Vancouver – A strong copper intercept in a new, deep zone at the Minto mine in the Yukon pushed Sherwood Copper (SWC-V) shares back above the $2 mark.
Sherwood Copper’s last drill hole of its 2008 season tested the Copper Keel zone, a large magnetic anomaly just 200 metres east of the Area 2 deposit. The hole, number 389, returned 24.5 metres grading 2.07% copper from 188 metres depth followed by 9.1 metres averaging 3.07% copper from 204 metres downhole.
Area 2 sits a few hundred metres south of the Main deposit at Minto, where an open pit produces 2,400 tonnes of ore daily at an average head grade of 3.1% copper, 1.2 grams god, and 12.7 grams silver. Area 2 is home to 11.3 million measured and indicated tonnes grading 1.13% copper, 0.4 gram gold, and 3.79 grams silver plus 3.5 million inferred tonnes averaging 0.77% copper, 0.25 gram gold, and 2.54 grams silver.
The intercepts from hole 389 are some of the best grades and thicknesses from Copper Keel to date. Nearby intercepts from this year’s drilling include 11.6 metres of 2.13% copper, 0.8 gram gold, and 7.9 grams silver from 234 metres down hole 312 and 5.7 metres grading 1.92% copper, 0.48 gram gold, and 7.5 grams silver from 176 metres down hole 164. Just west of Copper Keel, closer to Area 2, hole 319 returned 10.5 metres of 0.7% copper, 0.28 gram gold, and 3.6 grams silver and hole 322 cut 3.6 metres of 3.14% copper, 1.51 grams gold, and 18.1 grams silver.
Since these intercepts for the most part came from below 200 metres depth the company thinks mineralization at Copper Keep could represent an extension of the deeper mineralization at Area 2. Deeper mineralized horizons in Area 2, referred to as O, P, and Q, are not currently included in the open-pit mine plan but have returned some strong intercepts, such as 6 metres of 5.3% copper and 3 grams gold.
If the deep O, P, and Q horizons at Area 2 do link up with mineralization at Copper Keel and also potentially with mineralization at Area 118 to the west the zone would become an attractive underground mining target. Testing this theory will be a priority when drilling resumes in 2009.
The magnetic anomaly that led the company to Copper Keel strikes for 600 metres and spreads across more than 200 metres width, which is almost double the aerial extent of the magnetic anomaly associated with Minto’s Main deposit. Mineralization at Minto is best tracked using magnetics because of the strong magnetite association with high-grade copper-gold mineralization.
The Minto mine is an open pit operation with conventional crushing, grinding, and flotation to produce copper concentrates with significant gold and silver credits.
Production at Minto got underway in the mid-2007, with ore sourced from the Main deposit. The last estimate, in 2006, pegged resources there at 8 million measured and indicated tonnes grading 1.84% copper, 0.66 gram gold per tonne, and 7.65 grams silver per tonne.
By the end of 2007 the company had already expanded the mill’s throughput to 2,400 tonne daily, from 1,500. Further expansion plans have been put on hold until drilling results delineate all the possible expansion areas on the Minto property.
News of the Copper Keel intercept pushed Sherwood shares up 38 to close at $2.07. The company’s share price had been hit hard by the recent turmoil in the financial markets, falling to a new share price low of $1.25. Its 52-week high is $6.65 and the company has 53.9 million shares issued.
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