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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 high grade Minto copper-gold mine commenced commercial production on October 1, 2007 and is undergoing an expansion and optimization process. In parallel, the Company is advancing its high grade Kutcho copper project towards a production decision.
Sherwood provides a unique investment opportunity: participation in the high-grade, low cost, open pit Minto copper-gold mine and its proven outstanding exploration upside, complemented by the high grade Kutcho copper development project, which significantly enhances the Company's growth potential. Further, all the Company's assets are located in politically stable Western Canada.
The high grade Minto copper-gold mine is located in the Yukon, Canada, and 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. In December 2007, the results of an independent pre-feasibility study on the expansion of the Minto copper-gold mine were released. This study increased reserves by more than 40% 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 until mid-2010 has been entered into for the sale of 100% of the 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. The 2007 drill campaign was very successful, resulting in the discovery and definition of significant new copper-gold mineralization, and a 50% increase in contained copper in mineral resources and a 40% in increase in precious metals. In-fill drill programs to upgrade the confidence level in these resources are underway in 2008, while additional high priority target areas will be also be evaluated in 2008. All of the discoveries made in 2007 remain open to expansion and could potentially add to Sherwood's high grade resource and reserve base, supporting yet more increases in production.
In order to accelerate its production growth, Sherwood intends to continue to pursue merger & acquisition opportunities that best fit its business model. Following the acquisition of the Minto project in 2005, in May 2008, Sherwood acquired 100% 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 advanced towards a production decision. In June of 2008 a preliminary economic assessment demonstrated positive base case economics and outlined several opportunities for significant future enhancements. An in-fill drill program designed to upgrade the current resource commenced in May of 2008, and 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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