Message-ID: <18137191.1075851524382.JavaMail.evans@thyme> Date: Fri, 26 Oct 2001 02:33:15 -0700 (PDT) From: worldinvestor@mail.com To: worldinvestor@mail.com Subject: World Investor - October 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: "World Investor" @ENRON X-To: worldinvestor@mail.com X-cc: X-bcc: X-Folder: \ALEWIS (Non-Privileged)\Deleted Items X-Origin: LEWIS-A X-FileName: ALEWIS (Non-Privileged).pst 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. =20 [IMAGE] =20 To New World Investor Members:=20 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 botto= m of this page and your e-mail address will be immediately removed. =20 The mission of World Investor is to provide our members with information a= bout publicly traded companies and trends that you may not have heard abou= t in the main stream investment media. Updates are provided via e-mail reg= ularly for our members. Try us out! ____________________________________ October Newsletter Gold for Portfolio Diversification =09[IMAGE]=09 The CBOE Gold Index is up almost 25% this year! =09 Over the past 18 months, being 100 percent invested in the falling tech se= ctor has led many to look at portfolio diversification. In this volatile m= arket, diversification does not necessarily mean capital appreciation but = capital preservation.=20 A diversified portfolio can increase your total return while decreasing yo= ur 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 sto= cks are traditionally considered a safe haven. Buying Gold stocks has proven a tried and true strategy in times of crisis= ! =09 When armed conflict erupts, when inflation looms, when the stock market pl= unges, 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 portfolio= s while in Europe, institutions have held 3 percent to 15 percent of their= portfolios in gold for many decades.=20 U.S. Institutional interest in Gold conferences in recent months and the i= ncrease 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. =20 World Investor October 2001 Profile: Silverado Gold Mines=20 Silverado Traded for 20 years on NASDAQ Silverado became a fully regist= ered 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. =09[IMAGE]=09 Investors should be watching the new NASD ruling pertaining to: "the suspe= nsion of the "Dollar Rule" until January 2, 2002" and possible removal of = the "Dollar Rule", in which case previously NASDAQ listed companies like S= ilverado may be able to regain their full listing status if the dollar rul= e is waved altogether. Recently over 13 percent of the companies on NASDAQ= trade below $1 or about 574 issues. Under the temporary relief provided b= y the new rules, companies will not be citied for bid-price or market-valu= e-of-public-float deficiencies.=20 NASDAQ rules dictate that a company whose stock price falls below the mini= mum bid price for 30 consecutive trading days is given 90 days to reach co= mpliance. If a company fails to meet those requirements once that period e= xpires, it is notified by NASDAQ and delisted and generally is eligible fo= r trading on the over-the-counter bulletin board. If the "dollar rule" is waved altogether perhaps Silverado can apply for F= ULL 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 billio= n 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 Ha= rmony Gold Mining has been on an acquisition trail buying up small mines a= nd companies. With consolidation in the Gold Industry taking place, the number of public= ly traded Gold stocks with 100 PERCENT working interest in properties with= RESERVES is becoming RARE!=09 The main asset of a gold mining company are its gold reserves. Companies l= ike Silverado have already outlined a deposit and are looking to develop i= t. The value of proven gold reserve depends on whether a property is an ec= onomic 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 bu= ilt. The main question for the junior gold companies is: How will the company r= aise the money to proceed to production?=20 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 ri= ght 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 an= d are working on closing $2,500,000 needed to complete development to beco= me 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 ralli= es 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 shoul= d be accumulated during periods of lower volume and low volatility.=20 [IMAGE] Chart provided by TradePortal.com =20 =20 Silverado's Gold Properties (Taken from Silverado's press release dated Oc= tober 9th):=20 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 mil= es north of Fairbanks and is a large tract of land six square miles in siz= e. During the last 16 years, over U.S. $20 million has been spent on the a= cquisition, exploration, construction and development of the mine, which w= ould 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 m= illion gallon holding pond, settling ponds, pumps, pipelines, roads, heavy= equipment, generators, laboratory, production permits, and over 600 compl= eted drill holes all built and conducted by the Company.=20 The source of the gold has been discovered in various locations and the co= mpany has 66 lode claims over these areas and therefore owns the lode righ= ts (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 ounce= s of gold. There are over a million ounces of gold indicated on the rest o= f 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 in= to year round production. Cost of production during five years is estimate= d at $7 million with returns projected at $27 million. The company can app= ly a $47 million tax loss carry forward towards future revenue. The compan= y is interested in partners willing to finance production for a percentage= of gold profits.=20 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 proper= ty -- 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 ounce= s 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 it= s test phase by the Company. The President of Silverado, Gary Anselmo, gave his views on the current go= ld market: "The last Fed interest rate drop of 50 basis points to 2.5%, locks the cou= ntry firmly into negative real interest rates, which in the medium and lon= g term should extrapolate into higher gold prices as the opportunity cost = of holding gold relative to interest bearing notes decreases. It appears t= his 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. Thi= s tells us there is considerable excess physical demand that should begin = to push spot prices higher." =20 IF YOU HAVE ANY QUESTIONS OR WOULD LIKE MORE INFORMATION, PLEASE VISIT THE= COMPANY WEBSITE AND LEAVE YOUR CONTACT INFORMATION AT WWW.SILVERADO.COM O= R CALL MR. BILL COOPER, INVESTOR RELATIONS MANAGER AT 1- 877-993-3131 TOLL= FREE =20 Stay tuned to the next issue of the World Investor to see what's next for = Silverado. =20 Disclaimer: World Investor is for informational purposes only and for inve= stment advice be sure to consult with your broker of Financial advisor Wo= rld Investor is an electronic publication committed to providing our reade= rs with factual information on selected publicly traded companies. This pu= blication accepts compensation from certain of the companies, which it fea= tures. World Investor has been paid a fee of 100,000 free trading shares o= f Silverado for a 3-month marketing program .To the degree enumerated here= in, this newsletter should not be regarded as an independent publication. = All statements and expressions are the sole opinions of the editors and ar= e subject to change without notice. A description or other mention of a c= ompany in the newsletter is neither an offer nor solicitation to buy or se= ll any securities mentioned. While we believe all sources of information t= o be factual and reliable, in no way do we represent or guarantee the accu= racy thereof, nor the statements made herein. The content of World Investo= r may contain forward-looking statements relating to the expected capabili= ties of the companies mentioned herein. THE READER SHOULD VERIFY ALL CLAIM= S AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIO= NED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF = RISK. We encourage our readers to invest carefully and read the investor i= nformation available at the web sites of the Securities and Exchange Commi= ssion ("SEC") at http://www.sec.gov and/or the National Association of Se= curities Dealers ("NASD") at http://www.nasd.com . We also strongly recom= mend that you read the SEC advisory to investors concerning Internet Stock= Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm . Re= aders 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 s= ite. =09 =20 ______________________ 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. =20