If you are reading this message in plaintext or if you have an  AOL address you must visit  http://www.geocities.com/worldinvestor2001/slglf.html       to properly read this newsletter.
 

[IMAGE]

 
To New World Investor Members: 
Your name came to us as a subscriber to online investment newsletters.  We are offering you a free subscription to World Investor. If you do not  wish to receive our FREE NEWSLETTER, simply follow the directions at the  bottom of this page and your e-mail address will be immediately removed.  
The mission of World Investor is to provide our members with information  about publicly traded companies and trends that you may not have heard  about in the main stream investment media. Updates are provided via e-mail  regularly for our members. Try us out!

____________________________________

 October  Newsletter  Gold for Portfolio Diversification  	[IMAGE]	


The CBOE Gold Index is up almost 25% this year!  	


Over the past 18 months, being 100 percent invested in the falling tech  sector has led many to look at portfolio diversification. In this volatile  market, diversification does not necessarily mean capital appreciation  but capital preservation. 
A diversified portfolio can increase your total return while decreasing  your total risk.
Get a system and follow it!
Gold stocks can be used effectively to diversify your portfolio since  they tend to move in opposite directions than most other investments.  Gold stocks are traditionally considered a safe haven.
Buying Gold stocks has proven a tried and true strategy  in times of crisis! 	


When armed conflict erupts, when inflation looms, when the stock  market plunges, investors often turn to gold for capital preservation.
Gold stocks tend to have a beta of one to two, which means they are  one to two times as volatile as gold itself. The attraction of a high  beta stock is that in a rising gold bullion market gold stocks out perform  bullion. Gold also has a mystique, a psychological allure that keeps  the stocks at often-high multiples.
So far gold has not become an integral part of U.S. institutional portfolios  while in Europe, institutions have held 3 percent to 15 percent of their  portfolios in gold for many decades. 
U.S. Institutional interest in Gold conferences in recent months and  the increase in the Gold and Metal indexes allows us speculate that  the demand for Gold stocks is starting to rise and demand is greater  than the supply of Gold stocks for sale.
 
World Investor October 2001 Profile:  Silverado Gold Mines 
 Silverado Traded for 20 years on NASDAQ  Silverado  became a fully  registered SEC corporation in 1978; and traded on Nasdaq from  1978 until 1998.  In 1998, due to declining gold prices and the advent of the $US  1.00 rule the company moved from NASDAQ to the OTC BB. 	[IMAGE]	


Investors should be watching the new NASD ruling pertaining to: "the  suspension of the "Dollar Rule" until January 2, 2002" and possible  removal of the "Dollar Rule", in which case previously NASDAQ listed  companies like Silverado may be able to regain their full listing status  if the dollar rule is waved altogether. Recently over 13 percent of  the companies on NASDAQ trade below $1 or about 574 issues. Under the  temporary relief provided by the new rules, companies will not be citied  for bid-price or market-value-of-public-float deficiencies. 
NASDAQ rules dictate that a company whose stock price falls below the  minimum bid price for 30 consecutive trading days is given 90 days to  reach compliance. If a company fails to meet those requirements once  that period expires, it is notified by NASDAQ and delisted and generally  is eligible for trading on the over-the-counter bulletin board.
If the "dollar rule" is waved altogether perhaps Silverado can apply  for FULL NASDAQ listing status once again!
Consolidation within the Gold Industry
This year there has been some consolidation in the Gold Industry among  the big players. In June Barrick Gold of Canada said it would pay $2.2  billion for Homestake Mining of the U.S. Recently, South Africa's AngloGold  bid $1.66 billion for Australia's Normandy Mining Ltd. Also, South Africa's  Harmony Gold Mining has been on an acquisition trail buying up small  mines and companies.
With consolidation in the Gold Industry taking place, the  number of publicly traded Gold stocks with 100 PERCENT working interest  in properties with RESERVES is becoming RARE!	


The main asset of a gold mining company are its gold reserves. Companies  like Silverado have already outlined a deposit and are looking to develop  it. The value of proven gold reserve depends on whether a property is  an economic ore body, which means that the cost of production is low  enough and that the price of gold is high enough so that a profitable  mine can be built.
The main question for the junior gold companies is: How will  the company raise the money to proceed to production? 
There are basically three ways in which to raise money:
? The company can issue new shares.
? A joint venture partner can fund the cost of the entire project for  a right to earn a certain interest in the property, which is anti-delusive  to current shareholders.
? The company may be able to arrange debt financing.
In Silverado's case, they have expended US $20,000,000 on their Nolan  gold property alone, have taken $10,000,000 in gold during development  work and are working on closing $2,500,000 needed to complete development  to become a year round, profitable producer on it's 100% owned, 6 mile  by 6 mile property North of Faribanks, Alaska.
Past speculation in Silverado shares has spawned two Silverado  share rallies in recent months, with the share price shooting up to  90 cents in April 2000 and up to 60 cents in April 2001. The chart tells  us the stock should be accumulated during periods of lower volume and  low volatility. 

[IMAGE]
Chart provided by TradePortal.com   
  

Silverado's Gold Properties (Taken  from Silverado's press release dated October 9th): 
Despite the past years of volatile gold prices, the company still owns  100 percent of two major gold properties. They contain proven reserves  of 111,298 ounces, probable reserves of 329,616 ounces and inferred  reserves of 463,885 ounces for a combined total of 904,799 ounces of  gold.
THE NOLAN GOLD PROPERTY is located in the Koyukuk Mining District,  200 miles north of Fairbanks and is a large tract of land six square  miles in size. During the last 16 years, over U.S. $20 million has been  spent on the acquisition, exploration, construction and development  of the mine, which would cost up to $100 million to build at today's  prices. A 35 person camp is in place as well as all support facilities  including fuel dump, machine shop, engineering offices, bunk houses,  kitchen, gold finishing room, 3 million gallon holding pond, settling  ponds, pumps, pipelines, roads, heavy equipment, generators, laboratory,  production permits, and over 600 completed drill holes all built and  conducted by the Company. 
The source of the gold has been discovered in various locations and  the company has 66 lode claims over these areas and therefore owns the  lode rights (source of the placer nugget gold) as well as the placer  rights. Only a small part of the property has been explored and accounts  for proven gold placer reserves of 11,802 ounces, probable reserves  of 48,262 ounces, and inferred reserves of 83,585 ounces, for a combined  total of 143,649 ounces of gold. There are over a million ounces of  gold indicated on the rest of the property by historical mining data,  drill and trench data, and other studies conducted by the company. $2.5  million U.S. remain to be spent on development which will bring the  first phase of the Nolan deep channel into year round production. Cost  of production during five years is estimated at $7 million with returns  projected at $27 million. The company can apply a $47 million tax loss  carry forward towards future revenue. The company is interested in partners  willing to finance production for a percentage of gold profits. 
THE ESTER DOME GOLD PROPERTY is located ten miles northwest  of Fairbanks, Alaska, and is 2.5 square miles in size. It contains the  Grant Mine property -- O'Dea gold deposit and associated mineralized  structures containing proven reserves of 99,496 ounces, probable reserves  of 286,354 ounces, and inferred reserves of 375,300 ounces for a combined  total of 761,150 ounces of gold. Built on the property is a 300-ton  per day Gravity / Carbon in Pulp Mill that produced U.S. $10,000,000  in high grade gold bars during its test phase by the Company.
The President of Silverado, Gary Anselmo, gave his views on  the current gold market:
"The last Fed interest rate drop of 50 basis points to 2.5%, locks  the country firmly into negative real interest rates, which in the medium  and long term should extrapolate into higher gold prices as the opportunity  cost of holding gold relative to interest bearing notes decreases. It  appears this trend has already begun. We also find it noteworthy that  when the Bank of England auctions gold, it is always oversubscribed;  up to 4 times. This tells us there is considerable excess physical demand  that should begin to push spot prices higher."
 
IF YOU HAVE ANY QUESTIONS OR WOULD LIKE MORE INFORMATION, PLEASE  VISIT THE COMPANY WEBSITE AND LEAVE YOUR CONTACT INFORMATION AT WWW.SILVERADO.COM  OR CALL MR. BILL COOPER, INVESTOR RELATIONS MANAGER AT 1- 877-993-3131  TOLL FREE
 

Stay tuned to the next issue of  the World Investor to see what's next for Silverado.

 
 Disclaimer: World Investor is for informational purposes only and for investment  advice be sure to consult with your broker of Financial advisor  World Investor is an electronic publication committed to providing  our readers with factual information on selected publicly traded  companies. This publication accepts compensation from certain  of the companies, which it features. World Investor has been paid  a fee of 100,000 free trading shares of Silverado for a 3-month  marketing program .To the degree enumerated herein, this newsletter  should not be regarded as an independent publication. All statements  and expressions are the sole opinions of the editors and are subject  to change without notice. A description or other mention of a  company in the newsletter is neither an offer nor solicitation  to buy or sell any securities mentioned. While we believe all  sources of information to be factual and reliable, in no way do  we represent or guarantee the accuracy thereof, nor the statements  made herein. The content of World Investor may contain forward-looking  statements relating to the expected capabilities of the companies  mentioned herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO  THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED.  INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE  OF RISK. We encourage our readers to invest carefully and  read the investor information available at the web sites of the  Securities and Exchange Commission ("SEC") at http://www.sec.gov   and/or the National Association of Securities Dealers ("NASD")  at http://www.nasd.com . We also  strongly recommend that you read the SEC advisory to investors  concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm .  Readers can review all public filings by companies at the SEC's  EDGAR page. The NASD has published information on how to invest  carefully at its web site. 	


 
______________________
To be removed from future mailings please replyto  this email with the word "REMOVE" in the subject line, or  click here   and hit send. Thank you.