$41,200,000 of inferred in-place antimony resource calculated in one
small segment of the Nolan Property - Additional gold value due shortly
in final Bundzten report
VANCOUVER, May 5 /CNW-AsiaNet/ --
Silverado Gold Mines Ltd., and its wholly owned subsidiary, Silverado
Green Fuel Inc. (Trading Symbols, OTC BB - SLGLF, FRANKFURT - SLGL).
News from Silverado's Mine Manager at Workman's Bench, Nolan Creek Site:
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With a late winter thaw in Alaska, Silverado has assembled its team, and
readied all of its equipment and supplies for an anticipated season of
exploration and development. The first target zone, as defined by drilling,
tunnelling, surface mapping and sampling, contains multiple, thin, steeply
dipping, quartz-sulfide veins and veinlets over an overall true width ranging
from 95-105 feet. Within that mineralized zone, one vein contains a
0.4-to-1.1 foot thick (average(equal sign)0.6 foot) band of stibnite (antimony
sulphide) that contains appreciable gold.
News from Tom Bundtzen, Mining Consultant:
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Thomas K. Bundtzen is President of Pacific Rim Geological Consulting,
Inc., of Fairbanks, Alaska, USA. Mr. Bundtzen is a well-known placer and
lode-mining consultant active in North America and Eastern Russia. During
April, Bundtzen supervised the collection of 30 chip-channel samples and a
large bulk sample from the quartz-sulfide vein stockwork and from a massive
stibnite-bearing vein-fault system, respectively. Bundtzen's preliminary
'Draft Field Report' (April 22, 2008) contains exploration maps and
operational photos, as well as photos of stibnite veins and semi massive
quartz-stibnite-gold veins, and confirms the high gold and antimony content
assay results reported by first phase, independent laboratory testing.
In an effort to better quantify the mineral discoveries at Nolan Creek,
specifically within a 500 foot long by 225 foot (vertical) area of the
Workman's Bench, part of the Solomon Shear, Silverado has contracted
Thomas K. Bundtzen to prepare a preliminary resource estimate. The
resource estimate will be based on: 1) underground chip and channel
sampling conductedby Bundtzen; 2) on assayed mineralized zones within
drill hole intercepts; 3) on evaluation of polished thin sections from
mineralized zones; and 4) on microprobe determinations. Silverado assay
sample data will also be incorporated into the estimate. A bulk sample from
the mineralized stibnite zone is being prepared for shipment to a
metallurgical test facility outside of Alaska.
Please see Bundtzen's preliminary 'Draft Field Report' (dated April 22,
042208.pdf, and a semi-massive stibnite vein mineralization photo at
The April 22, 2208 draft report will be followed shortly by a
resource/mineralization valuation, also to be prepared by Pacific Rim
Geological Consulting, Inc. (PRGCI), which provides third party reports and
assessments, in conformity with professional and NI 43-101 guidelines, with
consulting fees paid by the company.
Antimony News from Silverado Management:
----------------------------------------
The initial report of Thomas K. Bundtzen received on April 22nd, 2008
confirms Silverado's observations in the Workman's Bench system. The
tunnel on the 80 foot level has identified a stibnite-quartz vein that contains
80 percent stibnite and 20 percent quartz. Both surface and subsurface data
indicates that the mineralized zone on Workman's Bench can be traced for
500 feet along strike and to a minimum depth of about 225 feet. Hence 500 ft
X 225 ft X 0.6 ft (equal sign) 16,875 tons of inferred stibnite resources with a
calculated unit worth of $41.2 million USD ($1.22/lb for massive stibnite ore)
of in-place, inferred antimony resource. The in-place antimony resource
estimate presented above includes only a single vein system in that portion
of Workman's Bench that has been explored by surface and underground
exploration techniques. There are three additional zones of semi-massive,
stibnite-bearing veins in the Workman's Bench mineralized zone. Additional
drilling, inferring logical extensions to Pringle Bench to the Northeast could
add to this in-place, antimony resource estimate.
Gold News from Silverado Management:
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Massive stibnite contains up to 35 grams/tonne (1.13 oz/ton) gold;
however, an inferred gold resource is not calculated here, but will be
estimated when final gold assay results are received from the submitted
samples collected in April, 2008.
Please see semi-massive stibnite vein mineralization photo from Tom
Bundzten's Preliminary Field Report of April 22, 2008, at
News from Silverado Shareholders:
----------------------------------------------
"There seems to be a 'buzz' around Fairbanks being reported by
shareholders, that Silverado is 'onto something significant'. We have heard
this from a number of sources. That's generally a pretty good sign." - Bob
Dynes, Investor Relations
U.S. Presidential Race News:
--------------------------------------
On 'Good Morning America' (April 29/08), U.S. Presidential candidate
Senator Hillary Clinton stated that she would seek $150 billion for alternate
fuel development, including coal-to-liquid fuel. She further recognized that
ethanol was depleting the world's food supply, and, as such, was not a long
term energy solution.
News from Silverado Green Fuel:
--------------------------------------------
With anticipated Green Fuel production costs at $20/equivalent oil
barrel, and oil prices exceeding $115/barrel, Silverado's Green Fuel
Silverado in the Media:
-----------------------
Equities Magazine, Special Mining Edition (May 1, 2008) includes a full
page highlighting the results of the recent "Melman Report" on Silverado.
(Silverado Gold Mines Ltd.): - The Melman Report concluded that, "given
typical market valuation of 10 to 20 times earnings for mining shares", should
Silverado succeed in its gold exploration, and subsequent production
("...which appears to be possible given their current placer operations,
exploration work and resources indicated in the Bundtzen Report..."), then
"the shares would have the potential to move to the region of 40 cents to
80 cents ($0.40 - $0.80) - or a multiple of eight to sixteen times the current
price."
(Silverado Green Fuel Inc.): - "In addition to its mining activities,
Silverado is also involved in developing its subsidiary company, Silverado
"Low-Rank Coal-Water Fuel" (or "Green Fuel") and is designed to be used in
oil-designated boilers and advanced combustion and gasification systems.
The economics of Green Fuel are intriguing because engineers estimate that
it can be produced for a total cost of about US$20 per barrel, compared to
the world market price for Crude Oil which is quoted at above US$110 per
barrel as of early April, 2008. Although it is difficult to place a valuation on the
Green Fuel portion of Silverado's future, the economics of that venture could
add substantially to their potential valuation."
See Report and Disclaimers
News from Gold Market Experts:
------------------------------------------
"I have heard from reputable sources that U.S. hedge funds have a trade
on in which they have shorted juniors against senior gold stocks."..."It was
further suggested that a lot of the shorting of juniors was naked (i.e.
selling short without bothering to borrow the stock). If this is indeed true,
and the gold price performs as I expect, there will be a day of reckoning for
the shorts and an explosive move in the juniors. Considering how cheap they
are currently, that would be more than appropriate." - John Emery, Investor's
Digest, April 18, 2008
News from Antimony Market Experts:
------------------------------------------------
"Antimony prices soar on supply squeeze. Antimony ingot prices in the
European spot market continue to rise on the back of higher offers and
limited supply from China. Prices this week topped $6,000/tonne even for
Chinese Investor Attraction Test Initiative:
------------------------------------------------------
Synergy Management Group Ltd., Silverado's contractor, has provided
feedback that its on-the-ground people in China were generating key high
wealth investor databases, and carrying out awareness building via
presentations to banks, brokers and investment houses, media coverage,
and
marketing directly to the newly compiled investor databases. Interest in
Silverado's Green Fuel venture is growing significantly.
Silverado Gold Mines Ltd.
----------------------------------
Silverado is an international company focused on gold exploration, and a
new environmentally friendly Fuel Technology. Silverado has gold properties
located throughout Alaska which include the 100% owned Nolan Placer Gold
Mine.
Trading Symbols, OTC BB - SLGLF, FRANKFURT - SLGL
To learn more about Silverado Green Fuel Inc. and watch the Green Fuel
Silverado's North American Chinese Investor Link
Silverado Corporate Policy on Unsolicited Media Reporting:
----------------------------------------------------------
This Press Release may contain, in addition to historical information,
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements are based on
management's expectations and beliefs, and involve risks and uncertainties.
These statements may involve known and unknown risks and uncertainties
and other factors that may cause the actual results to be materially different
from the results implied herein. Readers are cautioned not to place undue
reliance on the forward-looking statements made in this Press Release.
SOURCE: Silverado Gold Mines Ltd.
CONTACT: Suite 1820 - 1111 West Georgia Street, Vancouver,British
Columbia, Canada, V6E 4M3,
Telephone: (604) 689-1535,
Facsimile: (604)682-3519;
Investor Relations: E-mail: ir(at)silverado.com;
Public Relations: E-mail: pr(at)silverado.com,
Toll Free: 1-800-665-4646 (Canada and USA only)/
(SLGLF)
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