Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

March 29, 2006 07:00 ET

Sherwood Makes Progress on Providing Grid Power to Proposed Mine at Minto; Letter of Intent Signed with Yukon Energy for Extension of Transmission Grid

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that it has signed a letter of intent with Yukon Energy Corporation for the provision of grid power to the proposed mine at Sherwood's 100% owned high-grade Minto copper-gold deposit.

"Grid power, provided off Yukon Energy's Whitehorse hydroelectric grid, could significantly reduce the power generation costs for the Minto project vs. on site diesel generation," said Stephen Quin, President & CEO of Sherwood. "This would be a win-win situation for all stakeholders: the Minto project would benefit Sherwood's shareholders with lower operating costs and therefore higher profits, thus paying higher taxes and royalties to the Yukon Government and, through them, the Selkirk First Nation. Yukon Energy would gain infrastructure and a significant stream of revenue by utilizing surplus hydroelectric capacity that has no current customers."

Yukon Energy Letter of Intent

The letter of intent sets out the essential elements of a power purchase agreement to be negotiated between Yukon Energy and Sherwood's wholly owned subsidiary, Minto Explorations, for the supply of electricity from the Whitehorse transmission grid. Currently, the Whitehorse grid terminates just north of Carmacks and, if approved, would be extended to the Minto site along the Klondike Highway and then likely follow the existing mine access road from Minto Landing.

Rates to be charged for the power purchased from Yukon Energy will be those applicable to all major industrial customers, as determined by the Yukon Utilities Board. However, the cost of grid power is likely to be significantly less than the cost of providing on site diesel generation since most of Yukon Energy's power within the Whitehorse grid is generated as hydro-electricity.

The letter of intent is subject to a number of conditions, including funding, permitting, granting of required rights-of-way, as well as a final power purchase agreement between Yukon Energy and Minto Explorations.

Yukon Energy is targeting delivery of grid power to the Minto mine site by the end of 2008. However, in the event that it appears that there will be significant delays or impediments to achieving this goal, Yukon Energy, subject to funding and all required approvals, will build a 35kV transmission line from Carmacks to the Minto mine site, which would be less beneficial to all stakeholders, but would ensure the Minto project can benefit from grid power regardless.

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.

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.


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