One drill is currently working at Area 2, testing the west and north perimeters that were not completely closed off in 2006. Three exploration holes have been completed but assays are still pending. In addition to the exploration drilling, three other oriented geotechnical holes were completed to aid in pit wall stability assessment of a potentially much expanded open pit to encompass both the Minto and Area 2 deposits. Two other holes were drilled in the core of the Area 2 deposit to obtain material for Bond Work Index testing of Area 2 ore to assess SAG mill capacity and performance characteristics.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. The mine development is complete and first concentrates were produced at the end of May, 2007. Commissioning and production ramp up is underway and full production is anticipated by the end of the third quarter of 2007.

Sherwood

Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in a high-grade, open pit copper-gold mine located in Canada with tremendous 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. 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 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.



Details of Drill Results
To accompany Sherwood Copper News Release Dated July 17, 2007

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Hole ID From To Interval Interval Copper Gold Silver
& Target Interval ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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AREA 2
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07SWC-169 Minto Main 70.0 92.3 22.3 73.2 1.88 2.99 8.3
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Including 72.0 73.1 1.1 3.6 14.90 46.2 72.7
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07SWC-170 Abandoned due to technical drilling problems penetrating
overburden
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07SWC-171 Unnamed 117.9 123.3 5.4 17.6 0.59 0.12 1.8
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"Gap" Unnamed 228.0 231.3 3.3 11.0 0.55 0.03 1.3
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Unnamed 235.3 239.1 3.8 12.5 0.52 0.06 1.5
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Unnamed 248.4 256.6 8.2 27.0 0.51 0.07 1.0
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Unnamed 314.5 333.9 19.4 63.7 1.03 0.35 4.2
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Including 326.6 331.5 4.9 16.1 2.08 0.75 8.2
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07SWC-172 Minto Main 63.0 91.5 28.5 93.6 2.92 1.22 12.0
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Including 68.2 80.4 12.2 40.1 5.03 1.83 23.3
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07SWC-173 Minto Main 63.1 80.3 17.2 56.3 2.94 1.79 13.7
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Including 71.5 80.3 8.8 29.0 3.44 1.97 7.8
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07SWC-174 Minto Main 10.1 43.4 33.1 108.6
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Not assayed - used for metallurgical test material
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Unnamed 257.8 261.9 5.1 16.8 0.66 0.14 2.5
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Unnamed 329.4 338.2 8.8 28.9 0.64 0.06 2.5
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07SWC-175 Minto Main 61.4 80.9 19.5 64.0 2.64 1.05 9.7
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Including 64.4 68.8 4.4 14.5 4.48 1.89 17.6
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07SWC-176 Unnamed 193.0 196.9 3.9 12.9 0.64 0.11 1.3
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"Gap" Unnamed 291.9 303.6 11.7 38.4 2.95 1.07 7.7
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Including 296.2 302.2 6.0 19.7 3.97 1.49 12.9
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07SWC-177 Minto Main 73.3 77.3 4.0 13.0 1.19 0.58 6.9
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Lower
"Gap" Minto 110.3 115.3 5.0 16.4 0.58 0.13 2.3
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Unnamed 272.3 274.6 2.3 7.6 0.65 0.05 2.0
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Unnamed 348.0 348.5 0.5 1.6 1.12 0.37 5.6
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Unnamed 351.4 354.3 2.9 9.6 0.54 0.10 2.3
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07SWC-178 Interval L 94.1 110.6 16.5 54.1 0.61 0.06 1.4
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"Gap" Interval M 150.9 167.2 16.3 53.4 1.99 0.88 6.4
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Including 150.9 160.5 9.6 31.6 2.76 1.29 8.7
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Interval Q 274.7 284.0 9.3 30.5 1.00 0.24 2.4
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07SWC-179 Geochemically anomalous - no significant intersections
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"Gap"
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07SWC-180 Geochemically anomalous - no significant intersections
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"Ridgetop"
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07SWC-181 Unnamed 14.7 27.5 12.9 42.3 0.58 0.86 5.8
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"Ridgetop" Including 23.1 27.5 4.4 14.4 1.08 2.30 14.7
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07SWC-182 Unnamed 12.2 54.7 42.5 139.4 0.62 0.06 1.2
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"Ridgetop" Including 12.2 25.6 13.4 44.0 1.29 0.03 1.4
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07SWC-183 Unnamed 3.1 35.8 32.7 107.3 0.89 0.03 0.8
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"Ridgetop" Including 3.1 6.0 2.9 9.5 3.62 0.05 1.9
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and 15.9 21.1 5.2 17.1 0.71 0.05 1.5
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and 30.1 35.8 5.7 18.7 2.59 0.08 2.4
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Unnamed 52.8 55.2 2.4 7.9 1.29 0.05 1.0
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07SWC-184 Unnamed 5.0 35.5 30.5 100.1 0.36 0.06 1.7
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"Ridgetop" Including 5.0 11.6 6.6 21.6 0.66 0.03 4.7
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07SWC-185 Geochemically anomalous - no significant intersections
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"Ridgetop"
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07SWC-186 Geochemically anomalous - no significant intersections
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"Ridgetop"
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07SWC-187 Unnamed 66.5 75.4 8.9 29.2 0.48 0.09 1.1
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"Area 118" Unnamed 157.0 158.9 1.8 5.9 1.34 0.02 1.8
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Area 118M 195.5 205.9 10.4 34.1 0.70 0.33 2.6
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Including 195.5 201.1 5.6 18.4 1.04 0.47 3.4
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07SWC-188 Unnamed 52.8 84.4 31.6 103.7 0.49 0.10 1.3
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"Area 118" Area 118M 186.6 196.7 10.1 33.1 0.72 0.19 3.9
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Unnamed 249.4 255.2 5.8 19.0 2.09 1.47 20.0
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07SWC-189 Unnamed 59.7 101.7 42 137.8 0.51 0.07 1.2
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"Area 118" Including 92.5 101.7 9.2 30.2 1.01 0.15 2.3
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Unnamed 135.5 141.7 6.2 20.3 0.53 0.06 1.4
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Area 118M 175.6 176.9 1.3 4.3 1.52 0.47 9.2
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07SWC-190 Unnamed 116.3 119.9 3.7 12.1 0.58 0.05 1.5
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"Area 118" Area 118M 175.3 183.9 8.6 28.2 0.68 0.14 2.7
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07SWC-191 Unnamed 62.5 65.0 2.5 8.2 1.06 0.06 pending
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"Area 118" Unnamed 81.3 99.0 17.7 58.1 0.70 0.16 pending
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Including 88.7 94.5 5.8 19.0 1.06 0.17 pending
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Area 118M 199.4 211.4 12.0 39.4 0.93 0.30 3.4
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Including 199.4 203.8 4.4 14.4 1.37 0.45 5.6
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Contact Information

  • Sherwood Copper Corporation
    Stephen Quin
    President
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Brad Kopp
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Kristy Reynolds
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)
    Website: www.sherwoodcopper.com