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Subject:World Investor - October 2001
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Date:Fri, 26 Oct 2001 02:33:15 -0700 (PDT)


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October Newsletter Gold for Portfolio Diversification =09[IMAGE]=09


The CBOE Gold Index is up almost 25% this year! =09


Over the past 18 months, being 100 percent invested in the falling tech se=
ctor has led many to look at portfolio diversification. In this volatile m=
arket, diversification does not necessarily mean capital appreciation but =
capital preservation.=20
A diversified portfolio can increase your total return while decreasing yo=
ur total risk.
Get a system and follow it!
Gold stocks can be used effectively to diversify your portfolio since they=
tend to move in opposite directions than most other investments. Gold sto=
cks are traditionally considered a safe haven.
Buying Gold stocks has proven a tried and true strategy in times of crisis=
! =09


When armed conflict erupts, when inflation looms, when the stock market pl=
unges, investors often turn to gold for capital preservation.
Gold stocks tend to have a beta of one to two, which means they are one to=
two times as volatile as gold itself. The attraction of a high beta stock=
is that in a rising gold bullion market gold stocks out perform bullion. =
Gold also has a mystique, a psychological allure that keeps the stocks at =
often-high multiples.
So far gold has not become an integral part of U.S. institutional portfolio=
s while in Europe, institutions have held 3 percent to 15 percent of their=
portfolios in gold for many decades.=20
U.S. Institutional interest in Gold conferences in recent months and the i=
ncrease in the Gold and Metal indexes allows us speculate that the demand =
for Gold stocks is starting to rise and demand is greater than the supply =
of Gold stocks for sale.
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World Investor October 2001 Profile: Silverado Gold Mines=20
Silverado Traded for 20 years on NASDAQ Silverado became a fully regist=
ered SEC corporation in 1978; and traded on Nasdaq from 1978 until 1998. =
In 1998, due to declining gold prices and the advent of the $US 1.00 rule =
the company moved from NASDAQ to the OTC BB. =09[IMAGE]=09


Investors should be watching the new NASD ruling pertaining to: "the suspe=
nsion of the "Dollar Rule" until January 2, 2002" and possible removal of =
the "Dollar Rule", in which case previously NASDAQ listed companies like S=
ilverado may be able to regain their full listing status if the dollar rul=
e is waved altogether. Recently over 13 percent of the companies on NASDAQ=
trade below $1 or about 574 issues. Under the temporary relief provided b=
y the new rules, companies will not be citied for bid-price or market-valu=
e-of-public-float deficiencies.=20
NASDAQ rules dictate that a company whose stock price falls below the mini=
mum bid price for 30 consecutive trading days is given 90 days to reach co=
mpliance. If a company fails to meet those requirements once that period e=
xpires, it is notified by NASDAQ and delisted and generally is eligible fo=
r trading on the over-the-counter bulletin board.
If the "dollar rule" is waved altogether perhaps Silverado can apply for F=
ULL NASDAQ listing status once again!
Consolidation within the Gold Industry
This year there has been some consolidation in the Gold Industry among the=
big players. In June Barrick Gold of Canada said it would pay $2.2 billio=
n for Homestake Mining of the U.S. Recently, South Africa's AngloGold bid =
$1.66 billion for Australia's Normandy Mining Ltd. Also, South Africa's Ha=
rmony Gold Mining has been on an acquisition trail buying up small mines a=
nd companies.
With consolidation in the Gold Industry taking place, the number of public=
ly traded Gold stocks with 100 PERCENT working interest in properties with=
RESERVES is becoming RARE!=09


The main asset of a gold mining company are its gold reserves. Companies l=
ike Silverado have already outlined a deposit and are looking to develop i=
t. The value of proven gold reserve depends on whether a property is an ec=
onomic ore body, which means that the cost of production is low enough and=
that the price of gold is high enough so that a profitable mine can be bu=
ilt.
The main question for the junior gold companies is: How will the company r=
aise the money to proceed to production?=20
There are basically three ways in which to raise money:
? The company can issue new shares.
? A joint venture partner can fund the cost of the entire project for a ri=
ght to earn a certain interest in the property, which is anti-delusive to =
current shareholders.
? The company may be able to arrange debt financing.
In Silverado's case, they have expended US $20,000,000 on their Nolan gold=
property alone, have taken $10,000,000 in gold during development work an=
d are working on closing $2,500,000 needed to complete development to beco=
me a year round, profitable producer on it's 100% owned, 6 mile by 6 mile =
property North of Faribanks, Alaska.
Past speculation in Silverado shares has spawned two Silverado share ralli=
es in recent months, with the share price shooting up to 90 cents in April=
2000 and up to 60 cents in April 2001. The chart tells us the stock shoul=
d be accumulated during periods of lower volume and low volatility.=20

[IMAGE]
Chart provided by TradePortal.com =20
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Silverado's Gold Properties (Taken from Silverado's press release dated Oc=
tober 9th):=20
Despite the past years of volatile gold prices, the company still owns 100=
percent of two major gold properties. They contain proven reserves of 111=
,298 ounces, probable reserves of 329,616 ounces and inferred reserves of =
463,885 ounces for a combined total of 904,799 ounces of gold.
THE NOLAN GOLD PROPERTY is located in the Koyukuk Mining District, 200 mil=
es north of Fairbanks and is a large tract of land six square miles in siz=
e. During the last 16 years, over U.S. $20 million has been spent on the a=
cquisition, exploration, construction and development of the mine, which w=
ould cost up to $100 million to build at today's prices. A 35 person camp =
is in place as well as all support facilities including fuel dump, machine=
shop, engineering offices, bunk houses, kitchen, gold finishing room, 3 m=
illion gallon holding pond, settling ponds, pumps, pipelines, roads, heavy=
equipment, generators, laboratory, production permits, and over 600 compl=
eted drill holes all built and conducted by the Company.=20
The source of the gold has been discovered in various locations and the co=
mpany has 66 lode claims over these areas and therefore owns the lode righ=
ts (source of the placer nugget gold) as well as the placer rights. Only a=
small part of the property has been explored and accounts for proven gold=
placer reserves of 11,802 ounces, probable reserves of 48,262 ounces, and=
inferred reserves of 83,585 ounces, for a combined total of 143,649 ounce=
s of gold. There are over a million ounces of gold indicated on the rest o=
f the property by historical mining data, drill and trench data, and other=
studies conducted by the company. $2.5 million U.S. remain to be spent on=
development which will bring the first phase of the Nolan deep channel in=
to year round production. Cost of production during five years is estimate=
d at $7 million with returns projected at $27 million. The company can app=
ly a $47 million tax loss carry forward towards future revenue. The compan=
y is interested in partners willing to finance production for a percentage=
of gold profits.=20
THE ESTER DOME GOLD PROPERTY is located ten miles northwest of Fairbanks, =
Alaska, and is 2.5 square miles in size. It contains the Grant Mine proper=
ty -- O'Dea gold deposit and associated mineralized structures containing =
proven reserves of 99,496 ounces, probable reserves of 286,354 ounces, and=
inferred reserves of 375,300 ounces for a combined total of 761,150 ounce=
s of gold. Built on the property is a 300-ton per day Gravity / Carbon in =
Pulp Mill that produced U.S. $10,000,000 in high grade gold bars during it=
s test phase by the Company.
The President of Silverado, Gary Anselmo, gave his views on the current go=
ld market:
"The last Fed interest rate drop of 50 basis points to 2.5%, locks the cou=
ntry firmly into negative real interest rates, which in the medium and lon=
g term should extrapolate into higher gold prices as the opportunity cost =
of holding gold relative to interest bearing notes decreases. It appears t=
his trend has already begun. We also find it noteworthy that when the Bank=
of England auctions gold, it is always oversubscribed; up to 4 times. Thi=
s tells us there is considerable excess physical demand that should begin =
to push spot prices higher."
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IF YOU HAVE ANY QUESTIONS OR WOULD LIKE MORE INFORMATION, PLEASE VISIT THE=
COMPANY WEBSITE AND LEAVE YOUR CONTACT INFORMATION AT WWW.SILVERADO.COM O=
R CALL MR. BILL COOPER, INVESTOR RELATIONS MANAGER AT 1- 877-993-3131 TOLL=
FREE
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Stay tuned to the next issue of the World Investor to see what's next for =
Silverado.

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Disclaimer: World Investor is for informational purposes only and for inve=
stment advice be sure to consult with your broker of Financial advisor Wo=
rld Investor is an electronic publication committed to providing our reade=
rs with factual information on selected publicly traded companies. This pu=
blication accepts compensation from certain of the companies, which it fea=
tures. World Investor has been paid a fee of 100,000 free trading shares o=
f Silverado for a 3-month marketing program .To the degree enumerated here=
in, this newsletter should not be regarded as an independent publication. =
All statements and expressions are the sole opinions of the editors and ar=
e subject to change without notice. A description or other mention of a c=
ompany in the newsletter is neither an offer nor solicitation to buy or se=
ll any securities mentioned. While we believe all sources of information t=
o be factual and reliable, in no way do we represent or guarantee the accu=
racy thereof, nor the statements made herein. The content of World Investo=
r may contain forward-looking statements relating to the expected capabili=
ties of the companies mentioned herein. THE READER SHOULD VERIFY ALL CLAIM=
S AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIO=
NED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF =
RISK. We encourage our readers to invest carefully and read the investor i=
nformation available at the web sites of the Securities and Exchange Commi=
ssion ("SEC") at http://www.sec.gov and/or the National Association of Se=
curities Dealers ("NASD") at http://www.nasd.com . We also strongly recom=
mend that you read the SEC advisory to investors concerning Internet Stock=
Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm . Re=
aders can review all public filings by companies at the SEC's EDGAR page. =
The NASD has published information on how to invest carefully at its web s=
ite. =09


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