VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: SWC.DB) today
announced that it has completed a National Instrument 43-101
compliant Technical Report that details two significant
developments at its high grade Minto copper-gold mine in Yukon,
Canada. Firstly, through rescheduling the open pit currently being
mined on the Minto Main deposit, higher grade copper production has
been brought forward from 2010 to 2009 as compared to prior
guidance. Secondly, the Technical Report details the updated
mineral resource estimates previously announced on June 17, 2008,
which increased mineral resources by approximately 50% over those
announced a year ago and which should provide the basis for further
increases in mine life and/or production. However, in addition (and
for the first time), details of the mineral resources at cut-off
grades lower than 0.5% copper are provided, which indicate
significant potential for large tonnages of medium grade mineral
resources at the Minto Mine.
"The increased production in 2009 is a further example of
Sherwood's relentless pursuit of value for its shareholders," said
Stephen Quin, President & CEO of Sherwood. "More production
sooner should mean more value for our shareholders," he said.
"Further, the previously announced 50% increase in mineral
resources at the high grade Minto Mine is a very positive
development. The significantly increased mineral resource suggests
potential for a longer mine life and/or further increases in
production, beyond the rescheduled production announced today.
However, the first time disclosure of substantial mineral resources
at lower cut-off grades, which still results in mineral resource
grades well above any operating copper mine in western Canada,
provides a glimpse of what could be a materially larger opportunity
at the Minto Mine, and is something that warrants continued
investigation."
Highlights
Highlights of the information contained in the Technical Report
include the following, based on the assumptions set out below:
1. Higher grade production moved forward from 2010 to the end of
2008 and all of 2009, resulting in 55 million pounds of copper
production in 2008 and 70 million pounds of copper production in
2009, a 35% increase in that year;
2. Operating costs, after by-product credits and offsite costs
such as concentrate shipping, insurance, treatment and refining
charges, of C$0.80 to C$0.89 per pound, life of mine;
3. Pre-tax net present value of $364 million to $659 million at
a 0% discount rate, depending on metal prices and, at the same
discount rate, after tax net present value of $311 million to $522
million;
4. Pre-tax net present value of $273 million to $386 million at
a 10% discount rate, and an after tax NPV of $241 million to $372
million at the same discount rate;
5. At a 0.5% copper cut-off, measured and indicated resources of
19.28 million tonnes grading 1.42% copper, 0.51g/t gold and 5.4g/t
silver, containing 604.5 million pounds of copper, 310,000 ounces
of gold and 3.3 million ounces of silver;
6. At the same cut-off, an additional inferred resource of 15.07
million tonnes grading 0.88% copper, 0.25g/t gold and 0.25g/t
silver containing 293.6 million pounds of copper, 120,000 ounces of
gold and 1.26 million ounces of silver;
7. These resources represent a 50% increase over those announced
a year ago and a 140% over those announced two years ago and do not
incorporate the results of any of the 2008 drilling;
8. Proven and probable mineral reserves of 9.13 million tonnes
grading 1.93% copper, 0.74g/t gold and 7.7g/t silver containing
389.2 million pounds of copper, 216,900 ounces of gold and 2.3
million ounces of silver;
9. These reserves are based on 2006 drilling and mineral
resource estimates and hence do not incorporate the 50% increase in
resources announced herein, nor any of the results of the 2008
drilling currently underway;
10. Given that significant lower to medium grade mineralization
was intersected up and down drill holes from the higher grade
intercepts used to estimate the mineral resources at a 0.5% copper
cut-off, and that almost all of this lower to medium grade
mineralization would fall within any pit targeting the higher grade
mineralization, this would potentially result in more tonnes and a
lower strip ratio within the planned open pits were a lower cut-off
grade used to estimate resources;
11. At a 0.2% copper cut-off, mineral resources are estimated at
30.36 million tonnes grading 1.03% copper, 0.35g/t gold and 3.8g/t
silver, containing 689.4 million pounds of copper, 340,000 ounces
of gold and 3.75 million ounces of silver;
12. Additional inferred mineral resources, at the same cut-off,
are estimated at 42.6 million tonnes grading 0.53% copper, 0.13g/t
gold and 1.6g/t silver containing 496.5 million pounds of copper,
180,000 ounces of gold and 2.18 million ounces of silver;
13. These mineral resource estimates exclude any of the results
of 2008 drilling, which is in-fill drilling these areas to upgrade
the confidence level in the mineral resources, as well as stepping
out to potentially expand the mineral resources since the area
drilled to date represents only a portion of the overall
mineralized system identified at the Minto Mine;
14. A new pre-feasibility study will evaluate opportunities to
convert as much as possible of the mineral resources defined in
2007 and 2008 into reserves, as well as to further increase mill
throughput, which study should be complete by mid-2009;
15. Sherwood is targeting sustained production in the range of
60-70 million pounds of copper per year from its Minto Mine.
Technical Report
The Technical Report was completed for Minto Explorations Ltd.
("MintoEx") under the supervision of SRK Consulting (Canada) Inc.
("SRK"), and represents an update to the Pre-feasibility Study
("PFS") completed under SRK's supervision, the results of which
were announced on December 12, 2007 and filed on SEDAR on December
18, 2007. The Technical Report uses actual performance and cost
information up to the end of June 2008 and re-forecasts costs and
performance for July 2008 onwards based on actual experience as
well as expectations based on that experience. The Technical Report
will be filed on SEDAR within 1-2 days of the date of this
release.
Rescheduled Production Profile
As previously disclosed, Sherwood's wholly owned subsidiary,
MintoEx, has been working towards a rescheduled extraction profile
for the open pit on its high grade Main Zone at the Minto Mine, as
compared to the production profile set out in the December 2007
PFS. The PFS forecast peak copper production in 2010. However, as a
result of schedule modifications to the open pit on the Main Zone,
the high production in 2010 has been brought forward into the
latter part of 2008 and the balance in 2009. The remainder of the
Main Zone and all of the Area 2 deposit are scheduled to be mined
consecutively thereafter. This rescheduled mine plan is based on
resources drilled to the end of 2006 and does not evaluate any of
the resource additions delineated in 2007 nor does it incorporate
the results of 2008 drilling. The revised production schedule is
summarized in the table below.
To view the table for Minto Mine - Rescheduled Production
Details please click on the following URL:
http://media3.marketwire.com/docs/Minto%20Mine%20Production%20Details.pdf
Based on successful exploration in 2007, which increased
resources by approximately 50% over those considered in this
Technical Report, and the results of 2008 drilling, Sherwood is
targeting sustained production of 60-70 million pounds of copper
per annum in a high grade scenario (using a resource estimate with
a 0.5% copper cut-off).
Sherwood is progressing towards this production objective by
working to convert the 2007 resource additions to reserve standards
in 2008, testing for increases to these resource areas in 2008 and
conducting the required resource estimation, mine planning,
metallurgical and environmental work required to prepare a new
pre-feasibility study before the middle of 2009 while, in parallel,
undertaking the required permitting activities to allow this
increased production. Mine planning will be focused on displacing
lower grade ore in the current production schedule with higher
grade mineralization discovered subsequently to the PFS, and
postponing the use of stockpiles to bridge the production between
mining of the Main Zone and the Area 2 deposit with low-strip
ratio, higher grade mineralization from the new resource areas
discovered in 2007-08. In addition, prior evaluations have
suggested that the current ore processing facilities could
potentially be expanded to 4,000 to 5,000 tonnes per day with only
modest modifications.
The combination of more higher-grade mineral resources and
higher throughput should make Sherwood's objective of 60-70 million
pounds of sustained copper production from the Minto Mine
achievable.
Updated Project Economics
In parallel with its rescheduled mine production, MintoEx and
SRK took the opportunity to update operating and capital costs to
reflect actual performance up to and including the end of June
2008, and to reforecast performance, operating costs, capital
requirements and commodity prices based on experience to date and
reasonable expectations going forward. As has been previously
reported, the mineral reserves extracted to date from the Minto
Main Zone are meeting or exceeding expectations, the process plant
is now running at above design capacity on a sustained basis, a
permit amendment was recently issued to allow processing of the
Main Zone at up to 3,200 tpd of ore, there are now nine months of
commercial production cost data available on which to base cost and
performance expectations, and grid power is expected to be
available during the fourth quarter of 2008, significantly reducing
operating costs. These developments, along with others not listed
here, have allowed a comprehensive reassessment of the project
economics, which are detailed in the Technical Report and
highlights presented below.
Technical Report - Metal Prices Used for Committed Forward Sales
Already in Place
----------------------------------------------------------------
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Metal Units 2007 2008 2009 2010 2011 Average
-------------------------------------------------------------------
Copper US$/lb 3.08 2.88 2.49 2.19 2.12 2.50
-------------------------------------------------------------------
Gold US$/oz 648 654 653 653 720 667
-------------------------------------------------------------------
Silver US$/oz 11.76 11.90 11.90 11.90 13.68 12.26
-------------------------------------------------------------------
Technical Report - Metal Prices Used for Uncommitted Sales - Case
1 Only
-----------------------------------------------------------------
-------------------------------------------------------------------
Metal Units 2008 2009 2010 2011 2012 2013 2014 2015 2016
-------------------------------------------------------------------
Copper US$/lb 3.67 3.53 3.37 3.21 3.08 2.96 2.80 2.60 2.40
-------------------------------------------------------------------
Gold US$/oz 900 900 900 900 900 900 900 900 900
-------------------------------------------------------------------
Silver US$/oz 17.50 17.50 17.50 17.50 17.50 17.50 17.50 17.50 17.50
-------------------------------------------------------------------
Cases 2 and 3 were run at 15% and 30% lower metal prices than
used for Case 1. The other main economic factors used in the cash
flow analysis were:
1. CAD:USD exchange rate of 1:1 (parity) for 2008; 1.05:1 for
2009; and 1.10:1 beyond 2009
2. A discount rate of 10%;
3. Variable metal pricing, with copper having declining forward
pricing (backwardation) and gold and silver were kept flat as
opposed to escalating (contango) as the forward curve
indicates;
4. Nominal 2008 dollars; and
5. No inflation.
Costs, revenues and taxes were calculated for each period in
which they occurred rather than at the actual date of payment. For
example, taxes were calculated each month in the model even though
they are actually paid only once per year, in the year following
the year accrued. It must be noted that the net present value
("NPV") calculations in the financial model were done using 2008 as
the starting year and do not take into account approximately $150M
in capital spent in 2006 and 2007 for plant and mine construction.
This methodology is appropriate but only looks at the project going
forward from the beginning of 2008 and, therefore, shows high
returns.
-----------------------------------------------------------
NPV (C$ million)
-----------------------------------------------------------
Case 1 Case 2 - 15% lower Case 3 - 30% lower
-----------------------------------------------------------
Discount Rate Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
---------------------------------------------------------------------------
0.0% 659 522 511 416 364 311
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5.0% 552 445 432 358 313 272
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10.0% 471 386 372 313 273 241
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15.0% 408 339 325 278 241 215
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Additional details on the financial parameters for each of the
three cases are attached to this news release, while comprehensive
information on assumptions and outcomes are contained in the
Technical Report.
"The financial analysis for the Minto Project demonstrates a
robust project in all scenarios," said Mr. Quin. "Using the current
forward curve for copper and flat precious metal prices, the Minto
Mine generates an exceptionally positive cash flow. There are
opportunities to further increase project NPV through the
conversion of the mineral resources discovered and delineated in
2007 and 2008 to reserves, the process for which is underway."
Mineral Resources at a 0.5% Copper Cut-off
Updated mineral resource and mineral reserve estimates were
announced on June 17, 2008 and the Technical Report provides
additional details in respect of those estimates. Net of all
adjustments, contained copper in the mineral resource estimate
increased by 50% and precious metals by approximately 40% as a
result of drilling in 2007. This follows on from a 60% gain in
contained copper in mineral resource estimates based on drilling in
2006, for a 140% gain in copper resource estimates in two years.
The mineral resource tonnages are being reported inclusive of the
mineral reserves.
Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.5% copper cut-off)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 11,460 1.77 0.66 6.85 447,990 240 2,520
--------------------------------------------------------------------------
Indicated (I) 7,830 0.91 0.29 3.24 156,470 70 820
----- ---- ---- ---- ------- -- ---
--------------------------------------------------------------------------
Sub-total (M+I) 19,280 1.42 0.51 5.38 604,460 310 3,340
--------------------------------------------------------------------------
Additional
Inferred 15,070 0.88 0.25 2.61 293,560 120 1,260
--------------------------------------------------------------------------
(i)Rounded to the nearest ten thousand
This resource estimate contains an estimated 604.5 million
pounds of copper, 310,000 oz of gold and 3.3 million oz of silver
in the measured and indicated mineral resource categories using a
0.5% copper cut-off, with an additional 293.6 million pounds of
copper, 120,000 oz of gold and 1.26 million oz of silver in the
inferred mineral resource at that same cut-off, representing an
increase of 50%, 40% and 38% in total contained copper, gold and
silver, respectively.
"Given that the available mineral resource estimate has
increased by 50% since the resource estimate used in the PFS and
that a 25,000m drill program is underway to upgrade the confidence
in and expand these resources, a new pre-feasibility study is
warranted to evaluate the economic potential of these new
resources, once the 2008 drill program is completed," said Mr.
Quin. "There is excellent potential for both an increased mine life
and further increases in production given the tremendous
exploration success at the high grade Minto copper-gold mine."
Sherwood has retained SRK to supervise the preparation of a new
pre-feasibility study that will incorporate the results of the 2007
and 2008 drill programs, updated resource estimates, mine planning,
metallurgical testing and environmental studies. The new study is
expected to be completed by mid-2009.
Mineral Reserves
Mineral reserve estimates remain as announced June 17, 2008 and
can be summarized as follows, representing the previously announced
reserve for the Minto Main deposit and the Area 2 deposit, less
mining that has taken place in 2006 and 2007. See the June 17 news
release for additional details. Note that reserves have not been
updated to incorporate the higher mineral resources contained in
this news release; this will be done as part of a new
pre-feasibility study, as discussed below.
Minto Mine - Mineral Reserves by Classification for All Deposits
(at a 0.62% copper cut-off)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Silver
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Proven 8,219 2.01 0.77 7.98 364,400 203.6 2,110
--------------------------------------------------------------------------
Probable 910 1.24 0.46 5.40 24,800 13.3 159
--------------------------------------------------------------------------
Total (P&P)(ii) 9,129 1.93 0.74 7.73 389,200 216.9 2,267
--------------------------------------------------------------------------
(i) Rounded to the nearest thousand
(ii) Totals may not add exactly due to rounding
Mineral Resources at Lower Cut-off Grades
Whereas there is very little lower grade mineralization in and
around the Minto Main deposit, currently being mined, the southern
deposits such as Area 2, Area 118 and Ridgetop host extensive zones
of lower to medium grade mineralization above and between higher
grade zones for which resource estimates have been announced to
date. Since this lower grade mineralization lies up and down the
existing drill holes, and does not represent lateral projections to
any significant degree and would most likely fall within any pit
designed to extract the higher grade zones, Sherwood has, for the
first time, assessed the mineral resources at lower cut-offs than
those previously considered. Mineral resource estimates at a 0.2%
copper cut-off and 0.3% copper cut-off are summarized below, while
details of mineral resource estimates at all cut-off grades
calculated and the estimation methodology are detailed in the
Technical Report.
Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.2% copper cut-off)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 13,880 1.53 0.56 5.85 466,810 250 2,610
--------------------------------------------------------------------------
Indicated (I) 16,480 0.61 0.18 2.15 222,570 90 1,140
--------------------------------------------------------------------------
Sub-total (M+I) 30,360 1.03 0.35 3.84 689,380 340 3,750
--------------------------------------------------------------------------
Additional
Inferred 42,600 0.53 0.13 1.59 496,500 180 2,180
--------------------------------------------------------------------------
(i)Rounded to the nearest ten thousand
Minto Mine - Mineral Resource Estimates by Classification for All Deposits
(at a 0.3% copper cut-off)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cont- Cont-
ained ained
Contained Gold Ag
Tonnes Cop- Cu (000's (000's
(000's) per Gold Silver (000's lbs) oz) oz)
Classification (i) (%) (g/t) (g/t) (i) (i) (i)
--------------------------------------------------------------------------
Measured (M) 13,170 1.59 0.59 6.13 463,050 250 2,600
--------------------------------------------------------------------------
Indicated (I) 13,600 0.69 0.21 2.42 206,860 90 1,060
--------------------------------------------------------------------------
Sub-total (M+I) 26,770 1.14 0.39 4.25 669,910 340 3,660
--------------------------------------------------------------------------
Additional
Inferred 31,530 0.63 0.16 1.87 435,800 160 1,890
--------------------------------------------------------------------------
(i)Rounded to the nearest ten thousand
These mineral resource estimates contain between 669.9 to 689.4
million pounds of copper, 340,000 oz of gold and 3.7 to 3.8 million
oz of silver in the measured and indicated mineral resource
categories using a 0.2 and 0.3% copper cut-off, with an additional
435.8 to 496.5 million pounds of copper, 160,000 to 180,000 oz of
gold and 1.9 to 2.2 million oz of silver in the inferred mineral
resource at the same cut-offs.
"While the overall grades in the resource estimates above are
lower than currently being mined at the Minto Mine, they average
approximately twice that of currently operating copper mines in
British Columbia," said Mr. Quin. "These resources would require
additional work to demonstrate positive economics; nevertheless,
they do suggest an interesting opportunity for a considerably
larger scale operation than would be contemplated at the higher
cut-off grades currently being used. Further, these resource
estimates encompass only a modest portion of what may be a much
larger mineralized system. Further drilling is required to evaluate
the potential continuity of the large untested areas between the
currently defined mineral resources."
Sensitivities
Both the pre-tax and after taxation cash flow models show the
project is most sensitive to changes to the copper grade. This
sensitivity is somewhat mitigated in the mine plan by the
significant use of stockpiles to allow the early extraction of
higher grade ore and the ability to blend different grades to
provide a consistent mill feed. These two features of the
life-of-mine plan are important in maximizing the economics of the
project. In Case 1, a 20% drop in copper grade yields a $112 M
(29%) drop in after-tax NPV10%. Diligent grade control practices
will be important in achieving undiluted mill feed, especially in
Area 2 where the mineralized zones are smaller and more numerous
than those found in the Main pit.
Metal prices demonstrate the second greatest sensitivity. In
Minto's case, the metal prices are buffered by the fact that a
significant portion (approximately 50%) of its production is
already hedged until late 2011, so a reduction or increase in the
market price has a tempered affect on the NPV. Even with this
forward sale arrangement, a 20% decrease or increase in copper
price changes the after-tax NPV10% by 25%.
A 20% reduction in operating cost yields a $45 M (12%) increase
in after-tax NPV10%. Many of Minto's major operating expenses
including mining, explosives, treatment charges and refining
charges and concentrate transport are covered by contracts and,
therefore, offer considerable protection from variances in the next
2 to 4 years.
As most of the capital expenses for the mine and expansions have
already been incurred, the project is not sensitive to CAPEX.
Project Risks
The following risks have been identified for the Minto Mine:
1. Exchange rates, metal prices and external influences: MintoEx
has no control over exchange rates and their impact on the
economics of the operation is significant. Metal prices are also
not controllable, other than by forward sales contracts, and can
have an appreciable effect on project return.
2. Process Capacity: The ability of the mill to be modified to
3,500 tpd is a risk, as there may be certain unit operations that
could create bottlenecks to the operation that have not been
identified.
3. Water management: Both the lack of water and the
overabundance of water are potential issues for the mine. A lack of
water may be an issue during the in-pit co-deposition of tailings
in the Main pit as water will be lost. An overabundance of water
could attract higher water treatment costs.
4. Grade control: The Area 2 deposit is made up of several zones
of ore that are not as continuous and thick as the Main zone. As a
result, a very thorough and proactive grade control program will be
necessary to reduce dilution. The NPV of this project is very
sensitive to copper grade, so excessive dilution will have a
serious negative impact on the project economics.
5. Permitting: The plan for the mining of the Area 2 deposit,
and handling of the tailings and waste rock generated therefrom,
requires modifications to existing permits, which may not be
granted or may take longer than expected.
Project Opportunities
The following opportunities have been identified for the Minto
Mine:
1. Optimization of mine plan: The mine plan has not been fully
optimized and it is likely that further scheduling work will smooth
out some of the grade and ore extraction variations and provide
higher grade ore sooner, with delayed waste mining.
2. Resource additions: The resource updates contained in this
report show considerable additional mineralization that has not
been considered in the life-of-mine plan summarized in this report.
Extensive drilling is underway in 2008 to upgrade the confidence in
these new resources, to attempt to increase them and to test new
targets. A further update to the life-of-mine plan will be
completed once the 2008 results are available, and offers
opportunities for further increases in grades, potential
rescheduling of the different zones to optimize project economics,
etc.
3. Exploration target potential: There are several interesting
exploration targets on the Minto property. MintoEx has plans to
further explore these targets with the hope that they will become
resources and eventually reserves. There is absolutely no guarantee
these targets will ever be economic to extract; however, the past
exploration record at Minto is a positive indication of further
potential.
4. Underground mine potential: MintoEx has identified some
deeper exploration targets that may have the potential for
underground mining. If these targets are added to Minto's
resources, a study should be undertaken to determine if the
deposits are sufficient in grade and volume to support underground
development.
5. Waste deposition in the Minto Valley: The Minto valley to the
west and south-west of the Main pit offers a viable waste rock dump
alternative that will provide the mine with a significant cost
savings, by reducing the distance and elevation of the waste rock
truck hauls.
6. Processing efficiency: As the Minto ore is better understood,
the processing plant may be further optimized to increase recovery,
improve concentrate grade or increase throughput.
7. Cost efficiencies: MintoEx operating personnel are evaluating
areas where costs can be improved. The largest cost centre is
mining, followed by processing.
Plan for a Comprehensive Updated PFS
As noted above, Sherwood is in the process of completing an
extensive drill program designed to (a) upgrade the confidence
level in the resources detailed above, (b) to expand those
resources and (c) to test new targets. Based on the results of the
2008 drill program, Sherwood will complete new resource estimates
that will support mine planning to bring these resources into
production plans. The objective of these mine plans will be to
bring higher grades forward, possibly by mining more than one
deposit in parallel, and by deferring lower grade and stockpiled
material until the end of the mine life. In parallel, Sherwood aims
to conduct metallurgical testing on each of the new deposits
discovered, as well as carry out environmental programs. These new
resources, mine plans, metallurgical and environmental studies,
along with any other information will be used to support a
comprehensive updated pre-feasibility study, supervised by SRK,
scheduled for completion by mid-2009. As also noted above, this
study will evaluate further increases to the throughput rate for
the process mill. Overall, by focussing on higher grades and higher
throughputs, Sherwood's objective is to demonstrate sustained
production at a rate of 60-70 million pounds of copper per year in
this study.
At the same time as carrying these activities related to the
preparation of a new pre-feasibility study, Sherwood aims to
continue the evaluation of the potential of the Minto property to
host a significantly larger, more moderate grade deposit.
About Sherwood Copper
Sherwood Copper's objective is the profitable production of base
and precious metals from high grade, open pit mines in Canada.
Sherwood's first operating mine, the high grade Minto copper-gold
mine in Yukon, Canada, was built on budget and ahead of schedule.
The Minto Mine is one of the highest-grade open pit copper-gold
mines in the world, and is forecast to be a low cost producer.
Aggressive exploration on the Minto property has yielded
significant success, providing Sherwood the opportunity to 'grow
from within' by expanding the resource and reserve base,
potentially leading to further production increases. To further
accelerate its production growth, Sherwood intends to pursue merger
& acquisition opportunities that fit its business model and, in
May 2008, Sherwood acquired 100% ownership in Western Keltic Mines
(now Kutcho Copper Corp.), owner of the high-grade Kutcho
copper-zinc-gold-silver deposit in north-western British Columbia.
Sherwood intends to lever off its successful development of the
Minto Mine and advance the Kutcho project to a production
decision.
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, who has
reviewed the content of this press release. The exploration
activities at the Minto project site are carried out under the
supervision of Brad Mercer, P. Geol., V.P. Exploration with
Sherwood. The mineral resources discussed in this news release were
estimated by Lions Gate Geological Consulting Inc. (LGGC). Susan
Lomas, P. Geol. of LGGC is the Qualified Person under National
Instrument 43-101 responsible for the estimates and has reviewed
the information in this release in respect of mineral resource
estimates. Mineral reserves were calculated by MintoEx geology and
engineering staff under the supervision of Dan Russell, P. Eng.,
Manager of Mining at the Minto Mine, who is the Qualified Person
under National Instrument 43-101 responsible for the mineral
reserve estimate, as detailed in the June 17, 2008 news release.
David Hendriks, P.Eng., of TechPro provided the metallurgical
information used in the Technical Report based on actual operating
experience at the Minto Mine and prior test work reported in the
PFS. The operating and capital cost information used in the
Technical Report were provided by MintoEx operating personnel,
under the supervision of Kevin Weston, Chief Operating Officer of
Sherwood, and Randall Thompson, General Manager of the Minto Mine.
The economic analysis information from the Technical Report
referenced in this news release was reviewed by Gordon Doerksen,
P.Eng. of SRK.
Minto Main deposit reserve estimate was compiled using the
updated mineral resource model provided by LGGC, hereby referred to
as the "Model". The Model was imported into Mintec's MineSight�
software for the reserve calculation. The mineral resource estimate
was verified using MineSight� to ensure the import was successful.
The mineral reserve calculation was bounded by the 2007 year-end
survey surface (122007 YE Pit Surface.msr) and the most current
ultimate pit design surface (ph5 nov1.msr). Furthermore, a cut-off
grade of 0.62% Copper was used. The absence of these factors is
justified on account of historical performance showing good mining
reconciliation against the past model. The mineral reserve summary
is based on measured and indicated mineral resource classifications
in the model only, totalled within ore zones 2, 4, 5, and 8 in the
Minto Main deposit (as established by in the December 2007
Pre-feasibility Study), and bounded by the aforementioned surfaces
and assumptions. Mineral resource categories and definition of ore
zones in the Model were established by the relevant QP's for each
resource model, as defined herein.
Details of the historical Area 2 mineral resource and mineral
reserve estimate are provided in the Technical Report for the Minto
Pre-feasibility study, available on SEDAR, the results of which
were announced on December 12, 2007. The current Area 2 mineral
reserves are based on this historic mineral resource and have not
been updated to reflect the increased Area 2 mineral resource
discussed in this release nor the results of drilling in 2008.
Mineral Resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resource estimates do not
account for mineability, selectivity, mining loss and dilution.
These mineral resource estimates include inferred mineral resources
that are normally considered too speculative geologically to have
economic considerations applied to them that would enable them to
be categorized as mineral reserves. There is also no certainty that
these inferred mineral resources will be converted to measured and
indicated categories through further drilling, or into mineral
reserves, once economic considerations are applied.
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
Forward Looking Statements
This document may contain "forward-looking statements" within
the meaning of Canadian securities legislation and the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and the Company does not intend, and does not assume any
obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect management's expectations or beliefs
regarding future events and include, but are not limited to,
statements with respect to the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, success of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative of these
terms or comparable terminology. By their very nature
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of
current exploration activities; changes in project parameters as
plans continue to be refined; future prices of resources; possible
variations in ore reserves, grade or recovery rates; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; as well as those factors
detailed from time to time in the Company's interim and annual
financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review
on SEDAR at www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such
statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
To view the Sherwood Copper Summary of Cash Flow for Cases 1-3
table accompanying this release, please click on the following URL:
http://media3.marketwire.com/docs/SWC%20Summ.%20Cash%20Flows.pdf
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press
release.
Contacts: Sherwood Copper Corporation Stephen P. Quin President
& CEO (604) 687-7545 Sherwood Copper Corporation Chris Curran
Investor Contact (604) 687-7545 (604) 689-5041 (FAX) Website:
www.sherwoodcopper.com
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