Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

January 09, 2007 07:00 ET

Sherwood Receives Highest Copper-Gold Assays to Date From Area 2 at Minto Project

4.4% Copper & 1.9g/t Gold over 8.6m within 20.9m interval of 3.2% Copper & 1.7g/t Gold in 06SWC-152

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 9, 2007) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced analytical results for the remaining 24 diamond drill holes from the 2006 Minto exploration program, including the best intercepts received to date from Area 2 at the Minto Project. Based on the 79 drill holes completed in Area 2, and the aerial extent of the mineralization, Sherwood believes that Area 2 has the potential to materially increase the high grade resources at Minto. Sherwood is well advanced with the resource modelling for Area 2 and, based on initial interpretations that suggest significant further upside, plans to resume exploration drilling soon. In addition, Sherwood reported the discovery of a new zone of mineralization, the Copper Keel, a completely blind discovery target based on Sherwood's integrated geological modelling efforts.

"Now that we have all the assay results for Area 2, the resource estimation can proceed in earnest," said Stephen Quin, President and CEO of Sherwood. "I am very encouraged by the extent of the high-grade, high precious metal, bornite-rich mineralization in the northwest part of Area 2, close to the current open pit. Clearly, the potential economic impact of high grade, thick zones of mineralization immediately adjacent to the existing open pit and mill infrastructure could be very significant," he said. "In addition, the discovery of a completely new zone of mineralization based on our conceptual geologic model gives considerable credence to that model and suggests a lot more upside in 2007. The first target to be tested in 2007 is our concept that it may be possible to link the deeper Minto and Area 2 mineralization," he added.

Highlights from the remaining drill holes are set out in the table below, while complete results are attached.



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Inter- Inter- Cop- Sil-
From To val val per Gold ver
Hole ID Interval (m) (m) (m) (ft) (%) (g/t) (g/t)
----------------------------------------------------------------------
06SWC-144 Interval M 135.7 157.0 21.5 70.5 2.75 0.99 9.0
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Including 135.7 152.2 16.5 54.1 3.16 1.15 10.1
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06SWC-149 Interval M 117.9 129.9 12.0 39.4 3.16 1.57 9.9
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Including 120.9 125.6 4.7 15.4 4.81 1.99 13.7
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06SWC-152 Interval M 144.4 165.3 20.9 68.6 3.23 1.71 10.3
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Including 145.4 162.0 16.6 54.5 3.89 2.09 12.3
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Including 153.4 162.0 8.6 28.2 4.44 1.92 14.2
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06SWC-153 Interval M 141.5 160.9 19.4 63.6 2.49 1.93 8.4
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Including 141.5 149.0 7.5 24.6 3.04 3.27 8.9
----------------------------------------------------------------------
06SWC-154 Interval M 139.9 159.0 19.1 62.7 2.79 1.57 11.6
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Including 141.4 156.0 14.6 47.9 3.20 1.80 13.6
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Including 150.5 156.0 5.5 18.0 4.62 2.55 19.7
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06SWC-160 Interval M 99.7 118.9 19.2 63.0 2.72 1.24 9.0
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Including 113.2 118.9 5.7 18.7 3.96 2.01 15.8
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06SWC-164 New Zone 175.5 181.4 5.7 18.7 1.92 0.48 7.5
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These latest results include more of the exceptionally high gold and silver grades from the bornite-rich northern third of the Area 2 deposit. This high grade mineralization is close to the Minto open pit and may be the up-dip extension of high grade mineralization intersected, but not followed up by past operators beneath the Minto deposit. This potential is illustrated in the attached cross section (http://www.ccnmatthews.com/docs/SWCa.jpg), which illustrates Sherwood's preliminary geological interpretation and the exploration opportunity both between the two deposits and under the main Minto deposit. A drill program is planned to commence shortly to test the potential to link these zones of similar, but currently separated mineralization, as well as to gain a broader geological perspective in the area of the main Minto deposit. This deeper potential is poorly understood due to the surprising lack of deep drill holes beneath the main Minto deposit.

Area 2 Drill Results

Included in this release are results for 24 drill holes, including 22 additional Area 2 drill holes, bringing the total number of holes at Area 2 with results to 79 of 79 holes completed.

Most of the holes released in this announcement are from the northwest portion of Area 2. The high copper - gold grades in the M Zone at Area 2 are very encouraging and reminiscent of the high grade core which drives the economics of the main Minto deposit. Now that all the results are available, the resource estimation process has begun and is expected to be complete in February.

The current drill intersections in this news release are discussed in reference to drill-hole plans located at (http://www.ccnmatthews.com/docs/SWCb.jpg).

Implications of Area 2 Results

To date, the near surface high grade copper-gold mineralization at Area 2 has been traced over an elliptical shaped area measuring approximately 350m in a northwest-southeast direction and up to 260m (average about 180m) in a northeast-southwest direction, an area about 40% larger than the original magnetic anomaly that was targeted. This compares to the aerial extent of the Minto deposit currently being developed, which measures approximately 450m by 180m. Based on this aerial extent and the similarity in grades and thicknesses between Area 2 and the Minto deposit, Sherwood anticipates that Area 2 could materially increase the high grade copper-gold resources at the project. This will be determined by the resource estimation process currently underway.

However, drilling completed to date does not limit the mineralization at Area 2. The upper high grade horizons (L and M) are open to the north and northwest, adjacent to the high grade intercepts announced herein, and are a priority target for 2007 drilling. The deeper, high grade horizons (O, P and Q), are open in all directions and are of particular interest to the south and southwest, where limited historic drilling (1974) intercepted high grade copper-gold mineralization including 7.6m grading 5.3% Cu and 2.6g/t Au in drill hole A137-74. The deeper mineralization, beneath Area 2, represents an attractive high-grade target for future exploration once Sherwood completes its evaluation of near surface targets.

Drill Results - Other Targets

Hole 06SWC-164 was collared approximately 375 metres east-southeast of Area 2, where foliated, magnetite-rich granodiorite (the favourable host rock at Minto and Area 2) was projected to occur based on Sherwood's geologic modelling. Sherwood's geological interpretation suggested that the target horizon would be intersected approximately 180 metres below surface, in the axis of a broad synformal structure. As projected, drill hole 06SWC-164 intersected good grade copper-gold mineralization: a 5.7 metre section (from 175.7m to 181.4m down the vertical drill hole) grading 1.92% Cu and 0.48g/t Au, a very encouraging result for a deep, blind test of a conceptual target. This result also affirms Sherwood's understanding of the subsurface geology on the Minto Property and the target, now named Copper Keel, has been added to the list of priority exploration targets.

Hole 06SWC-128 was drilled within the Airstrip target in order to characterize the subsurface geology in preparation for the execution of a gradient IP survey in the area. The hole intersected some narrow intervals of favourable host rocks but without interesting grade mineralization. The geophysical data subsequently showed the best chargeability anomalies to lie to the northeast and to the southwest of the drill hole.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. The mine development is now more than 50% complete and is on target to move into production 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.

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 resource modeling activity is beinging supervised by Ali Shahkar, P. Eng, of Lions Gate Geological Consulting Inc. (LGGC).

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 January 9, 2007

----------------------------------------------------------------------
Inter- Inter- Cop- Sil-
From To val val per Gold ver
Hole ID Interval (m) (m) (m) (ft) (%) (g/t) (g/t)
----------------------------------------------------------------------
AREA 2
----------------------------------------------------------------------
06SWC-128 No significant Intersections
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----------------------------------------------------------------------
06SWC-144 9.1 19.3 10.2 33.5 0.58 0.07 1.0
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Interval K 78.0 87.9 9.9 32.5 1.53 0.15 2.6
----------------------------------------------------------------------
Interval L 108.1 119.2 11.1 36.4 0.95 0.14 2.8
----------------------------------------------------------------------
Interval M 135.7 157.0 21.5 70.5 2.75 0.99 9.0
----------------------------------------------------------------------
Including 135.7 152.2 16.5 54.1 3.16 1.15 10.1
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-145 Interval L 117.7 128.4 15.1 35.1 0.60 0.03 0.67
----------------------------------------------------------------------
Interval M 145.9 161.0 15.1 49.5 1.71 0.65 6.0
----------------------------------------------------------------------

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06SWC-146 Previously Released
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-147 Interval L 109.5 114.4 4.9 16.1 0.64 0.04 1.0
----------------------------------------------------------------------
Interval M 149.5 165.2 15.7 51.5 1.77 0.62 6.0
----------------------------------------------------------------------
Including 154.0 165.2 11.2 36.7 2.02 0.71 7.1
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-148 Interval M 147.4 160.2 12.8 42.0 1.97 1.01 6.1
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-149 Interval M 117.9 129.9 12.0 39.4 3.16 1.57 9.9
----------------------------------------------------------------------
Including 120.9 125.6 4.7 15.4 4.81 1.99 13.7
----------------------------------------------------------------------

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06SWC-150 Interval M 155.0 158.0 3.0 9.8 2.68 1.47 9.1
----------------------------------------------------------------------

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06SWC-151 Previously Released
----------------------------------------------------------------------

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06SWC-152 Interval M 144.4 165.3 20.9 68.6 3.23 1.71 10.3
----------------------------------------------------------------------
Including 145.4 162.0 16.6 54.5 3.89 2.09 12.3
----------------------------------------------------------------------
Including 153.4 162.0 8.6 28.2 4.44 1.92 14.2
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-153 Interval L 85.9 94.2 8.3 27.2 1.04 0.10 2.8
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Interval M 141.5 160.9 19.4 63.6 2.49 1.93 8.4
----------------------------------------------------------------------
Including 141.5 149.0 7.5 24.6 3.04 3.27 8.9
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-154 Interval L 87.2 98.0 10.8 35.4 0.75 0.12 1.61
----------------------------------------------------------------------
Interval M 139.9 159.0 19.1 62.7 2.79 1.57 11.6
----------------------------------------------------------------------
Including 141.4 156.0 14.6 47.9 3.20 1.80 13.6
----------------------------------------------------------------------
Including 150.5 156.0 5.5 18.0 4.62 2.55 19.7
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-155 Interval L 83.5 85.4 1.9 6.2 0.71 0.33 2.8
----------------------------------------------------------------------
Interval M 95.9 99.5 3.6 11.8 2.04 0.76 8.5
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-156 Interval L 96.0 112.4 16.3 53.5 0.46 0.02 0.74
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Interval M 161.3 162.2 0.90 3.0 3.08 0.66 11.7
----------------------------------------------------------------------

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06SWC-157 No significant Intersections
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----------------------------------------------------------------------
06SWC-158 Interval J 17.5 21.4 2.9 9.5 2.00 0.64 13.0
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Interval K 46.4 48.0 1.6 5.2 1.46 0.09 2.6
----------------------------------------------------------------------
Interval L 66.6 72.6 6.0 19.7 0.56 0.05 1.1
----------------------------------------------------------------------
Interval M 104.6 108.2 3.6 11.8 1.50 0.53 4.9
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-159 Interval L 87.7 104.1 16.4 53.8 0.53 0.04 1.3
----------------------------------------------------------------------
Interval M 153.1 158.9 5.8 19.0 1.68 0.57 5.2
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-160 Interval M 99.7 118.9 19.2 63.0 2.72 1.24 9.0
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Including 102.7 118.9 16.2 53.1 3.00 1.39 10.2
----------------------------------------------------------------------
Including 113.2 118.9 5.7 18.7 3.96 2.01 15.8
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-161 Interval L 84.0 87.7 3.7 12.1 0.54 0.04 1.2
----------------------------------------------------------------------
Interval M 157.4 158.1 0.7 2.3 1.74 1.18 8.8
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-162 Interval K 42.3 46.8 4.5 14.8 0.41 0.03 0.8
----------------------------------------------------------------------
Interval L 58.7 68.9 10.2 33.5 0.89 0.11 1.4
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-163 Interval L 95.1 98.5 3.4 11.1 0.56 0.09 1.8
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-164 Copper Keel 175.7 181.4 5.7 18.7 1.92 0.48 7.5
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-165 Interval M 125.2 132.3 7.1 23.3 1.41 0.90 6.1
----------------------------------------------------------------------
Including 129.7 132.3 2.6 8.5 3.20 2.17 14.7
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-166 Interval K 38.3 39.9 1.6 5.2 1.69 0.55 3.7
----------------------------------------------------------------------
Interval L 90.2 96.2 6.0 19.7 0.59 0.05 1.4
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-167 Interval M 113.7 119.3 5.6 18.4 2.35 0.79 9.3
----------------------------------------------------------------------

----------------------------------------------------------------------
06SWC-168 Interval K 18.6 20.1 1.5 4.9 1.24 0.34 2.6
----------------------------------------------------------------------
Interval L 23.2 27.1 3.9 12.8 1.39 0.26 4.6
----------------------------------------------------------------------
Interval P 267.7 275.9 8.1 26.6 0.88 0.22 2.0
----------------------------------------------------------------------

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
    (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