Silverado Mines advances Ester Dome gold project

Junior gold producer Silverado Mines (NASDAQ) is entering the final stage of drilling before placing the Ester Dome project into full production.

The company previously operated the Grant gold mine on the 20-sq.-mile Ester Dome property in the Fairbanks district of Alaska. From late 1987 through the spring of 1989, the mine was operated on a test basis and yielded 11,215 oz. gold and 8,231 oz. silver.

The company plans to carry out infill drilling for 30 reverse-circulation holes in the south-central (St. Paul) portion of the property. To date, Silverado has drilled 15 holes in the area.

Skipping the feasibility option, Silverado will head straight for production from an 800-by-300-ft. area at St. Paul.

Chairman Garry Anselmo estimates the open-pit operation will produce 25,000 oz. gold per year, with an estimated net to the company of 10,000 oz. in the first year. The net should increase to 14,000 oz. in the second year.

Silverado is one of the largest landholders in the Fairbanks district, having been active there for the past 20 years. Recently, the company acquired another 2.5 sq. miles of claims within one mile of the True North deposit (jointly held by NASDAQ-listed La Teko Resources and New York-listed Newmont Gold).

Samples from the Marshall Dome gold property show altered, intrusive rocks similar to those found at True North.