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 May 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 June 24, 1998
--------------------                                ----------------------------
(Common stock (npv))                                8,951,222

<PAGE>

<TABLE>
SILVERADO GOLD MINES LTD.
CONSOLIDATED BALANCE SHEETS
EXPRESSED IN U.S. DOLLARS
<CAPTION>               
                                                                                      As at
                                                                                 May 31,    November 30,
                                                                                  1998         1997
                                                                           -------------   -------------
<S>                                                                        <C>             <C>
Assets
Current Assets
  Cash and cash equivalents                                                $      16,022   $      20,914
  Gold inventory (Note 2)                                                         23,990          48,875
  Accounts receivable                                                             10,000           8,297
  Prepaid expenses paid to related parties                                       681,188         366,303
                                                                           -------------   -------------
                                                                                 731,200         444,389
Mineral Properties and Development
  Claims and options                                                           2,509,731       2,436,972
  Deferred exploration and development expenditures                           13,508,923      13,576,470
                                                                           -------------   -------------
                                                                              16,018,654      16,013,442
  Less accumulated amortization                                               (1,384,338)     (1,384,338)
                                                                           -------------   -------------
                                                                              14,634,316      14,629,104

Buildings, Plant and Equipment                                                 3,470,207       4,481,399
  Less accumulated depreciation                                               (1,279,159)     (1,385,423)
                                                                           -------------   -------------
                                                                               2,191,048       3,095,976

Deferred Financing Fees (net of amortization of $142,838: 1997-$124,238)          43,162          61,762
                                                                           -------------   -------------

                                                                           $  17,599,726   $  18,231,231
                                                                           =============   =============

Liabilities and Shareholders' Equity
Current Liabilities
  Accounts payable and accrued liabilities (Note 5)                        $     633,694   $     597,478
  Capital lease obligations - current                                               --            81,749
                                                                           -------------   -------------
                                                                                 633,694         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)
  Issued and outstanding:  May 31, 1998 - 8,551,222 shares                    44,143,420      43,084,420
                           November 30, 1997 - 8,001,222 shares
  Unamortized stock compensation expense                                         (44,797)       (151,612)
  Advances to related parties secured by common shares in the company            (16,195)       (480,236)
  Deficit                                                                    (29,116,396)    (26,910,309)
                                                                           -------------   -------------
                                                                              14,966,032      15,542,263
                                                                           -------------   -------------

                                                                           $  17,599,726   $  18,231,231
                                                                           =============   =============
<FN>
See accompanying notes to consolidated financial statements.
</FN>

</TABLE>

<PAGE>
<TABLE>
SILVERADO GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND ACCUMULATED DEFICIT                                                         
EXPRESSED IN U.S. DOLLARS
<CAPTION>
                                                           Six Months Ended
                                                      May 31,            May 31,
                                                       1998               1997
                                                 ---------------    --------------- 
<S>                                              <C>                <C> 
Revenue from gold sales                          $        25,542    $        77,482
  Less mining and processing costs                        26,884             44,835
                                                 ---------------    --------------- 
Gain (loss) from Operations                               (1,342)            32,647

Employment contract expense                              448,315          1,225,682

Administrative Expenditures                            1,756,430          1,063,420

Loss for the period                                   (2,206,087)        (2,256,455)

Accumulated deficit at beginning of the period       (26,910,309)       (22,495,537)
                                                 ---------------    --------------- 

Accumulated deficit at end of the period         $   (29,116,396)   $   (24,751,992)
                                                 ===============    ===============

Loss per share                                   $         (0.27)   $         (0.40)
                                                 ===============    =============== 
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                      May 31,            May 31,
                                                       1998               1997
                                                 ---------------    --------------- 
<S>                                              <C>                <C>
Revenue from gold sales                          $        11,819    $        19,580
  Less mining and processing costs                        10,652             21,921
                                                 ---------------    --------------- 
Gain (loss) from Operations                                1,167             (2,341)

Employment contract expense                              384,321            154,992

Administrative Expenditures                            1,298,748            490,440

Loss for the period                                   (1,681,902)          (647,773)

Accumulated deficit at beginning of the period       (27,434,494)       (24,104,219)
                                                 ---------------    --------------- 

Accumulated deficit at end of the period         $   (29,116,396)   $   (24,751,992)
                                                 ===============    =============== 

Loss per share                                   $         (0.20)   $         (0.20)
                                                 ===============    =============== 

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

<PAGE>
<TABLE>
SILVERADO GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
EXPRESSED IN U.S. DOLLARS                                                 
<CAPTION>
                                                                               Six Months Ended
                                                                            May 31,          May 31,
                                                                             1998             1997
                                                                        --------------   --------------
<S>                                                                     <C>              <C>    
CASH PROVIDED BY (USED FOR):
Operations:
  Loss for the year                                                     $   (2,206,087)  $   (2,256,455)
  Items not involving cash:
     Employment contract expense                                               448,315        1,063,420
     Depreciation                                                              243,134          233,331
     Amortization of deferred financing fees                                    18,600           18,600
     Loss on disposal of buildings, plant and equipment                         51,715             --
  Changes in non-cash operating working capital:
     Increase in accounts receivable                                            (1,703)          (3,973)
     Decrease in gold inventory                                                 24,885           44,129
     Increase in prepaid expenses paid to related parties                     (314,885)        (667,148)
     Increase (decrease) in accounts payable and accrued liabilities            36,215           50,179
                                                                        --------------   --------------
                                                                            (1,699,811)      (1,517,917)
Financing:
  Shares issued for cash                                                       258,500        1,560,470
  Shares issued for consulting services                                         75,000             --
  Decrease in payable to related parties                                       464,041             --
  Decrease in loans payable secured by gold inventory                             --            (66,511)
  Decrease in mineral claims payable                                              --           (120,000)
  Decrease in capital lease obligation                                         (91,490)         (17,155)
                                                                        --------------   --------------
                                                                               706,051        1,356,804
Investments:
  Mineral claims and options                                                    61,241               54
  Deferred exploration and development expenditures                            317,547       (1,168,352)
  Proceeds from sale of equipment                                              611,300             --
  Purchases of equipment                                                        (1,220)         (55,345)
                                                                        --------------   --------------
                                                                               988,868       (1,223,643)

Increase (decrease) in cash and cash equivalents                                (4,892)      (1,384,756)
Cash and cash equivalents at beginning of the period                            20,914        1,925,469
                                                                        --------------   --------------
Cash and cash equivalents at end of the period                          $       16,022   $      540,713
                                                                        ==============   ==============
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                                   $      384,000   $         --
                                                                        ==============   ==============
<FN>
See accompanying notes to consolidated financial statements.
</FN>

</TABLE>

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


1.   Basis of Presentation

     The  financial  information  at May 31, 1998 and for the three month period
     ended May 31, 1998 and May 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 three month period ended May 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 May 31, 1998 and May 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.

     (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 totally  $743,016 were written off
     during the quarter.

     (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>

                                                      MAY 31,     NOVEMBER 30,
                                                       1998          1997
                                                   -----------    -----------
          Accounts payable                         $   413,714    $   334,812
          Accrued interest                              66,666         66,666
          Accrued reclamation expenses                 153,314        196,000
                                                   -----------    -----------
                                                   $   633,694    $   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 May 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 and warrants for 250,000 common shares
     exercisable until March 22, 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
     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 $4.20 per share
     until April 2, 1999 in  consideration  for the issuance of new warrants for
     500,000  shares  exercisable  at $2.20 per share  until March 22,  1999;  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.

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.

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 June 22,  1998,  the  Company  completed a Reg D private  placement  for
     400,000  units at $0.20 for a total of  $80,000.  A unit  consisted  of one
     share and one half  warrant.  The warrants are  exercisable  until June 23,
     2000 at an exercise price of $0.25.


<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.


Six Months 1998 v. 1997
-----------------------
The Company  continued to engage in limited  exploration  activities  during the
second  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
partial  execution of a warrant for its common shares.  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
decreased  as a  function  of a  repayment  of  the  capital  lease.  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 substantially 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 totally $743,016 associated with the Ryan Lode.


Liquidity and Capital Resources at May 31, 1998
-----------------------------------------------
During  the first  six  months of 1998 the  Company  received  cash from sale of
equipment,  from the partial execution of a warrant,  and from the proceeds of a
250,000  share  private  placement.  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 May 31, 1998,  the
Company's cash position remained relatively unchanged at $16,022 as it continued
to incur limited  expenses.  The Company  completed  payment of the December 31,
1997, semi-annual interest installment on March 25, 1998.


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. The Company intends to resume development of both placer
and lode gold deposits at Nolan, subject to the availability of financing.


(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.



                                OTHER INFORMATION


Item 4    Submission of Matters to Vote of Security Holders.
------    --------------------------------------------------

The Annual General Meeting of Shareholders was held on May 11, 1998.  Results of
the voting were as follows:

(a)     Election of Directors        In Favor       Against      Withheld
        ---------------------        --------       -------      --------

        Garry L. Anselmo           63,630,494           nil       989,026

        K. Maxwell Fleming         64,085,454           nil       544,066

        James F. Dixon             64,066,938           nil       562,582

(b)     KPMG as Auditors             In Favor       Against      Withheld
        ----------------             --------       -------      --------

                                   65,170,724     1,502,979       313,600

(c)     Reverse Stock Split*         In Favor       Against      Withheld
        --------------------         --------       -------      --------
                                   57,586,122     9,420,874        47,443

(d)     Increase Authorized Share 100,000**
        -----------------------------------
                                     In Favor       Against      Withheld
                                     --------       -------      --------
                                   53,262,036    13,753,878        56,631

         *973,069 shares not voted

         **80,757 shares not voted



Item 5    Other Information.
------    ------------------
None.

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