Sherwood Delivers First Concentrates from Minto Mine to Port of Skagway, Alaska
Thursday, July 26th, 2007
Sherwood Copper Corporation announce that it has begun regular shipments of copper-gold concentrates from its high grade Minto Mine, in the Yukon, to the port of Skagway, Alaska. The first truckloads of concentrates were delivered on July 16, 2007 and regular shipments have been underway since that date.
â€œRegular shipments of copper-gold concentrates from our Minto Mine to the port of Skagway, Alaska, represents another major milestone in the fast paced development of this high grade copper-gold mine,â€ said Stephen P. Quin, President & CEO of Sherwood Copper. â€œThis milestone, passed ahead of schedule, is a credit to the many people who have contributed to the successful development of the Minto Mine and the reactivation of the Skagway Ore Terminal. We can now look forward to a steady flow of copper-gold concentrates delivered and sold, providing revenue and profits to our shareholders.â€
Concentrates are currently being bagged in 2-tonne super-sacks in the concentrate storage shed at the Minto Mine, which are then delivered by flat-deck trucks to Skagway. Bagging of concentrates will continue until the permanent truck unloading and Concentrate Storage Building are completed at Skagway later in 2007. The refurbishment of the ship loader at Skagway is nearing completion and is expected to be available for loading the first 5,000 tonnes of concentrate on to a ship in September 2007. The permanent Concentrate Storage Building at Skagway is expected to be complete in October, but its completion is not required before making the first shipment. Once the truck unloading facility is completed, bulk concentrates will be trucked in dedicated trailers. At full production, the Minto Mine is forecast to produce approximately 60,000 tonnes of copper-gold concentrate per year.
The Skagway Ore Terminal is being reactivated in cooperation with the Alaska Industrial Development and Export Authority (â€œAIDEAâ€) who has granted Sherwoodâ€™s wholly owned subsidiary, Minto Explorations Ltd., the right to use the Skagway Ore Terminal, including 25,000 square feet of storage space and the existing ship loader (which is capable of loading approximately 1,000 tons per hour of concentrates on to a ship). AIDEA is funding 100% of the cost of the reactivation of the Skagway Ore Terminal and the construction of a new Concentrate Storage Building over the storage space leased by Minto Explorations. Minto Explorations will reimburse AIDEA for the costs of the refurbishment, including feasibility studies and engineering, over seven years with a 7% interest rate. Minto Explorations will also pay the cost of operating the Skagway Ore Terminal for the export of concentrates. Should other users utilize the Skagway Ore Terminal during the term of the contract, Minto Explorationsâ€™ contribution to the refurbishment could be reduced pro rata.
â€œUsing Skagway as a port for the export of concentrates is a considerably more attractive option than trucking concentrates to the next closest port or the rail head, even taking into account the cost of the refurbishment,â€ said Mr. Quin. â€œThe total cost of the refurbishment is estimated at approximately US$9.9 million. With AIDEA funding this cost over seven years and the potential for third parties to reduce our contributions, the economics of using Skagway are robust.â€