Sherwood Starts 2008 Drill Program With New Discoveries at Minto Copper-Gold Mine
May 14 2008 - 3:35PM
Marketwired Canada
Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today
announced that the 2008 exploration program at the Minto Mine located in the
Yukon has commenced, discovering new areas of copper-gold mineralization in
previously undrilled terrain west of the Minto and Area 2 reserves.
The 2008 exploration program has a budget of $4.4 million and is expected to
include approximately 20,000m of drilling. Drilling to date has evaluated the
potential of a large area west of the Minto and Area 2 deposits covered with a
thick layer of semi-frozen overburden that precludes the use of conventional
soil geochemical and geophysical techniques successfully used elsewhere on the
property to discover new deposits, and requiring drilling when the ground is
frozen. Thirteen holes were drilled in this area, with some notable successes,
as summarized in the table below (complete results are attached). The drills
have now moved on to other, higher priority objectives that can be drilled year
round.
--------------------------------------------------------------------------
Inter- Inter-
From To val val Copper Gold Silver
Hole ID Target (m) (m) (m) (ft) (%) (g/t) (g/t)
--------------------------------------------------------------------------
07SWC-271 Upper Minto 143.5 160.6 17.1 56.1 0.85 0.35 2.4
---------- Valley ---------------------------------------------------
including 155.5 160.6 5.1 16.7 1.55 0.80 3.9
--------------------------------------------------------------------------
07SWC-274 Upper Minto 95.5 109.9 14.4 47.2 0.68 0.27 6.0
---------- Valley ---------------------------------------------------
including 95.5 102.6 7.1 23.3 1.17 0.44 11.5
--------------------------------------------------------------------------
07SWC-276 Area 118SW 208.7 217.6 8.9 29.2 2.14 0.75 9.7
---------- ---------------------------------------------------
including 208.7 214.7 6.0 19.6 3.10 1.10 14.2
---------- ---------------------------------------------------
including 212.5 214.7 2.2 7.2 6.27 1.67 29.4
--------------------------------------------------------------------------
07SWC-285 Un-named 72.9 96.1 23.2 76.1 0.79 Pending 3.8
---------- Target ---------------------------------------------------
including Upper Minto 79.3 82.4 3.1 10.2 1.71 Pending 8.5
---------- Valley ---------------------------------------------------
and 89.4 93.9 4.5 14.8 1.25 Pending 6.7
--------------------------------------------------------------------------
"With new copper-gold discoveries in our first holes, we are off to a strong
start with our 2008 exploration program," said Stephen Quin, President & CEO of
Sherwood Copper and Minto Explorations Ltd. "These new discoveries open up
previously unexplored areas on the Minto property. Drilling has now moved on to
other priority areas identified in 2007, including possible extensions to the
Area 2 deposit, further definition of the Area 118 and Ridgetop discoveries to
increase the resource confidence level, as well as exploring additional
targets," he said. "This exploration program is a component of our overall
strategy to maximize the value of the Minto Mine by developing additional high
grade reserves that could justify further increases in production by increasing
mill throughput. Areas that were drilled where no mineralization was discovered
will be considered as possible alternative waste dump locations that could be
utilized at a lower cost than currently planned."
2008 Exploration Priorities
The 2008 exploration program has the following priorities:
1. Evaluate the potential of the Upper Minto Valley for new discoveries (complete);
2. In-fill drill the 2007 discoveries at Area 118 and Ridgetop to increase the
resource confidence level;
3. Step out drilling in the Area 2, Area 118 and Ridgetop areas with the
objective of expanding the known mineralization into previously untested areas;
4. Test other targets.
2008 Drill Program
Sherwood has budgeted a $4.4 million, 20,000 metre drill program for 2008.
Partial results are available from the first holes completed as a part of this
program, and are outlined herein including encouraging new copper - gold
intercepts in areas that had not previously seen exploration drilling. Drilling
has now moved to other 2008 priority targets.
1. Upper Minto Valley - Given that the Minto Valley bisects and separates the
main Minto and Area 2 deposits, it is considered highly prospective. However the
valley has substantial deposits of permanently frozen overburden that prevents
penetration by conventional geochemical and geophysical methods used at Minto
such as soil sampling, magnetic and induced potential surveys. The first part of
the 2008 drill program was designed to drill test the western portion of this
area to gain much needed geological knowledge in this otherwise untested area.
The wide-spaced 2008 drilling showed the Upper Minto Valley is underlain by a
stacked system of foliated granodiorite, the favourable host rock to
mineralization at the main Minto and Area 2 deposits. Several 2008 holes in this
area intersected moderate to high grades of copper mineralization, similar to
that seen in and around other deposits at the Minto Mine. These results are
discussed more fully below.
2. Area 2/Area 118 - Drilling in 2007 discovered an extensive mineralized system
at Area 118, immediately west of the Area 2 deposit. Current geological
modelling suggests that Area 118 is an up-faulted continuation of the Area 2
deposit. A combined Area 2/Area 118 resource model, based on 2007 drilling, is
currently in process, the results of which will be reported in the coming weeks.
The location of Area 118, immediately adjacent to a proposed open pit designed
to exploit the Area 2 mineral reserve (as outlined in the Pre-feasibility study
the results of which were announced December 12, 2008) makes this a high
priority to increase confidence in an Area 118 resource, sufficient to support
conversion to reserves and potentially justify further mill expansions. Both
Area 2 and Area 118 remain open to further expansion, and this potential will be
evaluated in 2008.
3. Ridgetop - Drilling at Ridgetop in 2007 was designed to build off a known
occurrence of near surface copper-gold mineralization discovered by ASARCO in
the 1970's. While the grades in the Ridgetop area are moderate as compared to
the main Minto and Area 2 reserves, the near surface nature of this
mineralization (within a few metres of surface) presented an opportunity for the
definition of very low strip ratio reserves. Drilling completed in 2007 is
expected to result in the definition of an initial resource at Ridgetop (to be
announced in the coming weeks), which will be further defined in 2008. In
addition, 2008 drilling will aim to expand the Ridgetop mineralization.
4. Other Targets - Several high priority exploration targets, including
Airstrip, Copper Keel, Ridgetop West and Minto Ridge, will be evaluated in 2008
for their potential to host new areas of high grade copper-gold mineralization.
Please follow the link below to a map identifying the priority exploration areas
for 2008:
http://media3.marketwire.com/docs/SWC0514a.jpg
2008 Results to Date
Fifteen of the 16 drill holes intersected multiple horizons of foliated
granodiorite in vertically stacked sequences in geometries similar to those
hosting adjacent known mineral deposits. One hole was abandoned in overburden
after technical problems collaring the casing. All 15 successfully completed
holes intersected copper-gold mineralization ranging from geochemically
anomalous to grades and thicknesses similar to those reported from nearby
deposits, including the Main Minto, Area 2, Area 118 and Ridgetop deposits. Of
particular note are:
Area 118SW: Hole 08SWC-276 drilled into an area postulated to be a faulted
southwest extension of the Area 118 deposit. This hole intersected very high
grades at similar depths to the Area 118M horizon, including 8.9m grading 2.14%
copper and 0.75g/t gold with a subinterval of 6.0m of 3.10% copper and 1.10g/t
gold.
Minto Valley: Holes 08SWC-270, 08SWC-271 and 08SWC-274 drilled into a roughly
triangular shaped weak magnetic feature whose signature is believed to be muted
by the deep overburden cover in the center of the Upper Minto Valley. All three
holes cut significant zones of copper-gold mineralization, including significant
intervals grading approximately 1% copper in holes 08SWC-271 and 274. Hole
08SWC-271 intersected 1.55% copper and 0.80g/t gold over 5.1m within a broader
intersection grading 0.85% copper and 0.35g/t gold over 17.1m, while 08SWC-274
intersected 1.17% copper and 0.44g/t gold over 7.1m within a broader
intersection grading 0.68% copper and 0.27g/t gold over 14.4m. Because of the
distance separating these two holes (more than 425m), no conclusions can be made
about continuity of mineralization between these intercepts at this time.
Un-named: A single hole, 08SWC-285 drilled at this un-named location within the
Upper Minto Valley more than 400 metres southwest of the West Ridgetop prospect
intersected 23.2m of 0.79% copper with two subintervals grading better than 1%
copper: 3.1m of 1.7% copper and 4.5m of 1.25% copper respectively. At the time
of this news release, gold assay data was unavailable.
For current drill hole locations, please view the accompanying map:
http://media3.marketwire.com/docs/SWC0514b.jpg
New Resource Models
Independent NI43-101 compliant resource estimates incorporating all of the 2007
drilling at Area 2, Area 118 and Ridgetop are nearing completion and are
expected to be released in June. Meanwhile, Sherwood is already concentrating on
both in-fill and step-out drilling to increase confidence in, and potentially
expand, these areas of copper-gold mineralization.
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 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 exploration activities at the Minto project site are carried
out under the supervision of Brad Mercer, P. Geol., V.P. Exploration for
Sherwood.
The analytical method for copper and silver performed by SGS Laboratories under
a contract arrangement at the Minto Mine Site, Yukon includes digestion in aqua
regia followed by absorption spectroscopy. Gold is measured using fire assay
with atomic absorption spectroscopy; analysis is performed by SGS Laboratories
at Red Lake, Ontario. When visible gold is noted in drill core samples or
regular analytical values exceed 5 grams per tonne, the pulp and screen metallic
assay method is used to determine total gold content and gold content of
different size fractions. This is considered industry best practice when dealing
with coarse gold mineralization where a nugget effect is suspected. The result
of the pulp and screen metallic assay is accepted as the most representative
value and used in the assay database for resource calculations. Blank and
standard samples are added to all sample shipments prior to submittal to the lab
for quality assurance and quality control. If more than two check samples assay
outside of expected ranges, the work order is re-assayed. After the completion
of planned drill programs, random check assays will be carried out by ALS Chemex
of North Vancouver, BC.
Assay intervals reported herein are drill core lengths unless otherwise stated.
Because the known deposits are essentially flat lying and most drill holes
reported to date are vertical, true widths are generally expected to be the same
as reported core lengths unless otherwise stated.
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 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.
2008 Drill Statistics - Minto Property
----------------------------------------------------------
Holes
Completed Status
----------------------------------------------------------
Drill Area and Assay Data Assay Data
Type of Hole 2008 Released (i) Pending
----------------------------------------------------------
Exploration Holes
----------------------------------------------------------
Airstrip SW 1 0 1
----------------------------------------------------------
Airstrip C. 0 0 0
----------------------------------------------------------
Area 2 1 0 1
----------------------------------------------------------
Area 118 4 0 4
----------------------------------------------------------
Area 118 SW 2 2 0
----------------------------------------------------------
Copper Keel S. 1 0 1
----------------------------------------------------------
Gap 1 1 0
----------------------------------------------------------
Minto Valley 13 13 0
----------------------------------------------------------
Ridgetop E 0 0 0
----------------------------------------------------------
Ridgetop W 0 0 0
----------------------------------------------------------
-------------------------------------
23 16 7
----------------------------------------------------------
----------------------------------------------------------
Summary
----------------------------------------------------------
# of Holes 23 16 7
----------------------------------------------------------
# of Metres 5,852 4,740 1,112
----------------------------------------------------------
(i) Copper and Silver data is all released. Gold data is
only partially available.
- One additional hole was abandoned in overburden due to
technical reasons
Details of Drill Results
To accompany Sherwood Copper News Release Dated May 14, 2008
--------------------------------------------------------------------------
Inter- Inter- Cop- Sil-
Hole ID From To val val per Gold ver
& Target Comments (m) (m) (m) (ft) (%) (g/t) (g/t)
--------------------------------------------------------------------------
08SWC-270 54.9 60.2 5.3 17.4 0.43 0.09 3.5
--------------------------------------------------------------------------
"Minto Valley" 75.8 84.5 8.7 28.5 0.46 0.09 1.3
--------------------------------------------------------------------------
167.6 180.0 12.4 40.7 0.38 0.04 1.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-271 143.5 160.6 17.1 56.1 0.85 0.35 2.4
--------------------------------------------------------------------------
"Minto Valley" including 155.5 160.6 5.1 16.7 1.55 0.80 3.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-272 82.5 84.8 2.3 7.5 0.42 0.22 1.2
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
08SWC-273 112.5 115.7 3.2 10.5 0.36 0.04 1.3
--------------------------------------------------------------------------
"Minto Valley" 229.0 238.1 9.1 30.0 0.40 0.08 2.2
--------------------------------------------------------------------------
08SWC-274 95.5 109.9 14.4 47.2 0.68 0.27 6.0
--------------------------------------------------------------------------
"Minto Valley" including 95.5 102.6 7.1 23.3 1.17 0.44 11.5
--------------------------------------------------------------------------
08SWC-275 Abandoned due to technical drilling problems
penetrating overburden
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-276 50.3 53.3 3.0 9.8 1.55 0.15 5.9
--------------------------------------------------------------------------
"Area 118 SW" 59.2 62.1 2.9 9.5 0.69 0.24 3.0
--------------------------------------------------------------------------
208.7 217.6 8.9 29.2 2.14 0.75 9.7
--------------------------------------------------------------------------
including 208.7 214.7 6.0 19.6 3.10 1.10 14.2
--------------------------------------------------------------------------
including 212.5 214.7 2.2 7.2 6.27 1.67 29.4
--------------------------------------------------------------------------
286.8 295.5 8.7 28.5 1.27 pending 3.7
--------------------------------------------------------------------------
including 286.8 288.3 1.5 4.9 6.22 pending 17.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-277 132.5 138.5 6.0 19.6 0.39 0.01 0.5
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-278 131.4 133.4 2.0 6.6 3.22 pending 22.0
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-279 52.5 55.9 3.4 11.2 0.32 pending 0.7
--------------------------------------------------------------------------
"Area 118 SW" 142.3 148.3 6.0 19.7 0.27 0.01 0.5
--------------------------------------------------------------------------
225.4 230.0 4.6 15.1 0.43 0.12 2.7
--------------------------------------------------------------------------
including 228.4 230.0 1.6 5.2 0.92 0.29 7.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-280 Geochemically anomalous-no significant
intersections
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-281
--------------------------------------------------------------------------
"Area 118 SW" 193.7 198.1 4.4 14.4 0.85 pending 3.3
--------------------------------------------------------------------------
including 193.7 196.7 3.0 9.8 1.10 pending 3.5
--------------------------------------------------------------------------
201.8 202.6 0.8 2.8 2.86 pending 5.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-282 Geochemically anomalous-no significant
intersections
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-283 167.4 172.5 5.1 16.7 0.42 pending 1.3
--------------------------------------------------------------------------
"Minto Valley" including 167.4 168.0 0.6 2.0 2.14 pending 3.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-284 Geochemically anomalous-no significant
intersections
--------------------------------------------------------------------------
"Minto Valley"
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-285 72.9 96.1 23.2 76.1 0.79 pending 3.8
--------------------------------------------------------------------------
"Minto Valley" including 79.3 82.4 3.1 10.2 1.71 pending 8.5
--------------------------------------------------------------------------
and 89.4 93.9 4.5 14.8 1.25 pending 6.7
--------------------------------------------------------------------------
135.1 148.2 13.1 43.0 0.35 pending 1.2
--------------------------------------------------------------------------
--------------------------------------------------------------------------
08SWC-286 239.4 242.9 3.5 11.4 0.43 pending 1.6
--------------------------------------------------------------------------
"Gap" 249.1 253.6 4.5 14.8 0.52 pending 2.0
--------------------------------------------------------------------------
288.1 290.8 2.7 8.9 0.82 pending 3.0
--------------------------------------------------------------------------
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