Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

November 01, 2006 07:00 ET

Sherwood Receives Encouraging Metallurgical Optimization Tests for Minto Project

Excellent Copper Recoveries at Coarser Grind & Potential for Improved Gold Recoveries

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced encouraging results from metallurgical test work undertaken post-feasibility study. These tests were undertaken in order to evaluate the potential for using a coarser grind in the mill without reducing recoveries, which could reduce operating costs and increase mill throughput, as well as evaluating opportunities for improved gold recoveries over those assumed in the feasibility study.

"Our on-going program of optimising the feasibility study for the high grade Minto copper-gold project continues to yield encouraging results," said Stephen Quin, President & CEO of Sherwood Copper. "Metallurgical test results suggest that we may be able to use a coarser primary grind in the mill, with a regrind of the concentrates in order to achieve high copper and gold recoveries and similar concentrate grades that assumed in the feasibility study. This approach could reduce operating costs," he said. Additional confirmatory test work is planned to confirm the optimal operating parameters.

Metallurgical Test Program

The test work commissioned at G&T Metallurgical Services was based on three composites prepared from core samples collected from three different areas within the main Minto pit currently being developed for production. A series of batch rougher and cleaner tests indicated that these samples could be successfully processed through the rougher circuit at a nominal primary grind size of 80% passing a 300 micron grind size, double the 150 micron grind assumed in the feasibility study, but requiring regrinding of the rougher concentrate to 80% passing 70 microns. Under these batch conditions, 95% of the copper and 72% of the gold were recovered into a concentrate containing 40% copper. This approach of a coarser primary grind and regrind of the concentrates would be less energy intensive and would reduce operating costs.

Additional locked cycle tests were carried out on a range of primary grind sizes from 80% passing 200 microns to 80% passing 300 microns, and a regrind of the concentrates ranging from 80% passing 30 microns to 80% passing 56 microns, and achieved similar results to the batch tests. On average, 95% of the copper and 78% of the gold were recovered into a concentrate grading 43% copper. Locked cycle tests are intended to simulate operating conditions and confirm that a coarser grind with a regrind of the concentrates is a viable option.

Included in the locked cycle tests were gravity concentration tests on the rougher tails to see if any incremental gold could be recovered. These tests indicate that some additional gold, up to 8% on one test, could be recovered from the rougher tails however, gold content in the gravity concentrate is low. Nevertheless, some very high grade gold intercepts in 2006 (including 501.6g/t gold over 2.6m in hole 06SWC-055) suggest continued focus on enhancing gold recoveries is warranted.

Based on these results, Sherwood plans to conduct additional test work using a primary grind of 80% passing 300 microns and a concentrate regrind of 80% passing 70 microns, as recommended by G&T Metallurgical, with continued evaluation of a gravity circuit to incrementally improve gold recoveries. If these results are confirmed, these additional tests would form the basis of a decision to adjust the base operating conditions for the mill when operations commence.

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 metallurgical test work undertaken on samples from the Minto project site were carried out under the supervision of Thomas W. Shouldice, P.Eng. a Qualified Person under NI43-101.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. As announced on July 10, 2006 and updated August 28, 2006, Sherwood has completed a feasibility study for the development of the Minto Project as a high grade, open pit copper-gold mine, which study demonstrated robust returns. Sherwood has engaged its engineering, procurement, construction management, mining and general contractors for the development of a mining operation at Minto. Development is now well underway and production is forecast to commence in the second quarter of 2007.

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