In particular, the consistently high antimony values are favourably comparable with the previous work in this vicinity where sampling showed antimony assays as high as 46%.

To put this in dollar terms, rock containing 46% antimony would be worth about U.S. $2,300 per ton (at the current antimony price of $2.56/lb).  By comparison, the same ton of rock would have to contain roughly 3.5 ounces of gold per ton (at $656/ounce) to be of the same monetary value.

The Solomon Shear is a highly mineralized gold and antimony bearing system that has been the focus of Silverado’s extensive exploration efforts as of lately, which includes geophysical and geochemical surveys in addition to the trenching program. 

Silverado’s “downstream” placer gold recoveries (where historically more than 140,000 ounces of gold nuggets have been recovered by Silverado and old time miners) indicate likely sources higher in the Solomon Shear system. The Company is just in the beginning stage of exploring these possible source areas.

In fact, the discovery of new high-grade gold zones is now a function of the methodical development of the sizeable Solomon Shear Trend, which may prove to host many rich gold zones, each with multi-million ounce potential.

In this regard, the recently discovered high-grade quartz veins are now being more thoroughly delineated by way of further trenching and an extensive drilling program. This drilling, using Silverado’s recently purchased diamond drill, will begin shortly and continue as long as weather permits. 

This Summer’s Placer Gold Recovery Already Tops 2006 Production

Meanwhile, Silverado’s placer gold recovery at Nolan already exceeds last year’s production. In early August, Silverado announced that 1,250 ounces of nugget gold (1/4” and larger) have been recovered to date since the start of sluicing operations in late June of this year.

These nuggets, which range in size from 1/10 ounce to 12.4 ounces, were removed periodically from the top parts of the wash plant gold recovery systems. Still to be recovered from the sluice plant this summer is gold concentrate containing gold smaller than ¼” in size.

In the recent past, one nugget recovered at Nolan weighed 41.35 ounces and sold for U.S. $50,000 – a 212% premium above its melt-down value. Another weighing 13.78 troy ounces was taken from the floor of the Nolan Mine’s Mary’s East Tunnel after a controlled blast as recently as February of this year.

The Emerging Nolan Gold Deposit/Mine: An Overview

In essence, the Company’s Nolan placer gold mining business serves as a financial backstop for a ‘best of both worlds’ business mode.  One that provides meaningful and consistent cash-flow, as well as a commitment to finding the lode source of all of its placer gold.

Notably, more than half of all of Silverado’s gold revenues (which exceed U.S. $20 million to date) were generated in 2006, alone. This resulted from the recommencement of underground mining at the Company’s wholly-owned Nolan Mine.

This suggests that Silverado may be starting to tap into remnants of very rich lode vein systems along a prolifically mineralized trend or horizon. This represents the culmination of 16 years of systematic exploration of the expansive Nolan Property for the source of the placer gold.

Some of Silverado’s gold resources have to date been outlined at the developmental stage Nolan Gold Mine. Located 280 road miles north of Fairbanks in the state’s Arctic Circle region, it is the site of an extremely cost-efficient and profitable surface mining operation for gold-bearing gravel. In the winter, underground mining of frozen gravels also takes place, allowing for year-round revenue generation.

Most of the gold found at the Nolan Mine is in nugget form. This offers a distinct advantage over conventional mining methods that typically involve crushing and grinding large volumes of rock to extract gold particles. Instead, Silverado’s nuggets can be easily and inexpensively extracted from the gravels and sold for a hefty premium to their melt-down value (averaging about 33% above bullion’s spot price).

Silverado believes that the increasing frequency of sizeable gold nuggets being found at the Nolan Property suggests that the Company is zeroing-in on their lode source.

This is where gold in water flows through fissures or the spaces between cracks in rocks, where it precipitates out. In turn, this forms ‘ore-zones’, or rich quartz gold veins, such as the ones that Silverado has encountered during last season’s drilling and trenching programs.

Investment Summary

Shareholders of Silverado Gold Mines are in an enviable position. They have considerable exposure to a rising tide market for gold prices, as well as for antimony.

Not only does this come in the form of the ‘blue sky’ potential for finding a prolifically rich ‘mother lode’ style gold deposit at the Nolan Property; but it also can be measured in more tangible terms by way of the Company’s small-scale but very lucrative placer gold mining operation.

Then there’s an additional dimension to the Company by way of Silverado’s radically non-linear diversification into the 21^st century alternative energy business. This involves its wholly owned subsidiary, Silverado Green Fuel Inc. (www.silveradogreenfuelcom).

Hence, SmallCapMedia believes that the share price of this enterprising, up-and-coming Company will continue to establish a sustained upwards trend during the balance of 2007.

And the advent of plenty of ‘blue sky’ potential at its gold projects and its green energy venture should provide a powerful springboard for Silverado’s share price in 2008 – a time when SmallCapMedia expects to see the Company’s stock trading at many multiples of its current price.

For more information, please refer to SmallCapMedia’s In-Depth Silverado Gold Mines June 2007 Corporate Assessment at: http://www.smallcapmedia.com/articles/gold-metals-exploration/gold-metals-exploration-june-12-2007.html

Also, For more on Silverado Green Fuel Inc., a wholly-owned subsidiary, please also refer to:http://www.smallcapmedia.com/articles/special-situations/special-situations-june-10-2007.html