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Silverado Gold Mines Ltd. - Update On Placer Gold Mining and Processing; Beginning Drill Program to Investigate Lode Deposit Indicated by Exploration Work.

Gold continues to be recovered from underground material mined during the 2002/2003 winter and from surface deposits on Mary's and Wool Benches which are still being mined and processed. Gold is being recovered in both nuggets and fine gold, some of which may be viewed on our website at Fine gold is reporting with an abundance of heavy sulfide concentrates. These sulfides are comprised of minerals such as marcasite, iron pyrite, arsenopyrite, stibnite and a suite of others. After freeze-up these concentrates will be cleaned and the gold extracted in our Grant Mill in Fairbanks, where the concentrates may be processed in a closed circuit with much larger equipment which is more suited to the task than that which we have at the Nolan Mine. We anticipate processing about two tons of fine heavy media concentrates. The Company will report on gold production when recovery operations are complete.

New Gold Lode and Placer Targets

We have had four geologists working on the property this year. We have compiled all available data taken by Silverado over a 26 year period and the Bureau of Land Management's three year study. This data includes geology, geophysics, rock, soil and stream sediment geochemistry, drilling and trenching samples and results of areas mined.

The information assembled makes a compelling case for the Solomon Shear being the lode or source of the placer gold nuggets and gold dust. The size and frequency of large nuggets (up to 41 ounce pieces) indicates a heavily enriched gold source. The following is the geologist's report along with four maps disclosing the interpreted source of the nugget gold.

The order of the report is: 1) the abstract 2) Figure 1. Map showing the spatial correlation between Solomon's Shear and placer gold grades and geochemical sample gold concentrations. 3) Figure 2. Map showing impressive placer production areas directly downhill from Solomon's Shear. 4) Figure 3. Map showing potentially mineralized structures (Resistivity lows) and the theoretical placer flow. This map shows the consistency between theoretical placer migration directions/ and historical (not shown) and recent mining production. 5) Figure 4. Map showing proposed areas for lode and placer exploration. Solomon's Shear and Treasure Chest, respectively.

 Brian Flanigan, Fawn Glassburn, Russell Kirkham, Richard Lessard

 August 3, 2003


From 1901 the Nolan Creek Valley and nearby Hammond River has produced nearly 200,000 ounces of placer gold. Over the decades several explanations have been suggested for the rich placer streams and benches draining the Nolan Valley, including:

1) Glacial transport and deposition (four glacial advances, the last ending about 10,000 years ago), 2) Greenstone and diorite boulders of unknown origin, but often found to be coincident with placer gold, 3) Mineralized quartz-gold veins found sporadically throughout the region.

The lack of significant placer gold in the streams and drainages west of Nolan Creek rules out glacial transported and deposited gold, as such a mechanism would likely affect both sides of the valley equally. The well- rounded nature of the large greenstone and diorite boulders indicate that they have been transported over a great distance, probably during glacial advances. Although an association with these boulders and rich gold placer gravels can be noted in several pieces of literature, we do not believe there is a direct geochemical genetic link between these boulders and gold. Rather, it is more likely that the large boulders acted as a trap for the heavier gold nuggets in higher energy stream environments. Karsten Eden (2000) makes a compelling argument for quartz-gold+/- stibnite veins as the source for most if not all of the placer gold. Further, several gold nuggets of various sizes contain euhedral and subhedral quartz crystals presumed to be hydrothermal in origin, this is contrary to gold transported over long distances. Therefore, it is our belief that the most likely scenario is that the placer gold is derived from structurally controlled mineralized quartz veins as contended by Eden. However, due to the dense tundra and other vegetation, actual vein exposures are limited to stream cuts and rare showings on sparse outcrops. As a result, past field traverses and similar attempts to find mineralized veins abundant enough to account for Nolan's rich placers have come up short.

We recently reviewed available geochemical and geophysical data published by the Bureau of Land Management, and unpublished data from Silverado Mines and Tri Con Mining. Our analysis of this data established a spatial correlation with the 870 Hz Resistivity lows and several trace metals including; Au, As, Sb, and Bi. These Resistivity lows form two apparently segmented linears trending northeast on the hills east of Nolan Creek. While it is currently not known if all of these linear segments represent mineralized structures, one segment, "Solomon's Shear," is coincident with: 1) the strike of several thin 1 to 5 cm wide parallel quartz-gold-stibnite veins on Workman's Bench (mapped by Eden, 2000, and this study); 2) higher concentrations of trace metals from several rock, soil, and stream samples; and 3) impressive placer gold grades found on the downhill side of the Solomon's Shear (Figures 1 and 2).

The geophysical expression of the Solomon's Shear segment alone is about 1.8 kilometers (1 mile) long and up to 0.45 kilometers (1/4 mile) wide. Evidence strongly suggests that we are sitting on top of a lode deposit of impressive potential. Although there is a paucity of geochemical sample coverage over the other segments, present drainage patterns and past mining production suggest these areas contributed greatly to the placer deposits (Figure 3). Below Solomon's Shear it is very apparent that its contribution to placer is significant. Further based on topography and the geophysical expression of Solomon, there is a strong likelihood of very rich bench gravels in an unmined area named "Treasure Chest" (Figure 4).

End of Abstract

We are currently mobilizing a drill to the property. We will begin drilling an indicated gold deposit discovered while mining the Mary's Bench part of the property this summer. This area is the northern section of Mary's Bench where we recovered 2697 ounces of gold in 1994 (see Figure 3). Also we will build roads for drill access to the "Solomon's Shear" and "Treasure Chest" areas. We intend to drill through fall and winter. The drilling program is designed to locate mineralized areas which may exist within the shear zone; evaluate such areas and begin in-fill drilling with the intent of delineating and measuring the size and gold content of the Solomon's Shear zone and to ascertain whether or not it is an economic deposit. The drill will also work on the Treasure Chest area to ascertain if it is a viable placer gold deposit.

 Investor Relations: (800) 665-4646 or (604) 689-1535
 E-mail: Website:

This Press 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. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:
 (i) the ability of the Company to complete its planned mining
 activities during the current mining season;
 (ii) the impact of weather on the Company's mining operations;
 (iii) the ability of the Company to process the mined ore during summer
 (iv) the concentrations of gold recovered from processed ore.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.
 /BUSINESS/PHOTO EDITORS: Copies of the Solomon's Shear maps from
 Silverado Gold Mines Ltd. are available by fax by calling Canada
 NewsWire, Vancouver, at (604) 669-7764 or go to

CONTACT: Investor Relations: 800-665-4646 or 604-689-1535, E-mail: Website:
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Date:Sep 5, 2003
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