Expansionary Institute

Michael Zey
futurist3000@aol.com

 
Seen as Answer to California's Energy Crisis  

VANCOUVER, B. C. and FAIRBANKS, Alaska, March 26 /PRNewswire/ -- Silverado Gold Mines Ltd. (OTC Bulletin Board: SLGLF) -- A low-cost, environmentally-friendly solution to California's energy crisis and impending electricity shortages in other threatened U.S. states is expected to receive federal government financial and political support shortly.

Alaskan-based Silverado Gold Mines Ltd., developers of a proven oil fuel substitute for electricity generation called LRCWF (low-rank coal-water fuel) says it intends to develop a plant for commercial production in Alaska with federal sponsored assistance.  The state has over half of all U.S. coal reserves, including the clean-burning low rank coal.

The process has been proven in pilot plants in Australia, Japan and the United States and can be produced for as low as US $14.00 per barrel in North America and US $8.00 per barrel in Asia, compared with today's oil prices in excess of US$26.00 per barrel.  As well, the new fuel competes with natural gas at a fraction of its current production cost.

The environmentally friendly advantages result from the proprietary way the low rank coal is processed which involves the crushing and fine grinding of sub-bituminous coal followed by a hydrothermal treatment.  Unlike heavy oil or raw coal, sources for most of the world's air pollution, the new fuel becomes a "green fuel" as it is clean burning, non-toxic and non-hazardous.

While significant interest in the United States has come about only recently as a result of the California energy crisis, discussions with governments in Southeast Asia have been continuing for over two years. Silverado expects to announce shortly its first low rank coal plant in Southeast Asia.  It would be a joint-venture between Silverado and the government concerned which would finance the US $100-million project cost and the company would receive an ongoing royalty on all fuel sold.  Negotiations are also taking place with one other country in the region to develop a similar project.

Over 60 percent of the world's population lives in Asia and it is the source of most of the world's air pollution.  The low cost of the new fuel and the clean-burning implications make it an ideal solution for governments in the region to meet their environmental responsibilities at a cost acceptable to users.

When the first Southeast Asian project is formally approved, Silverado will seek a public listing on that country's stock exchange.

Silverado, which is also a gold producer in Alaska, forecasts that significantly higher prices for the precious metal are not too far off and is moving ahead with its planning activities to complete the last stage of development on its properties which currently display some 140,000 ounces of gold reserves as well as a potential for 1-million ounces of placer or nugget gold. Silverado projects it can produce gold under $US 100 an ounce under a full around-the-clock production schedule.

FOR MORE INFORMATION VIEW OUR WEBSITES:  

WWW.SILVERADO.COM      WWW.NEWOILFUEL.COM  

Forward-looking statements in this release are made pursuant to the ` `safe harbor'      ' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, continued acceptance of the company's products, competition, new products and technological changes, intellectual property rights and other risks.

SOURCE  Silverado Gold Mines Ltd.

CO:  Silverado Gold Mines Ltd.

ST:  Alaska, California

IN:  OIL ENV MNG OTC

SU:

03/26/2001 06:00 EST www.prnewswire.com