August 12, 2022* Dear Shareholders, You have received many letters from me over the past forty years. This may be one of the most important. The hostile takeover by Quartzview succeeded in March, 2022. You now must decide whether to continue with Original Sixteen to One Mine, Inc. or sell your shares for $1.00 each. It is not appropriate for me to recommend either option over the other. We all [...]
DEAR FELLOW SHAREHOLDERS, I’ve heard reports of phone calls and letters seeking your shares for $0.20 a share. The buyers are hostile to Original Sixteen to One Mine, Inc. Some shareholders, current and past directors and management know they enacted a “loan-to-own” move to bankrupt our Company. As its lender, they would acquire our property. I refer to this smarmy group as the “Triumvirate”. You are making a huge financial [...]
EXCERPTS FOR HISTORIC ANNUAL REPORTS 1986: It is crucial for our company to attract money to expand our exploration and development programs. This need is significantly different from companies who seek money to retire debt or just carry on operations. Our company is under no threat due to inadequate resources to maintain the present level of operations indefinitely. 1993 was a pivotal one for us. By the end of September, [...]
Dear Shareholders, What a wealth of fact, fiction, poetry romance and deceit has been built around the thought conjured up by that simple word gold. When I began my journey with this old gold mining company in 1974, overriding facts convinced me the pursuit was a rock solid choice. In 1974, who was thinking about gold mining? Few, if any were, except the historic management and shareholders of Original [...]
Dear Shareholders, Once again the time arrives for news from your gold mine. A year ago I wrote of three goals for the 2014-15 year: lower the present water level; remove blockages to access gold targets; work with a non-affiliated “high-tech” group to find a 21st Century detection system for our mines. The water level is about 400 feet lower than it was last year; the crew is preparing [...]
Dear Shareholders, June 20, 2015 is our annual shareholder meeting in Alleghany. The noteworthy event since last year was the purchase of a new gold detector from Australia. The promotion claims a 40% increase in depth from prior models. We have incorporated this tool into our exploration program at the mine. Early results prove that the depth has increased. Our basic method of selecting an area to mine is [...]
Dear Shareholders, Im struggling to find the words for recounting the events of last year yet reflecting my level of optimism since our progress and accomplishments are not readily recognized. My history records the importance of top corporate managements responsibility to inform owners facts, opinions and an analysis about their company. New shareholders unfamiliar with the significance of this reporting responsibility may read my annual reports since becoming president in [...]
Dear Shareholders: Historically, mining was separated into four distinct areas: Prospecting, Exploration, Development and Production. Years ago a fifth area emerged: Reclamation. Miners and companies were sometimes classified according to these activities. For example, an exploration company operates without the expectation of revenue from the mining and sale of its commodity. Their income comes from stock offerings. Our company never held a public offering and has relied on mining gold for operating [...]
Dear Shareholders, Words fail me today for this once a year opportunity to write you. Our operation seems to parallel other businesses in a holding pattern. The mine is kept dewatered, underground travelways are safe and accessible, surface maintenance is attended to, paperwork demands are in compliance AND the spot price for gold is over $1600 an ounce. We diligently seek ways to return to those good old days [...]
Dear Shareholders, I heard this clever joke on a radio program. The doctor comes into the patient’s room and says, “I have good news for you and bad news. Which do you want first?” The patient asks for the good news first. The doctor says, “You have a rare disease and only have 48 hours to live.” The patient shrieks, “Doctor, if this is the good news, what’s the bad news?” “ I wasn’t able [...]
Well-written quotations or those from well-known people are helpful tools in conveying thoughts to large audiences. Brevity is welcomed. Sometimes in our operation with the Sixteen to One mine, it seems impossible to convey my analysis of the operation briefly. How is so simple a business (that of finding, extracting and marketing the Sixteen to One gold) so difficult for others to understand? This year’s theme will be succinct [...]
Dear Shareholders, This may be the last year of being so strapped for money that all shareholder mail-outs except the annual reports were suspended. It is dreary news again. In December of 2007, the mine operation shifted into maintenance mode. It was necessary to protect the company's main assets, the underground workings, the surface roads and buildings, and the equipment. We continued throughout 2008 and to the present. The [...]
Dear Shareholders, You are receiving a shortened annual report this year for the second time in the past twenty-five years. This decision was made to conserve our limited supply of cash. As always we will have open discussions at the meeting in Alleghany. Please call me, write or e-mail for additional information about the company and our plans or other questions you have. Mining and Financial Results [...]
It is making the business news as its exchange rate into dollars continues to grow. Our company owns outright some of the largest concentrations of the stuff. Our crew did not find many ounces last year, which is disappointing. There is nothing I can do to change the location of the unmined gold within our property. It exists just as a sunken ship laded with kegs of bullion remains under [...]
Dear Shareholders, The biggest story from a year ago took place in the global gold market. What is happening to the price of gold and why? Gold students and scholars are expressing varied theories about the “spot” price of gold or they are silent. The strength of gold and the rapid rise in price was not foreseen or predicted. Last year it was a very safe bet that the gold [...]
Will our company profit and if so, what can its owners expect? Where are its strengths and its weaknesses? Can it overcome the weak areas? How? Our crew [including officers, directors and a growing number of professional supporters] is discussing these questions and many others. The “growing number” is significant and is a key to our success. There are so many options or paths to travel towards achieving success. What [...]
We passed, and the Company is in much better shape than it was a year ago. The financial Balance Sheet remains basically unchanged which, in light of the disruptive influences of the past, I view as positive. The Statement of Operations surprised us. If depreciation and amortization are removed from operating expenses, we had a small profit, much improved from year 2002. Details and comparisons are included in this report. [...]
The single most troubling event of last year was the felony charges for murder brought against us. Private lawyers who worked for a non-profit corporation in Sacramento filed these accusations. Their actions to "criminalize" accidents in California effectively prohibited me from addressing a serious concern, under capitalization. No one was willing to talk with me with this cloud overhead. On February 13, 2003, a Sierra County Superior Court judge dismissed [...]
Our mining efforts failed to locate and produce enough gold to pay our bills last year. Coupled with an accounting procedure that eliminated the underground infrastructure in the southern portion of the Sixteen to One mine as a corporate asset, we suffered a financially dismal year. Due to the dreadful cash flow status of the company, our choices for mining were severely restricted. Some of the best choices of where [...]
I also acknowledge the care, love, determination and importance of those who have worked for and managed the mine over its 105-year history. With the announced closure of the Homestake Mine in South Dakota this year, the Sixteen to One becomes the oldest operating gold mine in North America and perhaps the world. From past accounts of the men and women who toiled for the mine to those I have [...]
The back cover contains a legend with four circles marked A, B, C, and D. Familiarize yourself with these four mining targets. This will be useful as you follow the underground activities over the next six months. Target A is the hottest with immediate gold potential from a footwall vein known to contain gold on the 1500 level. Back in 199? We referred to this area as the Wild Card. [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
Because the new method of gold production allows us to locate gold deposits before we drill and blast, it entails far less expense than traditional modes of gold production and recovery. As a result, we showed a profit of $441,591 in 1992 We also retired a $43,000 tax bill assumed from a former lessee; re-hired laid off crews; bought a computer program to track gold finds along the vein and [...]
I anticipate that Royal Gold will notify the company that it intends to terminate its mining permit with the company. While this will cause an interruption in our income, it presents the company the opportunity to develop and implement a mine plan on our entire holdings. The company intends to purchase equipment from KCJV that is vital to the operation of the mine and has determined that it is in [...]
The Sixteen to One vein system is legendary among high-grade gold mines. New ore zones continue to produce the spectacular quartz and gold specimens found in museums from Washington D.C. to Los Angeles. Our company, which has one of the most sensational mines in the world is slowly moving away from its past isolation. It remains hidden to many people and will remain so to those people seeking simple answers [...]