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The power faded twice and then went dead. Alleghany has now, much snow. While all the major highways a have been closed through the Sierra, Ridge Road into the camp is plowed and a breeze. Many trucks at the bar for lobster dinner and entertainment for miners and friends. Fewer than expected because of the storms. Underground is the best place to be working.
Just wanted to be the first to extend wishes (for your Mister Pocket) to all readers of Clips from Alleghany and the other topics on the FORUM and to the participants.
A snowstorm hit Alleghany last night and continues today. The mine is operating ( the underground crew doesn’t know or care if a blizzard is raging outside). The 1500 level sump pump died last Wednesday. It is the one pump that takes the water to the drain tunnel, therefore, when it quits no water leaves the mine. Mike took it for repairs and picked it up this morning in Auburn. It is on its way down the 49 winze right now. Cost was $2358.42.
Both heading are active. Some major water leaks and a couple of air leaks have slowed production. The new dry (change room) got a roof yesterday but is probably a couple of weeks from service. The crew had a nice dinner gathering on Thursday and invited me as well as another journalist. There is a good story brewing about the CDAA lawsuit, but Scoop is not the one to cover it.
It was a fascinating week for the mine and the company. On Monday one of the world’s leaders in Radar development placed its 1000-mega hertz machines in the mine between the 800-foot level and the 1000-foot level. It was the most expensive one-day field test underground ever performed at the mine. The equipment was compact and easy to operate. Results are shown in real time as the electrical waves mess with the quartz, gold and wall rock. GPR tested the quartz ten years ago but the strength was max at 100-megs. Penetration and resolution are the results Ian, Mike, Sandor and all the crew are looking for to help them find gold.
The abrupt change in weather and its duration contributed to everyone associated with working the mine getting sick. Sore throat, pressure behind the eyes, dripping mucous and mental lapses reduced production the past ten days.
At the Sixteen to One operation drilling a round is how progress is measured. Footage and tonnage can be measured to evaluate how well the weeks are spent; however moving the muck is how the success of the operation will be deemed. Success is bringing large chunks of quartz veined with gold to the lapidary shop. Where both headings are advancing, moving muck is much more serious problem to handle than breaking rock. Before meeting Mister Pocket in July to the tune of 1400 ounces in a couple of rounds, shot rock was the nemesis to battle. The crew was small, so clearing each round to expose the working face was a headache. Muck was squeezed everywhere it would be out of the way. Current mining is up dip and down dip from numerous concentrations of high-grade mined over the past year. This remains true today.
In bygone years, say seventy years ago, miners would be breaking up the vein with wide spread stoping, as they did in creating the Ballroom. Where Joe is mining, the veins are layered in a complex manner. One vein is carrying gold. Where Reid is mining the quartz is quite bold. When the miners move beyond this block to the north, this mined out area will look like coyote tunnels, not the large Ballroom stope.
Technology and the old ways describe this mining. Demand for gemstone quality gold in quartz makes it necessary to hand sort the muck once the gold is detected in the muck. Jewelry manufactures and retailers prefer firm slabs, which of course brings more money. It is worth the time to produce high quality high-grade.
The miners, who hit the gold in July, are back in their headings. Reid and Joe each shot a round today, the first since the end of the 1400 ounce pocket. Joe drilled a face round in his old and productive heading and Reid loaded and shot a slab round, which he had drilled but not loaded in July. Sniff, sniff, sniff, no signals but the vein looks pretty good.
Ian and pals are redesigning the electric enterance gate to the mine property. Ten years ago a remote gate was installed, which worked real well until one of the young miners drove into it while it was closing. It smashed his windshield, one powerful gate! The miners have a plan, which will be a time saver for everyone. No more stopping, getting out of the trucks, dialing the combination, opening the gate, driving through and closing the gate. Time is needed to break quartz. Breaking rock will always pay at the Sixteen to One. No one knows, however, just how much must be broken , but every time the crew improves its efficiency, the odds increase that gold will again fall into the muck pile.
Mike bought a heavy-duty sand blaster for cleaning the skip and everything else that rusts. David is cleaning the sawdust from gold sales biggest rock saw. In a week or so, Scoop will let you know how much gold was recovered in the sludge. Rae is taking care of her business after their vacation to Mexico. Gold opened at $447 an ounce today.
Alleghany weather is great. Down in the Sacramento valley, a season early fog pattern developed. The fog lone is at Auburn sometimes but it elevated to Grass Valley mid-week. This fog situation is predictable but usually in December and January, when the valley can be socked-in for weeks at a time. During those times the mine experiences warm and sunny shirtsleeve weather, although once the sun disappears, it gets cold.
Now that the weather report is out of the way, how was the week? MSHA visited the mine for its regular inspections. Three citations (non S&S) were written. The miners feel uncomfortable with two of them. The other was a citation for a worker working on the side of the waste dump without a safety rope. If the guy slipped, he could have rolled down the bank and scratched himself up a bit. Safety belts have a place. This could have been a place if the worker had sloppy skills or work habits. The mine stays away from those two characteristics when it hires people. One was a typical judgment call, something that always occurs in construction and mining. Mike should contest it but probably feels it isn’t worth the time. The last one is a clear misunderstanding of the regulation as cited by the inspector. Mike should contest this misreading of the code and its wrongful interpretation by the MSHA administration in Vacaville.
The miners appreciate safety inspectors, when they provide clear vision on real issues. They will even fix stuff that they know is safe but appears to an untrained or unfamiliar eye to violate a code (the inspector’s view). Over building for safety is better than under building. Over building far beyond what is needed, however, is not in anyone’s best interest. Time and money are always limited in any operation and prudent management of available funds and time is in everyone’s best interest.
A load of #1 mine timber was delivered today. The truck and trailer driver did not want to drive his rig beyond the mine gate. Chicken! So, two guys transferred the load, 10,680 board feet of Doug-fir to the mine’s flat bed and drove it to the landing where shareholders meeting are held. The unloading took about four hours. Ian is all over the place with directing the crew. Miners are underground in rehab and preparing the anticipated gold heading for the resumption of breaking quartz. He has guys working on the surface to button down the roads. Guys are redoing the change room and dry. The 49-winze skip is being reinforced. The abandoned upper shop is under construction to once again become a repair center. It was a good week. Oh yes. David and Rae returned to work today from an extended vacation to the Yucatan. The beat goes on.
Sixteen to One miners have a better track record of predictions or projections than weather reporters. The Alleghany vicinity received its second snowstorm, extended rain and unusual cold, much more than the Sacramento weather guessers reported. The “fast moving Alaska storm” ended up circling around parts of northern California. An unexpected low-pressure area caused the cycle to hang on for most of the week. The crew abandoned their surface work and headed underground.
The 1000-foot level between the Tightner Shaft and the Ballroom in nearly finished its rehabilitation. The tons of quartz mined during the months of searching for Mister Pocket are slushed. Today gold was found below the slusher trough (down dip from the 1400 ounces) in the same quartz lenses that contained the pocket. The “yellow brick road” was projected up dip from the pocket. Now it is also predicted down dip. Talk is that Mike is close to giving the miners the okay to resume breaking rock. There are about six week of work day left in this year and another supply of gold will help the year end financials.
By the way, have you checked the SEC filing for last quarter? You can access the third quarter 10-Q by going to “THE COMPANY’ and then the SEC filing. Current liabilities are down. Current assets are up. The Company has a substantial profit for the quarter.
The skip in the 49 winze was removed for servicing. It has run up and down the winze for 18 years. Ian is looking for a sand blaster to knock down the rust, give it a fresh coat of paint so it will still be going up and down another two decades. Does anybody have one in the garage they no longer use?
A new bucket was modified for the Cat 910 front-end loader. Work was completed yesterday. The old one should be sent to some museum as a testimony to the hard times and perseverance shown over the last lean years. The 910, affectionately called “the tea spoon”, is not big enough to handle snow removal. Joe wants the mine to get a Cat 966 or 950. Does anybody have one in the garage they no longer use?
Sixteen to One miners have a better track record of predictions or projections than weather reporters. The Alleghany vicinity received its second snowstorm, extended rain and unusual cold, much more than the Sacramento weather guessers reported. The “fast moving Alaska storm” ended up circling around parts of northern California. An unexpected low-pressure area caused the cycle to hang on for most of the week. The crew abandoned their surface work and headed underground.
The 1000-foot level between the Tightner Shaft and the Ballroom in nearly finished its rehabilitation. The tons of quartz mined during the months of searching for Mister Pocket are slushed. Today gold was found below the slusher trough (down dip from the 1400 ounces) in the same quartz lenses that contained the pocket. The “yellow brick road” was projected up dip from the pocket. Now it is also predicted down dip. Talk is that Mike is close to giving the miners the okay to resume breaking rock. There are about six week of work day left in this year and another supply of gold will help the year end financials.
By the way, have you checked the SEC filing for last quarter? You can access the third quarter 10-Q by going to “THE COMPANY’ and then the SEC filing. Current liabilities are down. Current assets are up. The Company has a substantial profit for the quarter.
The skip in the 49 winze was removed for servicing. It has run up and down the winze for 18 years. Ian is looking for a sand blaster to knock down the rust, give it a fresh coat of paint so it will still be going up and down another two decades. Does anybody have one in the garage they no longer use?
A new bucket was modified for the Cat 910 front-end loader. Work was completed yesterday. The old one should be sent to some museum as a testimony to the hard times and perseverance shown over the last lean years. The 910, affectionately called “the tea spoon”, is not big enough to handle snow removal. Joe wants the mine to get a Cat 966 or 950. Does anybody have one in the garage they no longer use?
The first real snow storm hit Alleghany the past two days. October snow is rare. No one has a full shed of firewood in town. It looks like there will be sunshine for a while and everyone can get busy to prepare for winter.
Electric power stopped yesterday morning. It returned late afternoon but the miners took the day off. It always is interesting to listen to the conversations of a bunch of Sixteen to One miners, sitting around a fire. Mining and gold are the two major topics, probably boring to women and dogs. There is always an abundance of dogs in Alleghany and an absence of women. The dogs don’t seem to mind. Anyway the conversation moved from the likelihood of just where the pocket greater than the 83,000-ounce leader was and how, can or should it be found and mined.
All the guys have seen the maps and have an understanding about the nature of the gold. The Rainbow mine had a huge pocket. It is written to be greater than the 83,000 ouncer off the 800-foot level between the Tightner shaft and Ballroom in the Sixteen. Another area of speculation is below the fault (2400 level in south) where the crew sunk the Eighty-Three Winze in 1995. Up dip from the 83,000 ouncer was suggested, as it is possible to follow the pattern of previously mined pockets and project where additional ones could be. To no ones surprise the evidence supporting the new number one is where the Plumbago and Sixteen to One veins converge. The Red Star area held the high ground for the biggest pocket to be mined in California. (Somewhere on this web site is a list of the ten largest pockets found in California. The Sixteen had a number of them as well as the Oriental, also in the Alleghany Mining District.)
Of particular interest to this reporter were the discussions about sinking a new shaft in the Red Star and the failures in sinking the Eighty-Three Winze in 1995. Progress there was very slow. Three of the miners had worked on the winze and carefully explained how it was done, why it was done that way and collectively the group talked about how it will be different next time. The single biggest afterthought was that the winze was built too large. Sink small and ream up is faster. The five-member management team at the time decided to build the winze to meet future needs. Well, the company grew short of money before the future happened. Drifting on the 2600- foot level began too close to the fault and was rough going. Also it cut down on the backs for mining. The pumps were too small to quickly dewater the winze. The miners spent too much time before they could begin drilling. Another key factor was blasting the full area of the winze each round. No one knew that it would be easier and faster to sink the winze by blasting half of the area each time. It was impressive to hear their candid discussion. This group has learned a thing or two over their experiences in the mine. Planning amongst them and a couple of other miners with years of experience in sinking should pay big rewards. One other thing: this crew is motivated to beat the old record of production. They had better get going because all of them are getting older and time is not on their side.
Warm weather continues. For those in Northern California, you know about the three forest fires. The closest to Alleghany is near Lake Tahoe. The air continues to be smoky from this fire. Weather report said a chance of rain on Sunday, much needed rain to downgrade the current high level of fire danger.
The pump on the 1700-foot level failed Monday. It was repaired ($1468) and the mine was back pumping on Thursday. The water was just below the 2200 foot –level.
Gold Sales continue to cut the quartz from the July pocket. It is beautiful, but many of the slabs are just too heavy for the designs of our jewelry manufacturers. Therefore, $100,000 or so remains unsold. It is a shame to crush the high grade and turn the gold into bullion. The saw sands from the slab saws yielded seventy ounces of “dust” or about $28,000.
The crew continues to fix stuff both underground and on the surface. The company is looking for a couple of miners qualified to work at the Sixteen to One mine. Soon management will unleash the crew to again drill, blast and muck the “kitchen” raise where everyone is confident that another pocket rests beyond the face.
Water was the primary issue last week at the mine, no not underground water and pumping, but the water supply to the mine from the Company’s spring. The steel 20,000-gallon tank developed some holes and was leaking. A smaller tank has been plumb into the system until the large tank is repaired. The problem that required the most labor was a loss in flow to the tanks. The old lines were plugged with rock and silt and in two spots the connections collapsed. The “fix” is simple but time consuming.
Other surface work centers around the portal shop. It no longer resembles its former appearance. A small air compressor was set up so miners needing air when the big system is shut down can get the air they need. Everyone is working to improve efficiency (cut down on electricity and labor). It is a relief to have the time to do the things that were on hold.
No, Scoop was not waiting for someone to ask for his return, but thank you anyway.
All of the Sixteen to One computers were infested with viruses. The Internet server blocked the computers from going on-line. The computers were taken to Grass Valley for a complete cleansing. One machine had 750 viruses. Who does this? Could it be the people paid to rid computers of viruses?Work is progressing in the Tightner shaft. A mucking machine is ready to be lowered to the 1000 foot level so the crew can prepare the area as a travel way. The objective is to mine the vein between the Ballroom and shaft (not the entire area but those sections with proven features that indicate a high likelihood of gold). No one expects any gold production until later because everyone’s attention is still focused on surface and underground “dead work”. The miners express confidence that more gold will be mined from the area near the July pocket and in the larger area. To them, gold’s existence is proven by earlier production and the lay-of-the-land.
Ray Wittkopp, company geologist, returned from the mining convention in Las Vegas today. He said that the interest in gold was very high. Nobody was promoting diamonds, which is also telling. There are fewer established choices of gold companies for investment than during the bull market or spikes in the 80’s and 90’s. Supply and demand will eventually work through the numbers every time. This bodes well for ORIGSIX.
I hope you guys are finding lots of gold and thats why there hasnt been any new posts.
Good Luck, I enjoy reading about whats going on at the mine.
Congrats on the big find a while back I like the photo of it with the drill hole in it.Four fires started about 11:35 am on Saturday about twenty miles down the road from Alleghany near Mother Truckers store. Arson anyone? At 3:25 pm power in Alleghany went dead. Although none knew for sure, everyone suspected the power loss was connected to the fires. It was. Power was restored on Sunday about 5:30 pm. Pike, Camptonville, North San Juan also went dark. People get used to power outs during the winter but this was new. It was warm, down right hot. Fortunately, the moon shown bright and the village simmered with the faint glow of candles.
Sparks are flying outside the portal as the miners prepare the equipment necessary to open the Tightner Shaft for transport. Four miners worked outside today and four miners worked underground. The block of unmined vein material between the shaft and the Ballroom has honest potential. When the geology and past production records are reviewed, even a novice newcomer to high-grade gold mining will see the potential. Mining will concentrate near the recent pocket, but the improved via the Tightner access will open the large area up for serious inspection.
Mike sold the fresh cut slab to Orocal yesterday for $36,250. Some of the quartz is very heavy with gold, in fact too heavy to bring in top dollar. The top grade sells for $1,200 per ounce (quartz and gold weight). The demand is greater than what the Company can produce. Cash flow remains a concern of management. It is too soon to throw high-grade into a crusher and turn it into bullion at $400 per ounce.
The MSHA appeal is due August 23. It must be in the hands of the US Ninth Court of Appeals in San Francisco. MSHA is an agency undergoing some appropriate changes in its operation. Taxpayers pay these guys to protect miners and their industry. For almost a decade they were a prime deterrent to the well being of the miners and their profession. Perhaps a favorable court decision will redirect the agency’s interpretation of the laws of the land in a more productive light for all Americans. Time will tell. Also the decision by the Court will be revealing about itself and its understanding of the rights of American businesses.
High grade in the muck pile, always a good sign. Alleghany Days is underway.
Hey Scoop, we’re still excited about the last rock pop! Talk more rock, whether angular or roundy, we’re tuned in.
Two recent articles not yet on web: front page headline of Mountain Messemger August 5, 2004, “Miller, Sixteen to One File Amended CDAA Lawsuit”, and ICMJ’s Prospecting and Mining Journal, August 2004, “Mine President Seeks Opinions From Peers”. (www.icmj.com).
Company is advertising for administration assistance in Grass Valley paper. Amber left yesterday for Montana where she will marry and move to Nevada. Two young sons of Sixteen to One miners are being considered for training and employment underground. Both have the right attitude to contribute to the operation as it carefully rebuilds its workforce.
Because David and Mike are working to maximize the jewelry value of the last 1000 plus ounces of gold from the “Ballroom Stope”, revenue will be steady for four to six weeks. The manufacturers will be able to fill the back orders on their books. All parties dependent on their livelihood from the great Sixteen to One precious gemstones are relieved. No additional production is expected in August as the miners take care of “dead work”. Gold is currency and last months production could be immediately converted to cash by crushing the quartz. Cash flow remains something difficult to manage for the office, but not abnormally stressful with possibly a million dollars in safe places.
Miners are ‘rehabing’ the Tightner Shaft from the 800 foot level to the 1000 foot level. No work has been done in theis area since the fire in 1954.
CBS television from Sacramento has scheduled a visit to the mine tomorrow at 11am. Nothing like a little gold to perk up interest in the old operation.
The miners are working on projects that stood behind the mining for gold. Much of August will be surface and underground maintenance and new additions. Plans include a large air slusher for the Ballroom. It makes sense because when the electric air compressor comes on line to replace the diesel one, the mine will have more air than is required for the “as is” operation. Drilling is not as hard as moving the shot rock. This is where production slows down.
The office trailer down by the portal is getting some attention. It needs electrical power and some steps installed. The shop is also getting a face-lift. Parts that are unlikely to ever be used are being hauled off to increase the storage for the good stuff in demand.
This quote from a miner today at the Sixteen to One mine in Alleghany says it all. “If we hit another pocket this week, the company had better hire a psychiatrist.”
Ian, Joe and Reid took a couple of days rest away from the physical and mental quest to find the gold they believed was deposited near the ballroom. No one worked underground Friday, Monday or tomorrow. Britt and Farris replaced the 200-horse power electric motor in the air compressor today. Mike called the factory service reps to schedule a service call before the compressor fires up. Cost of operation is a consideration yet electric power is preferred over diesel. The draw back is the 1200 cfm electric compressor will produce much more air that the small crew requires.
KNCO radio in Grass Valley called about the recent strike. Mike talked to the reporter and asked for a copy of the interview when it is aired tomorrow. Maybe Rae knows how to add a vocal newscast to the web site. If so, you can hear the story along with me.
Extracting real high-grade ore, the kind that is measured in ounces per pound, is a sensitive process. Why?
Joe drilled a four-foot round in the vein above the lenses carrying the gold and shot it about noon today. Tomorrow the waste quartz can be slushed in order to lightly blast the ore with out diluting the gold with waste. The raise is about five feet wide. Gold is visible at the face and on both the left and right ribs couple of feet down the raise. These targets will be mined later. Estimates are difficult, but all the miners have experience and seem to like the process of the guessing game. Maybe they multiply their estimate by $400 per ounce and feel a sense of relief for living their dreams and beliefs.
Tomorrow should be a productive day for gold. Most agree that this pocket will exceed 1000 ounces. Company geologist inspected the heading today. When the mining is mapped and gold locations are identified, the picture will be informative for the present and future. One significant feature at the face is a definite ancient watercourse. Old time Alleghany miners related the importance of watercourses and gold but never explained why.
Sixteen to One miners know when to keep their mouths shut. Security is one issue but the Company is experienced in protecting its gold, whether in storage or at the face. When stock was listed and traded on the now defunct Pacific Stock Exchange, management wrestled with a good problem: when is a public release about production appropriate or necessary? Mike wants to keep his shareholders and the public informed but he doesn’t want to broadcast hype. He prefers hard numbers verses speculation.
Scoop readers know that the miners believe in the ballroom headings. Their active mining area looked like the right place to find Mister Pocket. That’s why they show up and turn on the air compressor each morning.
Now the way things have been these guys would be smiling over a fifty-ounce day. Work has been difficult. Emotions have been stretched: hard work, high hopes and little gold. How long can the miner say, “It could be the next round?” Bills still arrive; the wife swears at the mine; the muscles are sore and a cold beer never tastes better.
Well, last Thursday production was estimated at thirty ounces, but the face looked great. Spirits were definitely high after work and everyone held onto the dream. What will tomorrow bring? Joe’s drill actually stopped. David and Mike panned Thursday’s drill cuttings and confirmed the presence of “cornflakes”. Everyone knew that Joe drilled into solid gold! It takes a heavy concentration to stop a drill bit under 100 psi. There were no reasons for sealed lips in Alleghany. Excitement was high at Caree’s bar with no need for concealment.
Friday after work was different. The crew dragged in with 350 pounds of high-grade ore. It was the heavy arseno type but the quartz was the whitest in a long time. The jewelers will be pleased. It was a good payday for everyone, but something else was in everyone’s minds, the indicators suggested that the pocket was growing. (For those of you unfamiliar with the Sixteen to One vein system, when a pocket is encountered its size and direction of concentration are not easily determined. It is like entering the tail of a comet.) Word spread that the Sixteen to One hit and was confirmed by the miners. No one was hiding that fact, but how big will it be remained a secret to keep.
Production expectations for Monday were to equal or exceed the estimated 400 ounces on Friday. It did not happen but the crew is still smiling. It is not time for a press release, but it is time to let our friends know. The best is yet to come.
Steady progress in developing the block of ground called the ‘kitchen’ raise. A little gold is the best geologic indicator and is the reason the crew remains mining this area. This area is below the 83,000-ounce pocket, to the north of the “million dollar day “ mined in 1993, and above the rich two million dollar week in 1995. Confidence remains high.
The 200-horse power electric motor is in the shop to be rewound and refitted with new bearings. Cost estimate is $4,000. It will be ready by Friday next week. When the mine harnesses its waterpower to convert it into electric energy, it will be a major milestone of accomplishment. Right now the crew is slushing two headings with air driven slushers. An electric slusher makes a world of difference in production. Right now the air is produced from a diesel compressor. Placing the electric compressor back on line saves labor but is more expensive to operate.
Mike has 50 ounces of pretty good slab to sell next week . So far, David has not filleted the quartz and gold golden trout. This carving has more lives than a cat. Gold sales ordered a new grinder, which will be shipped from Barstow, California next Tuesday. It cost $2,900 plus tax and shipping.
Outside weather continues to defy any criticisms. It is beautiful and invigorating. Underground remains the same. The crew has drilled two rounds per shift this week. Reid got himself twisted; well the drill sort of swung him around when the bit penetrated into a vug or some space or different material. He didn’t get hurt, but his curiosity about what he hit is high. Miners like sudden changes in their heading, especially when the drill cuttings turn yellow. Cornflakes, that is what the miner likes to see. Joe took some time this week to give the equipment some heavy service. Britt has removed the 150 horsepower motor from the broken electric air compressor. Mike will take it to be repaired on his next trip to town. Ian conducted an inspection with the Cal OSHA mine inspector with good results. Rae and Amber are closing out the accounting records for the second quarter. David has been busy with phone orders. He placed an ad in the International (California) Mining Journal, which has been running for three months. The next issue of the magazine may contain a story about the MSHA appeal in the US Court of Appeals for the Ninth District. Mike is off to Oroville to sell slab. Later in the day he meets with a team of lawyers who have expressed an interest in the action against you know who.
Happy Independence Day
Wealth is a contributor to freedom and freedom plays a significant role in independence. Gold is society’s most noted storage of wealth as recorded over an historical 6000 years. Shareholders will be pleased to know that a short crew (5) worked today and moved the company five shifts closer to Mister Pocket. The Sixteen to One poses no question about holding pockets of unmined gold. No geologist or learned student of the Alleghany Mining District doubts this as fact. Scoop stays intrigued with this mine because the question of its success is not “if”. The question is “when”.
Rae was organizing after the shareholder day sales. Receipts were $13,560. If Mike, David or Rae read this, take some pictures of the new T-shirt and put them on the web page so people can check them out! Oops, reporters are supposed to report facts and avoid opinions.
Shareholders Day…June 26, 2004…Alleghany, California
The weather was perfect. Not too hot; deep blue sky, and the trees in the forest surrounding the landing at the mine where the meeting took place drew many comments about their healthy appearance. No bugs. No noise, just the peace of the mountains.
Two yellow tents were erected, one for the gold collection and company specimens and the other for the mess hall. Bales of straw were placed around as benches. A large canopy was tied to the old office buildings, a couple of stakes in the ground and to the hillside. Over one hundred chairs were placed facing a single microphone stand. A large map of the Sixteen to One mine hung as a backdrop.
The Saturday crew wore the newest T-shirt. It was lime green which clearly told the 200 plus people whom to see if they needed help. Many former employees showed up to help manage the event along with the current contract miners and employees. After the meeting, which ran about an hour and twenty minutes, the shareholders and their guests had the option to inspect the underground workings. Miners were spaced in strategic locations and offered information about the mine. The gold sales tent had four and sometimes five people helping with sales or just answering questions about the gold and quartz inventory. Many bought the newest shirt in two styles and five colors but with the same print …Mister Pocket meets sweet Sixteen while dancing before a full moon.
The meeting began about 10:35am with an offer by Michael Miller to address questions that he did not plan to cover under old business or new business. About 11am when the seats filled and the rear tent was also crowded with people, he called the formal meeting to order. About nine million of the twelve million shares were submitted, constituting a quorum. A copy of last year’s meeting was available for review. Mike asked four, no five people to speak before the crowd: Charles Brown, past director who flew in from Denver for the meeting, Ray Wittkopp, resident geologist and one of the planners of the proposed new shaft into the northern strike of the Sixteen to One vein, Scott Robertson, director and treasures, Rae Bell Arbogast, secretary and George Gilmour, attorney representing the corporation in its prosecution of Filter et al.
After the meeting Mike said, “It was the most attentive gathering of shareholders I have seen since the serious take over meeting held in Sacramento in 1983. I could see their faces and look into their eyes. They were paying attention and wanted more information even when I was ready to cut them loose. It was a great meeting to witness.”
The event broke up about 4:30pm. Many went into town to see the drill collection at the Underground Gold Miners Museum. A small crew packed up the gold, gathered the trash so the bears stayed away, broke down the PA system and saved the remaining pasties and other food and headed to the office. (Scoop spotted them sucking down a couple of beers to end a perfect day).
It appears to us that the learned trial Judge has failed to consider the total effect of the facts relied on by the prosecution, in such manner as was required in a case of circumstantial evidence, and that he has been led into committing this error by acceding to the application to go into the matter before the close of the case for the prosecution.
Page 161
Last week was just another productive yet uneventful period of operation. Maintenance, organizing the mine site for shareholders’ day, gold teasing in the “kitchen” raise and paperwork were some of the activities.. This weekend the Clampers come to town. The museum has several underground tours scheduled. About 100 have pre registered for the June 26, annual shareholder meeting. Rae ordered 200 pasties and 360 drinks for the day.
The past week of mining was 80% maintenance, up from about 20% for the past month. Gold production remained spotty from the “kitchen” area. The slusher cable is creatively rigged to drag the broken rock down the raise. In the process a great deal of tension is placed on the cable, causing it to break. Mike was in Oroville selling slab yesterday and bought 500 feet of 3/8” airplane cable to replace the smaller diameter. The strength increases from about 7000 pounds to about 14,000 pounds. Should eliminate the problem.
The CAT 910 wheel loader has been tagged out for emergency brakes. New pads were installed yesterday. Looks like the old machine needs new U joints, which will arrive tomorrow. The Company is looking for a Cat 966 C loader. It does not have to be pretty, just pass all safety standards.
With all the action in the office Rae and Amber took turns with a 24-hour sickness. A lot of work got done with the annual report, shareholder data, Superior Court hearing, and preparation for the appeal to the US Court of Appeals, Ninth Circuit. The two office cats continue to do their job without complaints. No mice have been spotted in the building for some time.
Had off and on rain this week. This is typical springtime in Alleghany. Rain this time of year is our friend even though it feeds the underbrush. The community is abuzz with fire prevention activities all over town. Last year’s fire is a reminder of the towns vulnerability. All in all it was a good week and next week looks even brighter.
Expecting ninety-degree weather today. MSHA inspectors (2) arrived yesterday for the quarterly examination of the mine. Should finish today. An untested fire extinguisher was picked up inadvertently and placed in service, so the mine can expect a citation. The crew is doing maintenance that occurs each year when winter turns into spring. MSHA comes unannounced (the element of surprise) and gets to see a mine operation at work. There will always be some project or some situation that will appear to violate a regulation; however MSHA management has placed a zero tolerance approach to safety on its field inspectors. They have been intimated to make sound judgment decisions for fear of criticism even though four findings must exist in order to write a ticket. Oh, well, it likely will not improve until their insanity is day-lighted.
The print shop left out two pages of the annual report and may not have it ready for mailing until tomorrow. The office crew has the proxy forms ready to go and the envelopes are all addressed.
Air compressor moved up the hill away from the lower shop and near the fuel tank. A great improvement. The 800 level maintenance on the trail to the ballroom should be finished this week.
Yesterday’s broad signal in the face of the raise remains a mystery. Gold mining mysteries occur more often in a high-grade gold mine than in the large open pit disseminated gold deposits. Maybe the reflective signal bounced off a Tommy knocker. The Sixteen has always been a roller coaster ride for everyone…owners and miners especially. Reminds Scoop of a song, “Dark as a dungeon
Damp as the dew.
Danger is plentiful.
Pleasures are few.
Where the rain never falls…and the sun never shines….it’s dark as a Dungeon way down in the mine.”Scoop unlatched the lock at the portal after the crew left and personally examined the heading. Every indicator identified by geologists Ferguson, Gannett, Cooke and Wittkopp as favorable for gold are visible in the vein, muck and wall rock. Reid and Jay will put in another round today and tomorrow and after that until the mining phrase ‘deep enough’ is invoked and they move on the greener pastures. So it goes in the pursuit of Mister Pocket at the Sixteen to One mine.
The annual report is off to the printers today. Mailing was set back because of a delay in getting the NOBO (non objecting beneficial owner) list from the proxy company in New York. NOBO’s receive a report, as do those shareholders who hold title in their own name. Another type of shareholder is the OBO (objecting beneficial owner). These shareholders remain anonymous and do not receive a report from the company. The proxy company votes their shares. SOR’s (shareholders of record) have the most direct link to the Company.
YES!!!!!!!!!!!! Go for it guys—-Could be one hell of a celebratory annual meeting! Everyone keep your fingers crossed and say your prayers!
The kitchen crew identified a two-foot wide signal at the face with no visible gold showing yesterday. These are very positive indicators of a significant concentration of gold. Whether this is an isolated cluster or the beginning of an encounter with Mr. Pocket remains to be seen. This signal excites the crew and is one reason everyone shows up for work. You followers of the mine deserve to share the anticipation with the crew in Alleghany. We will know the answer late today or tomorrow. Maybe , just maybe ……
Reid’s heading continues to kick out pieces of quartz with gold. He will break through his second raise in one more round into the 1100-foot level. He plans to fall back and wing to the left below the pay shoot next week. Mark Loving, the former mine foreman when Ian Haley was superintendent, returned. He has installed some steel sets on the 800- foot level near the Ballroom trail. Mark set a Company record for footage , when he advanced a raise 22 feet during one shift. He is March in the 1992 photo essay, if any of you have one.
Ian and Joe are in the middle of relocating the air compressor and fuel tanks near the portal. Trucking diesel everyday got to be a chore. Andy and Charlie are doing maintenance but got a couple of slab rounds in on MD signals. These guys really could use a pocket about now. They deserve it. Are you helping with the miners prayer?
The office crew seems to be especially busy. It is always demanding during the days before the annual shareholder meeting (June 26 in Alleghany). Mike went to the Brown Bear the beginning of the week. He relieved the caretaker for “indiscretions” and authorized Jack to assume caretaker duties. Real estate prices have sharply risen from two years ago.
Did you see the newspaper article about the CDAA lawyer looking for an out? It’s on the web site. Scoop thinks that CDAA lawyers will pay the price for breaking the law. Scoop will be at the hearing on May 28, 2004, in Downieville. Maybe the LA Times will cover the lawsuit since they gave front-page space to the criminal proceedings.
It is raining in Alleghany. That is good news, so let’s end on that note.
There is some really strong glue that holds the Sixteen To One together. It must have also been true years ago, say after WWII, when political decisions destroyed the gold mining industry in the United States, maybe even in the world. Why? Anyone who has seen felt and pondered about the gold veins running through this rich high-grade district are affected in some way. It could be the excitement of day lighting the gold, displaying it to humanity or it could be from knowing how important an asset it is during extreme periods. The glue can be ones recognition of just how great these groups of owners past and present reflect the American virtues. There are many and today this band perseveres, for reasons as personal as in the past. They are also growing in number.
As a reporter, Scoop is expected to dig into the subject and report what is found no matter with out opinions. Beliefs belong in reporting but place an extra intellectual demand upon those listening. Scoop likes this simple arrangement but occasionally editorializes. The strong glue of OAU includes those of you who stick with this venue of communication, the Internet. But you are on the edge, unless you mine or own share of OAU.
The shareholder meeting this year will again place the future before the owners (June 26). Scoop only offers a chronology of events in Alleghany not futuristic predictions or directions. So much goes on every shift with the company that a forward analysis is best presented to the owners before they appear on the Internet.
The gold of the Sixteen to One qualifies as one of the glues. The mineral deposit will not likely change. Gold binds this company like no other. The gold alone may not be adequate to hold the corporation together. Another glue is all the people who associate with the company. Without the ones I see and interview regularly and you other guys and gals, this California gold epic would come to a close, again.
In 1965, Original Sixteen To One Mine, Inc was the last underground operator in the West. The Sixteen to One mine, which it owned was left to flood. It was the end of 100 years of hard rock mining. These owners held out for politics to leave gold to free itself from uneconomical control. It was the glue of the owners to protect their asset. It worked and rewards again flowed into their hands.
Today water continues to threaten the mine. It always will and then becomes no longer a threat but a necessity to address. Today the political climate also threatens the mine. It ebbs and flows. It always has and always will. Physically the Alleghany Mining District mines are set. People are the greatest current influence in just what the area will look like in the future.
Rick and Jeremy attacked the ore piles on the landing today. They recovered 35 pieces of gold and quartz and 65 blasting caps. They work again tomorrow. Ian spread the piles. It is a two-day operation whose objective is to get quality slab material for the jewelry manufactures. Reid holed through the “kitchen raise’ yesterday and dropped down to follow the gold signals. Charlie explored with the company’s new gold detector, which arrived yesterday. Joe has been covering the surface demands as well as donating his time along with Jay and Mike to remove iron from the streets of Alleghany. They plan a car auction with the proceeds going to a summer feast and musical program. David has sawed up some remarkable stones and completed a record April gold sales. Rae opened the museum with a May 5 visit from a Grass Valley high school class. She and some volunteers performed wonders the past ten days with the museum and the drill collection.
The unexpected sight today was Dan O’Neill on top of the ore pile with a pick and metal detector in his hands. He scored two pieces of high-grade on his first effort.
Rehabilitation of the 49 winze continued this week. Production was minimal, but the targets still look promising.
Mike is busy getting things lined up for the Empire Mine Adit Project.
Rae is still trying to make time to get the museum presentable for the season.
Cool nights and warm days in Alleghany. A burn pile near Downieville got out of control on Monday, if we don’t get more rain it could be an early fire season.The Board of Directors met on Friday. After an underground inspection of the mine, the members moved to the Rainbow mine to conclude the meeting. The shareholders list will be closed on May 1, 2004, for qualification to vote at the upcoming shareholder meeting on June 26.
Both headings produced gold towards the end of the week. The signal above the Ballroom production was about $10,000. Unfortunately it is not the type of gold suitable for slabbing and will be crushed and poured into bars. The “Kitchen” heading is another story. After just two rounds the lead miner, Reid Miller, found high-grade in the muck. The crew became very excited because this is a large area within a favorable history of gold concentration. Who knows, that is the Sixteen To One! Who knows?
The office is compiling a master list of companies, which should have an interest in the doings of the California’s last hard rock mining operation. The consensus is that not enough people are aware of the opportunity for making money via the corporation, its assets and its associates. Too few people and even fewer understand how to interpret the solid facts surrounding the Alleghany Mining District and the die-hards who continue to believe in its future.
Life looks pretty good around the Company. Everyone is more upbeat than Scoop can remember. Round in…round out. The gold is not gone. You just have to find it and you will not find it by wishing.
Dead work or maintenance, whatever you call it, there comes a time when it preempts looking for gold. The ‘49’ winze is the main artery of the mine. It was an old raise that was extended and improved in 1984-85-86 by our lessee, Kanaka Creek Joint Venture. It provides the miners with a primary exit, hoisting capabilities to the lower levels and utility services for air, electricity and water. While it is regularly checked and repaired, it became necessary to hit it harder with some new timber, rock bolts and steel sets. Part of the crew will dedicate two weeks towards this effort.
The kitchen raise crew is drilling six-foot rounds. If rock does not break, do not expect to find gold. The other production crew is slushing what they thought was a drift above the fishpond. It turns out to be an old timer’s raise. Confidence remains high that both crews are working in an area with great prospects.
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