UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

[ x ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: May 31, 2006

OR

[] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ____

Commission File Number 0-12132

SILVERADO GOLD MINES LTD.
(NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

British Columbia, Canada	98-0045034
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
1111 West Georgia Street, Suite 505,
Vancouver, British Columbia, Canada	V6E 4M3
(Address of principal executive offices)	(Zip Code)

Issuer's telephone number: (604) 689-1535

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.   Yes [ x ]     No []

Check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes []      No [ x ]

Number of shares outstanding as of June 30, 2006: 594,322,333 common shares.

Transitional Small Business Disclosure Format:  Yes []      No [ x ]

PART I
FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
May 31, 2006 and November 30, 2005
(Stated in United States Dollars)

ASSETS		2006			2005
		(Unaudited)
Current
Cash and cash equivalents	$	6,066,499		$	408,589
Gold inventory		35,065			27,916
Amounts receivable		16,622			6,594
		6,118,186			443,099
Property, plant and equipment		1,193,436			1,285,553
	$	7,311,622		$	1,728,652
LIABILITIES
Current
Accounts payable and accrued liabilities	$	400,972		$	393,058
Mineral claims royalty payable		350,000			400,000
Payable to related companies		142,350			70,282
Convertible debentures, current portion		140,000			176,652
Capital lease obligation, current portion		380,246			258,254
		1,413,568			1,298,246
Asset retirement obligation		552,940			539,453
Capital lease obligations		159,948			463,895
		2,126,456			2,301,594
SHAREHOLDERS’ EQUITY (DEFICIT)
Capital stock
Authorized: unlimited common shares with no par value
Issued and outstanding:
565,951,613 common shares (2005: 355,054,275)		80,132,048			71,526,738
Additional capital stock options		466,314			466,314
Shares to be issued		767,000			54,500
Accumulated deficit during exploration		(76,180,196	)		(72,620,494	)
		5,185,166			(572,942	)
	$	7,311,622		$	1,728,652

See accompanying notes to financial statement

2

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS & OTHER COMPREHENSIVE INCOME
for the six months ended May 31, 2006 and May 31, 2005
(Stated in United States Dollars)

														Period Since
														Recommencement
														Of Exploration Stage
		Three months ended May 31						Six months ended May 31						December 1, 2001
		2006			2005			2006			2005			To
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			May 31, 2006
General and Administrative Expenses
Accounting and audit	$	56,943		$	29,700		$	71,766		$	52,300		$	245,780
Advertising and promotion		53,422			39,912			182,702			137,038			1,660,223
Consulting fees		560,777			58,624			612,777			324,161			4,996,007
Depreciation, accretion and impairment		55,168			45,784			109,661			103,834			1,853,321
Exploration expenses		476,519			143,345			1,332,465			299,597			9,959,821
Financing activities		-			-			-			252,003			252,003
Interest on convertible debentures		2,342			3,716			5,600			6,516			679,007
Interest on capital lease obligations		11,113			21,184			24,005			26,918			281,594
Legal		153,417			38,236			185,462			58,321			456,950
Management services		242,608			137,268			482,770			288,611			2,405,289
Office		258,469			122,547			484,099			228,259			2,271,043
Other interest and bank charges		2,943			1,134			5,583			3,032			33,220
Reporting and investor relations		31,015			5,498			68,482			16,323			183,121
Research		37,649			43,531			65,917			64,899			671,596
Transfer agent fees and mailing		9,365			10,013			19,601			12,264			110,950
Write-off of mineral claim expenditures		-			-			-			-			1,159,529
Write-down of property, plant and equipment		-			-			-			-			285,875
Total General and Administrative Expenses		(1,951,750	)		(700,492	)		(3,650,890	)		(1,874,076	)		(27,505,329	)
Interest and other income		10,149			508			16,574			764			109,364
Cumulative effect of accounting change		-			-			-			-			(153,226	)
Other comprehensive income
Gain (loss) on foreign exchange		52,157			(20,148	)		74,614			(67,607	)		217,687
Loss and comprehensive loss for the period	$	(1,889,444	)	$	(720,132	)	$	(3,559,702	)	$	(1,940,919	)	$	(27,331,504	)
Net loss per share	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
Basic and diluted weighted average number of
common shares outstanding		524,032,265			268,630,739			469,403,291			246,662,210

See accompanying notes to financial statements

3

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the six months ended May 31, 2006 and May 31, 2005
(Stated in United States Dollars)

								Period Since
								Recommencement
		Six Months Ended May 31						Of Exploration Stage
		2006			2005			December 1, 2001
		(Unaudited)			(Unaudited)			to May 31, 2006
Cash Flows used in Operating Activities
Net loss for the period	$	(3,559,702	)	$	(1,940,919	)	$	(27,331,504	)
Adjustments to reconcile loss to net cash provided
by (used in) operating activities:
Cumulative effect of accounting change		-			-			153,226
Depreciation, accretion and impairment		109,661			141,143			1,853,321
Stock based compensation		-			-			2,252,950
Stock issued for debenture		-			-			217,687
Non-cash consulting expense		559,000			284,900			1,421,040
Non-cash financing expense		-			252,003			252,003
Interest accrued		-			-			486,370
Write-off of mineral claim expenditures		-			-			1,159,529
Write-down of property, plant and equipment		-			-			285,875
Changes in non-cash operating working capital:
Amounts receivable		(10,028	)		(1,770	)		(13,747	)
Gold inventory		(7,149	)		22,427			(23,925	)
Prepaid expense		-			122,000			-
Exploration and development advances		-			74,710			-
Share subscriptions issued		712,500			(5,000	)		882,000
Accounts payable and accrued liabilities		7,914			105,403			(195,421	)
Increase in mineral claims royalty payable		(50,000	)		-			33,500
Net cash used in Operating Activities		(2,237,804	)		(935,106	)		(18,567,096	)
Cash Flows used in Investing Activities
Purchase of property, plant and equipment		(3,668	)		(480	)		(1,338,373	)
Disposal of property, plant and equipment		-			148,000			152,252
Net cash provided (used) from Investing Activities		(3,668	)		147,520			(1,186,121	)
Cash Flows from Financing Activities
Common stock issued for cash (net of share issue cost)		8,046,310			968,998			26,654,113
Repayment of convertible debentures		(37,041	)		-			(75,388	)
Repayment of loans payable		-			-			(35,729	)
Repayment of capital lease obligations		(181,955	)		(118,882	)		(591,413	)
Due to related party		72,068			-			(148,960	)
Net cash provided from Financing Activities		7,899,382			850,116			25,802,623
Increase (decrease) in cash and cash equivalents		5,657,910			62,531			6,049,406
Cash and cash equivalents, beginning of period		408,589			12,828			17,093
Cash at end of the period	$	6,066,499		$	75,358		$	6,066,499

See accompanying notes to financial statements

4

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)
(Stated in United States Dollars)

Six months ended May 31, 2006 and May 31, 2005

1.	Basis of presentation:
	The unaudited consolidated financial statements include the accounts of Silverado Gold Mines Ltd. and its wholly-owned subsidiary Silverado Gold Mines Inc. (formerly Silverado Green Fuel Inc. as of May 17, 2006). These statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information. These financial statements also comply, in all material respects, with generally accepted accounting principles in the United States.
	The accompanying unaudited consolidated financial statements do not include all information and footnote disclosures required under United States generally accepted accounting principles. In our opinion, all adjustments (consisting solely of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows as at May 31, 2006, and for all periods presented, have been included. Readers of these financial statements should note that interim results for the six month periods ended May 31, 2006, and May 31, 2005, are not necessarily indicative of the results that may be expected for the fiscal year as a whole.
	These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-KSB for the fiscal year ended November 30, 2005.
2.	Related party transactions:
	The Company had related party transactions with Tri-Con Mining Ltd., Tri-Con Mining Inc., Tri-Con Mining Alaska Inc. (collectively “Tri-Con”), all of which are controlled by a director of ours.
	Tri-Con are operations and exploration contractors, and has been employed by the Company under contract since 1972 to carry out all of its fieldwork and to provide administrative and management services. Under our current contract dated January 1, 1997 work is charged at cost plus 25% for exploration and cost plus 15% for development and mining. Cost includes out of pocket or actual cost plus 15% charge for office overhead including stand by and contingencies. There is no mark up on capital purchases. At May 31, 2006, we owe $142,350 to Tri-Con for exploration and administration services to be performed during the current fiscal year on behalf of the Company. Tri-Con‘s services for the current fiscal year are focusing mainly on our Low-Rank Coal-Water Fuel program as well as corporate planning and preparation for year round production on our Nolan property and administration services at both our field and corporate offices.
	The aggregate amounts paid to Tri-Con each period by category, including amounts relating to the Grant Mine Project and Nolan properties, for disbursements and for services rendered by Tri-Con personnel working on our projects, and including interest charged on outstanding balance at Tri-Con’s borrowing costs are shown below:

5

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)
(Stated in United States Dollars)

Six months ended May 31, 2006 and May 31, 2005

2. Related party transactions (continued):

		May 31,		May 31,
		2006		2005
Exploration services	$	1,230,955	$	254,773
Administrative and management services		511,880		365,521
Research		65,917		64,899
	$	1,808,752	$	685,193
Amount of total charges in excess of Tri-Con’s costs incurred	$	256,280	$	66,572
Excess amount charged as a percentage of actual costs incurred		14.2%		9.7%

3.	Loss per share:
	Basic loss per share has been calculated using the weighted average number of common shares outstanding for each period. Loss per share does not include the effect of the potential exercise of options and warrants and the conversion of debentures as their effect is anti-dilutive.
4.	Supplementary cash flow information:
	Supplemental non-cash investing and financing activities:

		May 31,		May 31,
		2006		2005
Sale of fixed assets under capital lease	$	-	$	95,000
Issuance of shares for:
Financing activities		-		252,003
Consulting services		559,000		284,900
Capital lease obligation		-		(95,000	)

6

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)
(Stated in United States Dollars)

Six months ended May 31, 2006 and May 31, 2005

5.	Debentures:
	On March 1, 2001, we completed negotiations to restructure our $2,000,000 convertible debentures. We issued replacement debentures in the aggregate amount of $2,564,400 in consideration of cancellation of the $2,000,000 principal amount plus all accrued interest on the original debentures to March 1, 2001.
	(a)	As of November 30, 2004 the replacement debentures have been repaid in full. Remaining debentures of $140,000, plus accrued interest of $92,827 are in default, however, it is unclear whether they will be exchanged for replacement debentures as the Company has been unsuccessful in its extensive attempts to locate the holders.
	(b)	In February 1999 we issued a debenture for $75,000 with interest payable at a rate of 5.0% per annum. The debenture is unsecured and was due May 31, 2003. However, subsequent to February 29, 2003, we began re-payment of the $75,000 debenture and the balance as at May 31, 2006 is $0.
6.	Lease purchase agreement:

The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are amortized over their estimated productive lives which are estimated to be 10 years. Amortization on assets under capital leases charged to expense during the period ended May 31, 2006 was $89,929 (2005: $50,316).

Minimum future lease payments under capital leases as of May 31, 2006 and 2005

		2006			2005
November 30, 2005	$	-		$	391,556
November 30, 2006		301,694			492,472
November 30, 2007		262,505			-
Total minimum lease payments		564,199			884,028
Less: interest		(24,005	)		(85,428	)
		540,194			798,600
Less: current portion		(380,246	)		(364,214	)
Long-term portion	$	159,948		$	434,386

7

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)
(Stated in United States Dollars)

Six months ended May 31, 2006 and May 31, 2005

7.	Common shares:
	During the period ending May 31, 2006 the Company had the following common shares transactions:

Date	Description	No. of shares		Price per share		Proceeds
November 31, 2005	Balance forward	355,054,275	$	-	$	71,526,738
December 1, 2005	Private Placement	166,667		0.0300		5,000
December 1, 2005	Private Placement	142,858		0.0300		5,000
December 2, 2005	Warrants	1,400,000		0.0225		31,500
December 6, 2005	Private Placement	285,715		0.0350		10,000
December 8, 2005	Private Placement	100,000		0.0300		3,000
December 8, 2005	Private Placement	4,285,715		0.0280		120,000
December 19, 2005	Private Placement	3,076,924		0.0325		100,000
December 19, 2005	Private Placement	516,667		0.0300		15,500
January 10, 2006	Private Placement	700,000		0.0325		22,750
January 13, 2006	Private Placement	85,806,201		0.0250		2,145,145
January 16, 2006	Private Placement	2,500,000		0.0300		75,000
January 17, 2006	Private Placement	300,000		0.0325		9,750
January 20, 2006	Private Placement	1,914,475		0.0380		72,750
January 20, 2006	Private Placement	700,000		0.0325		22,750
January 24, 2006	Private Placement	4,070,000		0.0300		122,100
February 8, 2006	Private Placement	788,782		0.1140		90,000
March 3, 2006	Private Placement	1,250,000		0.0800		100,000
March 8, 2006	Private Placement	6,666,666		0.0300		200,000
March 29, 2006	Private Placement	16,666,668		0.0600		1,000,000
March 31, 2006	Private Placement	27,666,666		0.0600		1,660,000
March 31, 2006	Consulting	500,000		0.1300		65,000
April 4, 2006	Private Placement	16,916,666		0.0600		1,015,000
April 7, 2006	Private Placement	10,376,667		0.0600		622,600
April 15, 2006	Consulting	3,600,000		0.1300		468,000
April 18, 2006	Consulting	200,000		0.1300		26,000
April 25, 2006	Private Placement	9,900,001		0.0700		693,000
April 25, 2006	Private Placement	2,000,000		0.0800		160,000

8

SILVERADO GOLD MINES LTD.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)
(Stated in United States Dollars)

Six months ended May 31, 2006 and May 31, 2005

7. Common shares (continued):

Date	Description	No. of Shares		Price per share		Proceeds
May 1, 2006	Private Placement	2,400,000		0.0800		192,000
May 16, 2006	Private Placement	4,000,000		0.1000		400,000
May 18, 2006	Private Placement	2,000,000		0.0400		80,000
	Share issuance costs	-		-		(926,535	)
May 31, 2006		565,951,613	$	-	$	80,132,048

8. Subsequent events:

Subsequent to May 31, 2006, the Company issued an aggregate of 200,000 common shares at $0.13 per share totaling $26,000 pursuant to a consulting agreement.

9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report on Form 10-QSB contains 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 forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of gold recovery activities and other factors. Forward-looking statements are made, without limitation, in relation to operating plans, property exploration and gold recovery activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined below, and, from time to time, in other reports we file with the SEC. These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

OVERVIEW

We are engaged in the acquisition and exploration of mineral properties in the State of Alaska. Precious metals, primarily gold, are our main interest. We have more than 30 years of experience in all aspects of the gold mining industry, from grass-roots exploration, to state of the art mining and processing technologies, for both placer and lode gold deposits. Our primary focus is presently on the exploration of our Nolan Gold Project, located 175 miles north of Fairbanks, Alaska. Our plan of operations is to continue with exploration activities at the Nolan Gold Project. These plans include exploration for both placer gold deposits and lode gold deposits at the Nolan Gold Project. Our exploration activities include lode drilling and trenching, geochemical and geophysical surveys, placer drilling, and bulk placer test mining work that we carry out as part of our exploration programs.

We are also seeking financing to enable us to proceed with the retrofitting and operation of our Grant Mill Facility as a demonstration facility to establish the combustion characteristics and marketability of low-rank coal-water fuel to be used as a replacement fuel in oil fired boilers and utility generators. There is no assurance that we will be able to obtain any financing for this project.

We hold interests in four groups of mineral properties in Alaska, as described below:

1.	our Nolan Gold Project;
2.	our Ester Dome Gold properties;
3.	our Hammond properties; and
4.	our Eagle Creek properties.

We are an exploration stage company. All of our properties are presently in the exploration stage. We do not have any commercially viable reserves on any of our properties. There is no assurance that a commercially viable mineral deposit exists on any of our mineral properties. Further exploration will be required before a final evaluation of the feasibility of commercial mining on any of our properties is determined. There is no assurance that further exploration will result in a final evaluation that determines a commercially viable mineral deposit exists on any of our mineral properties.

10

PLAN OF OPERATIONS

Our plan of operation for the next six months is discussed below:

The Nolan Gold Project

We plan to conduct further exploration at the Nolan Placer and Nolan Lode properties within the Nolan Gold Project. Our planned geological exploration program is described in detail in the section of our Annual Report on Form 10-KSB for the year ended November 30, 2005 entitled Description of Properties – Nolan Gold Project. The objective of this geological exploration program is to further define both placer and lode gold occurrences in order to provide a basis for future exploration activities, including test mining activities, at the Nolan Gold Project. Our lode exploration work is intended to increase our geologic knowledge on the Solomon Shear Trend.

We plan to spend approximately $1.2 million in the next six months in carrying out our exploration and bulk sampling activities at the Nolan Gold Project. Of this amount, we anticipate approximately $450,000 will be spent on test mining activities and reclamation work, with the balance of $750,000 being spent on other exploration activities, including phase one and phase two drilling programs on Mary’s Bench East, Swede Channel, Pingel Bench, and Slisco Bench placer gold targets and continued exploration for lode gold occurrences along the Solomon Shear Trend. While the costs of exploration and test mining may be off-set by recoveries from sales of gold that we may achieve, these recoveries may not exceed the costs of our exploration programs including our test mining activities. See the discussion of our cash resources and working capital under Liquidity and Financial Condition below and in the section entitled Risk Factors below.

During the past six months we have developed a stockpile of gold bearing gravel by driving a tunnel into a placer deposit known as the Swede Channel. The volume of the gravel stockpile is estimated at approximately 8,500 loose cubic yards, and will be processed by gravity sluicing beginning in late June through mid-July of 2006 to remove placer gold nuggets and fine gold from the gravel. The portal to the Swede Channel was sealed during late April, and will be re-opened after the freeze-up which usually occurs during late September or October. Since the tunnel is in permafrost, it requires minimal support other than at the portal. Since it must be ventilated, it can only be worked during the coldest time of the year, about October through March to preserve the integrity of the permafrost. Bulk extraction of the Swede Channel gravels will then continue. During the time since the portal was sealed, we have been focused on reclamation work, consisting of cleaning up and removing scrap material from the property, retro-fitting of the sluicing plant, and outlining our planned exploration programs. Once the sluicing phase is completed, efforts will be directed to the exploration programs, further reclamation and clean-up, and equipment maintenance and preparation for the winter underground project.

Beginning in April of 2006, we have staked an additional 237 federal lode claims to bring our total lode claims holdings in the Nolan-Hammond area to 342, encompassing 11.04 square miles. We also purchased six federal unpatented placer claims and staked an additional 7 placer claims to bring our total placer claims holdings in the Nolan-Hammond area to 218, covering about 6.81 square miles.

Our plan is for the following operations to be carried out over the remainder of the fiscal year.

1.	Retro-fit and upgrade our sluicing plant to maximize the efficiency of processing and extracting gold from the stockpile.
2.	Install necessary ponds, pipelines, pumps, etc., needed to facilitate the closed circuit, gravity concentration sluicing operations to be carried out this summer.
3.	Stabilize any surface disturbances to prevent or minimize surface degradation.
4.	Once the stockpile is sufficiently thawed, proceed with gravity processing of the stockpile. Those operations are expected to be completed by mid July 2006.
5.	Initiate a placer drilling program aimed at further development of the Swede Channel and to prospect other areas of the property, including the Slisco Bench.
6.	Continue reclamation of prior surface disturbances at the Nolan project.
7.	Once “freeze-up” has occurred in the fall, re-open the Swede Channel. This work will proceed to stockpile all gold bearing gravel remaining in the Swede Channel to be washed for gold recovery during the summer of 2007.
8.	Initiate a new phase of exploration on the “Solomon Shear”. This will be a lode gold exploration program.

11

This plan will continue to be modified as new information becomes available.

We do not have any commercially viable reserves on any of our properties that comprise the Nolan Gold Project or any of our other properties. As we have not established commercially viable reserves on the Nolan Gold Project, there is no assurance that any recoveries of gold from test mining activities will be sufficient to pay for the full cost of exploration. There is no assurance that our test mining activities will result in a final evaluation that a commercially viable mineral deposit exists on any of our mineral properties that comprise the Nolan Gold Project.

Low-Rank Coal-Water Fuel Project

We anticipate spending approximately $180,000 during the remaining fiscal year on our work to seek funding from government and private sources in connection with establishment of the demonstration facility at the Grant Mill. There is no assurance that any financing will be obtained from either government or private sources to fund this project.

RESULTS OF OPERATIONS

Six months ended May 31, 2006 compared to the six months ended May 31, 2005.

Revenues

We did not earn revenues during the six months ended May 31, 2006 or May 31, 2005 as commercial production of gold from the Nolan Gold Project was not achieved during either of these periods. Under our accounting policies, any sales of gold recovered as a result of our exploration activities that may be realized will be treated as sales received incidental to exploration activities on the Nolan Gold Project until such time as we have reached commercial levels of gold production from the Nolan Gold Project.

We anticipate that we will not realize revenues during the current fiscal year from the low-rank coal-water fuel component of our plan of operations. We will not be able to realize revenues from this business until we are able to proceed with the construction and operation of a commercial-scale demonstration facility for the low-rank coal-water fuel technology. There is no assurance that we will be able to secure the financing necessary to proceed with construction of this demonstration facility or that the demonstration facility will prove the commercial viability of the process.

Expenses

Our expenses increased to $3,650,890 for the six months ended May 31, 2006 compared to $1,874,076 for the six months ended May 31, 2005, representing an increase of $1,776,814 or 95%. Our expenses increased to $1,951,750 for the three months ended May 31, 2006 compared to $700,492 for the three months ended May 31, 2005, representing an increase of $1,251,258 or 179%. The increase in expenses was primarily attributable to increases in exploration, management services and office expenses during the period ended May 31, 2006 to facilitate exploration on our Nolan Gold Project.

Increased exploration activity on our mineral properties resulted in an increase of our general exploration expenses to $1,332,465 for the six months ended May 31, 2006 compared to $299,597 for the six months ended May 31, 2005. General exploration expenses increased to $476,519 for the three months ended May 31, 2006 compared to $143,345 for the three months ended May 31, 2005. The increase in exploration expenses during the six months of our current fiscal year was attributable to increased exploration activities at the Nolan Gold Project compared to 2005. These exploration activities included bulk sampling and exploration activities on the Swede Channel section of the Nolan Gold Project. We anticipate that our exploration expenses will increase when we continue the test mining program aimed at further development of the Swede Channel and to prospect other areas of the property.

Office expenses increased to $484,099 for the six months ended May 31, 2006 compared to $228,259 for the six months ended May 31, 2005, representing an increase of $258,979 or 112%. Office expenses increased to $258,469 for the three months ended May 31, 2006 compared to $122,547 for the three months ended May 31, 2005, representing an increase of $135,922 or 111%. The increase during the period ending May 31, 2006

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reflects an increase in our general office operating costs at our offices in Fairbanks, Alaska due to exploration activities on the Nolan Gold Project.

Management services expenses increased to $482,770 for the six months ended May 31, 2006 compared to $288,611 for the six months ended May 31, 2005, representing an increase of $194,159 or 67%. Management services expenses increase to $242,608 for the three months ended May 31, 2006 compared to $137,268 for the three months ended May 31, 2005 representing an increase of $105,340 or 77%. The increase in management services is a result of increased exploration activity during the period ending May 31, 2006 compared to the period ending May 31, 2005.

Consulting fees increased to $612,777 for the six months ended May 31, 2006 compared to $324,161 for the six months ended May 31, 2005, representing an increase of $288,616 or 89%. Consulting fees increased to $560,777 for the three months ended May 31, 2006 compared to $58,624 for three months ended May 31, 2005, representing an increase of $502,153. The increase is largely attributable to engaging consulting services to facilitate our Low-Rank Coal-Water Fuel Project. Consulting fees are attributable to stock based compensation paid to our consultants during the year. Compensation was recorded based on the quoted market price of our shares as of the date of the agreement.

Loss

Our loss and comprehensive loss increased to $3,559,702 for the six months ended May 31, 2006 compared to $1,940,919 for the six months ended May 31, 2005 representing an increase of $1,618,783 or 83%. The increase in our loss was primarily attributable to increased exploration, management services, consulting and office expenses during the six months ended May 31, 2006. We anticipate that we will continue to incur a loss until such time as we can achieve commercial production from the Nolan Gold Project, of which there is no assurance.

LIQUIDITY AND FINANCIAL CONDITION

Cash and Working Capital

The Company had cash and cash equivalents of $6,066,499 as of May 31, 2006, compared to cash of $408,589 as of November 30, 2005. We had working capital of $4,704,618 as of May 31, 2006, compared to a working capital deficiency of $855,147 as of November 30, 2005. The increase in our working capital was primarily the result of increased funding through equity sales of our common shares during the six months ended May 31, 2006.

We plan to spend approximately $1.2 million in the next six months in carrying out our exploration and bulk sampling activities at the Nolan Gold Project. Of this amount, we anticipate approximately $450,000 will be spent on test mining activities and reclamation work, with the balance of $ 750,000 being spent on other exploration activities, including phase one and phase two drilling programs on Mary’s Bench East, Swede Channel, Pingel Bench, and Slisco Bench placer gold targets and continued exploration for lode gold occurrences along the Solomon Shear Trend. While the costs of exploration and test mining may be off-set by recoveries from sales of gold that we may achieve, these recoveries may not exceed the costs of our exploration programs including our test mining activities. See Risk Factors.

Cash Used in Operating Activities

Cash used in operating activities increased to $2,237,804 for the six months ended May 31, 2006, compared to $935,106 for the six months ended May 31, 2005, primarily as a result of our increased exploration activity on the Nolan Gold Project. We funded the cash used in operating activities predominantly through equity sales of our common shares.

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Investing Activities

Cash paid for investing activities was $3,668 during the six months ended May 31, 2006 compared to cash provided from investing activities of $147,520 during the six months ended May 31, 2005. The Company purchased new computer equipment during the period ending May 31, 2006.

Financing Activities

Cash provided by financing activities increased to $7,899,382 for the six months ended May 31, 2006, compared to $850,116 for the six months ended May 31, 2005. Cash provided by financing activities was primarily attributable to share issuances. Cash provided by financing activities was used to fund our operating and investing activities. Equity financings were completed with private purchasers at prices that were reflective of the market price of our common shares as of the date of the financing.

We anticipate continuing to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders.

Capital Leases

On October 11, 2002, we entered into a lease purchase agreement whereby we would purchase three dump trucks, an underground loader, two surface loaders, and other equipment valued at a total of $1,496,150. The agreement required payment upon signing of $550,000 (paid), $100,000 on or before December 1, 2003 (paid) and 24 equal payments thereafter for the balance of the purchase price plus interest at a rate of 12% per annum.

On February 14, 2003, we entered into a three-year lease agreement whereby we would purchase mining equipment valued at $250,170. The agreement required a payment on signing of $105,000 (paid), $25,000 on or before December 4, 2003 and 24 equal payments for the balance of the purchase price plus interest at a rate of 12% per annum.

On January 28, 2004 the agreements for the above two leases were modified into one agreement. The modified agreement required us to make a one-time payment of $50,000 on acceptance of the agreement and a fixed amount per month specified in the agreement in the following six months. At the same time of accepting the revised agreement, we returned three pieces of equipment under the original capital lease agreement to the lessor as a credit towards the lease liability.

During the year ended November 30, 2004, the Company entered into an agreement to combine the two lease agreements. The new agreement required payment upon signing of $50,000 (paid), and monthly payments of $25,000 for the balance of principal plus interest at a rate of 7.5% per annum.

As at May 31, 2006, the total amount outstanding under the revised lease purchase agreements was $540,194, including interest of $21,184. We are required to maintain the equipment in good working order and are also required to maintain adequate insurance on the equipment. We are required to complete future lease payments of $301,694 during fiscal 2006 and $262,505 during fiscal 2007.

Tri-Con

We owe $142,350 to Tri-Con as of May 31, 2006 in connection with planned exploration activities to be carried out on the Nolan Gold Project during fiscal 2006. These activities will be carried out by Tri-Con on behalf of the Company in accordance with our operating agreements with Tri-Con. See Item 12 -- Certain Relationships and Related Transactions of our Annual Report on Form 10-KSB for the year ended November 30, 2005 for further disclosure regarding our operating agreements with the Tri-Con.

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Debt

The amount of our convertible debt outstanding was $140,000 as of May 31, 2006. This entire amount is current. This amount consists of a convertible debenture in the amount of $140,000 which is in default and has accrued interest of $92,827. It is unclear as to whether this amount will ever be converted into common shares as we have been unsuccessful in our extensive attempts to locate the holders of these debentures. There is no agreement to exchange this amount of remaining original convertible debentures into replacement debentures.

As of November 30, 2004, we had repaid in full all previously outstanding convertible debentures that we had renegotiated as of March 1, 2001.

Mineral Properties

As of May 31, 2006, we were in arrears of required mineral property claims and option payments of $350,000 in respect of our Hammond Property and therefore the rights to the property were adversely affected. However, we are currently in the process of re-negotiating the terms and conditions of the Agreement with the property owner. The property owner has confirmed that our mineral claims and options are in good standing on the understanding we will use our best efforts to pay the minimum royalty payments, including the payments that are in arrears for the past four years, when business conditions permit. There is however no assurance that we will be able to renegotiate this agreement.

Low-Rank Coal-Water Fuel Business

In order to proceed with establishing the commercial viability of our low-rank coal-water fuel business, we are currently seeking financing from the U.S. Government and from private sources to achieve the full $20,000,000 funding for this project. There is no assurance that we will be awarded any grant or private funding or that we will be able to complete any additional sales of our equity securities or arrange for debt or other financing to fund this component of our plan of operations.

Future Financings

We require additional financings in order to fund our plan of operations. We anticipate continuing to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned exploration activities, including test mining activities.

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

CRITICAL ACCOUNTING POLICIES

Exploration Stage Company

The Securities and Exchange Commission’s Securities Act Industry Guide 7 “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” requires that mining companies in the exploration stage should not refer to themselves as development stage companies in their financial statements, even though such companies should comply with Financial Accounting Standards Board Statement No. 7, if applicable. We are an exploration stage company under the SEC’s Guide 7 and accordingly, we have not been referred to as a development stage company in our financial statements. Accumulated results of operations are presented from December 1, 2001, the date we re-entered the exploration stage.

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Mineral claim payments and exploration costs

We expense all costs related to the acquisition, maintenance and exploration of mineral claims in which we have secured exploration rights prior to establishment of proven and probable reserves. To date, we have not established the commercial feasibility of our exploration prospects; therefore, all costs are being expensed.

Asset retirement obligation

Effective December 1, 2002, we adopted SFAS 143, Accounting for Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated retirement costs. The standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and normal use of the asset.

SFAS No. 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. If the obligation is settled for other than the carrying amount of the liability, we will recognize a gain or loss on settlement.

Stock Based Compensation

Effective November 1, 2002, we adopted the fair value recognition provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation. Under the modified prospective method of adoption selected by us under the provisions of FASB Statement No. 148, Accounting for Stock-Based Compensation – Transition and Disclosure, compensation cost recognized in 2003 is the same as that which would have been recognized had the recognition provisions of Statement 123 been applied from its original effective date. Results for prior years have not been restated. The value of shares issued to non-employees for services is based on the quoted market price of our shares as of the date of issue.

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ITEM 3. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures. Regulations under the Securities Exchange Act of 1934, as amended (the "Exchange Act") require public companies to maintain "disclosure controls and procedures," which are defined to mean a company's controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Exchange Act. Our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on those evaluations, our Chief Executive Officer and Chief Financial Officer concluded that:

(i) that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Exchange Act and that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure; and

(ii) that our disclosure controls and procedures are effective.

(b) Changes in Internal Controls. There were no significant changes in our internal controls or, to our knowledge, in other factors that could significantly affect our internal controls subsequent to the evaluation date.

(1) While management believes that our disclosure controls and procedures and our internal control over financial reporting are effective, no system of controls can prevent all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with its policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected

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PART II
OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not a party to any material pending legal proceedings nor are aware of any contemplated proceedings by a governmental agency.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We have not sold any unregistered securities other than those previously reported on a Current Report on Form 8-K and filed with the Securities and Exchange Commission.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

We are currently in default of obligations pursuant to convertible debentures in the aggregate principal amount of $140,000, plus accrued interest of $92,827. There is no agreement to exchange this amount of remaining original convertible debentures into replacement debentures.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit
Number	Description of Exhibit
3.1	Articles of the Company (1)
3.2	Amendment to Articles of the Company (2)
3.3	Altered Memorandum of the Company (3)
3.4	Amendment to Articles of the Company (8)
4.1	Share certificate representing common shares of the capital of the Company (1)
10.1	Agreement for Conditional Purchase and Sale of Mining Property between the Company and Roger C. Burggraf dated October 6, 1978 – Grant Mine Property (1)
10.2	Agreement for Conditional Purchase and Sale of Mining Property between the Company and Paul Barelka, Donald May and Mark Thoennes dated May 12, 1979 – St. Paul Property (1)
10.3	Lease of Mining Claims with Option to Purchase between the Company and Alaska Mining Company, Inc. dated February 3, 1995 – Hammond Property (4)
10.4	Change of Control Agreement between the Company and Garry L. Anselmo dated May, 1995(6)
10.5	Change of Control Agreement between the Company and James Dixon dated May, 1995 (6)
10.6	Amendment to Change of Control Agreement between the Company and Garry L. Anselmo (6)
10.7	Operating Agreement between the Company and Tri-Con Mining Ltd. dated January 1, 1997 (5)
10.8	Operating Agreement between the Company and Tri-Con Mining Inc. dated January 1, 1997 (6)
10.9	Operating Agreement between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997 (6)
10.10	Contract between the Company and Dr. Warrack Willson dated March 19, 2001 (6)
10.11	Equipment Lease Agreement between the Company and Airport Equipment Rentals Inc. dated October 11, 2002 (6)
10.12	2003 Stock Option Plan (7)

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10.13	Form of Warrant Exercise Agreement between the Company and certain of the selling security holders (9)
10.14	Consultant Agreement between the Company and CEOcast, Inc. dated April 21, 2004 (9)
10.15	Subscription Agreement between the Company and Christoph Bruning dated May 10, 2004 (9)
10.16	Consultant Agreement between the Company and Smith Canciglia Consulting, Inc. dated May 16, 2004 (9)
10.17	Form of Delay Agreement between the Company and certain of the Selling Shareholders.(9)
10.18	2004 Stock Option Plan (10)
31.1	Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002
31.2	Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002
32.1	Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002
32.2	Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002
(1)	Filed as an exhibit to the Company’s Registration Statement on Form 10 filed initially on May 11, 1984, as amended.
(2)	Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q filed on July 15, 1997.
(3)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on September 11, 2002.
(4)	Filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended November 30, 1995.
(5)	Filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended November 30, 1996.
(6)	Filed as an exhibit to the Company’s Annual Report on Form 10-KSB for the year ended November 30, 2002.
(7)	Filed as an exhibit to the Company’s Schedule 14A Proxy Statement filed April 29, 2003.
(8)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 13, 2003.
(9)	Filed as an exhibit to the Company’s Registration Statement on Form SB-2 filed on May 19, 2004;
(10)	Filed as an exhibit to the Company’s Quarterly Report on Form 10-QSB filed on July 15, 2004.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SILVERADO GOLD MINES LTD.
DATE:  July 14, 2006
	/s/ Garry L. Anselmo
	Garry L. Anselmo
	President, Chief Executive Officer (Principal
	Executive Officer), and Chief Financial Officer
	(Principal Financial and Accounting Officer)

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