Sherwood reports results for Kutcho Copper project

Sherwood Copper Corporation, a public company whose primary focus is the profitable production and development of high grade, open pit base and precious metals mines in Canada, 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 ongoing work program.

According to Stephen Quin, President and CEO, 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.

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, adds Mr. Quin.

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 added.

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, continued Mr. Quin.

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, commented Mr. Quin.

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.