- Published: 04 November 2008
- Written by Editor
Sherwood Reports New Copper-Gold Discovery at Minto Mine and Possible Linkage to Area 2
2.1% Cu over 24.5m including 2.6% Cu over 8.6m and 3.1% Cu over 9.1m at Copper Keel
Sherwood Copper Corporation (TSX VENTURE: SWC)(TSX VENTURE: SWC.DB) today confirmed the discovery of a potentially significant new high grade copper-gold zone at its Minto Mine in the Yukon. The "Copper Keel" discovery is located less than 800 metres southeast of the open pit currently being mined on the Main deposit, and less than 200 metres east of the proposed Area 2 open pit. Drill hole 08SWC-389 confirms and links up high grade copper-gold mineralization intersected in earlier holes along the Copper Keel trend and returned some of the best grades and thicknesses yet. Highlights from this hole are summarized in the table below, while previously announced significant intersections from the Copper Keel trend are detailed in the subsequent table and discussed below.
Highlights from 08SWC-389
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Inter- Inter-
From To val val Copper Gold Silver
Hole ID Target Area (m) (m) (m) (ft) (%) (g/t) (g/t)
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08SWC-389 "Copper Keel" 188.3 212.8 24.5 80.4 2.07 0.86 7.5
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including 188.3 196.9 8.6 28.2 2.65 1.11 8.1
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and 203.7 212.8 9.1 29.9 3.07 1.27 12.3
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including 203.7 208.1 4.4 14.4 3.41 2.30 15.7
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"The Copper Keel copper-gold discovery associated with a large magnetic anomaly lies east of the Area 2 deposit and, based on wide spaced drilling, could represent an extension of the deeper mineralization at Area 2, subject to confirmation with additional drilling," said Stephen Quin, President & CEO of Sherwood Copper and Minto Explorations Ltd. "The mineralized intercepts in hole 08SWC-389, the last hole drilled in the 2008 program, are significant from a grade and a thickness perspective and this hole also indicates potential continuity of high grade copper-gold mineralization over a wide area." Further drilling at Copper Keel, in a target area measuring more that 600m by 300m, will be a priority when drilling resumes in early 2009. Additional drilling is also being planned for early 2009 at Ridgetop, where the thick, near surface zone of medium grade copper-gold mineralization discovered in 2007-08 remains open to expansion.
Discussion of Drilling in the Region of Copper Keel and Area 2
Sherwood is confident that the results from hole 08SWC-389 appear to link up several intercepts within the Copper Keel trend, suggesting potential for a large, high grade deposit in the area. The dimensions of the Copper Keel target is further supported by a magnetic anomaly measuring more than 600m by 230m in extent, nearly double the aerial extent of the magnetic anomaly associated with the Main deposit, which is currently being mined. All of the known near surface deposits on the Minto Mine property, including the Main deposit, Area 2, Area 118 and Ridgetop, are associated with distinct magnetic anomalies as a result of the strong magnetite association with high grade copper-gold mineralization. The presence of an extensive magnetic anomaly, along with high grade mineralization in wide spaced drill holes, suggests a significant target at Copper Keel. See the previously reported intercepts from the Copper Keel and adjacent areas listed below.
Highlights of Previously Released Holes in Copper Keel / Area 2 Region
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Inter- Inter-
From To val val Copper Gold Silver
Hole ID Target Area (m) (m) (m) (ft) (%) (g/t) (g/t)
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06SWC-164 "Copper Keel" 175.7 181.4 5.7 18.7 1.92 0.48 7.5
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06SWC-312 "Copper Keel" 234.2 245.8 11.6 38.1 2.13 0.80 7.9
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06SWC-319 "Area 2" 232.2 243.7 10.5 34.4 0.70 0.28 3.6
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06SWC-322 "Area 2 East" 251.7 255.3 3.6 11.8 3.14 1.51 18.1
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These intercepts, and that in hole 08SWC-389 lie at depths of +/- 200m below surface, or approximately 40 metres below the open pit depths currently contemplated for the Area 2 deposit. Based upon very wide spaced drill holes, Cooper Keel also appears to link up with the high grade intercepts under the proposed Area 2 pit and the high grade intercepts at Area 118, indicating potential continuity over approximately 1km in an east - west direction. Previously referred to as the "O" "P" and "Q" horizons, these deeper horizons at Area 2 are not currently contemplated for open pit mining, despite some very high grade intercepts (including 6.0m grading 5.3% copper and 3.0g/t gold in hole 06SWC-75, 14.2m grading 2.5% copper and 0.95g/t gold and 6.9m grading 2.9% copper and 0.9g/t gold in hole 06SWC-85 plus multiple other high grade intercepts at Area 118). The previous operator, ASARCO, had also intersected 5.3% copper and 2.61g/t Au over 7.6m in hole A137-74 in this same area.
Combined, the deeper, high grade O, P and Q zones under Area 2, the deeper high grade mineralization at Area 118 and the newly discovered Copper Keel high grade mineralization represents a large and attractive target that is potentially extractable by low cost underground, bulk mining methods given relatively shallow depths (approximately 180-200m below the valley floor) and flat lying geometry within competent host rock. The presence of these high grade deeper zones has always suggested potential for some component of future production at Minto coming from underground mining, likely in parallel with open pit operations. However, given the excellent grades, improved continuity and excellent geometries of these deeper high grade horizons, Sherwood plans to step up the exploration and evaluation of this underground potential sooner. The high copper grades, good thicknesses and flat geometry of these deeper horizons offers flexibility in mill feed sources if developed in parallel with the planned open pits, supplementing open pit production with high grade underground production, and could potentially justify reducing strip ratios in existing and planned new open pits by accessing some of the more marginal deeper production from underground instead.
For current drill hole locations, please view the accompanying map:
http://www.sherwoodcopper.com/i/pdf/2008-11-04CopperKeelTargetMap.pdf
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 northwestern British Columbia. Sherwood expects to lever off its successful development of the Minto Mine and rapidly advance the Kutcho project to a production decision. Sherwood has also agreed to combine with Capstone Mining, subject to requisite shareholder and regulatory approvals, creating a new low cost, growth oriented copper producer with two high grade mines and a strong balance sheet.
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.
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 Investor Contact (604) 687-7545 Sherwood Copper Corporation Chris Curran Investor Contact (604) 687-7545 (604) 689-5041 (FAX) Website: www.sherwoodcopper.com
SOURCE: Sherwood Copper Corporation
http://www.sherwoodcopper.com
