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Scoop, What happened to Ian’s idea about opening up a new block of ground? Also, how is Missy the cat???
Today is one year from mining the most recent pocket. A year apart complicates the cash flow. The ground looks just as favorable today as it did a year ago when Ian, Joe, Reid and others strung themselves out because of their belief in the mine and each other. The mine faces less severe cash flow management than it did last year prior to the pocket. The company and crew were badly beaten up!
A strong lack of working capital hurts most businesses but especially the Sixteen to One. Why? Well, with no idea when the bank will be replenished, capital expenditures needed to increase production or merely maintain an efficient operation cannot be given. Right now finding Mister Pocket is required to complete the shop, change room, mine office and other surface work that is either planned or begun. Winter is not that far away.
Two clues about the ransom note. (see photo) The fine print reads “Empire Mine State Historic Park” and there is a 966 loader which lives between the Empire Mine and the 16 to 1. Most recently it was at the 16 to 1 for a month or so, which is when the note arrived.
The miners are breaking rock again.
Missy the office cat still seems sick. Rae took her to the vet again today and they drew blood to run some tests. We will know the results on Monday.
The rebuilt 58-horse power pump is back on-line. It was overhauled to the tune of $4500. This pump provided four years of service and should do it again. It is placed at the lowest water level and should be left unattended unless the company decides to pump down to the 2400-foot level. The chief downside has been the inability of the crew to go mining for Mr. Pocket. The are a few long faces around town because of the long drought of finding Mr. Pocket. No one is whining and no one should. The past six weeks or so have been mostly maintenance. Word on the street is, “Go for the gold”.
193 people came to the annual meeting on June 25, 2005. The meeting went from 10:30am to noon. It was a huge success from this reporter’s perspective. A film operator was busy all day. The rumor is a video will be offered in the near future. Miller is personally making a documentary on mountain rural culture, which he intends to enter in the fall film festival. Here are some of President Michael Miller’s remarks.
“Wonderful people gathered here over the years. The first mine meeting was in 1991, the year the company took back its mine from lessees. Last year we were beaten down and only three miners remained on the gold participation contract. One shareholder stood up and addressed the group. He encouraged everyone to bring the mine into their thoughts, provided energy and spirit to find a pocket of gold. Twenty days later the tired and worn miners knew they were into something. It turned into a fourteen hundred ounce pocket, which we used to pay down debt and manage to keep mining. Maybe there is power in positive thinking, I believe it is so. We are running low on the gold and quartz from that pocket. He called to say he could not attend the meeting this year. I said that his interest may have been the difference. So, if you were here last year and remember the conversation, do it again. We need a pocket again. If you were not here, give it a try. I believe in the power of positive thinking.
“By the way, how many of you are here for the first time? Raise your hands. Whoa, that was too quick. Keep them up, please……about ninety of you. There are some rules that you need to know or be reminded of again. No litter, please. Pockets or trashcans are where the stuff you don’t want must go. Drink water and watch the sun. It is cooler today but we are at almost 4000 feet elevation. The air is very clear today and that old sun is pumping down. Sign in at the portal and remember to sign out. This is a working mine. The lines are carrying 4100 volts. It’s the real thing, not an amusement park. There are well-practiced emergency procedures in place. All the miners know what to do, so listen to them. Be patient. We will stay here so everyone can go underground. One year a shareholder was exiting the mine. He dropped to the ground right at the portal. Either the heat or something got him. It is fifty degrees in the mine so dress appropriately. That should not be a problem today. If you feel claustrophobic, turn back. Have a good time. It is a rare opportunity to see the Sierra Nevada Mountains from the inside out and this is a special sight to see.
“There is bad news and there is good news. Rot and decay have taken their toll on looking for gold. Over the past month the crew has been busy in non-mining activities. The good news is that the mine is maintained and the water has not risen above the expensive electrical equipment on the 2050 level nor has the super hoist at the 2483 raise been compromised. The other issue just comes with mining. We are running low on inventory.
In light of this I have an exciting announcement to make public. The company closed escrow on a mine known as the Gold Crown in Alleghany. It is contiguous to the Sixteen to One. It has a practical high-grade mill, twenty-four patented acres, fourteen unpatented claims and mineral rights to three other parcels. Other assets were packaged under one negotiated sale. There were three other buyers, all connected with the company in some way. The sellers chose to take cash and a note instead of any stock. The company exercised a five-year note for $144,000 and paid no money down payment. The others put up $156,000 in cash. The sellers owed the mine for almost thirty years. They worked the mine and had various lessees over the years. At one time a group of investors, speculators and gamblers prepared and offered a $5 million plan to develop the mine. It was circulate in New York. The owners are very supportive of gold mining and are gathering maps and documents about the mine for us. When I receive the data, it will be summarized and entered on the web site under MINES.”
Scoops notes of conversations with shareholders and miners will follow later, perhaps.
Funny that the topic of pasty would come up.
In May I rode the miners’ elevator 1300 feet straight to the bottom of the shaft of La Mina Rica in Real del Monte, Mexico. There we hiked and rode the miners’ railroad to the face of the silver vein, over a mile in. We were told that many miners had come from Cornwall and their lunch buckets carried “pasties.” When we exited La Mina Rica, about 3 hours later, we were greeted with a light meal, a pasty, a turnover, filled with seasoned meat. You don’t have to take a tour of the mine. In the plaza, under the arches, in Real del Monte, it’s on the menu.
Real del Monte and other historic mining towns are just north of Pachuca, Mexico, a couple hours from Mexico City.
Best regards and strike gold!
Dick Davis
For those who cannot be here tomorrow in body, you are here in the spirit. Much will be revealed tomorrow. The site looks great but Scoop found out something confidential. Oops, some lawyer may allege that general talk somehow compromises professional ethics. Much like an ignorant lawyer, an inexperienced lawyer or a Knowing and Willful lawyer who misleads the court or abuses the judicial process with malice must be challenged and stopped. “Insider trading” sound possible? No. There must be evidence that the public or shareholders were misled for a case to proceed and that damages or a crime have occurred. Monetary, like moves in the buying and selling of shares, must have occurred. Scooped the following from MMM’s trash:
“I decided to draft a paragraph of my shareholder presentation and see if the statements trigger rapid increases, decreases or volume in OAU shares. Only then will |Scoop know his power.
For those others reading tonight’s late entry, there are other ways to mislead the court, whereby monetary and punitive punishment is warranted. One is to file papers that present general talk that is known and accepted in judicial circles as polite and socially appreciated and accepted by all to have occurred. This would mislead the Court, a crime in California, as well as a violation of a plaintiff’s justice. This behavior is what the Company is facing with the defense of CDAA and its defense team led by Tom Knox.
Detail his “specious’ verdict.
Explain the sale of Brown Bear and show photo board. Upside: needed liquid capital. Downside: Discount in future market place ten times if sold.
Acquisition of the Gold Crown.
The upper landing, the lower landing and the gathering or the company’s proven iron reserves were of primary focus for the small crew. Unfortunately the 58 hp pump gave way. The propeller wore down (it pumped from the lowest level where we are holding the water line for four years) taking precious time and money. It is in Auburn and will return next week.
We are small but mighty and we are ready. Chance of showers and for sure sun.”Hey Scoop. Is it a pastey or a pasty? Beleve it or not I bought a dictionery. I herd that ones something you can eat. I no what the other on is.
The miners have been busy upgrading the pumping system in the lower levels of the mine. The combination of that project and getting ready for the shareholder’s meeting has been consuming all of thier time. No rock is being broken.
Wednesday the weather was perfect. Highs in the upper 70’s with blue blue skies. Yesterday clouds rolled in, the wind picked up, the temperature dropped and by afternoon it started raining and yes even a little snow was mixed in. It is still cool and cloudy today but so far no rain.
The clampers were supposed to have a campout in Forest City this weekend…not good weather for that. FART (Forest Alleghany Rapid Transit i.e. The museum van) has been commisioned to shuttle the clampers from Forest City to Casey’s Place so no drinking and driving takes place.
Mike and George put in two very long days ealier this week getting a filing ready for the ninth circuit court of appeals. Somehow they always end up jammed against a deadline. There is always a sigh of relief when they head out the door documents in hand.
Kyle has been busy counting proxies and pre-registration forms. So far 83 shareholder’s and guests have RSVP’d.
Rae and Kyle recently upgraded the acconting program in order prevent the data from becoming un-upgradable. This is something Rae always puts off as long as she can. Upgrades can be frustrating. So far everything seems to be running smoothly.
Proxies are coming into the post office. Too soon to predict a turn out. The crew has not spent time preparing for the June 25 annual meeting. The surface is a mess! They have a plan but there were more pumping problems the past week. It rained hard and steady last Tuesday and Wednesday. Ian had the whole crew underground working on the pumps. It would be a great project to drive a tunnel from the 1500 foot level south to the Yuba River. Another worthwhile project is to use the tremendous hydro potential for making electricity. Either of these realistic propositions will significantly reduce overhead and be a huge long-term improvement forever.
Missy, the most affectionate office cat was looking a little skinny. Rae took her to the vet, who prescribed worm medicine. Missy steals everyone’s heart when they visit the office, even cat haters.
The gemstone federation has its annual meeting this weekend in Roseville. Mike promised to display the Sixteen to One gold. He and David selected the six-piece Jug band, some slabs, cabs jewelry and a special rock from the July pocket. Mike drove it down Thursday after work. The show lasts through Sunday. The Underground Gold Miners Museum offered a special tour for the show. Ten people came up today and a bunch more are expected tomorrow. Mark Loving and Ray Witkkopp are conducting the tours. The museum has an important drill collection on display at the museum in Alleghany. It could sure use some supporters, either financial or volunteers.
Thanks for putting the shareholder letter up for us non shareholders to read.
Jeff Smith
Now that shareholders have received this year’s annual report, Scoop has permission to get it to all non-shareholders. It will be posted under the Company topic with all the others right after Scoop harrasses the office to post last year.
Dear Shareholders,
Does our company have the tools to excel as a gold producer? 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, are discussing these questions and many others. The “growing number” is significant and is a key to our successes. There are so many options or paths to travel towards achieving success. What is “success” anyway? To understand our choices it is necessary to understand our corporate goals for the company. If you understand these goals, you should know the role you want in our future.
I am not content or satisfied that all my decisions the past year have been the right ones; however they were the best choices when factoring the likelihood of success, the potential loss and the all important rewards. Our supporters remind me to focus on the goal, be patient, know what you want from each situation and be ruthless when necessary. This is what I remind the miners: Safety First, Quality of Work, Accountability, Responsibility and Efficiency follow. The miners are the ones whose work turns potential into reality. By adhering to my reminder, they will achieve our common goals.
Our corporation owns a number of gold mines, whose total gold production has approached 2,000,000 ounces. Are these mines depleted? We think not. Can our gold deposits be profitably exploited? We think yes. A goal is to increase production. Production last year was 1, 725 fine ounces. We netted a profit of $399,863.00 and reduced debt. We invested the remainder of the money in the Sixteen to One mine. The Sixteen to One is our primary target; however, the goal is more than preserving the asset or maintaining its existence. The Sixteen to One is a unique operation. According to federal sources it is the only single product underground mine still operating in the West. We know that it is unique for additional reasons: the deposit contains very rich concentrations of gold; the existence of gold cannot be “proven” as in other gold mines but the location of “pockets” within the well defined vein system is predictable.
The largest “pocket” found in the Sixteen to One was 83,000 ounces. It rested just below the 800-foot level between the 49 Winze and the Tightner Shaft. A careful study of the trends of “pockets” suggests a high probably that a larger “pocket” exists up dip and to the north of the Tightner Shaft. Our goal is simple: find and mine this “pocket”. This is our plan and this is what we work for: sink a new shaft in the Red Star and drift on the vein. It requires an infusion of major capital. The risks of mining in Alleghany are always present, but in this specific proposal the rewards are obscenely worth the effort. At today’s spot price of gold an 84,000 ounce pocket yields $35,275,000 (much more as gemstones). The estimated cost of the project is $3,500,000, which includes sinking the shaft, driving 1,000 feet of drift and opening the lengthy 250 foot level for drainage, ventilation and secondary escape way.
The Red Star is a legitimate target and one that has been written about by many mining men. Our goal is the execution of this plan. Raising the capital to complete the shaft project is challenging because of the many choices. But choices must be made and made now. Therefore, the board of directors approved the sale of our Brown Bear mine in Trinity County. I am not happy to sell the Brown Bear mine. It was my hope that our mining would produce the capital to sink the Red Star Shaft; however, mines are not built on hope.
On a much different yet related subject, the Company is aggressively pursuing its claims for damages against the four lawyers and their employer, California District Attorney Association (a non profit California corporation) who prosecuted the heart of our company. Not only did they prosecute to put our two main employees in prison, but also prosecuted to put our company out of business. The consequences of their actions made it impossible to attract investors to supply the working capital proposed to sink the Red Star Shaft. Their illegal, false and negligent behaviors have significantly tainted our reputation. If you were able to follow the case on our web site or in the newspapers, you will remember that I estimate the loss to you and me as shareholders is $2.00 per share. This reasonable estimate adds up to $25,734,500. None of the defendants have this much money, but Lloyds of London does.
Another relevant subject is finding a suitable market place for you to increase or sell your ownership in the company. The OAU X-Mart (web site) has provided sellers and buyers a fair market. We do not pretend it is liquid, nor are we suggesting it is satisfactory. A goal is to find a mainstream market place. A summary of transactions is included in this report.
The last goal to mention today is our desire to see you at the annual shareholder meeting this year. Unless you read the entries at http://www.origsix.com, you know very little of past events. Last year was the poorest year for direct communications from the company. I apologize without excuses and pledge it will not be repeated again. I recently found a new way to reach you and am anxious to put it in place to see what you think and evaluate your reactions. Join your crew this June in Alleghany and learn why we anticipate a profitable and rewarding future. We have planned a new walking tour of the active headings. You will be thrilled to be a part of America’s oldest gold company and see its underground operation.
Best wishes,
May 23,2005 Michael M. Miller, president
The annual report took center stage last week. An office crew will gather Monday to finish stuffing the last printed document to be mailed to shareholders. The package will be mailed on Tuesday. Scoop was surprised and pleased to find a summary of Clips from Alleghany from last year’s meeting in June to May of this year in the Annual Report. The president hit his mark with the annual shareholders letter. He has written in the past how thought provoking yet enjoyable process it is for me to write this letter. This year the mood appears different. What do you think? It is printing right now as I type in Santa Rosa. If the Company gives its okay, Scoop will bag the file and get it to non-shareholders who follow the Forum.
Water problems impacted the miners’ productivity last week. Gold was found in a new spot about 100 feet below one of the active headings. It must wait its turn to blow up. A mid size slusher was brought to the shop for an overhaul. It was out of service for three days but miners hauled it back to the 1000-foot level Friday. The Company held a safety drill that succeeded in evacuating the “injured miner” with a minimum of difficulty.
Have you been reading about the rains plummeting northern California? Thirty-six hours of pounding rain, a short break and then twenty-four hours more caused Kanaka Creek to roar down the canyon. It also impacted the mine. Water probably increased in the north end of the mine as well. Water rose as fast as anyone can remember, flooding the 2200 level. The miners worked under harsh conditions to install a different pump in order to regain the level and service the existing pumps and electrical connections. It has been a tough week!
As you know the Company sought relief from the United States Court of Appeals for the Ninth circuit about a year ago. A brief was accepted and the Respondent (lawyer for MSHA) filed a motion to have it thrown out, which was denied. The lawyer (a very nice lady in Washington D.C.) filed a brief. Mike was hit with a scheduled OSHA hearing and then a MSHA hearing and asked for an extension of time to answer. Things were moving right along until a week or so ago. Rae call to check how the request for time was coming along and the clerk said an issue arose. The issue surfaced today. The office received an ORDER from the Ninth Circuit in today’s mail. It says:
“A review of the record indicates that Petitioner Original Sixteen to One Mine, Inc. is not represented by an attorney. Within fourteen days from the entry of this order, Petitioner shall show cause why this petition for review should not be dismissed. See Highley v. Highlander, Inc., 459F .2d 554, 555-56 (9th Cir. 1972) (A corporation can appear in a court proceeding only through an attorney at law.)
Petitioner’s failure to comply with this order will result in dismissal of the petition for review.”
For the Court:
Howard E. Goldberg, Deputy Clerk
Local Rule 27-7Well, well, well. What have we here? Does not a corporation have all rights equal to a person? It says so in California law for California corporations. Original Sixteen to One Mine, Inc. was incorporated in California in 1911. Has another constitutional right gone atrophied? How long have the lawyers assumed this right from the rest of us? Is it an unbeatable situation or maybe it has never been tested under the circumstances that Original Sixteen found itself in because of the unlawful abuse of the entire MSHA rats. (Notice Scoop did not say the entire MSHA agency. There are plenty of good solid employees within the agency; however the agency has been taken over by a lying incompetent fringe.)
Ours is an issue that arose because of abuses in the executive branch, not the judicial. What happens to a small and financial beat up old corporation that finds itself in a fight for survival and when it finally gets its chance to bring its case to a real court, not the pretend court of administrative law the door closes shut?
Mike finished a three day MSHA hearing today. It ran last Thursday and Friday. The judge returned to Washington D.C. Friday afternoon and resumed the hearing this morning at 8:30 am. While the six allegations of violations in mine regulations would only cost $1,300, more than money was his concern. The citations were full of untruths, which Mike tried to convey to the administrative law judge. Untruths cannot survive. He believes doing so threatens the mine, its owners, the miners, the community as well as the American people. Scoop will attempt an interview soon for details.
Missy, one of the office cats disappeared for a week. If you have ever been in the company office, she is the one that looks you straight in the eyes, lifts her paw and gently places it on your face. She has the personality to make everyone who comes through the door feel special. She also is a pest to Rae, Kyle and Mike as they work at their desks; however all of them were relieved when she returned.
Ray Wittkopp, the renowned company geologist returned from his annual travels in Australia. It is nice to have him back in the area. Ray, Mike and Ian planned to investigate the new area of the mine they are considering for gold production last Friday but had to cancel due to the MSHA hearing.
April 30, 2005
Dear Gary,
Hope this is okay. It was a fun project, especially since I do not know the likely readers. You can reject any part or send it back for clarification.
See you in Alleghany sometime. Thanks for thinking of me.Michael
1. In late 1960’s, I knew that I no longer wanted to live in southern California (Santa Barbara). Born and raised in Sacramento (fifth generation Californian), rural northern California was my location of choice to explore for finding my family’s new home. We motored the Sierra Nevada up highway 49 to Quincy. Thanks to the good fortune of my father owning a small interest in a gold mining company in Sierra County, I found Alleghany in 1974. My early impression was that the area and the gold mining offered great opportunities for independent living, work satisfaction and adventure.
2. My job is that of a president. Presidents make both easy and tough decisions, especially in a corporation with a small staff. My activities include hands on tasks, including dump runs. Most of my time the past ten years and today is spent managing the flow of paper required to keep the various operations going. I also handle much of the gold sales, project analysis, legal activities and personnel issues.
3. Besides the universal inspirations most industrious businessmen feel, the “long gone” miners who worked the gold mines of the Alleghany Mining District inspire me to think a little more or work a little longer to overcome the problems of building and running a gold mine. There is an old saying that mines are not found they are built. Ours is over 100 years old with a good potential to produce for another 100 years.
4. My plans for the future are very ambitious. I want to find and mine the largest pocket of gold. The record is 83,000 ounces. I believe a good location is the junction of two primary gold veins in property we own called the Red Star. It requires a capital investment that we must obtain by gold production or perhaps some adventurous capitalists will join the effort. Other plans include winning an important social lawsuit against some evil lawyers, who have broken the laws in their misguided prosecution of innocent miners. I want to grow mushrooms in the abandoned workings of the mines. I want to build affordable natural Sierra Nevada mountain coffins. I want to make “moonshine”.
5. My favorite spot in the region is my home and surrounding property. I built my house in 1977 and continue to improve its hominess. My favorite spots are anywhere underground in the mines. It never ceases to humble me. Both the natural beauty and the human endeavors to challenge the earth’s forces we see each day underground are inspiring.
6. Our section of the Sierra Nevada is similar in beauty to most all other areas of the 200 plus mile long mountain range. Our area is called the Northern Mines. South of Auburn the area is called the Mother Lode. A great amount of gold likely remains buried in the California gold belt. Alleghany holds the record for the richest concentrations (pockets) ever mined in the state. Gold is unlike all other elements, and I think that many people both consciously or unconsciously feel and are affected by the powers of gold. I have witnessed the affects of Sixteen to One gold on men, women and children. It has always been positive.
7. Genuine.
We have three active headings going. A little color showed a round ago in one of the headings, but some timber work needs to be done before we are off and running on the vien. Faris smelled arsenic in his heading after Friday’s round went off, which is a good sign. On the 800 level (main travel way) steel sets are being put in.
Alleghany is soggy and green. Everybody is longing for some sunshine.
The first quarter 10-Q will be filed this week. The company shows a $200,000 loss for the quarter.
To answer Smithsgold about how a person becomes a hard-rock miner. Most miners become miners by getting an entry level job at a mine and sticking with it.
Not much snow on my porch anymore, and im wondrin whats the lastest going on at the mine, sense thres no news. No news isnt good news or is it? Whats goin on up under the hill?
For those living in California, can you remember more spectacular seasons? The high Sierra Nevada mountain range is the eastern rib of California. The desert flowers are bringing record crowds to the southern deserts, complimenting the eastern fling of nature’s push from the Pacific Ocean inland. I read that the restaurants and stores in the desert oasis are struggling with the crowds, and the crowds are threatening everyone and everything because they arrived unprepared. Alleghany has no outside threats of a tourist invasion. People drive up here but what they see is not what we are and drive out of town. The beauty of a driving adventure continuing north on highway 49 or north up US 99 or US 5 to Mount Shasta appears to remain unnoticed by the press. It is a blessing to many in the communities of Shasta City, Etna, Paradise, Weed and the wide reach of the Sierra Valley that most people are unaware of the beauty evolving each day. And it’s free for the looking. Due to the rain, snow and warm sun that continue to fall onto the land in no apparent or predictable pattern, the vegetation exudes a richness and depth of color rarely seen. Scoop sees it all and reports this because there is little news to report about gold mining.
Well, maybe there is something to report other than the miners relentless drive to find another pocket. Everyone is breaking rock or moving muck or fixing equipment. An important press is underway to find gold, nothing new here.
Ian proposed a new idea to Mike mid-week. It is intriguing because it opens up a block of ground that historically yielded gold and has never faced twentieth century metal detectors. It is an inexpensive project and relatively quick. To set it in motion requires less than $5,000 of supplies. Mike authorized the project. No one knows what the actual conditions of the old workings will be as they are exposed, so no one can estimate the time to open the hidden block of ground. An educated guess is two months from start to finish. An educated guess of gold potential is 2500 ounces (based on past production from similar areas detected between 1992 and 1995.) Once the project is underway, Scoop will infiltrate the operation to learn more about the project and give you a report. Like times before, the project may be a gold bust, but this one somehow slipped into the crack of obscurity, until now.
The Sierra Nevada gold fields are having a hard time in many ways. Ill informed people immigrated onto its surface with an unrealistic attitude that underground hard rock mining is something to fear. It makes some sense since our Californian society has been running on fear for decades. Another example of hard times is that the adventurer/business types also fear investing in the California goldfields. Embarrassment for participating in a gold mine may be a leading reason. Why? Well, most propositions or proposals fail. There are readily available indicators to study revealing those most likely to succeed or fail, but who wants to take the time to study and learn? These two (many others exist) drawbacks can be mitigated by anyone who uses the Sixteen to One as a model. It has a 100-year history of failures to examine and avoid repeating. It also has 100 years of history supporting successes for its owners and other Californians. The current “hard time” causing great unrest in Alleghany cannot be solved by anyone. It is the weather. In the past month Alleghany has experienced spring, summer and winter. Right now, a few weeks after record breaking high temperatures, it has over a foot of snow covering everything. However, if weather is all people have to complain about, life is not too bad.
Rae announced yesterday that the company only has two more monthly payments for past electric bills. PG&E rode with the company during its bleakest hours as charges crept up to $94,500 in overdue bills. Those of you who followed the reports of PG&E driving to shut off the power only to turn around at the last minute know the reasons why the company defied all odds and kept power on and pumps running as it endured an onslaught of outside interferences in its operation. The next creditor to be eliminated has been identified. Scoop will tell you who as soon as the first payment is in the mail. Cash flow is still a problem for the company. Over 2/3 of the crew is working on underground maintenance, which interferes with mining for gold.
Mike began making contacts with people interested in developing the company’s properties. His general plan is to consider joint participation for the Brown Bear and Bald Mountain mines, equity participation for sinking the Red Star shaft, guaranteed debt for developing the corporation, and anything else that makes sense to build a 21st century metal detector, expand the market for the Sixteen to One gemstone and build a hydraulic power plant. None of these objectives are likely to be accomplished without the participation of others. “The trouble with too many people is they believe the realm of truth always lies within their vision.”-Abraham Lincoln.
Beer you guys, beer.
You take a shallow pie plate and put it in the ground so the edge is level with the soil surface and fill it with beer. The slugs crawl right in and die blissfuly.
It really works!
We don’t have very many slugs in Alleghany, but when I lived at lower climes I resorted to the method above.
The weather report from Alleghany is slush slush. We woke up yesterday morning (first day of spring) to winter wonderland. It has been alternating between rain and snow since yesterday afternoon. Right now it is snow and my lilacs were just starting to bud 🙁gfxgold…yeah, I know, salt is a cruel and unusual punishment, meant only for six-year old boys who also like to use magnifying glasses to burn up ants. You know what works best on snails? A duck. But, I don’t have a duck, so I’ve resorted to just yanking them off and tossing them on the other side of the driveway.
Rick, I gotta tell ya, using salt is a big mistake. I find that butter and garlic works better on snails. Now, if you’re trying to protect your plants, I would use the black, creamy, liquid slug and snail bait.
Well, here’s an update from my garden, down here in the valley. The snails are eating the Ranunculus and not responding to salt (Kosher, sea-salt) so I’m tired of watching half of them just bubble and then return to continue eating. Reminds me of politics.
Bluejay stays up of this gold market stuff and has proven to be reliable (go check old postings). Scoop knows a bit about the history of the gold market since 1974 (December 31), when the U.S.A. lifted the restrictions placed on gold in 1934, but will mostly defer to others for their account.
Now, here is some hot news! California is in the midst of a winter heat wave. At 4500 feet elevation in Alleghany the thermometer hit 66 degrees at 8am. Down in Nevada City (2500 feet elevation) the radio reported 46 degrees. Nature has its ways with weather as it does with gold deposition. Attitudes around the mine remain very upbeat even though last week did not turn out as planned. The high of the week was the successful repair of the 200-horse power electric motor that runs the hoist. The hoisting system is over a million-dollar asset that is not reflected on company balance sheet. It is the only incline operating man hoist in California. Everyone gets nervous when it develops electrical problems. It was brought underground piece by piece and it would be a nightmare to haul it out for repairs.
No gold for the week.
As if Mike does not have enough on his plate, he was out inspecting another gold mine to buy this morning. Price and terms must fit the budget. It should not be news to shareholders. He has stated the company’s intention to build its holdings with property that has a real chance of qualifying. Company geologist won’t be back from Australia until mid April. Mike feels comfortable discussing various sides of a gold property with Ray before making a recommendation to the directors.
A fake quartz and gold is being manufactured and offered to jewelers in thin slabs. While it is quick to tell the difference between natural quartz and the man made stuff, in a slab, a small piece cut for rings and other products is not so easy. People will be fooled and it just depends on the slant those involved take in marketing their lines.
Sometimes Scoop gets fresh info after the last entry that changes the view of the operation in Alleghany. The best, of course, is when the crew gets into a pocket. It usually is quiet for a week or so, then rumors and then an announcement. No such announcement today. It looks like next week will see the rock breakers out in the shop fixing their drills. It breaks the spirit and body when a drill quits in the middle of a round, up a 100-foot or more raise and a mile from the portal. The company bought about $10,000 in new drill parts in the fall and hired help for maintenance and repairs. Drills take a beating and problems have arisen. A year ago Reid and Joe fixed their drills during the days of no pay and had pretty good luck with the outcome. Well, Friday, after too many shifts with problems, they came out and announced to no one that they were going to fix drills. It makes sense to have reliable tools so far under the ground. No gold next week.
ok scoop hears you. I just talked to Underground Miner “Ragweed” Reid Miller this morning and he reports that we still have the two headings going on the 1100 foot level near the ballroom. “Jumbo” Joe Witterman’s heading is near the pocket and he continues to get dribbles of gold, but the general consensus is that this is the “aura” from around the pocket mined in July. The area where Jumbo is working is beginning to look like swiss cheese.
Reid’s heading is a wing heading under the area where the pocket was found and this is a larger block of ground.
Another small crew is rehabing the 1,000 ft level from the Tightner shaft towards the ballroom, mucking, putting in stalls etc.
Bill Murray the onsite carpenter is still working on the new “dry and office” complex.
Kevin McCarthy “Repo” is the mechanic and all around surface hand.
Ian Haley “The Shark” has his hands full running the entire operation. Just the compliance alone is more than a handful. Roy Stai who is out with injuries (not related to work) was helping out with the compliance, now it is all back on Ian.
Speaking of Roy, he is back home and doing better. He is chomping at the bit to return to work but his doctors just laughed at him when he asked if he could go to work. He has a bit more recovering to do.
A crew of five men is working at the Empire Mine State Park. That project is going much more slowly than was expected. The State did finally approve the steel sets, at least for the section of ground they are in now.
Rae is hoping to have the 10-k filed today, if not today then Monday. The company shows a nearly $400,000 profit for last year.
Cabin Fever has definately set in and is quickly morphing into Spring Fever. A little “social chaos” seems to be the order of the day in Alleghany.Yes, there are others out here watching, reading and wishing only the best for Mr. Miller and his battle aganist the “Machine”. Please Scoop, give us some underground info!!!We always like to here what is going on at the mine.
Scoop, please somehow let Mike know how much I believe that those of us out here watching and reading and witnessing the battle are behind him on every level. I only speak for myself, but I sense this.
Here’s the reason it might not be showing up on the Forum page:
when there is an entry from Mike Miller, or the President of OAu, or an entry updating the latest news from the GJI, I’m reluctant to trump it with an answer, wanting to keep his words directly on the first front, right there at the top. While I itch to answer and substantiate the latest entries, I don’t want the gravity to be diverted.So, Scoop, give us the latest news from underground, and then let Mike know to re-enter another correspondence letter or news-from-the-legal-battles so it’ll go back on top. (We always want to know about stuffs underground and how things are going around town.)
Big storm brewing.
Roy was released from the Hospital but is still not able to have visitors. He is at his mother’s house. A huge weight seems to have lifted from over Alleghany as we are all relieved to know that a valuable member of the community will be coming home.
“Jumbo” Witterman brought up a bit of gold yesterday. He is optimistic as always that more is there. Let’s hope he’s right.
The new “dry” near the portal is taking shape.
In other Alleghany News, Jim Roos donated the Church building to the community for use as a Community Hall/Library. Rae is helping spearhead the effort to restore the building and build a seperate building to house bathroom facilities. As a fundraiser we are inviting people to buy bricks which can be engraved with any message you choose. The bricks will be used to make a patio in front of the steps. Some people have done bricks in memory of family members, others in their family name with a favorite saying or verse. Bricks are $50.00 each, if you would like to recieve an order form you can e-mail Rae Bell by using the “feedback” button on this web-site.
Other local news is that the new Community Service District which is being formed primarily to take over Fire Protection is taking shape. The District is called “Pliocene Ridge Community Service District” and will serve the communities of Pike, Forest and Alleghany. This had to be done to secure funding for the Fire Departments. Some immediate savings will result from the consolidation of insurance policies.
The sun is peeking out from behind the clouds. Amazingly the weather report given Monday has been accurate all week! Rain showers on and off all week. One of the plum trees in front of the mine office is pushing out buds.
Good news! Roy is doing much better. Rumor is that he may be released from the hospital this week.
It has been raining on and off since early Sunday most of the snow is melted.
Bad and Sad News from Alleghany
Two longtime residents, miners and friends tangled last weekend. One is fighting for his life at the Roseville hospital, and the other is charged with assault with a deadly weapon. The tragic event continues to affect everyone in the community. Unlike the cities where most Americans don’t even know or rarely interact with their neighbors, the high mountain village of Alleghany is a place where most everyone can name each person, know their trucks, know there friends and how their pets are doing. The fight, which took place last Saturday, has a deeply personal implication for all, including the operation at the mine.
Roy Stai has been an important part of the Sixteen to One team for years. He handles computer map work, metal detection, is a qualified hoist operator and skilled in the electrical trade. He and Davey Hill, a long time Sierra County resident, miner and jack-of-all-trades, had an encounter last November that never went away for Hill. Hill is a former professional boxer, which is why he is charged with assault with a deadly weapon, his fists. While the entire community is praying for Roy’s recovery, the majority of folks feel that Davey must leave the area. It is a tragedy that is touching everyone.
Oh! to be a miner! As to the fork in the road, thank God you’re taking it, whether up or down, otherwise it wouldn’t be fun.
Now, isn’t it possible for a comet to travel backwards as well as forward, once it’s underground?
The crew has been working in the Tightner shaft for weeks. Access from the 800-foot level downward is the new second exit as well as the best path to the current headings. The Ballroom trail, which many shareholders and others have traveled is closed. The fishpond is there but no longer safely accessible. Over two hundred new stairs are installed. This work helps the miners looking for gold and opens up new ground in the footwalls both north and south of the shaft.
Scoop is bummed! Reid’s heading broke into Joe’s heading exactly at the point of the last big pocket in July. It turned out that the trail he was following was related to the last pocket and not a new pocket. That tail –of-the-comet story that Ian tells is right on. Reid will move down where he encountered signals as he was driving the raise.
The weather has been gorgeous in Alleghany this week. There is still a bit of white stuff on the ground but patches of dirt are appearing.
The 16 to 1 crew has been working on installing stairs in the Tightner shaft as well as other compliance projects. Sparse gold continues to dribble out of the two headings near the “Ballroom”.
The Empire Project continues to challenge Mike. The ground is very “slippery” where the adit is being put in and after convincing the State that steel sets would be best (not only for ground support reasons but for long term maintenance concerns as well) the State did an “about-face” Tuesday and informed him that they wanted to go back to treated lumber. Part of Mike’s frustration is that the Dept. of Parks Engineers do not seem to be giving credit to the opinions of the very experienced crew of miners putting in the adit. Everybody is hopeful that the ground will become more solid as they advance but part of the problem is the relatively high elevation of the adit. (Solid ground is more likely to be deeper).
Rae’s current priority is getting the year-end financials finished. The day-to-day barrage of things needing her attention sometimes makes it difficult to focus on a single priority. Registered users will be notified when the 10-K is filed with the SEC.
Rick it worked!!!The Scoop has awakened.
Nobody can ‘Scoop the Scoop’ unless we pleed for more news. (My entry here might just awake the Scoop to speak?)
Scoop thought that he\she could spin a tale, but after reading the last week of FORUM entries, you guys top him/her. Scoop will refrain from joining you and get back to the doctrine of reporting.
So here’s today’s scoop. Joe’s heading continues to dribble gold. It is probably the tail of the gold comet from the pocket in July, so no one should get too excited. Gold is gold and as NOSE for GOLD seems to understand, gold in the muck in Alleghany means go break rock! Go Joe. Reid’s heading, on the other hand, still shows gold; however, today it took a more interesting twist. It is too far from being just a tail of 1400 ounces. Then again maybe God and his helper, Mother Nature, plopped down another pocket. Calculated risk defines this high-grade gold mine.
Scoop has a story for you.
A gas bomb ignited in Michael’s house yesterday. He lit it off in a situation that was not a good one. Wisely he called Rae at the mine office who sensed that what Mike was telling her was likely a lot more serious than he was explaining. Accordingly Rae asked whether David should drive out. The president reported he had been blow up by a gas round and the flames shot thirty feet igniting the couch, now on fire. Everything was okay but maybe it would be okay to bother David to help with the fire. While most everyone in California would dial 911 if their house was on fire and they were singed by the blast, Michael called Rae, not 911. Hmmm.
Miller agreed to this interview with Scoop.What were you doing that created the explosion? My propane tanks went dry during the heavy snows and remained empty over two weeks. I was bleeding air out of the long lines and must have bled the air too long. Propane puddled in front of me and much farther. When I moved the lighted candle towards the pilot, gases had accumulated and wham. It was loud and horrifying. I rushed what I knew could be volatile and wham. The smell of burning hair, especially your own is not a pleasant smell.
Would you object to calling that a stupid move? No. It was a careless move and stupid.
Would you object to being called stupid? Yes. I have never thought myself stupid, yet I am stupid at times.It was not a stimulating interview for this Scoop so it ended. The company shipped a seventy-five ounce bar to the refiner. It matches an earlier poured dore bar from earlier gold mined in July. This mine’s low grade ore that is sent to crush averages a half ounce per pound. It is too different from other gold producers to have major relevance. The ore that went to crush would grade at 1000 ounces per ton. Some low grade!
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