Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

March 23, 2006 07:00 ET

Sherwood Intersects Multiple Zones of Copper-Gold Mineralization 350m South of Minto Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2006) -

0.65% Copper & 0.3g/t Gold over 220.3m(a) in 06SWC-068 Including Five Higher Grade Zones Including 2.7% Copper & 2.1g/t Gold over 15.4m, and 1.8% Copper & 0.7 g/t Gold over 22m

Sherwood Copper Corporation (TSX VENTURE:SWC) today announced the results for exploration drill hole 06SWC-068, one of three holes drilled to test an exploration target located 350m south of the main Minto copper-gold deposit. 06SWC-068 intersected five significant zones of copper-gold mineralization over a vertical interval of 220m. Highlights from 06SWC-068 are tabulated below, while the complete results are attached.



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Hole From To Interval Copper Gold Silver
(m) (m) (m) (%) (g/t) (g/t)
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06SWC-68 82.5 302.8 220.39(a) 0.65 0.31 1.16
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Including:
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- Interval 1 82.5 97.9 15.4 2.73 2.13 10.6
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Including 82.5 90.0 7.5 3.85 2.64 16.0
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- Interval 3 194.5 216.6 22.0 1.78 0.70 5.2
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Including 197.5 205.0 7.5 3.68 1.35 10.3
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- Interval 5 290.8 302.8 12.0 1.97 0.68 7.0
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(a) Several intervals within this 220m interval were not assayed and
have therefore been assigned zero grade until additional sampling
has been completed.


"These results dramatically change the exploration outlook for the Minto Project," said Stephen Quin, President & CEO of Sherwood. "The multiple stacked zones of high grade mineralization add up to a very significant copper-gold intercept overall. While there is clearly potential for delineation of several additional high grade zones similar to the Minto Deposit, there may also be potential for a much larger mineralized system not previously recognized." Sherwood plans to follow up these intercepts with additional drilling in April-May 2006, including testing of similar targets to the south of this area.

2006 Exploration Drilling

During February-March 2006, Sherwood completed 4,128.5 metres of drilling in 25 holes: nineteen in-fill holes for gold information within the resource area, five exploration holes and one hole to generate material for grinding tests. The latter hole cannot be assayed due to the destructive nature of the tests. The five exploration holes tested two targets: two holes on a low priority but limited seasonal access target and three holes on a high priority target 350m south of the south end of the planned open pit mine at Minto.

Drill Results

Hole 06SWC-068 was drilled to test a magnetic anomaly approximately 350m south of the main Minto deposit previously labelled Zone 2 (see map at http://www.ccnmatthews.com/docs/swc0323.pdf for hole locations). The target for this hole was a high priority geophysical target which had seen limited drilling in 1971-74, nearly 20 years before the airborne geophysics defined the magnetic anomaly. The airborne magnetic high is similar in magnitude and approximately three-quarters the size of the one corresponding to the Minto deposit. The 1971-74 holes were generally shallow holes (110-199m), with the exception of A108-74 and A138-74 which were drilled to depths of approximately 288m and 335m, respectively, and intersected the same geologic horizons as 06SWC-068 but was only sporadically sampled. All five past drill holes near the Zone 2 magnetic anomaly intersected significant copper-gold mineralization over several intervals, including intervals ranging up to 18m thick and grading 1.3% copper, with the highest grade intercept averaging 2.87% copper and 0.5g/t gold over 6.25m. Additional details on some of these intercepts are attached.

06SWC-068 intersected mineralization over 220 metres, which interval includes five significant zones of higher grade mineralization. Much of the intervening material in between these zones is low grade to anomalous in copper. Bornite mineralization was logged in intervals throughout the hole and is analogous to the bornite-gold mineralization in the main deposit. Within the 220m section of hole, three intervals of 7m, 11.5m and 25m were not sampled but will be when geologic crews return to site in April. Oxidation levels in the hole were negligible.

Comparison with 1970's Drilling

While the accuracy of the 1971-74 survey data is not certain, it would appear that the upper mineralized zones correlate from hole 06SWC-068 to those in 1971-74 holes 50m to 100m away, suggesting potential for continuity of higher grade zones across significant distances. Unfortunately, the 1971-74 core was destroyed in forest fires and therefore these intervals cannot be verified nor the intervening unsampled material assayed. Experience with following up 1973-74 holes within the main Minto deposit has generally shown copper grades to be approximately similar to modern drilling, but gold grades were often underestimated due to lack of assaying and the less accurate assay methods used. In addition, 1970's drill holes are invariably under-sampled, omitting significant bornite-related mineralization, as indicated by wider intervals in surrounding holes with more comprehensive sampling. Nevertheless, the available assay data confirms potential for the development of significant additional high grade copper-gold mineralization south of the main Minto deposit.

Potential below Open Pit

Deep drilling under the main Minto deposit is limited; only 5 holes penetrate deeper than 100m below the proposed pit bottom, four of which contain intercepts ranging from 0.4% copper over 33m to 2.0% copper over 10m, and only two holes went more than 150m below the pit bottom. Sampling in these 1971-74 drill holes is sporadic and, as noted above, may have inadequately sampled potential mineralization. The results of hole 06SWC-068 suggest that deeper drilling may be warranted under the proposed Minto pit, in order to determine whether similar stacked zones of mineralization may exist in this area as well.

Outlook

All remaining assays for the infill drill program are expected to be available within approximately one week, in time to be incorporated into an updated resource model in the pending feasibility study. Sherwood is considering another round of infill drilling in late April and May to further define and upgrade the high-grade bornite-rich core area of the resource post-feasibility study, but pre-production, to assist in mine plan optimization.

Upon completion of the current feasibility study, Sherwood intends to focus on exploration in areas both north and south of the planned open pit mine, as well as conducting a possible gold-focussed program within the current resource limits. Follow-up drilling on the Zone 2 target tested by 06SWC-068, as well as several other similar magnetic anomalies (including at least four with limited historical drilling predating the airborne geophysical survey) will be given the highest priority.

Three dimensional geological compilation of data from all areas with prior drilling is ongoing in order to identify other possible targets that have not been adequately followed up. With excellent access and close proximity of exploration targets to the Minto process plant site, Sherwood is well positioned to rapidly advance any new discoveries.

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 were purchased and moved to site, the mine accommodations were 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. Sherwood recently commenced mobilization of a mining contractor to site to begin waste stripping, and it has also selected its preferred EPCM and general contractors for the construction of a mining operation at Minto.

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. 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 all check samples were within expected ranges. Check assays are carried out by Acme Analytical of Vancouver.

Assay intervals reported herein 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.

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 March 23, 2006

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Hole ID Interval ID From To Interval Copper Gold Silver
(m) (m) (m) (%) (g/t) (g/t)
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06SWC-68 82.5 302.8 220.3(a) 0.65 0.31 1.2
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including Interval 1 82.5 97.9 15.4 2.73 2.13 10.6
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including 82.5 90 7.5 3.85 2.64 16.0
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And Interval 2 133.1 149.5 16.4 1.37 0.46 3.5
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And Interval 3 194.5 216.6 22.0 1.78 0.70 5.2
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Including 197.5 205.0 7.5 3.68 1.35 10.3
-----------------------------------------------------------------------

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And Interval 4 262.0 273.7 11.7 0.7 0.36 2.5
-----------------------------------------------------------------------

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And Interval 5 290.8 302.8 12.0 1.97 0.68 7.0
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(a) Several intervals (105.5-130.5m, 154.0-161.0m, 276.5-288.0m) within
this 220m interval were not assayed and have therefore been
assigned zero grade until additional sampling has been completed.



Summary of higher grade composites for 1971-74 drill holes located
near 06SWC-068

(These are 1973-74 drill holes for which no core is available and so
assays cannot be verified)

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Drill From To Interval Copper Gold(a) Silver
Hole ID (m)(b) (m)(b) (m)(b) % (oz/ton) (g/t)
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A138-74 54.86 73.15 18.29 1.31 0.0095 4.74
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A138-74 107.29 116.43 9.14 1.11 0.0110 4.57
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A6-71 19.66 25.91 6.25 2.87 0.0135 14.25
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A76-73 18.29 29.26 10.97 0.90 0.0030 2.15
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A76-73 91.44 102.11 10.67 1.17 0.0030 2.40
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A77-73 48.01 52.43 4.42 1.19 0.0030 2.18
----------------------------------------------------------------------
A77-73 102.41 111.56 9.15 1.74 0.0140 4.34
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(a) Gold is reported in oz per ton as this is how the value was
originally calculated
(b) Conversion from feet



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 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