SUITE
860
- 625
HOWE STREET �
VANCOUVER, BC �
V6C 2T6 CANADA � TEL:
(604) 687-7545 FAX: (604)
689-5041
PRESS
RELEASE
FOR IMMEDIATE
RELEASE
April 17, 2008
#08-15
Sherwood Reports Minto Copper-Gold Mine Achieves &
Exceeds Design
Capacity
First Quarter Production of 11.3 million lbs of Copper,
$4.95 million loan repayment
made
VANCOUVER, BRITISH COLUMBIA -
Sherwood Copper Corporation (SWC: TSX-V)
today announced that the commissioning of its Phase 2 mill expansion
at the high grade Minto copper-gold mine in the Yukon is complete and the mill
has essentially achieved, and several times exceeded, its design capacity of
2,400 tonnes per day. During the
past four weeks, to April 12, the
mill processed an average of 2,336
tonnes per day at an average feed grade of 4.5% copper and 20g/t silver,
achieved design copper recoveries of 93.5% and produced above design concentrate grades averaging
42.8% copper. Individual day highs
during this period include mill throughput of 2,642 tonnes per day, recoveries
of 97% copper and concentrate grades of 47% copper, showing that there is still
room to fully optimize plant performance by achieving a higher level of
performance on a sustained basis.
Since gold is assayed off site, gold information is not
available until sometime
later.
�Once again, our operations team at the high
grade Minto copper-gold mine have delivered a significant success by completing
the commissioning of the Phase 2 mill expansion less than three months after
construction was complete,� said Stephen
Quin, President & CEO. �Despite an initially slow start to the
quarter, as the new equipment was commissioned and bedded down combined with
temporary crusher availability issues in February and early March, the Minto
Mine has clearly demonstrated its ability to not only sustain, but to also
exceed design capacity,� he added.
�During the next few months, we aim to continue to optimize operational
performance of the Minto Mine while, in parallel, looking to the implementation
of the Phase 3 mill expansion.�
In addition, on March 31, 2008, Sherwood�s wholly owned
subsidiary, Minto Explorations Ltd., made its first principal repayment of
$4.925 million under its project loan facility. �Making our first principal repayment
under our project loan facility is another significant milestone in Sherwood�s
rapid acquisition, financing, development and expansion of operations at the
Minto Mine,� said Mr. Quin. �Having
achieved design performance and, given the exceptional grade and current very
high metal price, Sherwood is looking forward to a very robust performance in
2008 and beyond.�
Minto Mine Q1
Performance
As noted in the February 25, 2008
announcement, the first quarter production in 2008 was forecast to be lower than the
average for the year as a result of commissioning activities, scheduling of
lower grade feed and unusually cold weather. During the first three months of 2008,
Sherwood completed the commissioning of the Phase 2 mill expansion, which
included the addition of a second ball mill and additional flotation capacity to
increase processing capacity from
1,563 tonnes per day to 2,400 tonnes per day. Throughput during the quarter was
affected by commissioning activities as the new equipment was bedded down, but
was also impacted (as reported February 25, 2008) by an extended period of
unusually cold weather that affected crusher availability, reducing mill
throughput. The crusher will be
modified before next winter to avoid these issues in the future. However, the mill has been running at
design performance for the past four weeks as detailed above. Details of the Minto Mine�s quarterly
performance are tabulated
below.
|
**Q1 &
Q2/07 |
**Q3/07 |
Q4/07 |
Q1/08 |
Production
(contained in
concentrates) |
|
|
|
|
-
Copper (000�s lbs) |
473,994 |
3,836,043 |
5,350,619 |
11,322,942 |
- Gold
(oz)* |
N/A |
N/A |
N/A |
N/A |
-
Silver (oz) |
2,018 |
17,938 |
25,929 |
63,440 |
Mining |
|
|
|
|
-
Waste (tonnes) |
4,846,319 |
2,127,252 |
2,291,004 |
1,372,953 |
-
Ore
(tonnes) |
24,793 |
600,261 |
121,273 |
321,431 |
-
Total material mined
(tonnes) |
4,871,112 |
2,727,513 |
2,412,277 |
1,694,384 |
-
Copper grade (%) |
1.09 |
1.72 |
2.17 |
3.57 |
- Gold
grade (g/t)*** |
0.15 |
0.45 |
0.61 |
1.46 |
-
Silver grade (g/t) |
4.34 |
6.20 |
8.10 |
14.6 |
Milling |
|
|
|
|
-
Tonnes processed |
20,253 |
117,382 |
100,811 |
152,368 |
-
Copper grade (%) |
1.64 |
1.90 |
2.57 |
3.61 |
- Gold
grade (g/t)* |
N/A |
N/A |
N/A |
1.73 |
-
Silver grade (g/t) |
5.06 |
6.93 |
9.13 |
14.80 |
Recoveries |
|
|
|
|
-
Copper (%) |
64.8 |
78.1 |
93.7 |
94.5 |
- Gold
(%) |
N/A |
N/A |
N/A |
79.7 |
-
Silver (%) |
61.3 |
68.6 |
87.7 |
88.5 |
Concentrate |
|
|
|
|
- Dry tonnes
produced |
580 |
4,965 |
7,086 |
13,243 |
- Copper grade
(%) |
37.1 |
35.1 |
34.3 |
38.8 |
- Gold grade
(g/t)* |
N/A |
9.8 |
11.4 |
N/A |
- Silver grade
(g/t) |
108.3 |
112.4 |
113.8 |
149.0 |
*
Gold is not assayed on site, resulting in a significant lag in receiving this
data.
** Includes capitalized pre-stripping treated as pre-production costs in the
DFS.
*** Gold grades for ore mined are estimated from the reserve block model,
whereas copper and silver grades are based on blast hole
assays.
Note that the 2007 production statistics,
previously reported on February 25, 2008, have been adjusted as a result of
year-end reconciliations completed subsequent to that
announcement.
Concentrate
Shipments
In early March,
Sherwood loaded approximately
9,158 dry metric tonnes of concentrate
grading approximately 36% copper on
the vessel MV Beluga Enterprise and,
in early April, an additional 9,849 tonnes of concentrate grading
approximately 39% copper on the
vessel MV Sanka Enternal for sale to Japanese smelters. Of these quantities delivered,
approximately 79% will be delivered
into Sherwood�s copper forward sales contracts, while the balance has been or
will be sold at spot between the loading date and final settlement date. In addition, these concentrates contain
significant gold and silver credits.
2008
Outlook
Given that the mill has demonstrated
capacity in excess of design, for the balance of the year Sherwood aims to
average mill throughput in excess of 2,400 tonnes per day in order to achieve
its production forecast of
approximately 55 million pounds of
payable copper and 24,000 oz of payable gold in 2008. This forecast was made without assuming
any benefits from on-going optimizations, such as rescheduling the pit
sequencing in order to bring production forward, coarsening the grind and
implementing the Phase 3 mill expansion, details of which were outlined in the
February 25, 2008 announcement.
About Sherwood
Copper
Sherwood Copper�s current focus is 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 March 2008, Sherwood acquired more than 93% ownership in Western Keltic
Mines, owner of the high-grade Kutcho copper-zinc-gold-silver deposit in
northwestern British
Columbia.
Sherwood aims to repeat its successful development of the Minto Mine at
the Kutcho project.
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
operational information relating to the Minto Mine in this release have been
carried out under the supervision of Randall Thompson, General Manager of the
Minto Mine, and Kevin Weston P..Eng.,
Chief Operating Officer for Sherwood Copper.
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�
Stephen P. Quin
President &
CEO
Investor
Contacts:
Stephen P. Quin 604.687-7545 or Brad Kopp
604-687-7545
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
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.