Second-quarter 2008 production totaled 12.8 million pounds of payable copper at an estimated total cash cost of C$0.96 per pound of payable copper (after estimated by-product credits and offsite costs) versus 11.0 million pounds of payable copper at total cash cost of $1.04 per pound in the first quarter of 2008. These improved operating results were achieved as a result of mill throughput increasing from an average of 1,674 metric tons per day in Q1 to 2,266 tpd in Q2, a 35 percent increase in throughput. In June throughput averaged 2,521 tpd, while unit operating costs per metric ton fell 21 percent, from C$86/t in the first quarter to C$68/t in the second quarter.

Sherwood also expects a significant reduction in operating costs once connected to the power grid. Construction of the power line and related facilities is expected before year-end 2008.

The company said it did not mine ore in the second quarter, but focused on stripping waste for the Phase 3 pit to expose high-grade ore by the end of the third quarter of 2008, which should result in high production in the fourth quarter of 2008 and in 2009. Second quarter mill production was drawn from material stockpiled over the prior 12 months. Phase 3 stripping costs were deferred, but previously deferred mining expenses related to the stockpiled ore were included in the cash costs.

In April the company shipped 9,849 dry metric tons of concentrate grading about 38.8 percent copper from the Port of Skagway in Alaska. In July another 9,800 dt or so of concentrate grading about 40 percent copper will be shipped to Asian smelters. Another shipment, of about 9,800 dt of concentrates is scheduled for loading in August.

Sherwood also reported its subsidiary, Minto Explorations Ltd., repaid an additional $12 million of its project loan facility on top of a US$5 million payment made on March 30, 2008, reducing the amount outstanding to $40.9 million. In addition, MintoEx placed $7.5 million into its banks' debt service reserve account to partially cover the next payment due September 30.

Sherwood President and CEO Stephen Quinn said, "Our operating group made tremendous progress over the second quarter; completing the commissioning of the Phase 2 mill expansion and increasing throughput to levels above design on a sustained basis. This production, combined with strong metal prices, has enabled us to aggressively reduce our project debt," he said. "Going forward, we continue to push down to much higher grades in the latter part of 2008, which should result in production targets being met in 2008 and in a significantly stronger 2009 than previously planned."