FAIRBANKS, AK and VANCOUVER, June 12 /PRNewswire-FirstCall/ -- Silverado President Garry L. Anselmo has just returned from a weeklong inspection of operations at the Nolan Gold Mine, located 280 road miles North of Fairbanks, Alaska.
The crew is working aggressively to install the gold concentration equipment and to finish installation of the ponds system, pipelines and pumps. Gold recovery is scheduled to begin June 21, and will be facilitated by utilizing water and gravity methods, which results in a zero discharge to the environment operation. The sluice box is being modified to include additional nugget traps and classification methods to collect the different sizes of gold nuggets more efficiently.
We know the nuggets are abundant in the material to be sluiced because of our own studies and those of an independent certified geologist. More than 98% of the gold recovered by sampling is jewelry quality. Throughout our sales of some $10 million worth of Nolan gold in past years, our gold nuggets have sold for an average of 67% above the spot price of gold. At current prices, Silverado would receive over $US 1000 per ounce for its gold.
The picture here (http://www.silverado.com/june122006) using a quarter for size reference, was taken by Silverado and was used in the Independent Professional Geologist Report of Tom Bundtzen dated April 17, 2006.
The samples taken from the Swede Channel deposit yielded 11.64 troy ounces of gold (shown here: http://www.silverado.com/june122006), which was extracted from less than 1/3 of a yard of combined gold bearing gravels and bedrock.
The same independent geologist's sampling in January 2006, of six areas of select ground in known high grade portions of the gold deposit yielded grades ranging from nil to 29.52 ounces/cubic yard and averaged 12.36 ounces/cubic yard.
In March 2006 the same geologist sampled newly mined areas of the deposit. One sample from a known high grade zone in this part of the deposit contained 4 nuggets weighing 6.48 troy ounces. The largest was 5.64 troy ounces. In all, 9.72 troy ounces of coarse nugget gold was found in eight localities with the use of a metal detector during about four hours of non-rigorous sampling. These sample sites must be considered to be selected high grade examples, and do not constitute average gold grades for the deposit. Never-the-less, the results of the panned concentrate samples reported indicate that localized, very high grade gold bearing zones are present in the Swede Channel currently being exploited by Silverado.
A drilling program is set to get underway within a week. Our drill geologist is onsite and working with mine management to optimize our exploration spending. We will be looking at areas of the project which are the most likely to support the kind of underground mining we did last winter and also plan to do this coming winter. In addition, we have found at least one area which is shaping up to be a low cost open cut placer gold project.
With anticipated good gold recoveries and significant drill results, the summer should be a rewarding and exciting time for Silverado and its valued shareholders.
This press release was prepared by Edward J. Armstrong, CPG, a qualified person under NI 43-101 standards.
To learn more about Silverado Green Fuel Inc., visit us online at http://www.silverado.com/ or contact Bob Dynes, Investor relations, toll free at 1-800-665-4646.
SILVERADO GOLD MINES LTD.
Mailing Address - 505 - 1111, W. Georgia Street
Vancouver, B.C. - V6E 4M3 - CA
(800) 665-4646 or (604) 689-1535 - F: (604) 682-3519
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.
