Silverado Annual Report, 10-KSB

pg. 55

Our proposed drilling program for 2009 will be aimed at lode gold and antimony exploration. Lode drilling will focus on Pringle Bench, Workman’s Bench and the Hillside along the Solomon’s Shear trend, and is designed to provide a better three dimensional understanding of the mineralized sections of the structure and how it is related to the placer gold deposits of the Nolan Creek area. Since the Project is advancing into the development stage, exploration drilling will not be conducted in the Fortress area which is part of a gold bearing east-west trending deformation zone. The Company plans to drill a minimum of 35 shallow (200-500 ft) diamond core drill holes. Placer drilling will be dependent on funding for the extraction of the Workman’s Bench 1,000 cu yd bulk sample.

Workman’s Bench - The Company plans to infill drill a minimum of 20 holes along the portion of Solomon Shear Zone that was drilled in 2008, to further define and increase reserves.

Pringle South - The Company plans to infill drill a minimum of 10 holes along the Solomon Shear Zone on the north side of Smith Creek in the area between the Pringle and Workman’s Benches for a check of the continuity of the northeast striking zone.

Hillside Area - The bedrock underlying the Hillside Area was drilled in previous years with an RC drill, but the drilling locations were based on only limited bedrock trenching data. Since then, geophysical surveys and geochemical soil sampling surveys have indicated that the drill collars were too far west. The Company plans to select a minimum of 5 sites approximately 300 to 800 feet further to the east and drill back toward the west to intercept the zone. The Company plans to take advantage of the historic trails and use a backhoe to dig additional test trenches in the area further to the east.

The Total Cost for the Drilling Exploration Program is expected to be US $1,000,000.

THE GRIM REAPER