Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

August 02, 2006 07:00 ET

Sherwood Reports Continued Area 2 Success & Stepped up Drilling Program

5.6% Copper & 3.4g/t Gold over 7.1m Within 280.7m '921ft' Interval of 0.4% Copper & 0.15g/t Gold in 06SWC-090

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced results for six additional exploration drill holes completed in three separate areas of its high grade Minto copper-gold project, which is currently being developed for production in 2007. Drill results from Area 2 continue to demonstrate excellent potential for the definition of additional high-grade copper-gold resources, while exploration of other targets illustrates good potential for further discoveries within the property boundaries.

Assays are available for three new Area 2 holes, plus one at Little Boy (LB) and two from the DEF target. Ongoing drilling at Area 2 continues to encounter multiple zones of high grade copper-gold mineralization within a broader envelope of more moderate grade. Sherwood is aggressively pursuing Area 2 and has now focused both drills on Area 2 in order to expedite the definition of a mineral resource in this area. One drill is focused on extending the perimeter of the roughly circular shaped mineralized area and the second on infill drilling in preparation for a resource calculation this fall. Assay highlights from these latest drill holes are set out below, while complete results are attached.



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From To Interval Interval Copper Gold Silver
Location Hole ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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Area 2 06SWC-88 249.6 254.8 5.2 17.1 2.81 0.98 9.7
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Area 2 06SWC-90 97.2 104.2 7.0 23.2 5.59 3.42 20.8
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And 138.2 155.3 17.1 56.2 1.99 0.58 6.4
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And 282.3 287.8 5.5 18.0 2.07 0.61 (i)
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Area 2 06SWC-93 90.8 100.3 9.5 31.2 1.87 0.64 (i)
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Including 90.8 94.0 3.2 10.6 4.55 1.78 (i)
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And 143.7 155.5 11.8 39.8 2.06 0.72 (i)
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DEF 06SWC-91 32.7 39.7 7.0 23.0 1.27 0.93 8.9
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LB 06SWC-94 300.6 307.1 6.5 21.3 1.25 (i) (i)
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(i) Assays not yet available


"The intercepts in the primary two mineralized horizons at Area 2 continue to return robust copper and gold grades over thicknesses and at vertical depths similar to those currently being developed in the main Minto open pit," said Stephen Quin, President & CEO of Sherwood. "In addition, there are several other mineralized intervals in each hole within a broad interval of more moderate grade. Based upon the results of the drilling to date, we have reprioritized the drill plan to step up the pace at Area 2 and complete resource definition drilling sooner rather than later," said Mr. Quin. "In parallel, we are carrying out a program of ground based geophysics to prioritize targets within the extensive Ridgetop and Airstrip targets for drilling this fall," he said.

2006 Drill Program

As announced May 4, 2006, Sherwood commenced an extensive exploration drill program at its 100% owned high-grade Minto copper-gold project. Two drills have been turning since early May. Both drills are now conducting resource definition drilling within the Area 2 prospect located within just 300-500m of the pit: one rig is conducting step out drilling to expand the known perimeter of mineralization while the second rig is infilling on a pattern to support resource definition.

To date, Sherwood has completed 9,330 metres of NQ size drilling in 39 holes; two others are in progress and one other is incomplete and on hold until a drill is available to finish it; for a total of 42 holes collared to date. Twenty-six holes are part of the ongoing drilling at Area 2, while the remaining 16 holes test five other exploration targets. Due to heavy demand at the assay laboratory, Sherwood has only received assay results for six new holes and assays are pending for an additional 23 holes. Drilling continues with two drills.

Area 2 Drilling

Area 2 continues to produce significant intercepts of higher grade copper-gold mineralization with thicknesses and grades similar to the main Minto deposit and at similar depths of burial. These higher-grade intercepts lie within a wider envelope of more moderate grade mineralization, which allows for a high degree of flexibility in future resource modelling, such as evaluating options for additional high grade feed to extend the period of plus 2% copper operations at the planned milling operation, as well as considering a more moderate-grade bulk-tonnage scenario.

The current drill intersections are discussed in context and with reference to hole 06SWC-068, a well mineralized hole that Sherwood drilled in early 2006 and reported in a press release dated March 23, 2006. Hole 06SWC-068 lies roughly at the center of the known mineralization. Holes 06SWC-088, -090, & -093 reported herein are step-outs ranging from 60m to 96m from 06SWC-068 in a north-westerly and south-westerly direction. For drill hole locations see the map at http://www.ccnmatthews.com/docs/swc0802.jpg. As with hole 06SWC-068, these new holes have multiple mineralized intervals. Ongoing modelling indicates that these horizons can be correlated from hole to hole in a simple sub-horizontal geometry, so intersected core intervals are believed to be at or near true thicknesses.

Hole 06SWC-088 is a 96m step-out to the north-northwest of 06SWC-068. It intersected a broad interval of 28.1m (92.2 feet) grading 0.80% Cu and 0.28g/t Au including 5.2m (17.1ft) of 2.81% Cu; 0.98g/t Au and 9.68g/t Ag.

Hole 06SWC-090 is a 60m step-out to the northwest of 06SWC-068 and intersected a broad mineralized interval of 280.7m (921ft) grading 0.43% Cu and 0.15g/t Au. Included in this broad zone of mineralization are six sub-intervals which grade greater than 0.65% Cu three of which grade more than 1.0% Cu. Highlights include, starting at 97.2m down the vertical hole, 7.1 metres of 5.59% Cu, 3.42g/t Au and 20.80g/t Ag. Just below this intersection, starting at 97.2m, is a 17.1m interval grading 1.99% Cu, 0.58g/t Au. These two horizons are the principal zones of mineralization that Sherwood is focusing on at Area 2. Lying between the surface and this mineralization are three intervals ranging from 0.67% Cu to 0.95% Cu over a minimum core interval of 5 metres, including mineralization within 10m of the surface. Then, at a vertical depth of 276.77m, a 13.8m interval of core graded 1.26% Cu and 0.41g/t Au, including a higher grade core of 5.5m of 2.07% Cu and 0.61g/t Au.

Hole 06SWC-093 in a 90m step-out to the west of 06SWC-068 intersected a broad mineralized interval of 288.4m (946ft) grading 0.25% Cu and 0.06g/t Au. Included in this broad zone of mineralization are five sub-intervals grading greater than 0.35% Cu three of which are greater than 1.0% Cu. Highlights include, starting at 90.80m down the vertical hole, 9.51m grading 1.87% Cu and 0.64g/t Au, including a high grade core of 3.22m grading 4.55% Cu and 1.78g/t Au. At 143.74 is a 13.8m interval grading 1.89% Cu and 0.63g/t Au including 11.8m of 2.06% Cu and 0.72g/t Au. These two horizons are the same two principal zones of mineralization intersected in 06SWC-090. Also lying between the surface and these principal horizons are other significant but lower grade mineralization including mineralization within 34m of the surface.

Area 2 differs from the main Minto deposit in that multiple zones of higher grade copper-gold mineralization at Area 2 are separated by wide intervals of lower grade mineralization whereas, in the main Minto deposit, this intervening material is largely barren. More than two thirds of drill intersections at Area 2 are foliated granodiorite, the favourable host rock. Preliminary interpretations show that, within the larger mineralized envelope, the higher grade horizons correlate well between individual drill holes on cross sections constructed in northwest-southeast orientation. Sherwood is focusing its exploration within the upper 150m of the mineralized column at Area 2 with the objective of producing at a minimum a drill indicated resource at similar vertical depths to the deposit currently being developed and at a minimum an inferred resourced in the lower section before year-end.

Assays are currently pending for 16 other Area 2 drill holes and drilling continues.

Other Exploration Targets

In addition to Area 2, Sherwood's prime target for 2006 has been to create a pipeline of prospects for follow-up in future programs. From the 3rd week of May until the 3rd week of July, one drill was dedicated to an initial evaluation of some of these targets and Sherwood has successfully upgraded several areas for additional follow-up.

DEF Prospect

The main Minto deposit is cut off on the north side by the DEF fault zone, a high angle, north dipping structure with at least one splay. Hole 06SWC-049, drilled by Sherwood in the late winter of this year, intersected high grade mineralization in the block of rock located between the main DEF structure and the subsidiary splay.

06SWC-091 was targeted west of hole 06SWC-049 and intersected interesting grade material near surface that is largely oxidized. The best interval graded 1.27% Cu and 0.93g/t Au over 7.0m starting at 32.7m down a -60 degree inclined hole. Insufficient information exists to calculate a true thickness. 06SWC-092, located approximately 60 metres east of 06SWC-091, intersected only slightly anomalous mineralization. No further work is planned for this area as the current mine plan will expose this area in future mining activity and provide ready access for future exploration activities.

Little Boy Prospect

06SWC-094 was collared to drill vertically through a total field magnetic anomaly situated within a few tens of metres west of the current open pit. Two weakly anomalous mineralized intervals were intersected at depths similar to the planned open pit but do not warrant further follow-up at this time. Future phases of the open pit will encroach upon the area and the target can be better evaluated by future mining operations. In addition, commencing at a vertical depth of 300.6m, a 6.9m interval of 1.25% Cu was also intersected in 06SWC-094.

Geophysical Surveying

Positive magnetic and IP anomalies are associated with Area 2, the main Minto Deposit and several other important prospects at Minto. However recent drilling and some historical drill logs also show that mineralization is sometimes hosted in areas of weak magnetic response. In order to better assess the potential for this style of mineralization, Sherwood initiated a detailed ground based Total Field Magnetic and Gradient Induced Potential geophysical survey in late July to cover the area south of Area 2 to assist in prioritizing drilling targets. The upgraded magnetic survey and extended IP coverage will cover an area of approximately 1km by 2km and encompass two exciting prospects, Ridgtop and Airstrip, before drill testing commences within this large target area.

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 has engaged its EP, CM, mining and general contractors for the development of a mining operation at Minto, which is now well underway based on the recently announced feasibility study (see news release 06-25 dated July 10, 2006).

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 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 all check samples were within expected ranges. After the completion of phased 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 August 2, 2006

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From To Interval Interval Copper Gold Silver
Hole ID Interval ID (m) (m) (m) (ft) (%) (g/t) (g/t)
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AREA 2
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06SWC-88 249.6 305.0 28.1 92.2 0.80 0.28 3.1
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Including Interval 1 249.6 254.8 5.2 17.1 2.81 0.98 9.7
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And Interval 2 287.1 305.0 17.9 58.7 0.43 0.14 1.9
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06SWC-90 9.9 290.6 280.7 920.9 0.43 0.15 (i)
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Including Interval 1 9.9 15.9 6.0 19.7 0.95 0.15 2.5
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And Interval 2 23.3 28.5 5.2 16.9 0.67 0.06 0.9
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And Interval 3 85.0 91.2 6.2 20.4 0.76 0.03 1.5
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And Interval 4 97.2 104.2 7.1 23.2 5.59 3.42 20.8
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And Interval 5 138.2 155.3 17.1 56.2 1.99 0.58 6.4
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And Interval 6 276.8 290.6 13.8 45.4 1.26 0.41 (i)
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Including 282.3 287.8 5.5 18.0 2.07 0.61 (i)
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06SWC-93 33.9 322.3 288.4 946.3 0.25 0.06 (i)
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Including Interval 1 33.9 35.7 1.7 5.7 2.18 0.57 (i)
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And Interval 2 79.7 85.1 5.4 17.6 0.45 0.05 (i)
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And Interval 3 90.8 100.3 9.5 31.2 1.87 0.64 (i)
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Including 90.8 94.0 3.2 10.6 4.55 1.78 (i)
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And Interval 4 143.7 157.6 13.9 45.3 1.89 0.63 (i)
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Including 143.7 155.6 11.9 39.8 2.06 0.72 (i)
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And Interval 5 280.0 322.3 42.3 138.9 0.37 0.06 (i)
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DEF
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06SWC-91 32.7 39.7 7.0 23.0 1.27 0.93 8.91
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06SWC-92 No significant intersections
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Little Boy
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06SWC-94 Interval 1 52.1 54.6 2.5 8.2 0.54 0.03 (i)
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Interval 2 80.5 85.0 4.5 14.8 0.39 0.04 (i)
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Interval 3 300.6 307.1 6.5 21.3 1.25 (i) (i)
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(i) Assays not yet available



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Contact Information

  • Sherwood Copper Corporation
    Stephen Quin
    President
    (604) 687-7545 or Toll Free: 1-888-338-2200
    or
    Sherwood Copper Corporation
    Investor Relations
    (604) 687-7545 or Toll Free: 1-888-338-2200
    (604) 689-5041 (FAX)
    www.sherwoodcopper.com