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Much needed rain fell last night. No snow on the ground. Temperature is about 42 degrees. One more day of preparation in the “kitchen raise”. Utilities are completed and a powerful slusher is installed. Crew will drill first round today or tomorrow. The “no-dog-raise” is set to go. Its crew moved to and drilled a signal above the fish pond on the trail to the ballroom yesterday. They will drill again today but not on Friday (we do not leave shot rock with gold over a week end). We do not expect much here but the jewelers need slab, and we aim to please them.
Mike is working out a new agreement with PG&E. March bill was over $7,000, mostly from pumping. It is costing us to keep the lower levels from flooding; however the rational supports the decision. Besides the equipment that would be damaged, there are some very good areas of known ore. It is too costly to go after them now.
Rae has taken time this week to whip the museum into shape for its opening in May.
The week ended on a positive note for all the Sixteen to One crew. Andy and Charlie slushed recently shot- rock and some rock probably mined fifty years ago as they set up their heading for next week: raising. Andy found a soft ball size chunk of quartz and gold that weighed 38 ounces (15 oz fine au. Estimate). The rest of the crew installed two slushers. Joe and Reid will also begin a raise next week. Two raises running in a hot large block of quartz makes everyone‘s outlook positive.
The Paradise Gem and Mineral Society is having its 50th annual event this weekend at the Veterans Memorial Hall. David and Rae are taking some of the company’s specimens to display. They also will have a booth, selling jewelry, slab and small specimens. Oh, they also have T-shirts and hats. David hopes to net enough to buy a new four-wheel polisher (about $2,000). Stop by. Paradise is east of Chico. There are many enthusiasts living in the area, so the show should have a wide selection of minerals.
Director Emeritus Dick Sorlien stopped by for a visit. Dick lives in Philadelphia and has the Alaska Mine a few miles down the ridge from Alleghany. He will be 82 in June, still plays tennis and recently had eye treatment to eliminate the need for glasses, which he has worn since childhood. Dick played a key role in the growth of the company while he served as a director and was awarded a gold plated hard hat when he retired. In Australia a gold plated hard hat represents a very high honor of service in the mining industry.
Bill Walker (water guru) and Rae installed a new facet to the unit that cuts the arsenic out of the drainage water. It is another “secret” process the company has perfected over the years to handle its water discharge for 2005.
Mike and Rae reviewed the cash flow and bills. They wrote over $5,000for property taxes due April 12, $8,750 to PG&E as well as maintained the beginning of the month regular payments. The money is mostly from slab sales, but David has been busy filling requests for specimens and cabochons. Still mining after 108 years!
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The week ended with gold production from the Ballroom heading yesterday and today. It was the heavy sulfide gold. All the miners will be working several headings in this location for several months. Mike bought new slusher cable in Oroville for the crew. Moving the shot rock requires two slushes. About half a mile of phone wire was laid from the office in Alleghany to connect with the internal mine communication system. This will allow direct contact, which makes us all feel safer. Tomorrow is a volunteer day at the museum. The drive from highway 49 to Alleghany is spectacular with all the evidences of spring. Join us if you need a reason to have an adventure.
CORRECTION from Last Entry.
The lawyer representing the CDAA group of rascals is Calvin Clement or Clements from the firm of Knox, Lemmon and Anapolski in Sacramento.
Last week of mining was mostly one of maintenance. Timber support was replaced on the 800 level, the 1300 level and the 1500 level going south towards the pump sump. This work required four miners all week and two miners for two shifts. A small amount of gold was found in the ballroom area. The crew slushed for two days and drilled and shot three rounds. The vein has some good-looking characteristics: evidence of an old watercourse, mineralized footwall, multiple quartz lenses, mariposite and crystal pockets. For those reasons and the recent production of gold above, below and to the south side of the heading, the crew will continue to break rock there next week.
Proof of service was returned in the offensive suit the Company has launched against four lawyers and their employer (California District Attorney Association). Their lawyer, Mister Kirk Clements in Sacramento asked for a week extra time to respond, which was graciously given. Damages to the shareholders are estimated at $24 million or $2.00 per share or 60,000 ounces of gold.
David in gold sales is considering filleting the golden trout carving, turning it into jewelry slab. The trout is valued at $75,000 but will not yield that much money in slab. No one is particularly happy about sawing into the fish. Mike has considered a compromise, sawing the base and keeping as much of the sculpture as possible. He said the golden eagle and bear are not to be cut up no matter what. Time will tell as short cash flows threaten the operation. Anyone want to buy a one-of-a-kind fish?
The company has set aside the funds to install a passive water filtration system to eliminate or reduce the low levels of arsenic in surface water. The new requirement is proposed to become effective in year 2005. The company has monitored stream and other water flows almost twenty years. The ranges of temperature, conductivity, acidity, flow and mineral content are well documented. Arsenic, a naturally occurring element in the regional waterways is now measured in parts per billion.
“While there is no evidence of biological harm, in Kanaka Creek above or below the mine property, the company elected to install the plant,” reported Michael M. Miler, president. “Our crew works well with the physical sciences and natural laws of the environment,” he said. “For several years the social sciences have preempted the bureaucratic thought process. It has become necessary to abandon sound reasoning to effectively function in the current Californian regulatory climate. We have asked the bureaucrats to work with us to develop solutions to real or perceived issues. Their cooperation has been slow in coming.”
Miller said now that gold is an attractive investment; savvy investors are looking for ways to participate. “Even though we are unsure whether the proposed standards will be finalized in 2005, by installing the filtration system now, it should eliminate any concerns serious investors in our new shaft sinking plans may have about water issues and compliance.”The weather has been unseasonably warm in Alleghany. The plum tree in front of the office is in full bloom. We all know more snow will fall before spring really sets in. In the meantime we are enjoying the break from snow.
Locally the big news is the threatened closure of Pliocene Ridge School our local k-12 school located in Pike. It serves the communities of Alleghany and Pike primarily, with kids from other outlying communities attending as well. In 1983 when the school was relocated from Alleghany to Pike nobody in their wildest dreams thought the population would shrink. When the school was in Alleghany there were about 60 kids in grades K-12 now there are 48 including the kids from out of the area. Because the school district needs to cut expenses they are seriously considering closing our school. It would only take about 15 more students to make the school viable.
Casey’s Place is having a Mexican Dinner on Saturday March 20th with music from Spain. (a Flamenco guitarist)Happy Hour starts at 5pm dinner at 6pm. Call to make reservations 530-287-9809.An OSHA inspector visited the mine today. He will be back to finish his inspection next week.
Two crew members undertook the task of “drill doctor” and repaired five drills. Still have some legs to repair in anticipation of more activity in the ballroom headings.
Several metal detectors were shipped to both White’s Electronics and Fisher Research Laboratory for repairs. They take quite a beating underground.
Nice weather in Alleghany. The snow is melting fast.Heavy snow throughout the day in Alleghany. Miners are processing February’s high-grade ore. Total weight was about 400 pounds of sacked gold bearing quartz not suited for jewelry application. Bars will be poured and shipped to the refinery for separation into pure gold and pure silver.
Crew slushed two rounds in Ballroom heading. The 1500 level is still active because of visible gold showing in each round. Maybe gold won’t wire up. Then again, maybe it will.
Ordered three rebuilt gold detectors from the manufacturer today. Mike talked to them about improvements and a possible joint promotion campaign. Hundreds of detectors were sold in 1992, when the first campaign took place.
Company received its second serious inquiry about the Private Placement investment offer in Houston. Scoop can’t figure out why seekers of wealth and security are so bashfull when it comes to gold and real hard assets like the Sixteen to One. Mel Gibson hit a good pocket last week, so did the Lord of the Rings participants. Gold is the foundation of it all.A large order of explosives, blasting caps and det-cord was delivered to the mine this week. The miners were happy, as they inventoried the supplies, which should last for four months. Years ago explosives were an insignificant cost of mining compared with labor and other supplies. This is not true today. People involved with the manufacturing, storage and delivering of explosives credit paper work as a significant factor in the cost increases.
The 1500-foot level in the most southern part of the mine yielded about three hundred pounds of high- grade ore (using industry standards for high-grade). Gold sales, however was unable to cut any of the material into jewelry products.
Check the NEWS for the story about calling out the evil CDAA lawyers’ behavior. The Company has stated in the past that shareholders suffered $24,000,000 in damages. Scoop will get a copy of the complaint for your reading. Four CDAA employees (lawyers) were personally named along with the non-profit corporation.There has been a lot of activity at the company office lately. Cars and trucks are coming and going, but Scoop is in the dark regarding the activity. It’s something other than gold. Miners were seen each day this week depositing high- grade sacks, but that’s not the source of the activity. It is something else. Not a big gold strike. Maybe the newspaper will dig up the story next week. I failed to find it from my sources.
Miners sacked one bag of high-grade ore from the 1500-foot level in the most southern part of the mine. Strong signals remain in three places in the raise. The water supply for the drills quit. Installing a new pump to provide water in this remote location solved the problem. Two miners are working the heading and should get a round in each day the rest of this week.
The company received a new head for its most proven metal detector, thanks to the generosity of a shareholder and active supporter of the mine. C. Johnson, who runs the detector each day, found three signals in areas that were examined previously with the device. The new head has a greater depth penetration than any of the other heads. An even small advance in technology means an increase in gold and money. This is the main reason the company has not back filled waste rock into the old workings. With about 29 miles of tunnels and millions of cubic feet of quartz exposure, a gold mine of prospects awaits each improvement in the gold detection technology.
A 58-horse power pump failed last week, which completely stopped the removal of water from the mine. Rae got on the phone and ordered a replacement. It arrived yesterday and was installed today. No damage was done to the electrical transformers and the system is back on line. It was a $10,000 loss.
Mike returned safely from the North American Prospector Expo in Houston, along with the Whopper. He promises to share his experiences on the Forum as soon as possible.Our server is having trouble with the “my doom” virus and as a result we are having trouble recieving e-mails. Hopefully this will be resolved soon. If you send an e-mail and don’t hear back you may want to try later.
Nasty weather in Alleghany. It has been alternating between rain and snow for two days now. The school bus had to chain up this morning to make it into town.
To answer “wild wests” question about links. Yes it is ok to post links on the forum. Thing is they don’t work. That is something our site administrator will have to look at.
Good point about GFX, his site will be added to our “links” page!
A small amount of gold continues to trickle in from the mine.
The Alleghany Volunteer Fire Department is working with the Sierra County Fire Safe council to get funding for a defensible fuel break around the town. We all know that could mean the difference between saving or losing the town in the event of a Forest Fire.
Of the eleven people working at the mine, seven live in the mining village named Alleghany. The historic explanation of how the camp got its name is that a prospector from Allegheny, Pennsylvania suggested the name and chose to change the spelling (Alleghany). The village housed surface prospectors, early underground drift miners working the buried “dead rivers” and the underground hard rock miners. It grew, burned, was rebuild, burned down, rebuilt and during several slumps in gold mining was home to social outcasts and, according to a professional geologist’s report, old men hiding out from the law. It may be the only community left in California with a gold mining based economy. Early California publications state there were over 20,000 mines in the State. Many and maybe most have been paved over as the population expanded, unchecked into the Sierra Nevada Mountains. ORIGSIX ‘s existence and its operation have protected the untapped mineral wealth from the developers’ exploitation, something that cannot be said in most of the Californian gold belt. The Company owns adequate land for the development of housing and the support infrastructure to grow. Surprisingly, the main road to Alleghany was not paved until the mid 1960’s. Much of the old waste dump from the mine was sold as road base. Hmmm, before metal detectors!
The miners look forward to next week. Nothing around Alleghany creates more positive excitement than sacking gold. Caution, however, because it is not on any time schedule. What did Will Rogers say, “It is much harder prospecting for gold than it is for spinach.”
GOOD NEWS IS AWAYS THE BEST KIND TO RECEIVE. CONGRATS NOW GO GET THAT GOLD !!!
The news release sent to regional newspapers is available under NEWS. The Union is sending its business reporter to the mine on Friday for details.
Scoop overheard Mike’s side of the phone conversation with PGE. He mentioned the Company’s long and successful relationship and said that gold mining in California could create new customers for electricity over the coming years. This may not have been a selling point because of the power shortage in the State. After hanging up the phone, little tears of joy appeared in the corners of Mike’s eyes. One of several burdens hindering gold production melted away.The Company ordered 2000 gallons of diesel to be delivered Friday. The weather remains warm and sunny during the day but a storm front is predicted Friday night. One reason the Sixteen to One mine continued operated as the longest gold producer west of the Missouri River and prospered was its ability to stock up on supplies before the heavy snows.
The crew is advancing three headings. Miners got four rounds in today, one in the Ballroom area , two in the Ray-rock raise and one splitting a pillar off the 1500 level-south.
Yahoo!
Gold production for the week is estimated at 150 ounces or $63,000 at the spot bullion price. The exact amount is difficult to determine because the quartz is heavily veined with auriferous arsenopyrite. Similar looking ore has yielded .75 to 1 ounces of gold per pound. David continues to cut any rocks that may produce our jewelry slab. The heading is the one up dip from the Ballroom and the miners will continue to drill and blast next week.
The Sacramento valley and the foothills to an elevation of 3,000 feet had low clouds or fog all day today. Alleghany had full sunshine from 7am with temperatures hitting 60 degrees. Joe and Mike used the day for completing some surface work at the mine portal. The diesel air compressor was moved from the distant upper landing to the portal. This will allow the miners to shut the machine off before the end of the shift, turn it on only when actually needed and save the Company $$$$$. They also moved a portable trailer closer to the portal. It will be used for many of the things the old offices were used for and will also save the miners down time. Being hard up for money has its advantages. Even when you think you have squeezed the operation to the max, a good team will find some minutes to shave or a couple of bucks of waste.
The picture on the home page was taken yesterday.
Happy miners from the Sixteen to One mine were seen at the local pub yesterday. Even though they were talking among themselves, it was apparent they were on the trail of gold in two headings. Times have been lean, so maybe it will be chunks not crumbs. Expect a rough tally and report on Friday
The Board of Directors met today at Grass Valley, California. The Board ratified the conversion of $65,000 of accounts payable into shares at $.72 per share and $1.00 per share. Revenue from processing mill concentrates was fixed at London pm closing ($421.00) per ounce and will be booked when received on January 16, 2004. Money will be spread among accounts payable on a pro rata basis. Management has prepared two short-term mining plans, focusing on gold production.
Yesterday, the crew fought tough surface conditions due to snow build up and later rain, not as bad as the Pacific North West, however. A State licensed inspector tested all of the air pressure tanks in use at the mine. He and Ian were stuck and dug their way out. On Tuesday the independent SEC licensed auditors tested the accuracy of the gold inventory and the company’s record keeping. All was in order. Pumps are working and the water level is mid point between the 2400 level and 2200 level in the 49 winze. A high priority is replacing the two and four inch discharge line with six-inch diameter pipe. This will substantially increase the amount of water discharged and lower the electrical usage.
New Year’s Eve in Alleghany was a blast. Casey’s Place had a band and Ernie Locatelli brought his $40 box of fireworks that he bought in July and we lined them up down main street and lit them at midnight. The snow was coming down hard. We got a good three feet.
Rae and David are ready for the auditor’s observation of inventory tomorrow. Everything has been counted and yes, a few things re-counted. The majority of the material is quartz and gold so in order to get the gold content it has to be weighed both wet and dry and then the gold content calculated. We use the London fix gold price on the last day of the quarter to value the inventory. On December 31st it was $417.25 up from $388 at the end of the third quarter. Today the London fix is $420.60.
Rae was notified by telephone on Friday that she recieved a small scholarship which she applied for to attend an all-day workshop at Chico State on maintaining paper archives (including photographs) for museums. A museum newsletter will be going out this month. Use the “feedback” form to send us your mailing address if you would like to be added to the museum mailing list.
The new museum web-page can be viewed by clicking on the “museum” link just below “mine tours” on this page.Whoops!!!
I post an entry just when Scoop’s got big news….
Below
RESULTS FROM THE PROCESSING OF MILL CONCENTRATES:
Two truckloads transported from Alleghany to Barrick in Carlin Nevada.
First load: Gross weight = 45,360 pounds; dry weight = 20.9 tons; moisture content = 7.9%.
Second load: Gross weight = 52,000 pounds; dry weight = 23.5 tons; moisture content = 9.8%.
Total Gross weight = 48.7 tons; total dry weight = 44.3 tons.Triple screen assay at 150 mesh: first load 64.479 ounces fine au per ton; second load 74.363 ounces fine au per ton. This procedure screens out course free gold in order to smooth the “nuggeting” effect.
Gold content first load averaged at 6.585 ounces per ton. Gold content second load averaged at 5.694 ounces per ton. Total recovered gold = 271.085 ounces fine. Overall assay was 6.114 ounces per ton of concentrates.
Scoop appreciates your interest and comments. Mike and four of the miners holed up for four hours today making plans for next week. It looks like the underground crew will increase with two more contract miners, both with solid experience. It isn’t time to abandond the Ballroom heading, so rock will fly there another ten days. The new heading will be in the vicinity of the old second exit in the southern part of the mine. There will be about six to eight days of dead work before the crew can expect to recover any gold. Some good backs exist just above a 5,000 ounce stope. For some reason this group will not quit. Maybe they believe in what they are doing.
As I drove into the corporate office this afternoon, I saw both company trucks wedged into the snow build-up in the parking lot. County snowplows were held back, hoping to save money and it was beautifully messy as snow can be. Ridge Road from Pike to Alleghany was covered with snow and tricky yet passable. It was before noon; so, what were Mike and Ian doing together in the office?
While Ian was able to drive to the portal, he had problems driving out without Joe’s help on the loader. A decision was made to not go underground for safety reasons. For anyone unfamiliar with the underground workings of the Sixteen to One, the weather outside makes little difference to the safety of the miners or their efficiency. Forgoing mining that day was in case of injury and unable to get off the mine property quickly.
I stood and listened to a conversation between Ian and Mike, who were studying and updating a detailed map of the mine. They were identifying gold targets and development options. Plenty exist within a three to six month expectation of reaching gold. How much gold, at what costs and probability of success seemed to be the key considerations. The Sixteen to One vein is really a complex system of quartz intrusions. Even after 100 years of mining gold, these guys can discuss options for 100 ounce to 100,000 ounce pockets. It looks to this writer like following a trail of breadcrumbs.
Rae had the 18 karat white gold and quartz and diamond inlayed jewelry spread out for inventory, a beautiful sight. The Sixteen to One white gold is a special cast created to compliment the “Imperial Gold” which was mined two years ago.
Missee and Dore, the two office cats, hung out by the coats. Missee spent the weekend shut in Rae’s office behind a closed door (no food no water no heat and no litter box). This posting is submitted as a thank you to YOU who gave Scoop feed back, especially the e-mail saying even daily trivial topics were appreciated.No miners working yesterday or today. The Company is finalizing the gold specimen inventory for its year end physical audit and executing any other financial matters to close out 2003. Alleghany is covered with a blanket of fresh snow and all is well.
The miners processed 100 pounds of high-grade remainders today in order to clean up the gold inventory for the year-end accounting. While seven ounces of Dore won’t reduce much debt, it verifies something long known by people familiar with the mine. The grade of ore is something that few if any mines in the world duplicate. Most gold miners today never even see any gold. Since gold is measured in ounces per ton, the crush represents 110 ounce of gold (.9999 fine au) per ton ore. Few professional geologists, engineers or others with careers in the gold business can relate to the richness of gold deposition found in the Alleghany Mining District. Scoop has talked with many analysts during his reporting days. None has ever understood the explosive nature of a mine like the Sixteen to One and that is unlikely to change with the latest group of gold gurus. With values such as the crush today, it is no wonder that the crew and owners of this mine keep the air compressor running and the pumps pumping. Hope is based upon faith. Faith is based upon knowledge and experience. Their belief is that more gold remains underground than has been recovered, and they have the collective desire and ability to find it.
Because the pour yield was so small, the company decided to offer it to anyone looking for some gold to own at the bullion spot price. For details call the office and speak to Rae. (530) 287-3223.
Alleghany Volunteer Fire Department hosted an AWARDS potluck dinner this evening beginning at 6pm. All the trucks were parked outside to make room for the packed event. Chief Bob Hale, miner at the Sixteen to One, complimented many in attendance for their support. He was presented with a quartz and gold money clip that was made for the company by a North San Juan goldsmith, who recently died unexpectedly two months ago. Bob and the goldsmith, Rick Boone were long time friends.
The Alleghany rolling stock ranges from trucks built in 1970, 1975, and the newest rig built in 1978. The all-volunteer fire department received a special recognition award presented at the Downieville fireman’s dinner last Wednesday for effort, preparedness and eventual success in stopping the fire last September from burning the town and unknown acres of the Tahoe National Forest.
At the end of the ceremony what held everyone’s interest all evening were the raffle drawings. There were two raffles: one for a husky chain saw and one for jewelry donated by the Company. Surprise, surprise. The lucky winner of the chain saw was none other than the FORUM’s own contributor, Oak. Your ticket broke the hearts of all the guys in the room. Congratulations, Oak and thank you for supporting the community. Alleghany is the last operating hard rock mining villages in the Sierra Nevada gold belt and welcomes those who contribute to its future.
After filing this report, Scoop read the always-inspiring remarks of Rick in Gold Enters Major Bull Market and adds this about gold and money. Mike sold quartz slab yesterday afternoon to the largest jewelry manufacturer. The owner committed to buying $1 million of jewelry quality slab for 2004. Of the 13 ounces available yesterday, he bought 10 for a price of $1600 per ounce of gold. Nature created something very special under the village of Alleghany.Correction:
The high today on the world gold spot market was approximately $406. The current market at 22:56 NYT on gold is $405.40 bid and it’s offered at $405.90.
Discharge water line at 1500 level split apart yesterday. No damage to pumps. Britt repaired it today and pumps are back running. Mike and Joe checked water level in Tightner shaft this morning. Here is how they got there: 800 level to hoist station, ride skip to 1700 level and walk south 1/3 mile, climb down 450 feet of metal ladders to 2100 station where the big sump is located in a footwall drift, transfer to single compartment and climb down 200 feet to water level, which is holding at 2300 level or about 100 feet above the 2400 target. The north and south workings of the mine are in balance (water level), which is a good thing. Once pumping resumed today level will drop. The electrical box at the 2300 level is under water and must be replaced when the miners get the money to resume the project. The ground, utilities, ladders and construction looked good. Joe spent two years in the Tightner shaft on rehabilitation. It remains “turn-key”.
The Cat 910 loader needs a new cutting blade, which Joe is installing. Should be back on the job tomorrow. Dave and Jay drilled and shot their heading. Ian running hoist for Britt. Small amounts of gold almost daily. David continues to cut, producing slab for our manufactures.
Mike has made deal with Barrick for the gold concentrates and Robinson Timber to haul loads to Carlin, Nevada. Snow on Donner Pass delayed the trucking. Gold hit $414.10 today. Rae managing accounts payable with more bills than cash. She looks forward to the payment from Barrick.
Mike writing a brief for what should be the last of the harassment by MSHA during the 1996 to 2001 period. The facts paint a picture of a federal agency that strayed from its Congressional mandate to protect the American miner. The conduct of these federal agents represents the evils of unrestrained or unchecked power. Better days are with us now. Mike gets upset with people who call the miners liars or incompetent. He expects the standards of federal agents to meet or exceed non-government employees, which is lacking. These two contested citations are Jonathan lightly tapping a hex screw into wood without wearing safety glasses and allegations that two miners were not given basic training before going underground. The paper work was improperly filed and that should have been the violation.
Snow on the ground. Alleghany is a beautiful place, especially when the residents valuable junk is covered.
Perfect weather in Alleghany. Ian Haley, past mine superintendent has a crew of four and sometimes five. They broke a round a day north of the ballroom the past week and sacked those little teasers of high-grade. If you listen to Ian, a pocket could happen any round. Scoop has seen each sack and concurrs. Water remains stable. PG&E is still connected. Joe has the Cat 910 front end loader purring and will begin screening the richest ore pile on the landing. We hope to truck the old mill concentrates to Nevada next week, weather pending. The concentrates are near the paved road and covered to prevent moisture accumulation. Mike sold slab today. The buyer has $500,000 to fill his inventory. Where is Mister Pocket when you need him!
Interested people may contact the Company about the private placement outlined in Newsletter #50. Write us and include your telephone number and mailing address. It may be possible to e-mail the document and suitability questionnaire and subscription agreement. Alternative types of financing by those whose duties require them to make decisions about investments in capital goods are also under consideration. Normally, such decisions should be made on grounds of long-term economy. Herein is a prospective difference between investors. A shareholder sent us an interview by a self proclaimed stock and trend analyst, who wrote, “I like high risk with high rewards. I look for the probability of making money verses losing it. The first thing I look for is value, tangible assets and their relative value. These are high quality assets that can be purchased for a reasonable price.”
SCOOP
What Private Placement Program are you referring to that excludes potential non-accredited investors from participating?
Stephen Wilson
What Private Placement Program is the company using? Is it the 504 Program, the 506 Program or is it the SCOR Program?
A few recent phone calls prompt additional information about Newsletter #50. The price per share of the Private Placement is $1.00. The offering is for accredited investors meeting levels of sophistication or wealth. Similar questions about how can the small shareholders have the same opportunity as the large ones were raised at the annual meeting. Security laws apply; however, people interested who do not meet the government requirements have an opportunity to buy shares for less than the private placement on the OAU X-mart at the Sixteen to One web site.
A long time gold collector from Nevada purchased a $4,950 specimen this morning. Dave and the buyer worked to find a specimen to mirror his specific desires and budget. He had $10,000 to spend. Rae will send 25% of the purchase price to PG&E It marks a positive step in the direction of solving the crisis of running the mine without their electricity.
Director Dan O’Neill is spending the weekend in Alleghany. He needed another underground ‘fix’ to move him to the completion of our first joint venture. It is words and drawings of the mine and gold. The final six pages have been difficult for Dan to create.
Mike hired a trial lawyer to answer a collection service’s lawsuit filed in Sacramento against the company. There will be an affirmative defense as well as a motion to dismiss. The attorney will also prepare a hasty list of causes of action against the old gang of Sacramento carpetbaggers called, “The Men and Woman of the CDAA.”
Mike escorted a movie producer to a spot in the mine this morning that fit his script. The small company will return in November to shoot the segment just off the 800 level, travel way. The main character is a gypsy who will read some scrolls from King Solomon and somehow give guidance to the rest of the cast of actors.
Yesterday, Mike was on the phone with our long time PG&E representative. He was still talking when everyone else left the office. It sounds like the two of them were bouncing options.
The volume was not great, but miners sacked gold every day this week, except Thursday. In one heading the gold showing has increased. This isn’t the big one, but even a couple of hundred ounces will be appreciated.
Cold weather continues in Alleghany.
The tour last Saturday went well. Joining the tour were Ken Rohrigh and his wife. The Rohrighs are one of the founding families of Alleghany although none of them reside here anymore. Ken is working on setting up a family history web-site. The museum was able to provide him with one photo he did not have.
Our sales tax return for the third quarter was filed timely last week. Rae has not completed the third quarter financials yet.
The Museum holds its annual membership meeting on Nov.13th at the Offices of Francis Scinto and Associates in Grass Valley.
PG&E called on Monday and said the power will be shut off this week.
The underground crew is down to three miners: Ian Haley, David Cates and Britt McDaniel.
A small amount of high-grade continues to come out daily.Alleghany awoke to the silence of snow, a drastic change from the record heat just three days ago. Sixty-eight fourth grade children, parents and teachers from the Forest Lake Christian school arrived at the museum for their seventh annual underground outing. Rae and Ian gave the tour to the Ballroom, where everyone admired the mine while eating their lunch. It is inspiring to see the interest, joy and excitement on everyone’s faces as they get set to head underground. True educational experiences at this mine are remembered forever.
MSHA inspectors arrived yesterday to inspect the newly installed steel ladders in the 49 winze. Everything is A-OKAY.
Miners drilled and blasted several signals yesterday…small chunks of high-grade are better than nothing. The pump on the 1500 level is working with its float switch working properly. This will make the system more efficient and cut power consumption. The old mill concentrates are all out of the mine. Next stop is the Barrick refinery in Nevada. No one knows for sure how much money they will bring into our bank.
Tomorrow a group from the Pertoleum Association is taking the underground tour. They have expressed support for the mine.Still no word from PG&E.
The fires in Southern Calif. make the one we had in Alleghany seem trivial. Our hearts go out to all who have lost homes, property and family members.
Yesterday a package arrived from Saturn Surplus. Nobody had ordered anything, Mike opened it to find safety glasses. “I wonder if somebody who read the Forum sent these” Mike pondered just as Melissa spotted an envelope containing the following message:
Dear Fellow MinersJust finished reading the posts on your forum about the safety inspector and the recent fine for no safety glasses. Talk about somebody trying to justify their jobs. I check on your web site often. It is very well designed and formatted. I do mining as a hobby and own a patented hard rock mine in sawyers bar that I go to two times a year. Just thought I would send you guys some free safety glasses to keep you out of trouble. Keep up the good work.
Sincerely,
Mark WisniskiThanks Mark! you made our day!
Power remains on at the mine. We continue to be grateful to those responsible.
Due to the uncertainties this morning, a short-handed crew met this morning to go over options. Mike and Ian remained at the mine. They reviewed maps and discussed alternatives for short-term gold production. They spent the rest of the day underground. The hoist and skip were positioned to limit problems or hazards anticipated without power. The water level was checked. A list of gold detection cites were examined and prioritized for gold expectations, time lines and safety. Three targets well above the water line jumped out from the many and will be systematically attacked. The Ballroom heading remains number one, but cannot be efficiently worked with a short crew.Transporting the mill concentrates has become a chore, not impossible but not quick. The barrels break and cannot be lifted into the Peterbuilt without a lot of handwork. We only have one guy to work the project. It would be easy if we did not care about dirt and rock contamination, but we do.
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