Mr. Wittkopp was hired to evaluate gold targets for upcoming development. In 1993 the Company was flush with gold, debt free and had excellent equipment, manpower and supplies at its disposal. The crews were locating and sacking hundreds of ounces of gold weekly, including the $1,000,000 day. Several 10,000-ounce pockets were yet to come. Management felt it was appropriate to choose a long-range project. The following report identifies a portion [...]
THE TERTIARY GRAVELS OF THE SIERRA NEVADA OF CALIFORNIA by Waldemar Lindgren USGS Professional Paper 73 RELATIVE VALUE OF QUARTZ GOLD AND PLACER GOLD Observations in all parts of the world have shown that placer gold is always finer than the gold in the quartz veins from which the placers were derived. The explanation is that the silver alloyed with the gold is dissolved by the action of surface waters. [...]
Grass Valley (cal.) Oct. 22- The discovery of Bonanza ore in the South Fork mine in Forest city is considered one of the greatest strikes ever made in this district, and if the vein ultimately proves to be the great Tightner ore body, as everything indicates, it will mean the development of a giant property. The South Fork is owned by Los Angeles people and work has been moving ahead [...]
Years ago the mining public knew the answer. Today most United States gold production originates from low-grade open pit ore deposits (± .04 oz. per ton). The company's mineral deposit represents a premier high-grade gold mine. The following table illustrates twenty years of production, whereby high-grade ore exceeded one ounce per ton. High-Grage ProductionbyOriginal Sisxteen to One Mine, Inc. YEAR POUNDS OFPRODUCTION OUNCESPRODUCED NETRETURNS* NET RETURNS@ $385.00/OZ. % [...]
MINES AND MINING- Activities in the ore districts of the Great Southwest. SPECIAL CORRESPONDENCE OF THE TIMES Los Angeles Times 1886; Sept. 5, 1909; ProQuest Historical Newspapers Los Angeles Times (1881-1976) Pg.II10 Local man at Grass Valley. Nevada City (cal.) Sept.3- Benjamin Fenton, a Los Angeles real estate and mining man, has been in this section several days looking over mining properties and other interests. He is highly impressed with [...]
California's largest high-grade pockets were mined in the Alleghany Mining District. State Geology Bulletin 193 published the following chart. Two recent discoveries are added. The total value was calculated using the historical price of $20.67 per ounce. The highest pocket at today's price would be $27,800,000. Of the twenty-five pockets listed, twelve came from mine's owned by the company and sixteen are from Alleghany. Few gold companies and gold [...]
For the past six months my letters to you have ended in a pile of unsent drafts on my desk. Company needs or circumstances have interfered with their completion. Both good and troubling events have happened since June. Instead of detailing the past six months, I will touch upon the many topics surrounding our company. The shareholder meeting in June was a success. Everyone pitched in and made the day [...]
The annual report is a special document. It recounts our Company's financial activities and provides me a forum to officially express my views to you. For most of 1998 and continuing to the present, a profound lack of money pervaded all our activities. The best comments I can make about the past year are: it is history, we continue to mine for gold, and we have a sensible plan to [...]
Dear Shareholders, The following press release was transmitted on Business Wire New Service last week. One again, we felt the need to shake up our plans and acted accordingly. Original Sixteen to One Mine, Inc. Buys Time for Technical Exploration Original Sixteen to One Mine, Inc. (PCX:OAU), announces today a restructuring of its plan of operations and workforce. The decision surprised none of the miners, who, like many in the [...]
Gold production is measured in fine troy ounces. During the first nine months of 1998, production from the mine totaled 2,810.35 troy ounces as follows: MINE MILL TOTAL January 402.98201.52604.50 February 60.5446.79107.33 March 36.683 02.06338.74 Total: First Qtr 500.20 550.371,050.57 April 97.5931.81129.40 May 221.367.63228.99 June 334.7329.50364.23 Total: Second Qtr 653.6868.94722.62 July 186.06113.51299.57 August 658.4141.46699.87 September 37.7 20.0037.72 Total:Third Qtr882.19 154.971,037.16 During the first nine months of 1997 production totaled 5,068.49ozt. [...]
Tracking the price of shares of OAU is a lesser concern to me than keeping the mine open and a cadre of hardrock miners breaking quartz in our productive headings. While we continue to struggle throughout the year, the crew has mined gold from five headings: the Rainbow; the 26-105 Stope*, the 400 Foot Level, the 250 Foot Level, the 1500N Footwall Drift. Sadly, none of these areas yielded a [...]
Geological history determined by prior mining is a valuable bridge between theory and fact. No gold miner or gold investor can afford to be grouped with charlatans, or classed with cheap retailers of empirical opinions. As in all professions "facts" rather than theories should be made the guiding star. Results rather than projections should be considered as evidence. Our underground high-grade gold mines in Alleghany, California present very unique situations [...]
This quarter (January-March 1998) the crew and equipment have been working at capacity, moving a vast amount of rock. Our active headings have become even more aggressive since completing the installation of a new hoist in the `83 winze. Production below the 2200 foot level, accessed by the '83 winze, more than doubled. Our two headings north of the main winze remain active, where we tenaciously pursue an attractive vein. [...]
When Homestake Mining Co. axed its Lower Lake mining operation at McLaughlin Mine in 1996, it spelled the end of 200 jobs and an 11-year reign as California's most productive gold mine. It was a place where, during its heyday, more than 300 workers churned out 250,000 ounces of the precious metal annually. But in 1996, it only managed to mine 170,000 ounces. Now, the 105 remaining employees spend their [...]
All of us at the mine are feeling upbeat as we advance the three primary headings off the 2283 winze. You should feel good as well for the financial pressure that was building has been diffused. Four hundred people attended this year's annual meeting on June 14. A total of 2,175,952 shares were represented by proxy or in person. The incumbent directors, (Charles Brown, Leland Erdahl, Sandor Holly, Richard Sorlien [...]
The irony is that we find ourselves on the edge of great success or bitter disappointment. I am unable to predict the outcome. Seasoned shareholders know all about the production vagaries of the Sixteen to One vein system. Our last great success was the 5000 ounces we mined in a week in July 1995. That pocket, whose discovery provided the capital to sink and mine below the 2400-foot level, also [...]
Dear Shareholders, Before I summarize the 1996 audited financials, a year where the company reported its first net loss in five years, you should learn about the April fool's day gold fine and place its significance in perspective. The December 3, 1996 newsletter (Number #35) included an underground mine map with designated mining targets. The map identifies the virgin and recently developed large block of ground above the 2600 foot [...]
Dear Shareholders, Heavy warm rains fell on a sizable snow pack in the northern Sierra nevada mountains causing havoc thoughout California. The roads and bridges and the river flood plains in Sierra County were seriously affected; however, the mine property sustained only minor damage due to the storms. There are two primary items you should know about and of course a quick update on some of our mining activities. ONE [...]
Dear Shareholders, Much has happened since I last wrote to you in May of this year with the 1995 Annual Report. There's a lot to tell, so I'll start right in. Shareholders Meeting The incumbent board of directors was re-elelcted in June. The employee stock incentive plan was also ratified. The purpose of the plan is to attract and retain the best possible personnel and to provide additional incentive to [...]
Dear Shareholders, Well, here it is, the $.05 per share special dividend. For some of you, the small monetary value may seem less than the paper on which it is written. Keep the check and add it to your collectibles. For shareholders cashing the check who also are keeping a file on Sixteen to One, I offer the following. The Company will return your canceled check to you. The charge [...]
This has been another good year, our fourth consecutive year of profit since the company took control of our mining operations in 1991. During the 1995 calendar year we produced 6, 505 ounces of gold for a net profit of $732,124 or $.21 per share. Most of the gold came from the 1700 foot level when miners sacked 5,044 ounces between July 19th and 24th. The company also continued to [...]
Dear Shareholders, The audited financial statements (10K) for 1995 were filed this week. The Company has completed its fourth consecutive profitable year. Revenue was $2,655,575 amounting to a pre-tax profit of $953,124. After tax earnings per share are $732,124 or $0.21 per share. Our assets exceed four million dollars including $2,228,192 of gold in the bank. We started 1996 in our strongest financial position since World War II. The mine [...]
This declaration marks a great event for us. We took back operation of the mine from our lessees in 1991, and have shown a profit on each succeeding year. Even more importantly, we have invested those profits in the development of the mine, specifically in the 2483 winze project, so we now can feel comfortable allocating some of our working capital to you, the owners. In 1974, when I first [...]
Dear Shareholders, The 85th annual shareholder's meeting was called to order in the company's refurbished old theater in Alleghany. Almost 200 people attended, one third participating for the first time. After re-electing the existing board of directors, we discussed Company affairs for 1½ hours before adjourning to the mine. In addition to offering the underground tours, we melted and poured gold bars and treated everyone who went underground to the [...]
IN THE MINE THE 2843 WINZE PROJECT After the 1993 calendar year the Company had an accumulated gold inventory of $2,264,888. We had a number of choices for using this money. We decided that the best was to sink a winze in the heart of the mine to bring currently blocked but potentially lucrative areas into play. Completion of this winze will allow us to create two new horizontal work [...]
Dear Shareholders, Thank you for your strong response at the annual shareholders' meeting. Of the 3,364,241 shares outstanding, we received in proxy or at the meeting 2,951,790. The motions submitted for consideration passed, and the directors were elected for another year. The most interesting events were the in-depth discussion about finances, growth and development and the tour of the mine, mill and gold display. We poured gold bars twice, which [...]
An underground mine like ours attracted a lot of attention. Figures to reopen the mine varied and so did production estimates. Was the vein system mined out? Could the glory days of past production be repeated? No one knew the answers to these questions or just how much money it would take. After an eight-year colorful and exciting proxy fight for control of the Company, I took over as President [...]
Dear Shareholders, What were you thinking when you opened last month's mail from the Sixteen to One? Hardly the newsletter you usually receive. That's what happens when great news meets caution and conservative public information is issued in compliance with securities law. Now that the rush of mining almost one million dollars in a single day, suspending trading on the Pacific Stock Exchange to protect you from making an uninformed [...]
Dear Shareholders, Apologies are due - it has been far too long since the last newsletter. Those of you who have been with us a while know that no news sometimes means we're too busy mining to write, and that's the case here. After doing our duty by the mine with three months of clearing, mucking and drilling, the mine did its duty to us and rewarded us with a [...]