Silverado Gold Mines (SLGLF.OB: OTC BB) has been slowly delineating and mining their prolific Nolan resource for the past 30 years. They survived the crash in Gold prices and now, just in time to take advantage of the higher Gold prices, are getting close to the mother lode.

They are drilling furiously this summer to add to their recent NI 43-101 compliant resource. They have a long ways to go but judging from what they have mined on a small scale, their mother lode could be the biggest new Gold discovery in years.

To make matters better, they have a proprietary coal-to-liquids technology, which is clean and can take advantage of the huge coal reserves within the U.S. The product can be burned as oil in most cases without much refining and at close to $14 a barrel is so much cheaper than oil. Further refining can make gasoline, jet fuel; just about anything oil can be refined into.

They have recently launched an initiative in China to increase awareness of their company. They have a new Chinese website and are getting good media coverage over there as well.

I don’t want to make assumptions here but this could be one of the stocks, which might run up a couple hundred dollars in the coming mania stage in Gold.

As I pen this, management is working on getting the company listed on a more respected exchange but that is hush-hush right now as rules dictate silence on this matter while the paperwork is completed. Right now they trade on the OTC exchange and Frankfurt. They have a strong investor base in Europe and are working hard and fast to create one in China, the fastest growing large economy in the world:

The stock is near major long-term support. Who knows, this stock might even run up past its $25 price tag set back in 1995. Things are much better for this company today and who knows what’s around the next corner.

Over the years I have made spectacular gains by trading this stock even making 300% in two months. I sat out and waited patiently and accumulated nearly three times the amount of shares I began with from the profits I made.

Now may not be the time to trade this stock since it is near its lows and the Gold mania stage is ripe to begin. I would sure hate to see this stock run up to several dollars after I got out at $0.25!

There is no doubt this company has a chequered and dubious past but it may finally be breaking through the ranks and establishing itself as a real and solid way to gain leverage on an increasing Gold price. A small bet could turn into hundreds of thousands of dollars. In the mania phase you just never know.

Best Regards,

Warren Bevan
June 3, 2008

Editor’s Note: You can check out more of Warren’s insights on this stock and others on his website: www.preciousmetalstockreview.com

The Junior Mining Industry Has Provided Us With Another Beauty was originally featured in the Penny Sleuth.