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Mike and “Scoop”,
There is no doubt in my mind whatsoever. The 16 to 1 has some very dedicated people at all levels. That’s one reason that I have faith in this enterprise.
One day, one fine day, you will all be “discovered” and rewarded as well for all your efforts.
Keep the faith !
Regards,
Fred M. CainWinter’s waning days plummeted Alleghany with water. Snow or rain makes little difference with temperatures being warmer than long historical averages. For most folks, wet land, high winds and tree covered properties brought hardships as roots of the towering pines and firs eroded. Coupled with the bark beetle infestation throughout the Sierra Nevada, our landscape is very different from a year ago. Trees are down everywhere.
But what about those underground miners? Did they have problems? If you’ve been underground in the Sixteen to One or similar gold mines, you know the temperature stays about the same (fifty degrees) winter or summer, day or might. This is a real plus on knowing how to dress. A miner needs a very simple or regular wardrobe. Our guys in Alleghany had a big time problem with the water this month. They needed rain coats.
The Sixteen is a combination of many mines. About thirty-five miles of tunnels extend under Alleghany. This creates a big collection box for surface water. This winter the creek (Kanaka Creek) that flows through the mine property was so high it backed up and flowed into the mine. Since adits are driven slightly uphill, water didn’t travel deep into the mine, but it sure was different.
So, the big collection box and surface water did impact the mine’s operation. Miners constructed as many channels above the discharge point (portal) into Kanak Creek to get water out of the underground without pumping. All other water underground must be raised by pumping. The crew told Scoop repeatedly that the underground tunnels, stopes and raises looked like rivers: water running where it was never seen before. Not all of it could be removed with gravity alone, putting more pressure on pumping.
If you are still following Scoop’s report, guess what came next. Pause while you figure it out.
The pump quit pumping is what happened next. Pumps are electric powered. This one is a high horse power, three phase, 480 volts and a long way from the portal and a longer way down to water level. If you’ve ever tried to fix something that quit, you know that most times you should change one potential source of the problem at a time, unless the problems are obvious. The problem was not obvious.
The disconnect problem could be within the two thousand feet of wire, the power supply. It could be in one of four necessary metal circuit/ starter/safety boxes. It could be the pump motor or even the multistage pump itself. One by one Reid and Danny worked through the system searching for the flaw. During this period the water continues to rise, of course. Before the problem the water level lapped a wooden deck just above the 1700 level: great progress over six months of pumping. The ultimate destination is the three thousand level. (No one alive has been on the three thousand level. No metal detector has sung on the three thousand level.) Mike and the miners want to change this.
Yesterday, you could see the water a couple of yards below the 1500 level, quite a loss of ground. Noon yesterday, after a pow wow of pump speculations, two choices remained as the most likely fix: the motor or the pump stages were compromised, thus binding the motor. (All pump systems have a safety reset button, like the one on your garbage disposal.) At last everything that could be wrong up to the pump itself was working… the reset button held open. At 2pm Reid and Danny headed into the mine and down to where the pump was tied out of the water. Not much space available to work on the pump, barely enough for the two of them. Reid told Scoop, “We have all the tools we need. A back up motor is already down there, so let’s change it and hope it works.”
Scoop is walking the dog about 8am this morning and the Sixteen to One mine truck stops with Reid and Danny inside. They seem out early driving here. They also seem whipped. Scoop thinks, the fix didn’t work so what’s next? No, changing motors did work. The pump is doing its thing again. The water level is receding, but where are they going at this hour? They stare at Scoop. “We’re going home. It took all night but we got it done.”
These boys, all this crew, will see that three thousand level some day. Scoop places his bet on it.If you live in Northern California you are very familiar with what Scoop writes now: rain, more rain and rain melting a lot of snow. Area dams are at or nearing capacity with weather projections for storms through Saturday. This morning a new slide closed Highway 49 near the South Fork Yuba River Bridge. It is a big one. Expect closure estimates range from two days to a long time. Trees are uprooted everywhere. Last storm knocked out electrical power for a couple of days and phone lines out almost a week.
Here’s the exciting news: Kanaka Creek is raging. The creek water is higher than the Twenty One portal; so creek water is flowing into the mine. Mike picked up a hundred sand bags and the miners will block the water before it flows down an old raise. The pumps aren’t keeping up with increased water seepage that cannot be diverted out the drain tunnel. This is a first anyone knows, where the creek flowed into the mine. This weather beats the 200 year flooding of 1996-97.
Twenty three Northern Cal counties are declared red alert for flooding. Oroville Dam (about forty miles north of Alleghany) has a serious issue. Water going over the spillway eroded chucks of concrete. People saw chunks flying away and notified the govt.
Water is diverted above the dam (earth filled) but still more water is flowing in than is released. A radio report assured everyone downstream not to worry. The water engineers are looking into the issue. This dam is the tallest dam in USA and stores 3.5 million acre feet of water. An acre foot equals 325,851 gallons. In other words, the govt. news release means: don’t worry folks living downstream from the dam. (Right!)
Pack the car, honey; gather the pets and be ready to boogey!
Before the Pineapple Express hit our remote mining camp called Alleghany, everyone from Pike to here lost electric power and phone land lines. Now most of you won’t think that a lost phone line is significant. Doesn’t everybody have a pocket phone? Think again. Some refuges from city boundaries have zero outside communication when a land line goes down, and they do. It took days for AT&T and PG&E to fix the problems. Rumor creeps into our conversations that the phone companies want to eliminate land lines. Hey out there! Help us stay alive. Don’t let it happen.
In the 1930’s the feds put a law down that rural areas must be served lifesaving utilities like the telephone. Scoop doesn’t know the law’s name but it is still on the books. Rural California is at the whims of that urban crowd. So are rural Idaho, Kansas, Ohio and Maine. Acceptance of rurality stretching across the great America is an endangered concept.
Oh, balls, sidetracked again from directly responding to the stalwart, Bluejay.. Bluejay, thanks for the well wished. Pineapple Express gave Alleghany relief from the piles of snow and slush on our roads and driveways: Snow gone; Sacramento Valley flooding; Sierra Nevada Mountain summits happy.
Good luck to all the residents of Alleghany when the Pineapple Express hits this weekend.
Hello Scoop!
There is a little favour I would like to ask you.
As long as there is not too much snow on the ground please find someone to check the surface area where the new shaft is planned with the best Minelab Equipment at hand.
And I wish you that you will find an outcropping reef just beneath the surface.Hello out there! Hello outside world!
Our Alleghany community is without phone service beyond Alleghany. There has never been any cell phone service here, so that little pocket phone is out. Sometime last Saturday (November 26) all AT&T phone service to anyplace but Alleghany quit. Strange that Alleghany people could call other Alleghany people but no other phone numbers. No incoming calls reached our little mining camp.
If anyone is calling Alleghany, you hear a voice saying that the lines are disconnected, no service. AT&T says service will be restored by Thursday, December 1. We are here. Are you still there?
In addition to the splendid Northern California “Indian Summer”, interesting stuff makes today a good day to be excited about life. Who can deny (with credibility) that the election of Mr. Trump gives the Sixteen blue collar miners a more prosperous and safer future than the continuation of ‘the establishment’ in government. The expectation that the changes in Washington D.C. expressed by the President elect was cheered by the entire crew. Hooray may be premature but the move is in the right direction. Good luck and best wishes for your success.
Last week Mike brought a diversity of people who study ground water in fractured systems underground. The group comprises geologists, hydrologists, graduate students from UC at Davis and academics. (Scoop was invited on the underground tour.) One guy stood out.. Mr. Vasant M. Wagh is an Assistant Professor , Department of Environmental Science at the Swami Ramanard Teerth Marathwasa Univewrsity in Maharashtra, India. While water was the focus, he had more questions about the gold deposit. Mike made a comment that India’s culture appreciates gold much more than American culture. He smiled and agreed.
A fresh approach towards detection technology was suggested last week. The sponsor will soon meet in Saxony to draw up a plan for further action. The mine’s message is the same now as twenty years ago: exploration with detection to economically improve mining strategy will find an obscene amount of gold.
Pumping the flooded levels of the Sixteen is about to open the 1700 level. Future benefits are assured.
Remember all our time listed as the time of sending an email to the Forum is off. I will send this at 3pm on the dot.
Our web master is in Hungary and we are having difficulty reaching him. We sent a deposit to a California web site group to take over this job.
THOUGHTS ON GOLD MINING TO INFORM THOSE UNFAMILIAR WITH GOLD MINING
AS AN INVESTMENT
It is a small group, those who operate mining companies, small compared to other basic industries. Forget what you learned from any retail experiences. Discount much of what you learned in manufacturing, research and development as well. Pay keen awareness into economic fundamentals areas, such as: risk to reward, supply and demand, laws of diminishing returns and market values. Natural resource companies require spinning ones brain in unfamiliar territories. Is it worth the effort? That depends on many things, but your intentions always are paramount. Our rules are very different for each mine and miner because our ores vary and our intentions are individually driven and executed.HAPPY BIRTHDAY TO YOU
HAPPY BIRTHDAY TO YOU
HAPPY BIRTHDAY DEAR ORIGINAL SIXTEEN TO ONE MINE, INC.
HAPPY BIRTHDAY TO YOUand many more
The Sixteen to One mine was located 120 years ago yet the rarity of this history is that the same Company, incorporated in San Francisco, is still operating. Go get that next 83,000 ounce pocket!! There is another one somewhere nearby. Best wishes for turning 105 years old this week.
SLEEPLESS IN ALLEGHANY. Why are the locals walking around with bloodshot eyes?
Northern California is in a heat spell and even at 4500 feet elevation the nights are unusually hot. One guy told Scoop that he woke up, looked for the temperature and at midnight is was 85 degrees inside. Residents up here rarely have cool air conditioners and hot bedroom aren’t a good place to fall asleep.
If you’re familiar with the Sierra Nevada Mountain Range and listen to northern California weather reports, you have heard countless times, “Scattered thunderstorms and showers in the Sierra.” This can mean anything anywhere but yesterday in Alleghany from midnight to 6am it meant buckets of rain. Talk about throwing a wet blanket onto the shareholder meeting!
The crew adjusted the locations of the gold display and gold sales, the food location and transportation resulting in another delightful shareholder meeting. Traveling through the ZERO LEVEL was taking a walk through history said shareholders. In the back of the shop building two large Ingersoll Rand air compressors are mounting and look ready to run. Their date of installation is believed to be 1917. Let’s get some help and start them up for next year. If you ever have heard the thump, thump, thump of one of these, the sound will continue in your memory forever. Likely you haven’t, SO, Mike get some help, grease all the parts and give them some power. Maybe Ingersoll will send us some help.
The surprise was a visit from an old Cornish miner from the glory days of gold mining in Bodie. His true and factual account captivated the audience. For that moment he was William Hicks. The fundamentals of underground mining haven’t changed much.
Mike Miller and Dan O’Neill were re-elected and a new director Robert Besso, takes the place of the vacancy open with the retirement of Scott Robertson. Scot served as a director for nineteen years. While his presence will be missed, his sage advice remains as it does with all past directors, said Mike.
The mine property never looked better. Congratulations to this small and mighty group.
I am wishing that I could have made it to the meeting today. I hope that the meeting went well, and I hope no shareholders fell down the Tightner shaft!
It is always nice to visit the Mine, and Alleghany. It is definitely one of the better areas of our great state of CA.
Shout-out to this company for all of the work they do to create an interesting and fun annual shareholder meeting!
What’s with the California weather? Last week it was in the 80’-90’s. This morning it iwas 44 degrees and perhaps snow in the high elevations. Next week the weatherman predicts low 100’s. Alleghany is looking pretty good. Weed eaters are purring about the community. The Spring brought much vegetation. The mine site looks better than it has in years.
Shareholder meeting is this Saturday and the museum has a two day show.. There will be a very high quality gold specimen display. Yes, it is father’s day but anyone within driving distance from Alleghany should take the chance and come.
Underground Gold Miners of California phone number is (530) 287-3330.
Something or somebody put this website off line…out of business for two weeks. The website began in the 1990’s and its format is ancient in technology time.
Sixteen to One hired a firm to update the site. The old information will remain but the infrastructure will be 21st century. Hang in there if it goes off again.
Scoop, for any Captain in any Navy with information on the surface temperatures of the Peru Current in October of any year it is possible to foresee, what sort of wheather is to be expected three thousand miles to the North and in three monthes from October.
And for every President of every hard rock gold mine above the Malone Fault with information on the strikes and dips of hydrothermal quartz veins that where intercepted during the last 100 years of mining that orebody, it is possible to foresee what amounts of gold precipitation are to be expected in the Compromise Raise.
So, my wish for the crew is easy to do. Good luck for Mike and his threedimensional image of the Origsix-Orebody.Hans, you should pick the number for the huge lottery in America and wish to be correct. California is getting pounded with rain and snow and the mine continues working on three pockets of gold. Make another wish for these hard rock underground gold miners.
Last October I have sent you two wishes (See below): A lot of moisture for all of California and a few high-grade pockets for the crew in the compromise raise.
As far as the moisture is concerned my wishes seem to work.
A Happy New Year for Origsix!Re-connect with us. The 2016 year will be an eventful ride.
For clarity read the entry below…………….
I did receive an email this morning: “Your Company traded 1150 shares at 0.20 this morning, then 300 at 0.00”. My further review discovered the bid/ask is 0.01 at 0.20. Of all people, Scoop, you must have seen the crew arriving this morning and my Ford Raptor parked outside the office. The bank didn’t repossess it. Nothing negative has change with our operation. Here is a little stock history; take a look on the web site under the topic STOCK at left of screen.
The last legitimate trade that occurred was august 31, 2015 at $.56. On June 16, 2015, 18,209 shares were purchased for $.44 each. On October 23, 2014, 10,000 shares were purchased at $.42. Furthermore between January and June of 2013, 9,800 shares changed hands at $.89.
The Stock exchange listing on the FORUM has many entries discussing the pink sheet or gray market as some call it. I call it a joke.
Oh no, the Sixteen to One mine must have fallen into the earth! Well, only if you believe in the relevance of the stock market according to Pink Sheets. I know some people actually put credit in this market to evaluate this Company value. According to today’s trade history on the internet ( marketwatch.com/search/value=osto) the Company is worth nothing. It is worthless because some intelligent people traded shares at $0.0000. The reported volume is 1,050, down from a prior trade at $0.20. According to this report the 52 week high is $0.29. What a sad day it must be in Alleghany. The crew must be devastated. Mike must have lost his mind with this realization that the 104 year old corporation, yes the same one organized to take over the 119 year old mine and its 147 year old neighbors has no value.
Mike, if you see this news, please respond. Did the trees all die? Has your water dried up?
Did others steal all the equipment, supplies and inventory when your back was turned? Is there no more gold left to mine?The company’s third quarter preliminary Income Statement or Profit/Loss looks profitable. Nice turn around, miners and staff!
Thank you for the update, Scoop.
I hope you will get a lot of snow during this winter season and the much needed rain in the lower parts of the country.
And I hope the Compromise Raise has still a few high grade pockets for the crew to blast into.
Here’s the Alleghany situation.
The best news for any gold mining company and especially those high-grade underground mines is: our explorations led to modest gold production for the third quarter. A company noted for hyping its stock would have really built this into a grand expectation. Mike is just relieved that he is not going into additional debt. When past performances produced a 2500 ounce day, a 10,000 ounce pocket (one location usually in a stope) and numerous 500 to 1000 ounce finds, this much needed bundle is not especially news worthy but it is worth noting that corporate liabilities are not increasing.Can we think about another 500 to 1000 ounce day? Sure, why not. This deposit has much more to give.
Scoop has an inside track to information about the Sixteen, so offers readers his perception: stay tuned for news of a much improving situation here in Alleghany. What do the readers think about the gold situation? It seems very quiet. Mike is definitely not fretting the current spot price as many of the other producing (and non-producing) mine operators or promoters are wanking about.
Remember that most investors have no or little gold options in their portfolio. Why is this true?
Is that silly grey market still trading OSTO shares? The last trade of certificates shows up on this website at $.56. Look, 18,209 shares were bought at $.44 in August. There currently are no bids. The only shares offered below a dollar are 1,150 priced at $.89. How come there are no bidders? How or why has OSTO become the oldest American gold mining company in North America?
Hello 16 to 1. Your Forum input lately resembles the water situation in California… it dried up! Being the professional journalist, Scoop demands an interview and supportive evidence as to why this has occurred. From your history, either you have good or bad news and are too busy to sit down and craft your story. Since the annual shareholder meeting in June, your activities in Alleghany confirm you remain in business.
Be prepared for those tough questions that accomplished (and great) reporters ask. Scoop is at your door high noon tomorrow.
Last week end was a busy time in Alleghany. About eighty shareholders and guests traveled the trail to the landing at the old mine office. Weather cooperated except for a nearly afternoon windy spell. The food tent flapped and flapped and then took off. Those nearby grabbed the tent poles and ropes and kept the tent from heading into space.
Besides the routine corporate business, Mike announced a motion would be placed to put a new tool at his discretion (if needed) for attracting a future investor(s). It is the formation of Preferred Stock. Preferred Stock represents a secured position for investment without the struggle to determine the value of common stock. Scoop got details and will provide it at the end of this entry.
The Underground Miners of California Museum had two days of events: historical walk around Alleghany, a grand collection of gold specimens and on Sunday a tour of the Sixteen to One. The museum celebrates twenty years. Be sure to check it out when next in Alleghany. It grows every year.
The President told of a recent finding of gold in an unusual place in the mine. His confidence seemed high but as we all know, it is best to talk about gold once it is accounted for and in a safe place.
So for anyone wishing to join what seems like a good time for Sixteen to One, here is how to secure an investment. Mike assured Scoop that he will work ways with investors that meet just what they want.
Preferred Stock
The Board of Directors is expressly vested with authority to determine, in whole or in part, the preferences, limitations, and relative rights of the Preferred Shares, or one or more series of Preferred Shares, before the issuance of any such Shares. All shares of a series of Preferred Shares shall have preferences, limitations and relative rights identical with those of other Preferred Shares of the same series. The preferences, limitations, and relative rights of the Preferred Shares shall be specified in a subsequent amendment to these Articles of Incorporation adopted by the Board of Directors and may include, without limitation:(1) Special, conditional, or limited voting rights, or no right to vote, except to the extent prohibited by the KBCA;
(2) That the Preferred Shares be redeemable or convertible (a) at the option of the Corporation, the shareholder, or another person or upon the occurrence of a designated event; (b) for cash, indebtedness, securities, or other property; or (c) in a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic data or events;
(3) Rights entitling the holders to distributions calculated in any manner, including dividends that may be cumulative, noncumulative, or partially cumulative;
(4) Preferences over any other class of shares with respect to distributions, including dividends and distributions upon the dissolution of the Corporation; and
(5) Other preferences, limitations, or relative rights not prohibited by law.
Tomorrow looks to be another fun day in Alleghany: shareholder meeting, Underground gold Miners Museum’s gold exhibit, vendors set up on Main Street Four Star Shop open and food at Casey’s. Temperature in 90’s. Inside Sixteen to One a steady 50 degrees. Those who seek out this annual event will have a blast.
Just as the Golden State embarks on what is normally a dry, rainless summer following a record drought, what happens? A freak out-of-season rain storm forms out of nowhere. How?
Well, a hurricane, now downgraded to a weak depression is working its way up the Baja California coast. Although it’s iffy as to whether any of this moisture will reach Allegheny, heavy rain is now moving into Southern California
Will wonders ever cease? These kinds of systems do not normally appear until at least August. But one thing is for certain, this is most certainly NOT a normal year.
In the end, it all depends on the weather.
Regards,
Fred M. CainAn uneventful Saturday in Alleghany so Scoop drags out his unused files. How about this short note from October 16, 2009.
Are the underground mines in the United States under regulated for safety?
Up to today’s date there have been sixteen fatalities in the metal/nonmetal mining industry. Fourteen occurred at surface operations. Two occurred at underground mine sites: a lead/zinc mine and a salt mine. Of the remaining fourteen surface operations only one (Newmont) was a gold mine.
Most mining organizations care about and demand safety. In California the mines are inspected by Cal/OSHA and the federal Mines Safety Health Administration (MSHA). Rumor is the current Secretary of Labor issued orders that will have the effect of creating more citations by the MSHA inspectors. Citations do not necessarily increase safety. Positive or constructive suggestions work best and have for many years. This is not to excuse misguided management or careless miners who flaunt safety. Let’s hope that MSHA contributes to underground safety in a constructive manner as the years advance..
Scoop, Ryan & Group,
Here’s my two cent for whatever it may be worth – perhaps nothing.
First of all, OSTO is what many people refer to as a “penny stock” and like all penny stocks, there is risk involved. Why should we try and pretend that there isn’t?As a general rule, I do not buy penny stocks under any circumstance or, uh, well, under ALMOST any circumstance.
I clearly made an exception with the Original Sixteen to One Mine for two reasons. One, I was most deeply impressed by Mr. Miller’s dedication and commitment to this enterprise. He will succeed or die trying. That being the case I was willing to try right along with him. If we fail, we will at least be able to say we gave it a genuine effort.
The other reason is more minor and some might say it sounds kinda silly, but the fact is that this is a most fascinating operation that employs traditional, “environmentally friendly” underground mining techniques including an underground railway.
Modern “trackless mining” can sometimes have a “get in and get out” mentality of making a fast buck and look for short term gains with no long-term vision. The very fact that they refuse to lay track suggests in my mind’s eye that their commitment is shallow. Not everyone will agree with that viewpoint, I know that, but that’s kind of the way I see things.
I hope and pray that Mike Miller and his fellow miners keep on digging. They might just find something, too. We already know it’s there but will we find it in time? Time and time alone will tell. Mike has my support 100%
Regards,
Fred M. CainNo worries on your concerns,Ryan, that Mike has cast aside seeking compatible sources of money. He’s been around long enough to avoid the hucksters. He’s been looking for that golden angel. He brought a group through Alleghany to inspect the mine and operation. Good prospect but chief investor took sick. He got nowhere with bankers. Have you tried to get a loan these days from a bank? Forget it unless you have good credit, earnings or net profit after filing taxes or your sister manages the bank.
No one would even consider bank rolling a gold mine with a $2 million lawsuit dangling overhead. Well, that’s gone, mid February 2015. Scoop knows those miners, sees them drive into Alleghany before 7am and out of town about 5pm. The office crew has same work ethic. People count, sure money greases the operation but do you know this? There is no other known lode gold mining going on in California’s Sierra gold belt. Odd?? Why?? No money funding gold mining. NO one gets it as in those long gone days before the 21st century. At $1200 an ounce California’s gold mine should be humming and you own a piece of the best there is. Hang tough, Ryan. The gold goddess is peeking at the Sixteen. Maybe she will extend her touch and your fortunes change. Hope you own a lot of shares when it happens.
I finally had a chance to read the OAU annual report today. While Mike Miller references his three written commitments from last year’s annual report, he didn’t report on the verbal commitment he made at last year’s annual meeting—this was going to be the make or break year. He made a commitment that either gold would be found to increase the cash position or he would begin discussion with investment bankers on funding options.
Although I won’t be able to attend this year’s annual meeting in person, I hope a shareholder raises this question and Mike provides specific plans on raising cash even if this requires equity dilution. To paraphrase a friend of mine, I’d rather have a smaller percent of something than a larger percent of nothing.
About 1250 Annual Reports left the Alleghany post office this Tuesday. Shareholders should have received it by now, so Scoop wants all of us who don’t own shares to read the latest from the President and mine. Following is the opening message.
Dear Shareholders,
Once again the time arrives for news from your gold mine. A year ago I wrote of three goals for the 2014-15 year: lower the present water level; remove blockages to access gold targets; work with a non-affiliated “high-tech” group to find a 21st Century detection system for our mines. The water level is about 400 feet lower than it was last year; the crew is preparing a detailed exploration operation in a previously blocked vein; the detection company has the hardware to see into the quartz greater than at any other time. Understanding what we are seeing remains unclear; now software interpretation is the focus. Step-by-step the obstacles are disappearing.
On June 20, 2015, our annual shareholders’ meeting takes place in Alleghany. There are no good or bad surprises to announce. The Underground Gold Miners museum is holding its annual gold specimen display that weekend.
One noteworthy event is our acquisition of a new gold detector from Australia. Promotional material claims a 40% increase in depth from prior models. In February the crew incorporated this tool into our detailed exploration program. Early results prove that the depth has increased. Where to explore is decided by historical production, geology and detection. This new Mine Lab detector gives us a fresh look at the vein throughout the mine. I am cautiously optimistic. Most every person familiar with this mine knows that more gold remains unmined, but where is it?
That nasty overhanging California water agency lawsuit settled on February 11, 2015. The government sought over $2 million for not filing thirteen test reports. The issue was never about pollutions or environmental damages. We settled for $234,000. I was not a happy miner. The agency ignored notifications that milling ceased in 1998. The time and expense for 1,460 annual tests became unmanageable. The agency denied repeated requests to change our requirements. Our attorney said to take the offer: lack of funds to continue the lawsuit.
The Alleghany district has long been famous for the high-grade gold ore of its quartz veins. Nearly all the production is obtained from small shoots. Owing to the particular type of ore prevalent, production is irregular. Due to a scaled back crew, the odds of mining those gold pockets have grown against us. Something must turn this around. Half our crew is attending the detection program. The other half is working on projects to open new areas for exploration. No one is mining for gold. This must change. The cure is to increase efficiency and in a miner’s words “break more rock.” How shall we do this? We must expand the crew, purchase supplies in volume and hire a couple of top maintenance men. Outside capital makes this happen.
The price of gold remains reasonably high for profitable mining. I’ve considered the likelihood of mining our way back to profitability. It is possible, but other options exist: sell stock through a private placement, offer gold futures below spot price or joint ventures creatively designed to meet all party’s needs. Money equals a shorter time to find that magical pocket of gold. We will, therefore, “break more rock.”
Our industry (as many others) is experiencing a lack of skilled employees. Reasons vary. While our crew is small in numbers it is large in background, experience and training. One other important factor stands out. This crew is highly motivated to succeed. We accomplished much last year; however, we define success as producing gold. You should expect it in the coming year.
The four following pages are worth reading, which is why they are printed in the Annual Report. It is background material for others to evaluate our Company. A financial lift does wonders to achieve our success. Suggestions are welcomed. Frequently people ask, “Why do you stick with this gold mining business?” I reply that my confidence in the richness of our mines has never wavered over forty years. I sometimes mutter to myself this quote: “You may be deceived if you trust too much, but you will live in torment if you do not trust enough.”
Sincerely,
Michael M. Miller, President
April 30, 2015
When asked to prepare a vision for the Sixteen to One years ago, I did. The original analysis was written in the Fall 2007. Investors from Silicon Valley figured it was a good thought to look into gold and called me. They called ours a ‘trailing edge’ business. They considered theirs ‘leading edge’ ventures. The point man wanted a SWOT paper (strength-weakness-opportunity-threat), a new concept to me. Everything came to a halt when the events of 2008 dropped on America. He asked me, “What is your vision for this old company and mine?” I searched my soul and wrote the following. It still rings relevant.WHAT’S IN ITS FUTURE
A VISIONThe vision for Original Sixteen to One Mine, Inc. (the Company) includes America’s natural resources but focuses on the plentiful natural resources of California. While the vision may appear to be rather explicit or narrow, it includes gold and other mineral products, timber and water. It encompasses their utilization, management, development and marketing for maximum yield. No other public reporting company incorporated in the United States shares this focus.
This vision includes the social aspects of natural resources and the desperate need to protect the cultural as well as the physical environment of our precious natural resources. The Company combines all social sciences as well as most physical sciences into an operational program. It is an enlightened business plan of operation. The Sixteen to One’s past reveals a necessary approach of maintaining long-term assets with the short-term needs of producing revenue. Its present status is demonstrative proof that a small natural resource company has survived the demands of natural resource utilization in today’s overly aggressive pro-environmental outlook.
The Company will become known as the model for future natural resource development in California and the United States. Its operations will challenge the erroneous myths and prejudices of well-meaning activists who hinder the sensible extraction of our natural wealth. These beliefs have turned the omnipresent demands for raw materials to natural resource production in other parts of the world, a dangerous reality.
A primary ingredient for our vision and subsequent model to expand is an infusion of working capital. There has been a noticeable lack of interest from Wall Street or private investors in forest and mineral production. The modest attention of the stock market towards America’s natural resource companies hurts future generations both in the United States and the world. Some patterns of investment are predictable. Investors’ interest in specific industries continues to move from one sector to another. The Gold Sector is abstruse, removed from the usual way of thinking and difficult to comprehend. The forest industry follows closely in its mystic.
A movement into natural resource ownership or participation is overdue. Unlike banking, savings and loan institutions, automobiles, real estate, airlines, pharmaceuticals, computers, utilities and practically every part of the complex mixture of America’s democratic capitalism, the natural resource companies are ignored. Perhaps one simple answer is that resource companies believe they must stay under the radar to function in today’s hostile anti-mining/anti-logging mentality. Perhaps a more likely reason is the pure misunderstanding that potential investment capital has about these small but vital industries.
The Company’s dream foresees an awakening of Americans to the realization that we need and will benefit from a return to domestic natural resource productivity. For almost fifty years America has been bombarded with media blame for past degradation to the environment. Some of the blame is justified. Many extraction and harvesting methods, however, are no longer practiced and cannot be assumed as what to expect from future operators.
American industries have learned from the past and clearly are the most environmentally sensitive operators in the world. This is one reason to bridge the ignorance gap of the population and our leaders. The “not-in-my-back-yard” position is a short-sided myth! Vital and necessary minerals and other resource products come from countries without the sensible regulations that have evolved in the United States over the past hundred years. The consequences of this are global.
Even though population growth and physical development exploded during the twentieth century, the world-changing role of the United States has taken a more dramatic turn. A counter cultural shift emerged. America was considered the can-do country. Democratic and capitalistic social ideologies opened the doors for an expanding middle class, especially from workers identified as “blue collar”. Our natural resources were developed and accessible. What changed?
Somewhat reluctantly America became a world power and responsible leader. The blue-collar worker of today is losing economic ground as our society turns more and more to the service industries. But the need for manufacturing contemporary products in America remains; and in order to produce, industry requires raw materials. America has them in abundance. America also needs the backbone of its labor resources to insure our freedoms.
The time has come to broadcast how to treat our inherited resources in the 21st century. Original Sixteen to One Mine, Inc., a US corporation, has all the pieces to lead this renaissance except one. That missing ingredient is explained in its Executive Summary. The oldest American mining corporation operating needs a grubstake to turn its dream into a reality. It will celebrate a 100-year, centennial birthday in October 2011. Happy Birthday America. On July 4, 2011, the land that we appreciate and love is 235 years old.
More years have passed. Time for testing this vision is overdue. Those external events beyond control have raised no new weaknesses or threats to our Gold Mining Company. The opportunities are greater for our company to prosper. In addition to our exploration program and maintenance underground work, our lack of adequate working capital must be solved. This is my main focus for 2015.
The following analysis combines internal and external aspects of the Company. Strengths and weaknesses capture internal examples. Opportunities and threats reflect external considerations. This analysis was conducted with outside professionals and is presented to assist potential participants in our growth in their due diligence of the opportunity.
STRENGTHS
Natural Resources (Timber, Water, Gold, Crushed Rock Minerals)
Monopoly of natural product (quartz and gold gemstone)
Toxic material handling
Environment acceptance
Historical gold production and profit
Strong geology supporting future gold production
Mining historical and cultural value
Positive local government and public support
Museum 501(c)3WEAKNESSES
Insufficient working capital
Lack of workforce
Unpredictable revenue stream
Restricted trading market for stock
Lack of general investor interest in Gold SectorOPPORTUNITIES
Participation in ‘Gold Bull Market’
Natural resource exploitation
Participation in new outlook towards forest management
Media and entertainment venue and products
Natural and organic cosmetics for men and women
Hydropower and bottled drinking water
Vision uniqueness
Cultural and social impact
Baby boomer interest in related areas
Recreation and tourismTHREATS
Increasing government regulations
Reduction in market demand
Size of market
Extreme increases in utility and supplies costs
Unknown government regulations
Inability to secure sustainable financial backing
Fire exposureScoop,
Sounds to me like if I lived there I’d want to have a good wood stove. Or is burning wood no longer considered “politically correct” in California?
We met a girl on the train last year who was a German Baptist from somewhere in the Modesto area. The German Baptists are a little bit like the Amish except they’re not quite that old fashioned. But they do burn wood. She told us that they have “no burn days” when the smog is bad and that they can be fined if the burn wood on a “no burn day”. Seems strange to me ’cause I think most of the pollution is coming from people’s cars – not from the German Baptists heating with wood.
Years ago, I had an uncle in the Porterville area and I remember he had a wood stove. But that was back in the 1960s.
Good to hear about the new metal detector. I hope they find something. But I still think it would be a good idea to try it out on some of the deepest areas of the mine that still need to be dewatered.
Regards,
Fred M. CainSomething strange happened today. Residents were confused. It brought back a distant memory. White wet stuff kept falling from the sky. Finally the County big trucks came clunking through Alleghany and everyone remembered: it’s called snow; yes, it has snowed all day.
The Sixteen to One office had its own problems. The propane tank emptied over the week end and wasn’t discovered until yesterday…no heat. A call to the gas company promised a delivery today. No delivery. The truck couldn’t pull the grade with snow on the road, so the company canceled delivery. That’s how it goes in the back country sometimes. Deal with it!The mine got the new Australian Mine Lab detector, which claims a 40% increase or greater depth potential. It picks up spent blasting caps real well says Britt. Do you think all the gold is gone from the old workings? Scoop doesn’t. Good luck, boys. You all deserve some breaks.
Not much news to report. Shareholder meeting coming up end of June. Price of gold holding well in the face of stronger dollar.
HERE’S THE WEBSITE SITUATION
Sixteen to One was an early company to put its website on the Internet. A mining engineer named Johan Raadsma pushed the then novel idea in 1995. A couple of locals worked on it with so so results. In 1998, a very smart Hungarian redesigned it and has tweaked it as technology improved. Well, technology apparently has moved past the ability to tweak it further. It is old, a vintage website with outdated functions.
It must be brought into the 21st century, but its format will resemble what you see right now. It takes some time and money so bear with this old Company as it continues to move forward.
re the post below:
All y’all are doing fine with the website. It is as good, or better than most of the other junior miner sites, of the dozen or so that I have looked at. Keep up the great work.
(one item that could be added, and/or improved upon would be a good map of the mine. An interactive map would be pretty cool – Although that is probably one of the more difficult things to lay out and display decently on a website)
Scoop,
If they’re really so worried about a water shortage, I know where they could find some more water! All they would need is a good pump and a big pipe and Kanaka Creek will be raging!
Uh, well, I guess “that” water wouldn’t be “politically correct”, huh? What if it had minute traces of arsenic in it?
Regards,
Fred M. CainWestern Sierra County lost electrical power last Friday. Our neighbor to the west, Pike, got power back Saturday. Alleghany got it back Sunday morning. The remote line going to the Washington community remains out of power. This storm was wind damage not snow (there isn’t any).
The rain fall was less than projected but every drop helps. Expect the water shortage to continue this summer.
Sierra County officials held a community meeting at the Pike firehouse Sunday afternoon. Sunday and rain but about 50 people arrived to here the supervisor, assessor, sheriff and public department chief. Topics were roads, dumpy properties, and marijuana. Sierra County passed an ordinance which goes into affect now. People are not opposing grower use of pot but definitely object to non property owners and residents from growing. Another objection was seeing or smelling someones pot. The bush must be shielded from view.
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