Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

April 04, 2006 07:01 ET

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

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2006) -

0.5% Copper & 0.1g/t Gold over 255m(i) in 06SWC-071, including 3.8% Copper & 0.9g/t Gold over 13m

Sherwood Copper Corporation (TSX VENTURE:SWC) today announced the results for the final two exploration drill holes drilled to test the "Area 2" exploration target located 350m south of the main Minto copper-gold deposit. As with previously reported hole 06SWC-068, significant copper-gold mineralization was intercepted over vertical intervals exceeding 220m and including sub-intervals of much higher grades that appear to have good geologic continuity hole-to-hole. Highlights from holes 06SWC-071 & -074 are tabulated below, while the complete results are attached.



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Hole ID From To Interval Copper Gold Silver
(m) (m) (m) (%) (g/t) (g/t)
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06SWC-71 47.3 302.5 255.2(i) 0.47 0.13 1.8
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Including 52.1 117.0 64.9 1.49 0.42 5.9
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Which
includes:
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- Interval 1 52.1 65.5 13.4 3.85 0.91 16.1
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Including 55.0 58.0 3.0 12.12 2.18 49.0
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- Interval 2 88.3 117.0 28.7 1.55 0.51 5.4
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Including 105.0 115.5 10.5 2.38 0.76 8.9
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06SWC-74 25.0 260.3 235.3(i) 0.37 0.11 1.0
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Including
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- Interval 3 118.1 142.0 23.9 1.92 0.86 6.0
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Including 125.5 133.0 7.5 2.84 1.35 8.9
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(i)Several intervals within this interval were not assayed and have
therefore been assigned zero grade until additional sampling has
been completed.


"Combined with the recently announced results for hole 06SWC-068 and the historic drilling, these intervals and grades are significant and hole-to-hole geologic continuity suggests potential for the rapid development of an important new copper-gold resource south of the main Minto deposit," said Stephen Quin, President & CEO of Sherwood. "Some of the best copper-gold grades were intersected at similar depths as the main Minto deposit, indicating potential for a new open pit immediately across the Minto valley, while the multiple intercepts and overall scale of the mineralized system suggest potential for a much larger mineralized system than previously recognized."

Sherwood plans to follow up these intercepts with additional drilling in April-May 2006, with the objective of better delineating the potential of Area 2, with the opportunity of developing a resource estimate for Area 2 during 2006. In addition, Sherwood is evaluating options for drill testing of similar targets to the south of Area 2, as well as other priority targets.

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 the high priority Area 2 target located 350m south of the south end of the planned open pit mine at Minto.

Drill Results

Holes 06SWC-071 and -074 were drilled to test a magnetic anomaly approximately 350m south of the main Minto deposit previously known as Area 2 (view the drill hole location map at http://www.ccnmatthews.com/docs/minto.pdf

To view cross sections please click the following links:

http://www.ccnmatthews.com/docs/sher11.jpg

http://www.ccnmatthews.com/docs/sher22.jpg

The target for these holes, and the previously reported 06SWC-068, 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 main Minto deposit. The 1971-74 holes were generally shallow (110-199m), with the exception of A108-74 and A138-74 which were drilled to depths of approximately 288m and 335m, respectively. These 1970's holes appear to have intersected the same geologic horizons as those in 06SWC-068, -071 and -074, with good geologic continuity but were only sporadically sampled for assaying. All five 1970's drill holes near the Area 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 historic intercepts were attached to news release #06-14 dated March 23, 2006.

Hole 06SWC-071 is located approximately 70 metres northeast of drill hole 06SWC-068, the results for the latter were reported on March 23, 2006. 06SWC-071 intersected mineralization over 255 metres of vertical extent, including five zones of higher grade mineralization. Bornite mineralization was logged in intervals throughout the hole and in its highest concentrations is analogous to the bornite-gold mineralization in the main Minto deposit. Within the 255m mineralized interval of the hole, five intervals ranging from 13.5m to 29.5m were not sampled but will be when geologic crews return to site in April.

06SWC-074 located approximately 66 metres northwest of 06SWC-068 and approximately 80 metres north of 06SWC-071. It intersected mineralization over 235 metres of vertical extent, including five distinct mineralized zones. The bornite-gold association is noted once again. Within the 235m section of hole, six intervals ranging from 3.5m to 46m were not sampled but will be when geologic crews return to site in April.

While some of the lower intervals in holes 06SWC-071 and -074 were lower grade than the corresponding intercepts in hole 06SWC-068, the presence of multiple mineralized intervals over 220-250m of vertical extent suggests excellent potential for the development of new deposits below the interval interpreted to be the equivalent of the main Minto deposit. These results also suggest mineralization may be strongest to the south, in the direction of hole 06SWC-068, where the mineralization remains open to expansion.

Oxidation levels in both the holes were negligible except for the low grade zone (Interval 1) at the top of 06SWC-074 which is partially oxidized.

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 holes 06SWC-068, -071 and -074 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.

Outlook

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 Area 2 target tested by 06SWC-068, -071 and -074, 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.

The three exploration holes drilled by Sherwood within Area 2 were laid out within the 200m by 200m perimeter of historical drill holes containing positive assay results. The objective of the winter program was to accommodate a future infill drill pattern on approximately 50-metre centers if the winter program was successful. The results from this drilling indicated a significant overall mineralized system, thicker high grade intervals, higher copper and gold grades and more stacked horizons than could have reasonably been expected from the 30 year old data.

There is now sufficient information from the three current and five historical holes to warrant an infill program to define an inferred resource. If this 50m centre infill program is successful, additional drilling would be required on approximately 25-metre centers in order to upgrade it to the measured an indicated standards used to define the main Minto deposit.

In addition to infill drilling at Area 2, step-out drilling is required to test the lateral extent of the mineralization, since Area 2 remains open to the east, west and south on multiple mineralized horizons. To the north, the upper mineralized intervals found in Area 2 are partially eroded, but the lower intervals are still open in that direction, toward the planned open pit. Also, most of the historical drilling was too shallow to intersect all of the intervals tested in the current drill program, and the sampling to infrequent. As a result, the historic drill holes will need to be twinned and then extended to depth to fully define the potential of the deeper intervals.

Drill logs and assay data for at least four other targets suggests a similar style and tenor of mineralization as indicated for the Area 2 data prior to Sherwood's current drilling. All four of these targets represent upside potential for future discoveries and resource gains and lie within 2 kilometres of the planned open pit.

Three dimensional geological compilation of data from all areas with prior drilling is ongoing in order to identify still more 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 April 4, 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-71 47.3 302.5 255.2(i) 0.47 0.13 1.8
-----------------------------------------------------------------------

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including Interval 1 52.1 65.5 13.4 3.85 0.91 16.1
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including 55.0 61.0 6.0 7.19 1.45 31.0
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including 55.0 58.0 3.0 12.12 2.18 49.0
-----------------------------------------------------------------------

-----------------------------------------------------------------------
And Interval 2 88.3 117.0 28.7 1.55 0.51 5.4
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And Interval 3 136.9 209.9 73.0 0.16 0.02 0.4
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And Interval 4 249.4 264.9 15.5 0.35 0.09 0.9
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And Interval 5 299.2 302.5 3.3 1.30 0.58 10.6
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06SWC-74 25.0 260.3 235.3(i) 0.37 0.11 1.0
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including Interval 1 25.0 67.1 42.1 0.41 0.02 0.6
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And Interval 2 84.7 92.8 8.1 0.34 0.1 1.0
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And Interval 3 118.1 142.0 23.9 1.92 0.86 6.0
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And Interval 4 142.0 225.8 83.8 0.17 0.02 0.4
-----------------------------------------------------------------------

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And Interval 5 245.0 260.3 15.3 0.51 0.18 1.4
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(i)Several intervals within this interval were not assayed and have
therefore been assigned zero grade until additional sampling has been
completed.



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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