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October 29, 2004 |
| Trading Symbol: SWM : TSXV | |
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Sherwood Mining Corporation (TSXV:SWM) has released its BC Form 51-901F Third Quarter Report containing financial statements in Canadian funds, prepared without audit, for the nine months ended August 31, 2004 (the “Quarterly Report”). Pursuant to the requirements of National Instrument 54-102, this news release provides a reasonable summary of the information contained in the Quarterly Report. Concurrently with this news release the Corporation is filing the Quarterly Report with the regulatory authorities through SEDAR ( www.sedar.com ) and has mailed it to shareholders whose names appear on the Corporation's Supplemental List. A copy of the Quarterly Report is available upon request. Sherwood Mining Corporation (“Sherwood”) is a mineral exploration company actively engaged in the acquisition of strategic mineral properties in Canada . Miramar Hope Bay Ltd. (“ Miramar ”), a wholly owned subsidiary of Miramar Mining Corporation, has granted Sherwood a three year option to acquire up to a 60% interest in the Chicago Area of the Hope Bay Belt, encompassing the Chicago/Kell trend, and the newly discovered Heku trend. The Hope Bay belt in Nunavut , Canada , is being actively explored by Miramar and contains multiple gold deposits and showings. The Chicago Area is located in the southwest portion of the Hope Bay Belt, and lies approximately 15 km southwest of Miramar 's Boston Camp. Exploration to date within the Chicago trend has identified several gold and base metal showings located within an eight km long prospective trend. In accordance with the option agreement, Sherwood has advanced Miramar, the operator, $350,000 for the first six months exploration expenditure commitment, and will be required to advance an additional $750,000 to Miramar on or before June 15, 2005 (as per an amendment to the option agreement effective October 2004) to keep the option in good standing. In August 2004, Miramar and Sherwood commenced a field program consisting of mapping and prospecting to identify targets for drilling, combined with geophysics and surface exploration of the Chicago Trend. A drill program on the property commenced in September, with results expected early in the next quarter. The decision to continue with exploration on this property is dependent upon results from the drilling program. Results of Operations Sherwood's loss for the nine months ended August 31, 2004 totaled $654,698 ($0.03 loss per share) as compared to a loss of $351,416 ($0.01 loss per share) for the nine months ended August 31, 2003 . The significant difference in the period-to-period loss can be attributed to the difference in resource property cost write-offs. Resource property cost write-offs totaled $239,587, or 68% of Sherwood's loss of $351,416 for the nine months ended August 31, 2003 , as compared to resource property cost write-offs of $537,265, or 82% of Sherwood's loss of $654,698 for the current period ended August 31, 2004 . During the current period, Sherwood wrote off capitalized acquisition and exploration costs of $537,265 in respect of the Elu property, relating to claims where no future exploration is planned. Liquidity and Capital Resources During the nine months ended August 31, 2004 , cash and cash equivalents decreased by $104,606 from the previous year-end (2003 decrease - $313,267), resulting in a cash balance of $15,624 as at August 31, 2004 (2003 - $133,668). During the nine months ended August 31, 2004 , Sherwood generated $350,720 from a private placement financing and utilized $100,206 (2003 –$301,268) on its operating activities. In addition, Sherwood advanced to Miramar $355,120 to fund the exploration program on the Chicago Trend Property. Sherwood had a working capital deficit of $37,395 as at August 31, 2004 as compared to working capital of $84,438 as at November 30, 2003 . The Company will need to secure additional financing in the short-term in order to keep its option agreement on the Chicago Trend property in good standing, and to meet ongoing administrative costs. Sherwood's issued and paid up share capital was $7,459,554 representing 26,124,994 common shares issued and outstanding, without par value. The deficit was $6,067,299 at the current period end. As at August 31, 2004 , Sherwood's capitalized resource property costs consisted of $1,074,530 with respect to the Elu Property and $355,120 on the Chicago Trend property.
ON BEHALF OF THE BOARD OF
DIRECTORS
“D. Bruce McLeod”
D. Bruce McLeod, President
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Suite 860-625 Howe Street, Vancouver, B.C., Canada V6C 2T6 |
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