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Sherwood Copper Corp. (SWC:TSXV) is a public company whose primary focus is the profitable production and development of high grade, open pit base and precious metals mines in Canada. Sherwood's first operating mine, the high grade Minto copper-gold mine in the Yukon, Canada, was built on budget and ahead of schedule. Sherwood acquired the Minto Project in June 2005 and, in just two years from acquisition, re-drilled the deposit to modern reserve standards, completed a bankable feasibility study, arranged project financing, and built a $100 million open pit copper-gold mine. Commercial production commenced on October 1, 2007.
The Minto Mine is an open pit operation with conventional crushing, grinding, and flotation to produce copper concentrates that contain significant gold and silver credits. A feasibility study completed in July 2006 and updated in August 2006 demonstrated robust project economics. In December 2007, the results of an independent pre-feasibility study for the expansion of the Minto copper-gold mine were released. This study increased reserves and laid out a path for significantly increased copper production, commencing immediately, while materially enhancing project economics. Annual production is forecast to average 50-60 million pounds of copper, 20-25,000 ounces of gold and 250-300,000 ounces of silver during the first several years of operation. Forward sales of copper, gold and silver have been completed for approximately 50% of the first four years production, securing substantial revenues, and an off-take agreement has been entered into for the sale of concentrates.
In parallel with its operating activities, in 2007 Sherwood completed an aggressive 91-hole exploration drill program on its Minto Property aimed at further increasing its high grade resource and reserve base. In the 2007 drill campaign, Sherwood's exploration team was successful in making four new discoveries of high grade copper-gold mineralization. All of these discoveries remain open to expansion and could potentially add to Sherwood's high grade resource and reserve base, supporting increased production. Mineral resource estimates incorporating the results of the 2007 drilling are underway and a significant 2008 exploration program commenced in March 2008.
Sherwood's acquisition of the Minto Project provides a unique investment opportunity: participation in a fully permitted, operating, high-grade, low cost, open pit copper-gold mine located in Canada with tremendous exploration potential on the 100% owned property.
In order to accelerate it production growth, Sherwood intends to pursue merger & acquisition opportunities that best fit its business model. In February 2008, Sherwood acquired 93% ownership in Western Keltic Mines, owner of the high grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. The Kutcho deposit significantly increases Sherwood's resource base and the project is currently being re-scoped and re-engineered in order to advance it toward a production decision. In addition to an infill drill program designed to upgrade the current resource, feasibility and permitting related work is underway with the objective of defining a robust, near term, low cost, open pit mining operation.
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