Silverado clarifies disclosure



    VANCOUVER, July 16 /CNW/ - Silverado Gold Mines Ltd. (the "Company")
SLGLF OTCBB, SLGL Frankfurt, announces that, as a result of a review by the
British Columbia Securities Commission (the "BCSC"), the Company is issuing
this news release to clarify and update certain of its previous disclosures.
    The Company wishes to retract certain statements contained in previously
issued news releases or posted on its website at www.silverado.com. In those
instances where the Company has retracted statements contained in its previous
disclosures, the Company advises readers not to rely on such statements as
they may continue to be found in the public domain.
    The Company retracts the statements contained in its previously issued
news release dated May 5, 2008 and all other references posted on its website
disclosing a gross in situ value and an inferred resource estimate for
stibnite mineralization on the Workman's Bench Gold-Antimony Deposit on the
Company's Nolan Creek property. Disclosure of gross in situ value does not
consider factors such as costs and, as a result, overstates the potential
value of the deposit. Further, as this estimate was prepared by the Company,
it did not comply with the technical information disclosure requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral Projects of
the Canadian Securities Administrators ("NI 43-101") in that it was not based
upon information prepared by or under the supervision of a qualified person.
NI 43-101 prohibits the disclosure of results of an economic analysis based on
inferred mineral resources. Further, the disclosed stibnite resource estimate
did not comply with the mineral resource disclosure requirements of NI 43-101
and the Company did not file a NI 43-101 Technical Report in respect of the
mineral resource estimate. Accordingly, readers are cautioned not to rely on
the gross in situ value estimate and the mineral resource estimate.
    The Company retracts all statements contained in its previously issued
news releases dated April 16 and 29, 2008 and May 5 and 15, 2008 referring to
a report prepared by Leonard Melman (the "Melman Report"), including, but not
limited to, all references to projected annual earnings, earnings per share,
potential share price and mineral reserves. The Melman Report does not comply
with the technical information disclosure requirements of NI 43-101 and also
disclosed an economic analysis based on inferred mineral resources, which is
prohibited by NI 43-101. Mr. Melman is not a qualified person within the
meaning of NI 43-101, and readers are cautioned not to rely on the Melman
Report or statements referring to it. Although the Company previously
disclosed the Melman Report and portions of its contents, the Company did not
commission or compile the Melman Report and does not endorse the Melman Report
or its contents. The Company has taken corrective action by removing the
Melman Report from its website.
    The Company retracts the statements contained in its previously issued
news release dated February 20, 2008 or posted on its website, which disclosed
that the Bundtzen Report dated February 8, 2008 was NI 43-101 compliant. The
Bundtzen Report, which was also referred to in the Melman Report, does not
comply with the technical information disclosure requirements of NI 43-101,
and readers are cautioned not to rely on the Bundtzen Report or statements
referring to it. The Company has taken corrective action by removing the
Bundzten Report from its website.
    The Company retracts the statements contained in its previously issued
news release dated November 7, 2007 referring to a third party share price
projection for the Company's shares. Although the Company previously disclosed
such potential share price projection, readers are cautioned not to rely on
such disclosure.
    The Company retracts the statements contained in its investor relations
fact sheet dated July 12, 2007 and all other references posted on its website,
which disclosed a mineral resource estimate of gold for the Company's Alaskan
properties. The disclosed estimate did not comply with the technical mineral
resource disclosure requirements of NI 43-101 and the Company did not file a
NI 43-101 Technical Report in respect of the mineral resource estimate.
Accordingly, readers are cautioned not to rely on this estimate. The Company
refers readers to its latest NI 43-101 Technical Report on its Alaskan
properties dated February 29, 2004 prepared by J.W. Murton and Assoc., which
is available on SEDAR at www.sedar.com.
    The Company has engaged Thomas K. Bundtzen, President of Pacific Rim
Geological Consulting, Inc., to prepare two separate NI 43-101 Technical
Reports on the gold and antimony mineral resources of its the Nolan Creek and
Ester Dome Alaskan properties, which the Company expects to be filed on SEDAR
in the third quarter of 2008.

    LOW-RANK COAL WATER FUEL PROJECT

    Status of the Memorandum of Understanding

    There have been no developments in connection with the Memorandum of
Understanding (the "MOU") dated December 18, 2006 among Silverado Green Fuel
Inc., the State of Mississippi as represented by the Mississippi Development
Authority, Choctaw Country Board of Supervisors, and the Choctaw Country
Economic Development District. Although the MOU has not been terminated by the
parties, no steps have been taken to proceed with building the low-rank coal
water fuel demonstration facility contemplated thereunder as the Company is no
longer pursuing the construction of a demonstration facility in Mississippi.
The Company and parties to the MOU are in discussions regarding the extension
of the MOU to contemplate the construction of a commercial facility, provided
that the Company determines, upon completion of a successful independent
financial analysis, that the construction of such facility is commercially
viable. As discussed below, there is no assurance that a full independent
financial analysis will be completed.

    Current Developments

    The Company has developed internal preliminary commercial models based on
various assumptions and estimates for the construction of commercial
production facilities and the cost of producing low-rank coal water fuel using
locally-mined coal purchased from third parties. The preliminary results of
the commercial models vary significantly depending upon, among other things,
coal quality, coal price and location of the proposed commercial facility. The
escalating cost of steel, equipment, machinery, labour and other consumables
are also factors that will impact the actual cost of producing low-rank coal
water fuel if the Company proceeds with the construction of a commercial
facility.
    The Company has in the past disclosed non-independent estimated
production costs per barrel of oil equivalent low-rank coal water fuel, which
were based on a number of assumptions and estimates that may not reflect
current or actual values. From a market demand perspective, a barrel of oil
equivalent low-rank coal water fuel does not yield a price equal to a barrel
of crude oil. In addition, there is no current identifiable market for the
Company's proposed low-rank coal water fuel and there is no assurance that a
market will develop. The estimated production costs of low-rank coal water
fuel are therefore speculative and based on commercial models that are
conceptual in nature, not equivalent to a full independent financial analysis
and not based on a detailed plant design. As a result, readers are cautioned
not to rely on the Company's past disclosure of estimated production costs of
low-rank coal water fuel.

    Future Plans

    Whether the Company proceeds with the construction of a commercial
production facility is dependent on the completion of a successful financial
analysis with respect to a particular location and utilizing a particular type
of coal as an input. With respect to Mississippi lignite coal, the Company
anticipates spending approximately US$300,000 during the current fiscal year
on bench-scale testing. Bench-scale testing will, among other things, provide
the Company with data that may result in the Company deciding to proceed with
an independent financial analysis for building a production facility in
Mississippi. There is no assurance that a full independent financial analysis
will be completed.
    Upon the successful completion of an independent financial analysis, the
Company may determine that construction of a commercial production facility
would be economically viable. However, proceeding with the construction of
such a facility will be dependent on several factors including (i) determining
the size and location of the facility, (ii) acquiring land and transportation
infrastructure, (iii) obtaining necessary permitting, (iv) obtaining a long
term supply agreement for coal, and (v) obtaining sufficient financing. The
Company's business venture into low-rank coal water fuel is at a very early
stage and is subject to a high degree of risks. There is no assurance that the
Company will succeed in obtaining government or private funding for this
project or that a commercial facility based on a particular financial analysis
will be constructed if at all. The Company may seek other shareholder
enhancing initiatives including joint ventures, divestiture and
licencing/royalty arrangements.

    AMENDMENT TO EXERCISE PRICE OF WARRANTS

    In May 2007, the Company reduced the exercise price of 17,744,360 of its
common share purchase warrants from US$0.07 to US$0.05 per common share, and
16,666,668 of its common share purchase warrants from US$0.16 to US$0.05 per
common share, and such warrants have been exercised. In November 2007, the
Company reduced the exercise price of 16,513,024 of its common share purchase
warrants from US$0.12 to US$0.035 per common share, and such warrants have
been exercised. In December 2007, the Company reduced the exercise price of
990,001 of its common share purchase warrants from US$0.12 to US$0.035 per
common share, 495,001 of its common share purchase warrants from US$0.06 to
US$0.035 per common share, and 4,166,667 of its common share purchase warrants
from US$0.10 to US$0.035 per common share, of which a total of 5,651,230
warrants were subsequently exercised and 439 warrants expired.
    The amendments to the exercise price of the share purchase warrants were
initiated by the Company in response to the Company's adverse financial
condition. The Company's liquidity and cash flow concerns raised substantial
doubt about its ability to continue as a going concern. The ability of the
Company to continue as a going concern was dependent on the Company's ability
to raise additional capital. As a result, in order to provide an incentive to
certain existing warrant holders to exercise their warrants immediately, the
Company reduced the exercise price of certain of its outstanding common share
purchase warrants to below the market price at such time. Based on the
Company's adverse financial condition and its limited sources of capital
raising at the time, the Company determined, on each occasion, that it was in
the best interests of the Company to reduce the exercise price of the
warrants. The Company's operations have been historically funded primarily
from sales of its shares.

    CEASE TRADE ORDER

    The Company is working in cooperation with the BCSC to file the required
documents and to seek revocation of the Cease Trade Order issued on May 13,
2008 in the Province of British Columbia.

    About the Company

    The Company is an exploration stage company focused on the exploration of
gold properties, with some past production, and the development of new
environmentally friendly low-rank coal water fuel technology. The Company has
gold properties located throughout Alaska, which include a 100% interest in
numerous mining claims located on the Nolan Creek property. The Company is
developing low-rank coal water fuel that would be produced from low-rank coal
and processed into an environmentally friendly oil substitute. Silverado Green
Fuel Inc. is a wholly owned subsidiary of its publicly traded parent,
Silverado Gold Mines Ltd. For more information about Silverado Green Fuel
Inc., please visit http://www.silveradogreenfuel.com/ and the public parent
corporation at http://www.silverado.com/.

    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.





For further information:

For further information: 1820-1111 West Georgia Street, Vancouver, BC,
V6E 4M3, Toll Free: 1-800-665-4646, Telephone: (604) 689-1535, Facsimile:
(604) 682-3519, Website: www.silverado.com

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SILVERADO GOLD MINES LTD.

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