Sherwood Copper Corporation
TSX VENTURE : SWC
TSX VENTURE : SWC.DB

Sherwood Copper Corporation

July 16, 2007 14:31 ET

Sherwood Reports Geotech Program Results in Improved Pit Slopes at Minto Mine

Slope increase averaging more than 5% could result in reduced waste stripping and costs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today announced results of an independent geotechnical investigation of the pit slopes at its high grade Minto copper-gold mine in the Yukon. The result is a recommendation to increase pit slopes by an average of more than five degrees on the north, west and east side of the pits, which should result in reduced waste stripping and costs versus the estimates used in the 2006 feasibility study. The southern pit slope is subject to further investigation in the future, but since it lies between the main Minto deposit and Area 2, it is expected that most of the material forming the south wall of the main Minto pit will be mined, regardless of the slope, in order to access the Area 2 resources.

"The increased recommended slope angles in the open pit, that resulted from the SRK geotechnical evaluation at the main Minto deposit, represents one of a number of post-feasibility optimizations being evaluated by the Company as part of our 'relentless pursuit of value' strategy," said Stephen Quin President and CEO of Sherwood. "These geotechnical results should lead to reduced waste stripping and operating costs both in the short term and over the life of the high grade Minto open pit." The results of these geotechnical investigations will be incorporated in the expanded pre-feasibility study currently in progress.

Geotechnical Investigation

Following one of the recommendations in the Definitive Feasibility Study, the results of which were announced August 28, 2006, Sherwood retained SRK (Canada) Inc. to conduct a comprehensive investigation of the geotechnical characteristics of the rocks in and around the main Minto copper-gold deposit. This work included a review of all prior geotechnical investigations, re-logging of the four geotechnical drill holes completed by Sherwood in 2005, field and laboratory strength testing on rocks, geologic structure mapping and the drilling of five new geotechnical drill holes in 2007. The results of all this work was put into a comprehensive geotechnical model for the Minto pit. The results of the data collection programs indicated that rock strength and geologic structure are highly variable at the main Minto pit location. SRK determined that a probability based evaluation would result in better optimization of pit slope angles, because it would take full account of the variability in rock strength and rock structure orientation. Based on all of the detail collected, the following recommendations were made as compared to the previous recommendations used in the feasibility pit design.



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Previous Recommended Current Recommended
Interramp Slope Angle Interramp Slope Angle
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West Pit Wall 38 to 46 degrees 52 to 57 degrees
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North Pit Wall 46 to 51 degrees 52 to 55 degrees
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East Pit Wall 38 to 46 degrees 53 to 55 degrees
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Sherwood is now working with SRK to incorporate these changes to the pit slope angles into its open pit design for the main Minto pit, which should result in a significant reduction in the overall quantity of waste stripping. For example, the August 2006 feasibility study estimated that a 5 degree increase in pit slopes would reduce the waste stripping by approximately 4.5 million tonnes.

A similar program of geotechnical work is nearing completion for Area 2, which information will be used in the design of an integrated pit encompassing both the main Minto deposit and the Area 2 deposit defined in 2006.

Commissioning Update

Sherwood has made considerable progress in commissioning the mill. Over the past 10 days, the mill is averaging approximately 900 tonnes per day of throughput (or about 60% of capacity) and has achieved over 1,100 tonnes on successive days. Copper recoveries have been averaging approximately 85% and concentrate grades over 40% copper, which is higher than expected at this stage of commissioning. Mill throughput and copper recoveries have been affected by some performance issues with the rougher (first stage) flotation cells and by commissioning of the tailings filters. The balance of the plant has been performing well. These equipment performance issues are believed to be temporary and are being addressed with equipment providers and should be resolved shortly.

Minto Project

The Minto Mine is a high-grade copper-gold deposit located in the Yukon Territory of Canada. The mill is currently undergoing commissioning and is expected to ramp up to full production during the third quarter of 2007.

Sherwood

Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in a fully permitted, operating, high-grade, open pit copper-gold mine located in Canada with tremendous exploration potential on the 100% owned 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 geotechnical evaluation was carried out under the supervision of Jim Cremeens, P.E., P.G. of SRK (Denver). The slope stability modeling and analyses were conducted by Mike Levy, P.E., P.G., and supervised by Paul Visca, P.E. Dave Dix and Mike Levy of SRK (Denver) carried out the field investigation program. Technical information related to mine operations has been reviewed by Ian Berzins, P.Eng, General Manager, Minto Mine.

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
    (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