FORM 10Q


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549





     [X]  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED August 31, 1998

                                       OR


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


                         Commission file number 0-12132


                            SILVERADO GOLD MINES LTD.
             (Exact name of registrant as specified in its charter)


British Columbia, Canada                                    98 -0045034
-------------------------------                       --------------------------
(State or other jurisdiction of                       (I.R.S. Employer I.D. No.)
 incorporation or organization)

Suite 505, 1111 West Georgia Street          
Vancouver, British Columbia, Canada V6E 4M3               (604) 689-1535
-------------------------------------------      -------------------------------
(Address of Principal Executive Offices)         (Registrant's telephone number)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 13(d) of the  Securities  and  Exchange Act of 1934
during the preceding 12 months (or for a 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 [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Class                                          Outstanding at September 30, 1998
--------------------                           ---------------------------------
(Common stock (npv))                           10,197,890


<PAGE>
<TABLE>
<CAPTION>
SILVERADO GOLD MINES LTD.
CONSOLIDATED BALANCE SHEETS
EXPRESSED IN U.S. DOLLARS                                                           
<S>                                                                        <C>               <C>    
                          
                                                                                       As at
                                                                              August 31,      November 30,
                                                                                1998             1997
                                                                           ---------------   ---------------  
                                                                            
Assets
Current Assets
   Cash and cash equivalents                                               $         2,365   $        20,914
   Gold inventory (Note 2)                                                          23,990            48,875
   Accounts receivable                                                               4,943             8,297
   Prepaid expenses paid to related parties                                        738,713           366,303
                                                                           ---------------   ---------------
                                                                                   770,011           444,389
Mineral Properties and Development
   Claims and options                                                            2,406,257         2,436,972
   Deferred exploration and development expenditures                            13,490,732        13,576,470
                                                                           ---------------   ---------------
                                                                                15,896,989        16,013,442
    Less accumulated amortization                                               (1,384,338)       (1,384,338)
                                                                           ---------------   --------------- 
                                                                                14,512,651        14,629,104

Buildings, Plant and Equipment                                                   3,334,481         4,481,399
   Less accumulated depreciation                                                (1,347,806)       (1,385,423)
                                                                           ---------------   ---------------
                                                                                 1,986,675         3,095,976

Deferred Financing Fees (net of amortization of $152,138: 1997-$124,238)            33,862            61,762
                                                                           ---------------   ---------------

                                                                           $    17,303,199   $    18,231,231
                                                                           ===============   ===============
                                                                           
Liabilities and Shareholders' Equity
Current Liabilities
   Accounts payable and accrued liabilities (Note 5)                       $       715,872   $       597,478
   Capital lease obligations - current                                                --              81,749
                                                                           ---------------   ---------------           
                                                                                   715,872           679,227 
Long Term Liabilities
   Capital lease obligations                                                          --               9,741
   Convertible debenture (Note 7)                                                2,000,000         2,000,000
                                                                           ---------------   ---------------
                                                                                 2,000,000         2,009,741                     
Shareholders' Equity
   Share capital (Note 6)
   Authorized: 100,000,000 common shares
   Issued and outstanding: Augusti31, 1998 - 9,231,222 shares                   44,665,687        43,084,420
                           November 30, 1997 - 8,001,222 shares
   Unamortized stock compensation expense                                           (1,866)         (151,612)
   Advances to related parties secured by common shares in the company                --            (480,236)
   Deficit                                                                     (30,076,494)      (26,910,309)
                                                                           ---------------   ---------------
                                                                                14,587,327        15,542,263
                                                                           ---------------   ---------------  
                                                                           $    17,303,199   $    18,231,231
                                                                           ===============   =============== 

See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
SILVERADO GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND ACCUMULATED DEFICIT                                                     
EXPRESSED IN U.S. DOLLARS
<S>                                                                 <C>               <C>    
                                                                            Nine Months Ended
                                                                       August 31,        August 31,
                                                                         1998              1997
                                                                    ---------------   ---------------     

Revenue from gold sales                                             $        99,857   $       141,772
  Less mining and processing costs                                          118,883           130,368
                                                                    ---------------   ---------------
Gain (loss) from Operations                                                 (19,026)           11,404

Employment contract expense                                                 828,313         1,133,753

Administrative Expenditures                                               2,318,846         1,857,042

Loss for the period                                                      (3,166,185)       (2,979,391)

Accumulated deficit at beginning of the period                          (26,910,309)      (22,495,537)
                                                                    ---------------   ---------------     
Accumulated deficit at end of the period                            $   (30,076,494)  $   (25,474,928)
                                                                    ===============   ===============   
Loss per share                                                      $         (0.37)  $         (0.46)
                                                                    ===============   ===============     

See accompanying notes to consolidated financial statements.

                                                                           Three Months Ended
                                                                       August 31,        August 31,
                                                                         1998              1997
                                                                    ---------------   ---------------  

Revenue from gold sales                                             $        74,315   $        64,290
  Less mining and processing costs                                           91,999            85,533
                                                                    ---------------   ---------------
Gain (loss) from Operations                                                 (17,684)          (21,243)

Employment contract expense                                                 379,998            70,333

Administrative Expenditures                                                 562,416           631,360

Loss for the period                                                        (960,098)         (722,936)

Accumulated deficit at beginning of the period                          (29,116,396)      (24,751,992)
                                                                    ---------------   ---------------    
Accumulated deficit at end of the period                            $   (30,076,494)  $   (25,474,928)
                                                                    ===============   =============== 
Loss per share                                                      $         (0.11)  $         (0.07)
                                                                    ===============   ===============

See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
SILVERADO GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
EXPRESSED IN U.S. DOLLARS                                                               
<S>                                                            <C>                <C>    
                                                                       Nine Months Ended
                                                                  August 31,         August 31,
                                                                    1998               1997
                                                               ---------------    ---------------
CASH PROVIDED BY (USED FOR):

Operations:
   Loss for the year                                           $    (3,166,185)   $    (2,979,391)
   Items not involving cash:
      Employment contract expense                                      828,313          1,133,753
      Depreciation                                                     364,701            353,016
      Amortization of deferred financing fees                           27,900             27,900
      Loss on disposal of buildings, plant and equipment                48,031               --
   Changes in non-cash operating working capital:
      Decrease (increase) in accounts receivable                         3,354            (11,024)
      Decrease in gold inventory                                        24,885            129,662
      Increase in prepaid expenses paid to related parties            (372,410)          (770,425)
      Increase in accounts payable and accrued liabilities             118,394             64,108
                                                               ---------------    ---------------
                                                                    (2,123,017)        (2,003,059)

Financing:
   Shares issued for cash                                              366,200          2,285,713
   Shares issued for consulting services                                75,000               --
   Decrease in secured advances to related parties                     480,236               --
   Increase in unsecured loan                                             --               15,000
   Decrease in loans payable secured by gold inventory                    --              (66,511)
   Decrease in mineral claims payable                                     --             (179,000)
   Decrease in capital lease obligation                                (91,490)           (34,629)
                                                               ---------------    ---------------         
                                                                       829,946          2,020,573

Investments:
   Mineral claims and options                                           69,915                 54
   Deferred exploration and development expenditures                   600,036         (1,801,716)
   Proceeds from sale of equipment                                     611,300               --
   Purchases of equipment                                               (6,729)           (50,850)
                                                               ---------------    ---------------             
                                                                     1,274,522         (1,852,512)


Increase (decrease) in cash and cash equivalents                       (18,549)        (1,834,998)
Cash and cash equivalents at beginning of the period                    20,914          1,925,469
                                                               ---------------    ---------------            
Cash and cash equivalents at end of the period                 $         2,365    $        90,471
                                                               ===============    ===============
Supplemental cash flow information
   Interest paid                                               $        80,000    $        80,000
                                                               ===============    ===============            

   Issue of shares for purchase of mineral property, a non-cash
      financing and investing activity                         $       289,200    $          --
                                                               ===============    ===============             

See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>

SILVERADO GOLD MINES LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS) (UNAUDITED) AUGUST 31, 1998


1. Basis of Presentation

          The financial  information  at August 31, 1998 and for the three month
     period  ended  August  31,  1998 and  August 31,  1997  included  herein is
     unaudited;  however, such information reflects all adjustments  (consisting
     solely of normal  recurring  adjustments)  which  are,  in the  opinion  of
     management,  necessary  for a fair  statement  of results  for the  interim
     periods.   These  consolidated   financial   statements  are  presented  in
     accordance  with  generally  accepted  accounting  principles in the United
     States.  The results of  operations  for the nine month period ended August
     31, 1998 are not  necessarily  indicative of the results to be expected for
     the full year.

2. Gold Inventory

          Gold  inventory  is valued at the lower of  weighted  average  cost or
     estimated  net  realizable  value.  At August 31, 1998 and August 31, 1997,
     gold is valued at net realizable value.

3. Mineral Properties

          (a) On January 30,  1998,  the Company  completed an  Exploration  and
     Development  Option  Agreement with Placer Dome U.S. Inc.  ("Placer  Dome")
     with  respect to a 20.5 square mile  portion of its Barelka / May and Range
     Minerals  properties on Ester Dome. This agreement provides for Placer Dome
     to perform up to $10 million of work on the subject claims over a five-year
     period,  and to purchase up to 400,000 shares of the Company's  stock at an
     aggregate  price of  $5,450,000  over a four year  period.  The Company has
     received  $400,000  as part of this  agreement  which has been  credited to
     previously capitalized costs of this property.

          (b) On December 19, 1997, the Company entered into an option agreement
     to purchase the Ryan Lode property from La Teko  Resources Ltd. for a total
     purchase  price of  $12,000,000.  The Company  issued 100,000 shares of its
     common stock as partial  consideration  under this agreement.  On March 26,
     1998,  the Company  notified La Teko Resources Ltd. that it was electing to
     terminate  its  option  relating  to the Ryan Lode  Property.  Accordingly,
     previously  capitalized  drilling  costs  and  property  payments  totaling
     $955,223 were written off during the prior periods.

          (c)  During  the first  quarter  the  Company  received  a waiver  and
     extension of its December 1997 royalty payment to the Alaska Mining Company
     Inc., with respect to the Company's Hammond River claims.

4. Buildings Plant and Equipment

          Buildings,  plant and  equipment are stated at cost.  Depreciation  is
     provided on buildings,  plant and equipment using the straight-line  method
     based on estimated lives of 3 to 20 years.

5. Accounts Payable

          Accounts  payable  and  accrued  liabilities  are  delineated  in  the
     following table:



<PAGE>




                                   AUGUST 31,        NOVEMBER 30,
                                     1998               1997
                                 -------------      -------------
Accounts payable                    456,476            334,812
Accrued interest                    106,666             66,666
Accrued reclamation expenses        152,730            196,000
                                 =============      =============
                                 $  715,872         $  597,478
                                 =============      =============

6. Share Capital

          (a) Common Shares. Authorized:  100,000,000 common shares, without par
     value.

          (b) Reverse Stock Split and Increase in Authorized  Shares. On May 11,
     1998, at the Company's Annual General Meeting the  shareholders  approved a
     reverse  stock split of one for ten shares and  approved an increase in the
     Company's authorized shares to 100,000,000 common shares.

          (c) Directors Options.  The Company has reserved 347,500 common shares
     for issuance,  exercisable  until August 14, 2004,  in accordance  with the
     terms and  conditions  of its  December 12,  1994,  Stock Option Plan;  and
     45,000  common  shares for  issuance  exercisable  until  June 1, 2002,  in
     accordance with the terms and conditions of its June 1, 1992,  Stock Option
     Plan. The Company accounts for stock  compensation  arising from options to
     directors  in  accordance  with APB 25,  "Accounting  for  Stock  Issued to
     Employees".

          (d) Employee Options. From time to time the Company issues options for
     the purchase of common  shares to selected part time  independent  contract
     employees as sole  compensation for contracted  services in accordance with
     the terms and  conditions  of its April 20,  1994,  Stock  Option and Stock
     Bonus Plan.  The  Company  accounts  for  compensation  arising  from these
     options in  accordance  with  Statement  of  Financial  Standards  No. 123,
     "Accounting  for Stock Based  Compensation".  Under this  statement,  stock
     compensation  cost to contract  employees  is measured at the grant date of
     the stock option based on the value of the award and is recognized over the
     service period.

          (e)  Warrants.  In  connection  with the private  placement  of common
     shares the Company has outstanding at August 31, 1998,  warrants for 89,200
     common shares exercisable until September, 1998; warrants for 36,000 common
     shares exercisable until October,  1998; warrants for 100,000 common shares
     exercisable  until  August,   1999;   warrants  for  55,000  common  shares
     exercisable  until  September,  1999,  warrants for 500,000  common  shares
     exercisable  until  March 22,  2000,  warrants  for 200,000  common  shares
     exercisable  until June 23, 2000 and  warrants  for 140,000  common  shares
     exercisable until August 4, 2000.

          (f) Other Share Transactions. The Company issued 100,000 of its common
     shares to La Teko Resources Ltd. in  consideration  for an extension of its
     payment obligations with respect to the Ryan Lode property. The Company has
     reserved  107,700 common shares for issuance upon the potential  conversion
     of a convertible debenture; 110,000 common shares for issuance with respect
     to a potential  purchase of  property;  and has agreed to grant  options to
     purchase 50,000 of its common shares,  exercisable until September 5, 1999,
     to Millennium Holdings Group Inc. as partial consideration for a consulting
     agreement.  The Company  issued  70,000  common  shares with respect to its

<PAGE>
     
     renegotiation of the Range Minerals II and Burggraf  agreements,  precedent
     to executing an agreement  with Placer Dome. On March 23, 1998, the Company
     entered into an agreement with IBK Capital  Corporation to redeem  one-half
     of an outstanding warrant for 100,000 shares exercisable at $2.80 per share
     until August 20, 1999 in consideration for the issuance of new warrants for
     500,000  shares  exercisable  at $2.20 per share  until March 22,  2000;  a
     warrant for 250,000  shares  exercisable  at $1.00 per share until June 22,
     1998; and a warrant for 250,000 shares  exercisable at $1.00 immediately On
     May 21, 1998, the Company issued 125,000 common shares in consideration for
     a consulting  agreement to Millennium  Holdings Group Inc. On June 24, 1998
     the Company  completed a Reg D offering  for 400,000  common  shares with a
     warrant of 200,000 common shares at $0.25 per share, exercisable until June
     24,  2000.  The  Company  completed  a Reg D offering on August 6, 1998 for
     280,000  common shares with a warrant of 140,000 common shares at $0.30 per
     share, exercisable until August 4, 2000.

7. Convertible Debenture

          In July,  1994,  the Company issued a convertible  callable  debenture
     with interest payable at the rate of 8.0% per annum on December 31 and June
     30 each year.  The debenture is unsecured and is due July 2, 1999,  subject
     to prior redemption or conversion.  The debenture may be converted in whole
     or in part by the holder into common  shares of the Company at a conversion
     price of $1.857  U.S.  per share  (the  "Conversion  Price"),  subsequently
     modified to $18.57 as a result of the Company's  1/10 "reverse stock split"
     approved May 11, 1998.  In addition,  conversion  of the  debenture  may be
     called  by the  Company  provided  that the  average  trading  price of the
     Company's  common stock has exceeded 125% of the  Conversion  Price for the
     period of 20 consecutive  trading days.  Financing fees paid related to the
     debenture  have been  deferred and are being  amortized on a straight  line
     basis over the debenture term of 60 months.  The Company  completed payment
     of the  December  31, 1997  interest  installment  on March 25,  1998.  The
     interest installment due June 30 was unpaid on August 31, 1998.

8. Commitments and Contingencies

          The Company has a lease agreement for office premises for a term of 10
     years commencing April 1, 1994, with an approximate annual rate of $120,000
     (Cdn.) including operating costs.


9. Subsequent Events

          On  September  10,1998,  the Company  completed  a Reg D offering  for
     433,334  units at $0.15 for a total of  $65,000.  A unit  consisted  of one
     share and one half warrant.  The warrants are  exercisable  until September
     10, 2000 at an exercise price of $0.18.  On September 25, 1998, the Company
     completed a Reg S private  placement for 533,334 units at $0.15 for a total
     of $80,000. A unit consisted of one share and one warrant. The warrants are
     exercisable until September 25, 2000 at an exercise price of $0.18.




<PAGE>


                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is  management's  discussion and analysis of certain factors which
have  significantly  affected the  Company's  financial  position and  operating
results during the period included in the  accompanying  condensed  consolidated
financial statements.


Nine Months 1998 v. 1997
------------------------

The Company  continued to engage in limited  exploration  activities  during the
third  quarter of 1998.  It received  some revenue  from sales of existing  gold
inventory,  but received  most of its cash from sale of  equipment  and from the
private placements or offerings. Current assets increased to reflect advances to
its contractor  during the quarter,  while  Buildings,  Plant and Equipment were
reduced  reflecting  the  equipment  sale.  Current  liabilities  increased as a
function  of the  interest  due on the  debenture  currently  unpaid.  Long term
liabilities  decreased as a result of the capital lease  repayment,  leaving the
Company's $2 million  convertible  debenture.  Employment  contract  expense was
reduced  reflecting  the fact that the Company has now absorbed most of the cost
of  previously  issued  contracts  (see  Note  6(d)).   Administrative  expenses
increased primarily as a result of writing off previously  capitalized  drilling
costs and property payments totaling $955,223 associated with the Ryan Lode.


Liquidity and Capital Resources at August 31, 1998
--------------------------------------------------

During  the first nine  months of 1998 the  Company  received  cash from sale of
equipment,  from the partial  execution  of a warrant,  and from the proceeds of
several  private  placements.  Also it eliminated the remainder of its long-term
lease  obligations,  thereby  reducing  its debt  portfolio  to its  convertible
debenture and its on-going  trade  payables.  At August 31, 1998,  the Company's
cash position was $2,365.  But subsequent to the end of the quarter $145,000 was
received  through  private  placements.  The  Company  completed  payment of the
December 31, 1997,  semi-annual  interest installment on March 25, 1998. However
the interest installment due on June 30,1998 remains unpaid.


Results of Operations
---------------------


     (a)  Ester Dome Gold Project

          The Company completed an agreement with Placer Dome U.S. Inc. ("Placer
     Dome")  granting  Placer Dome an option to explore  20.5 miles of the Ester
     Dome project.  The optioned  claims  include the Rhyolite and Ready Bullion
     targets,  but  exclude the St.  Paul gold  deposit,  and the Grant Mine and
     Mill. The Company  intends to continue  investigation  of the St. Paul gold
     deposit, subject to the availability of financing.


     (b)  Ryan Lode Gold Project

          The Company  issued  100,000 to La Teko  Resources Ltd. ("La Teko") as
     consideration  for deferring its payment  obligations  with respect to this
     project.  However,  the Company  found it  necessary  to drop its  purchase
     option  due to the  excessive  drop in  gold  prices  and  the  significant
     reclamation expenses associated with the property.


     (c) Nolan Gold Project

          At the Nolan Gold Project in northern Alaska,  the Company completed a
     number of  reclamation  activities.  During the last  quarter  the  Company
     resumed small  scale  production of a placer site on Nolan.


     (d) Other Properties

          The  Company  continued  to  maintain  its  other  properties  in good
     standing,  pending  further  exploration  and  development,  subject to the
     availability of financing.


<PAGE>

                                OTHER INFORMATION


Item 5   Other Information.
---------------------------

Subsequent to quarter end, the Company completed the following share issues:

     On September  10,1998,  the Company  completed a Reg D offering for 433,334
units at $0.15 per share. A unit consists of one share and one half warrant. The
warrants are exercisable until September 10, 2000 at an exercise price of $0.18.

     On September 25, 1998, the Company  completed a Reg S private placement for
533,334 units at $0.15 per share.  A unit consists of one share and one warrant.
The warrants are  exercisable  until  September 25, 2000 at an exercise price of
$0.20.

Item 6   Exhibits and Reports on Form 8-K.
------------------------------------------

     Exploration and Development  Option Agreement  between Silverado Gold Mines
Ltd., Silverado Gold Mines Inc., and Placer Dome U.S. Inc. filed April 14, 1998.
The Company filed  Current  Reports on Form 8-K on December 19, 1997 and January
28, 1998.


-------------------------------------------------------------------------------


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.

                                                 /s/ G.L. Anselmo
                                                 ----------------
 
                                                 G.L. Anselmo
                                                 President / CEO / CFO