While developing and test mining the Nolan Creek Placer Gold deposits, Silverado collected information and conducted surveys directed to identifying the lode sources for the placer gold. These “lode” sources are the actual areas where gold forms within spaces in rocks and fissures, and forms zones of gold mineralization. Some of the gold recovered from placer test mining operations was attached to quartz and other lode deposit materials, some was crystalline in nature, and a considerable amount of the recovered gold was razor edged and showed little to no evidence of travel (rounding). Follow up work has disclosed gold and antimony mineralized rock exposures. The discovery of lode gold (now identified as the probable source of most if not all of the gold nuggets) is now a function of methodical work on the five mile long Solomon Shear Trend where mineralization occurs from place to place throughout the Trend. The Company is exploring for the lode source of the nugget gold and is locating and examining source material systems. The Workman’s Bench Zone has now been drill linked to the Pringle Bench and together, they are currently being developed as our prime target for gold and antimony resources.

The total zone has now been drilled along a strike length of over 2300 feet and is open to length and depth. The main ‘A’ vein is continuous and contains consistent high antimony grades with good to exceptional gold grades. Included in our work to pinpoint other similar bodies, is a project entailing compilation of airborne geophysical survey data published by the State of Alaska which is continually being interpreted in conjunction with on-going ground geological, geophysical, and geochemical surveys. The cumulative data indicates that a resistivity low trend (electromagnetically conductive zone) over five miles in total length is present uphill from the known placer deposits. This area has been called the “Solomon’s Shear Trend” and exists within our 12 square mile Nolan Creek Property. A second sub-parallel zone lies immediately to the east and a potential third similar zone lies about one mile further east where all drainages have been historically placer gold mined and where Silverado has found impressive gold, such as this true size troy ounce piece of gold/quartz/phyllite shown here.

Geophysical features like Solomon’s Shear Trend may be caused by faults, veins or shear zones, by conductive lithologies or by a combination of these features. Geochemical soil sampling has shown above average values of gold and its companion metals, arsenic and antimony, coincident with the “Solomon’s Shear Trend” resistivity low. Throughout the length of this trend there are a number of lode vein occurrences containing gold, arsenic and antimony. Other geologic models have also been indicated.

This trend is the target of current lode exploration for the source of the gold and antimony material found on the Nolan Creek Property. Economically viable concentrations of gold and antimony mineralization have been located within this trend wherever drilled, and the size and intensity of the anomaly, plus the existence of one or more similar deposits to the one currently being delineated lend the opportunity of disclosing a world class deposit of combined gold and antimony.

The Company is now in its final stages of fundraising to place the mine into commercial production and the current existence of a fully paid infrastructure along with an attractive pre-feasibility analysis make this an exciting and promising project; especially considering its opportunity to start production in 2010 in conjunction with the anticipated run up in gold prices.

Additional and exceptional value may be duly placed on the fact that it may well be the only near term antimony producer in North America.

http://www.silverado.com/projects/nolan-creek/