A NORTHAIR GROUP COMPANY
SUITE
860 -
625 HOWE STREET Ÿ VANCOUVER, BC Ÿ V6C 2T6 CANADA
Ÿ TEL: (604)
687-7545 FAX: (604) 689-5041
PRESS RELEASE
FOR IMMEDIATE
RELEASE
September 05, 2007 #07-25
Sherwood Reports “On
budget & Ahead of Schedule” Phase 1 Construction of Minto Mine
- Capital
Cost 2% over Feasibility Budget; Production Commenced Early & Commissioning
Progressing Well -
VANCOUVER, BRITISH COLUMBIA - Sherwood Copper Corporation (SWC: TSX-V) today reported that the
Phase 1 construction of its high grade Minto copper-gold mine was completed
ahead of schedule and essentially on budget. In addition, the Company reported
production continues to ramp up
towards feasibility parameters.
Construction Costs and Schedule
The updated feasibility study announced on
August 28, 2006 forecast capital costs of C$98.1 million for the Phase 1
construction of the Minto Mine, including contingencies and owners costs.
Based on a direct comparison of the scope of work contained in the feasibility
study, actual costs to complete this scope of work totalled C$100.2 million or
just 2% over the feasibility budget. On completion of basic engineering
in late 2006, mill start-up was forecast for July 1, 2007, while first
concentrates were actually produced
on May 28, 2007 and continuous operations commenced in early June.
“Keeping the Phase 1 construction of
the high grade Minto copper-gold mine on budget and completing it ahead of
schedule is a remarkable achievement in an environment of heated competition
for people, equipment and supplies,” said Stephen P. Quin, President
& CEO of Sherwood Copper. “Considerable credit for this
outstanding result belongs to JDS Energy & Mining, the construction
managers for the Minto Mine, as well as to project
engineers, Hatch Ltd., general contractors, Clark Builders, mining contractors,
Pelly Construction, and their numerous other subcontractors, trades and
suppliers.”
Other capital costs have been incurred at
the Minto Mine, outside the scope of the Phase 1 budget set out in the feasibility
study, related to items including the Phase 2 mill expansion, post-feasibility
optimizations (metallurgical, geotechnical, etc.), capitalized interest, pre-commercial production
and exploration as detailed in Sherwood’s June 30, 2007 financial statements
and management discussion & analysis.
Commissioning Update
Sherwood continues to make positive progress in its ramp up of the Minto Mine to full production, which was forecast to take through the end
of third quarter 2007 in the feasibility study. During August, the mill
reached peak throughput of over 1,750 tonnes per day relative to Phase 1 design
capacity of 1,563 tonnes per day and averaged 1,363 tonnes per day, or 87% of
design capacity, for the entire month of August. Mill availability averaged
89% for the month. Copper recoveries averaged approximately
80% and concentrate grades 35% copper during the month, which is in line with
or better than expectations at this stage of the ramp-up to full production. Mill throughput and copper recoveries
continue to be somewhat affected by the mechanical availability of the rougher
(first stage) flotation cells and by commissioning of the tailings
filters. The balance of the plant has been performing well. These mechanical
availability issues are believed to be temporary, resolvable, and are being
addressed with equipment suppliers. The necessary changes are being made
and these issues are expected to be resolved shortly. Key in this
assessment is that the copper not recovered and lost in tailings to date appears
to be readily available for recovery by flotation and therefore there should be
no impediment to achieving design parameters.
Minto Project
The Minto Mine is a high-grade copper-gold
deposit located in the Yukon Territory of Canada. The mill is currently
undergoing commissioning and is expected to ramp up to full production around the end of the third quarter of
2007.
Sherwood
Sherwood’s
successful consolidation of the ownership of the Minto Project provides a unique investment opportunity –
participation in a fully permitted, operating, high-grade, open pit copper-gold
mine located in Canada with tremendous exploration potential on the 100% owned property.
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. Technical information related to mine operations
has been reviewed by Ian Berzins,
P.Eng, General Manager, Minto Mine.
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
For further information please contact Stephen
Quin, President of Sherwood Copper Corp.
or Brad Kopp or Kristy Reynolds at (604) 687-7545 or (888) 338-2200
** INTERNET ADDRESS: www.sherwoodcopper.com
**
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this press release.
This news release may contain forward looking statements which are not
historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or
discussions of goals and exploration results, and involves a number of risks
and uncertainties that could cause actual results to differ materially from
those projected. These risks and
uncertainties include, but are not limited to, metal price
volatility, volatility of metals production,
project development, ore reserve
estimates, future anticipated reserves and cost engineering estimate risks,
geological factors and exploration results. See the Company’s
filings for a more detailed discussion of factors that may impact expected
results.