FAIRBANKS, AK, and VANCOUVER, Feb. 6 /PRNewswire-FirstCall/ - Visit this weblink to view supplementary images to this press release: http://www.silverado.com/february062006 The crews at our Nolan Gold Project located in Alaska's Arctic Circle 280 miles north of Fairbanks, have completed the first important leg of the Swede Channel winter tunneling project. The tunnel has successfully reached the virgin ground section of the Swede Channel at the bedrock gravel contact level.
We have encountered gold in the floor of Swede Channel. The frozen pay gravel is being stockpiled in preparation for thawing and sluicing in June and July of 2006 to remove the gold for sale.
A bulk sample of 7625 bank cubic yards of gravel was taken from this area in 1998-1999 and yielded 623 ounces of gold, or 0.08oz/yard.
In prior years Silverado extracted approximately $10 million in jewelry grade gold from various areas of this large property and the gold sold for an average premium of 33% over gold price due to the high purity (22.3 to 23.4k or 93% to 97% pure gold) and due to its abundant character.
Please pause here with us for a moment to remember the coal miners who have so tragically lost their lives recently in America and elsewhere. We also reflect on how much we appreciate the truly phenomenal work our miners perform underground through the bitter cold winters of Arctic Alaska, while using their good work and safety skills to produce gold for the Company and its shareholders under the professional talent and watchful eye of Mr. Gil Dobbs, their mine superintendent and leader.
This press release was prepared by Edward J. Armstrong, CPG, a qualified person under NI 43-101 standards.
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