Sherwood Copper Corporation

Sherwood Copper Corporation

September 05, 2007 14:16 ET

Sherwood Reports "On budget & Ahead of Schedule" Phase 1 Construction of Minto Mine

Capital Cost 2% over Feasibility Budget; Production Commenced Early & Commissioning Progressing Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2007) - Sherwood Copper Corporation (TSX VENTURE:SWC) today reported that the Phase 1 construction of its high grade Minto copper-gold mine was completed ahead of schedule and essentially on budget. In addition, the Company reported production continues to ramp up towards feasibility parameters.

Construction Costs and Schedule

The updated feasibility study announced on August 28, 2006 forecast capital costs of C$98.1 million for the Phase 1 construction of the Minto Mine, including contingencies and owners costs. Based on a direct comparison of the scope of work contained in the feasibility study, actual costs to complete this scope of work totalled C$100.2 million or just 2% over the feasibility budget. On completion of basic engineering in late 2006, mill start-up was forecast for July 1, 2007, while first concentrates were actually produced on May 28, 2007 and continuous operations commenced in early June.

"Keeping the Phase 1 construction of the high grade Minto copper-gold mine on budget and completing it ahead of schedule is a remarkable achievement in an environment of heated competition for people, equipment and supplies," said Stephen P. Quin, President & CEO of Sherwood Copper. "Considerable credit for this outstanding result belongs to JDS Energy & Mining, the construction managers for the Minto Mine, as well as to project engineers, Hatch Ltd., general contractors, Clark Builders, mining contractors, Pelly Construction, and their numerous other subcontractors, trades and suppliers."

Other capital costs have been incurred at the Minto Mine, outside the scope of the Phase 1 budget set out in the feasibility study, related to items including the Phase 2 mill expansion, post-feasibility optimizations (metallurgical, geotechnical, etc.), capitalized interest, pre-commercial production and exploration as detailed in Sherwood's June 30, 2007 financial statements and management discussion & analysis.

Commissioning Update

Sherwood continues to make positive progress in its ramp up of the Minto Mine to full production, which was forecast to take through the end of third quarter 2007 in the feasibility study. During August, the mill reached peak throughput of over 1,750 tonnes per day relative to Phase 1 design capacity of 1,563 tonnes per day and averaged 1,363 tonnes per day, or 87% of design capacity, for the entire month of August. Mill availability averaged 89% for the month. Copper recoveries averaged approximately 80% and concentrate grades 35% copper during the month, which is in line with or better than expectations at this stage of the ramp-up to full production. Mill throughput and copper recoveries continue to be somewhat affected by the mechanical availability of the rougher (first stage) flotation cells and by commissioning of the tailings filters. The balance of the plant has been performing well. These mechanical availability issues are believed to be temporary, resolvable, and are being addressed with equipment suppliers. The necessary changes are being made and these issues are expected to be resolved shortly. Key in this assessment is that the copper not recovered and lost in tailings to date appears to be readily available for recovery by flotation and therefore there should be no impediment to achieving design parameters.

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 around the end of the third quarter of 2007.


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. 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

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
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corporation
    Brad Kopp
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corporation
    Kristy Reynolds
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)