Silverado Gold Mines Ltd.
OTC Bulletin Board : SLGLF

Silverado Gold Mines Ltd.

December 09, 2010 20:01 ET

Silverado Steps Up Its Mineral Assessment of the Eagle Creek Property Due to Recent Good Gold Results; 10 New Samples Submitted for Assay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - Silverado Gold Mines Ltd. (OTCBB:SLGLF)(FRANKFURT:SLGL) (the "Company" or "Silverado") reports that, according to its chief geologist, Karl Sharp, recent test assays for gold from the Eagle Creek property located 13 miles north of Fairbanks has encouraged Silverado to continue testing bedrock exposures along three prominent structures termed Vein-Faults. The previous test samples (refer to the December 6, 2010 news release at had yielded gold values of 0.14 oz (4.4 g) to 0.68 oz (21.2 g) per ton gold across widths of 3 to 6 feet from the mineralized structures referred to as Vein-Fault #2 and Vein-Fault #2A. The average of these zones (6 feet at 0.14 oz per ton (OPT), 6 feet at 0.152 OPT, and 3 feet at 0.68 OPT) is 5 feet at 0.253 oz (7.9 g) per ton gold. Weather permitting, more sampling is planned in the next month to confirm the continuity of the structures, most notably the Company wants to determine if the Vein-Fault #2 and Vein-Fault #2A are actually part of a continuous zone that potentially could exceed 0.5 miles in length. Prior company geochemical soil data and trench assays support this concept.

In addition, part of the ongoing mineral assessment of the property involves reviewing historic mining data related to the Scrafford Vein (Vein-Fault #1). Currently, the Scrafford Vein has a proven strike length of over 2,200 feet (0.42 miles) and remains open on both ends. The Scrafford Vein was mined by many different companies in past years for both gold and antimony. Silverado acquired the property in 1972. Much of the older geochemical assays from exploration work on the property lacked specific elemental analysis such as bismuth, which is a key element associated with Alaska's largest two gold mines: the Pogo and Fort Knox. Bismuth is also associated with gold at Eagle Creek. To date, only one diamond core drill hole has been drilled across the Scrafford Vein-Fault. The lone hole intercepted the mineralized structure at 150 feet below the surface and contained 0.120 oz (3.7 g) per ton gold over a true width of 17 feet. Surface at this drill location showed the Scrafford Vein-Fault to contain massive stibnite (solid antimony sulfide) up to 5 feet thick. During 1981 and 1982 the Company built a 100 ton per day gravity concentrator at the mine site and processed the old mine dumps. This yielded 40 tons of antimony concentrates which were high purity (less than 0.23% combined lead and arsenic) and the concentrate was sold to Philipp Brothers of New York. The 40 tons were credited with 0.19 oz (6 g) per ton gold.

A preliminary mineral assessment report prepared by Silverado's chief geologist had recommended that Silverado test the gold mineralization from the vein-faults which have widths of 5 to 19 feet and are up to one-half mile in length. The Company plans to continue with the mineral assessment of the Eagle Creek property and will disclose the additional test sample assay results to the public once the results are received and reviewed by the Company QP. Ten new samples were delivered to ALS Chemex labs for analysis including gold gravimetric (fire assays) on December 9, 2010.

About the Company

Silverado Gold Mines Ltd., a publicly traded company, is an exploration-stage enterprise focused on the exploration of gold properties with some past production. The Company has gold properties located throughout Alaska, which include a 100% interest in numerous mining claims located on the Nolan Creek property.

On Behalf of the Board

Silverado Gold Mines Ltd.,

G. L. Anselmo, President, CEO & COO

Forward Looking Statements

This news 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. Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates.

Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of test mining activities and other factors. Forward-looking statements are made, without limitation, in relation to operating plans, property exploration activities, including test mining activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", or "continue", and the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks detailed in the Company's filings with the Canadian Securities Authorities and the US SEC. These factors may cause the Company's actual results to differ materially from any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

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