Silverado Gold Mines Limited were up today following a news release suggesting that they have inferred stibnite resources with a calculated unit worth $41.2 million, on an increased turnover of 9.52 million shares.

“The initial report of Thomas K. Bundtzen received on April 22nd, 2008 confirms Silverado’s observations in the Workman’s Bench system. The tunnel on the 80-foot level has identified a stibnite-quartz vein that contains 80 percent stibnite and 20 percent quartz. Both surface and subsurface data indicates that the mineralized zone on Workman’s Bench can be traced for 500 feet along strike and to a minimum depth of about 225 feet. Hence 500 ft X 225 ft X 0.6 ft = 16,875 tons of inferred stibnite resources with a calculated unit worth of $41.2 million USD ($1.22/lb for massive stibnite ore) of in-place, inferred antimony resource. The in-place antimony resource estimate presented above includes only a single vein system in that portion of Workman’s Bench that has been explored by surface and underground exploration techniques. There are three additional zones of semi-massive, stibnite-bearing veins in the Workman’s Bench mineralized zone. Additional drilling, inferring logical extensions to Pringle Bench to the Northeast could add to this in-place, antimony resource estimate.”

Silverado has a market capitalisation of $49.56 million with 926 million shares outstanding and a stock price of $0.0535 as we write. One swallow does not make a summer so today’s news may have an instant effect and then fade. However, this stock is now cheaper than it has been for some time and one to keep an eye on this summer. The management of the company has been criticised recently by the Vancouver Sun for its dilution of shares etc, however Silverado has been around for forty years or so and they do appear to be getting closer to a sizeable find. As usual don’t go mad on this one and only use funds that you can afford to lose.

Have a good one.

Silverado trades as SLGLF: OTC BB, Frankfurt and Berlin as SLGL.

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