Sherwood Reports Results of Preliminary Economic Assessment for Kutcho Copper Project
June 12, 2008
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Study establishes positive base case and sets outs opportunities for significant enhancements
News Release #08-23
VANCOUVER, BRITISH COLUMBIA – Sherwood Copper Corporation (SWC: TSX-V) today announced results of an independent preliminary economic assessment (“PEA”) for its high grade Kutcho copper project in NW British Columbia. This study significantly simplifies the development approach to the project, but only evaluates the development of part of one of the three identified mineral deposits at Kutcho. However, the PEA lays out several opportunities for enhanced project economics, a number of which Sherwood is already evaluating as part of its on-going work program.”The completion of the preliminary economic assessment for the high grade Kutcho copper project is just the first step in Sherwood’s on-going reassessment of the project’s potential,” said Stephen Quin, President & CEO. “This study evaluates the potential for the development of a smaller, less capital intensive open pit mining operation on a portion of the Main deposit that can be developed relatively quickly. We are now pursuing two parallel tracks to enhance this base case option by evaluating: (a) a number of opportunities identified within the study that could significantly enhance the economics of the project as defined, and (b) the potential of increasing the production and mine life by incorporating some of the more than 50% of the project mineral resources not considered in this study,” he said. “The most significant upside opportunities currently being evaluated are increasing the tonnes and grade of material to be processed and improving metallurgical recoveries beyond those assumed in the study. To this end, we have a major drill program underway at Kutcho to not only better define the highest grade, closest to surface portion of the Main deposit, but to provide sample material for extensive metallurgical testing designed to evaluate opportunities for enhanced metal recoveries.”
Using the PEA as a platform, Sherwood intends to re-engage the regulatory agencies and advance the Kutcho copper project through the permitting process. With extensive baseline data, Sherwood has commenced drafting an Environmental Assessment for submission in the third quarter of 2008. In parallel with the regulatory process, Sherwood aims to continue to actively engage the Tahltan and Kaska First Nations in a consultation process in order to gain their support for the advancement of this project.
“Given the decline of active mining in NW British Columbia and the uncertainty surrounding the potential development of a number of other projects in the region, the high grade Kutcho copper project stands out as a mine that could be advanced to production relatively quickly, assuming appropriate support and approvals for the project,” said Mr. Quin. “Our approach to the development of the project should significantly reduce the environmental footprint of the project versus previous proposals and should simplify the long-term abandonment and restoration of the site post-closure,” he said. “In addition, the smaller scale of the proposed development may result in an extended mine life, once the remainder of the mineral resources not considered in this study are evaluated and, if warranted, incorporated into an expanded project.”
Sherwood intends to issue an updated PEA in the fall of 2008 that would incorporate the results of the 2008 infill drilling, results from initial metallurgical testing currently in process and incorporation of other mineral resources not considered in the PEA. “Our approach to Kutcho will be similar to that used with our Minto Mine, where we relentlessly pursue every opportunity for increasing the value of the asset we own,” said Mr. Quin. “We aim to evaluate each opportunity and drive it to ground in parallel with our feasibility and permitting process, so that there are regular, incremental increases in the value of the asset.”
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