Sherwood Announces Resource Estimate for Area 2 Deposit at Minto Project, Yukon

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Sherwood Copper Corporation (TSX VENTURE:SWC) today announced the results of an independent, National Instrument 43-101 compliant, Mineral Resource estimate for the high grade Area 2 copper-gold deposit at the Minto Project, Yukon. The measured and indicated resource for Area 2 comprises 3.8 million tonnes at an average grade of 1.80% copper and 0.74g/t gold at a 1.0% copper cut-off within a larger measured and indicated resource of 7.6 million tonnes at an average grade of 1.26% copper and 0.48g/t gold using a 0.5% copper cut-off grade. This estimate incorporates the results of 92 drill holes; 79 completed by Sherwood in 2006 and 13 completed by previous operators. The Area 2 resource remains open to further expansion. This resource estimate will form the basis of a Preliminary Feasibility Study (PFS) for Area 2 to be completed by SRK Consulting (Canada) Inc. ("SRK") of Vancouver, BC. Both the main Minto deposit and the Area 2 resource are located within 500m of the mill currently under construction and now approximately 60% complete.

"This initial resource estimate for Area 2 represents a very significant addition to the resource base at the high grade Minto copper-gold project, and has gone from discovery to a significant measured and indicated resource in less than 12 months," said Stephen Quin, Sherwood's President & CEO. "With this estimate in hand, SRK Consulting can proceed to complete a preliminary feasibility study to assess the economics of mining these resources and processing them at the nearby Minto mill, currently nearing completion. Should Area 2 prove economically feasible, it has the potential to add several years of mine life to the Minto project and, if a reserve is defined that is sufficiently large, may justify a further mill expansion beyond the currently contemplated 2400 metric tonne per day throughput. In addition, Area 2 remains open to expansion in a number of directions, offering further potential beyond that defined to date."

All the mineral resources reported herein will be considered for inclusion in the PFS. For the purpose of discussion all resources located at similar depths to the adjacent Minto Deposit are termed the "Shallow Resource" (including previously reported intervals J, K, L, M & N) while resources below that level are termed the "Deeper Resource" (previously referred to as intervals O, P, Q & R).

Minto Resource Estimate

The total contained metal in the Measured and Indicated Resource estimate is 210.7 million pounds of copper and 117,000oz of gold at a 0.5% copper cut-off, representing a 61% increase in contained copper and a 75% increase in contained gold versus the resource estimate for the main Minto deposit. An additional Inferred Resource at that same cut-off contains a further 30.7 million pounds of copper and 15,000oz of gold. The following table summarizes the Mineral Resource for the Area 2 Deposit at a 0.5% copper cut-off grade, while additional estimates at different cut-offs and depths are discussed below.

source news : ccnmatthews.com

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