How to Approach Thin Veins & Cost

[Abedo]

#6625

GREETINGS to our new website.
The FORUM began in the late 1990’s at origsix.com. Do to its age a modern website became necessary. Here it is; however all the transaction from origsix.com during the transition are not yet available on the site. Our original website will remain. Welcome and enjoy your journey with the oldest USA gold mining corporation. Participate using either or both sites.

[Michael Miller]

#6342

Thinking about investing in gold?

Three important areas to ponder: Technical, communication/marketing and operational expertise.

Technical expertise should provide a clear understanding of resource potential, extraction and delivery to market. Engineering, geology, legal, finance and accounting professionals are there to develop and scrutinize opportunities determining that the opportunity is economical and worthy of pursuit.

Communications and marketing expertise engage investors, regulators, end-users and the public. They promote the company to investors, sell the end product and reassure that the project abides by laws and social expectations.

Operational expertise make the project happen. Their objective is to make sure the goals and objectives of the senior management team are realized.

Qualitative considerations are: What is the previous track record of management team? How have they overcome the challenges they were given? Do they have a stake in company, or “skin in the game”? Does management have a clear and simple vision and mission? Do they mask meaning with jargon or can they communicate opportunity in clear, simple terms? What is overall management style and reputation? These types of questions provide a framework for understanding how success or failure occurs.

“In the general resource space, beware of frogs masquerading as princes because there are a lot of those.”
This quote from Mercenary Geologist Mickey Fulp is a good guiding principle for those evaluating the investment potential of an exploration-stage gold company. The game of mining stock speculation attracts many a charlatan, The difficulty becomes separating the wheat from the chaff.

Rick Rule, a long time analysist who wears a Sixteen to One gold ring, describes successful investing in resource stocks as solving a fundamental riddle. “How do you anticipate exploration success before the financial community reacts to the success? While no investment can be 100 percent de-risked, especially in exploration-stage mining, where there are no revenues and plenty of costs, there are a few lines of enquiry that savvy investors should pursue.”

Management: If you were on the hiring board of a major company, would you give the job to somebody who had never done the functions asked for in the job description? Many investors do not bother to research. “The easiest thing to look at is the track record. Have they had success in the past? It sure is nice to have a couple of wins under your belt.” says Ryan Walker, mining analyst. It’s also important to know the intentions of management and board. Do they plan to sell their project to a bigger mining company with the technical expertise to turn it into a mine? Or are they explorers hoping to be miners without the requisite experience to make that happen?

Ownership: Do the managers and directors own a significant number of shares versus the “float,” or the outstanding shares owned by retail investors? Fulp thinks 50 percent of a company’s outstanding shares should be in the public float, which shows both management commitment and is enough to generate a volume of shares traded that can cause the stock price and market cap to substantially increase.

Property: Like real estate investing, when purchasing shares in mining companies a good rule of thumb is location, location, location.. This is due to geopolitical intangibles, such as the threat of expropriation and political instability,” says Chris Berry, of House Mountain Partners. Fulp takes jurisdiction even further by refusing to consider projects in countries where the political situation is considered risky. Consider the deposit’s proximity to other mines. The old mining adage, “to find a mine look near a mine” certainly applies to Sixteen to One. Ownership of the deposit is also important, since ownership factors heavily into who will control future profits and takeovers. Look for the company that owns 100 percent of the asset and has no underlying royalties that they have to pay. Yes, for Original Sixteen to One Mine, Inc.

The deposit’s location is also important with respect to potential expansion. If the company can show that not only does it have a good deposit, but that mineralization lies outside the existing or prospective mine boundaries, that is clearly a good sign for investors.

Geology: The geology of a given project is fundamental importance in deciding whether or not to invest in a gold junior. In gold exploration, the three most important factors are grade, tonnage and metallurgy. High grades are often touted as “king” when it comes to gold exploration. It’s true that many a mine has been built on the back of a high-grade deposit. No greater high –grade mine has sustained production over centuries than the Sixteen.

Mining is to a large extent about de-risking, so it is not surprising that the highest risk-to-reward ratio occurs at the discovery phase: drills are turning on a prospect the explorer and investors are eagerly awaiting drill results. As a company de-risks a project the value of the stock should generally rise. These are good catalysts for investors. Rule insists that the juniors he invests in have a game plan for how they, and investors, are going to make money, and when. “Make the promoter explain in detail how the company’s activities will increase both shareholder value and stock price.

Mineral exploration requires strong capital and an even stronger stomach for risk; but sometimes the risk can pay off big with a well-executed discovery. However, the odds of hitting a wall are much higher than hitting pay dirt. Even a large claim package in elephant country can turn out to be little more than moose pasture. The deposit could be too small, too low grade, or saddled with a host of other project killing pitfalls. A commonly cited statistic among industry experts is that the probability of a mineralized body becoming a mine is about one in 3,000.

Assets do matter and the more quality the better odds for shareholder rewards..

[Michael Miller]

#6327

“Twenty four years ago a dormant wad of gold signaled the beginning of fresh technological power into the Sixteen to One mine. It was a simple metal detector. For decades a 22 ounce sponge of gold lay on the floor of the main drain tunnel. It is memorialized in a poster called, “Gold the International Language”. For gold seekers this innovation sparked an international rush to buy off-the-shelf, hand held metal detectors, the ones seen on many California beaches.
It led to the production of thousands of ounces of gold from the historic California gold belt.
Physics and electronics had added to the centuries of experience and knowledge about mining for gold.

The most logical place was the Northern California gold belt, a 200 mile deposit under the Sierra Nevada Mountain. The most accessible site was the Sixteen to One mine in the Alleghany Mining District.

The major tool for hard rock underground gold mining will always be geology. Nothing will ever replace prospecting, exploration, development and production as nature’s intuitive geological formations, nothing; however the concept of detection is here to stay.

Forty four years ago chemistry resurfaced as a guide for miners to the hidden high-grade gold in the Alleghany Mining District. Fluid inclusions, ion calculations and all mining leaning chemists could imagine were explored, theorized and tested. Did it give the miners a new twentieth tool? Not yet but those differing ions in quartz may someday.

The twenty first century exploded the technological market with something called a “smart phone”. I don’t have one and don’t even know how the land line phone is capable of performing its magic; however others do. Let’s marry the smart phone technology with the current science of gold detecting. The result will make history. The union will give birth to a smaller and lighter tool with added discrimination features and depth, speed and reliability. All the necessary components likely exist in today’s market. The beta site for perfecting the smart detector can only be the Sixteen to One mine, a proven deposit for producing gold over 164 years. The time is now. The place is here.”

These were my thought two years ago. The smart phone evolved. Now Mars is accessible for photography, science continues with unimagined results, but no one has figured out how to identify gold (one of earth’s densest elements on earths) in a quartz vein. The Sixteen to One host to gold is Quartz, a trigonal mineral (SiO2), transparent and friendly to electronics.
Pass this along, please. WE have a sharing plan. I know someone is out there who could get really excited about locating 10 to 20,000 ounce pockets of gold.

There is no better way to acquire gold than to mine it and share in the bounty. We have a plan.

[Fred Cain]

#6300

MINES WITH TRACKS

Group,

I thought I post a new message under my sub-subject on this list of “Mines with tracks”. As many miners already know, most mines started to steer away from underground rail haulage about 30-40 years ago.

However the pendulum of getting away from rail and going to LHD trucks may be beginning to turn.

Here is an interesting article on rail haulage that I found:

Opportunities and Challenges of Rail Haulage Systems in Current Mining Operations

URLs will not “highlight” on this forum so you will need to “copy and paste” to your browser.

I’d copy and paste the entire article but it’s too long. It makes for interesting reading, though. 🙂

Railroading in mining might just stage a comeback. Personally, I feel like our president was smart to keep his rail system in the 16 to 1 mine.

Regards,
Fred M. Cain,
Topeka, IN

[David Ingraham]

#6278

You might get in contact with of Elon Musk. He has an underground boring machine development company and your mine would be a perfect opportunity to work with this development. Also your mine is warehouse space for low temperature storage. especially for wine, or other long term low temperature storage to develop the aging process.

[Michael Miller]

#6276

Few gold producers exist among the small vein deposits throughout the world. As a result modern equipment and innovative technology is centered on the monster volume operations. Unlike Sixteen to One, the industry became the playground for men-of-monster money or the ability to attract substantial startup capital.
Today, Mining Magazine set me an interesting article. I copied the first paragraph for you. Some of the mega mining operators continue to face mega economic obstacles. What will this mean for the small vein deposits?

“Sometimes a turning point can only be seen clearly in hindsight. Such is the case for the mine of the future as we begin 2018, coming out of a 2017 where major mining companies continued to demonstrate capital spending austerity and focus on debt reduction. All the while, there were growing signals that digitization, electrification and automation were all gaining momentum, even though actual examples of mine site implementations could as of yet, still be counted on one hand.”

Stay tuned. Here is a clue: look forward to fully electrify the fleet of ground support, ore flow/secondary reduction, and utility vehicles, keenly aware that electrification is but one step in the ongoing mechanization of underground mining.

[Fred Cain]

#6232

MOLLIE KATHLEEN MINE

Group,

Although I still haven’t quite made it to California, we were in Colorado last week for a tour of the Mollie Kathleen Mine. It was beyond awesome. I had my first “cage ride”. Over 1,000 feet down AND an underground train ride!

Our tour guide demonstrated a lot of mining techniques and how they work. In the beginning they mined with candles. Our guide turned out the lights and showed us how that worked. Pretty dim! It’s a wonder that not more people got hurt than did.

He also showed us how they set charges and removed the muck. It was hard for me to believe that they could actually get a mucker in the cage so I asked him if there wasn’t an adit portal somewhere. NOPE! Only one way outta there and everything we saw down there came down that way!

I saw a lot of abandoned rails lying in adjoining drifts. I wish I’d thought to ask if they might be for sale.

Another observation was that there was no water and no pumps even at that depth. Remember, the elevation here at the surface is nearly 9,000 feet. You have to watch not to move around too quickly at that altitude or you will get light-headed to say the least.

I recommend this tour. The Original 16 to One is still at the top of my list, though. Too bad it’s so far from Indiana! 🙁

Regards,
Fred M. Cain

[Fred Cain]

#6222

Group,

I found an interesting article that fits in with my sub-subject on this thread “Mines With Tracks”. It’s a few years old now but worth reading. I have said it before and will say it again: I do NOT understand the supposed huge advantage of trackless mining.

Here it goes:

“Rail cars have long held a close association with mining. In fact, when looking back at movies or cartoons where mining is represented, there’s likely a bunch of open-top mine rail cars somewhere in the picture.

Rail-Make
With the development of trackless machinery, however, a decline in rail use for mining has created a small disconnect between the popular image of labyrinthine mines lined with rail cars and how mines are evolving in reality. Rail took a backseat as low, stubby, purpose-built mine utility vehicles became more commonplace.

According to some experts, however, that trend might soon be reversed. Talking to Mining Weekly, Attie Claassen, contract manager for the South African railway and civil engineering contractor Loning Hill Properites, expressed this opinion:

Underground rail networks used to transport mined materials may be poised for future growth, owing to the high cost of trackless machinery and other alternative transport methods.
This shift in perspective comes as a result of a better understanding of the expenses associated with using trackless machinery. While many mines in South Africa attempted to make a push to establish trackless mining in the resource-rich country, the issue of cost quickly became too much to overlook. This has led some mines to consider reverting to the proven technology of rail haulage.

According to Claassen, “a correctly installed rail system has been proven to far outweigh its initial capital investment, and is, therefore, ‘the way to go’”.

Added to the proven advantages of underground rail networks, advances to the design and manufacturing of different underground rail cars have made reverting back to rail even more desirable.

Despite a decline in popularity, manufacturers like Wabi Iron & Steel Corp. have kept up their rail haulage manufacturing and development processes. The improved rail car technology that has resulted competes favourably versus trackless machinery in terms of cost, reliability, productivity and durability.

As the advantages of rail haulage continue to make their way back into the spotlight, it’s likely that the prospect will keep looking golden for the tried and tested mine ore car.”

Here is the URL but you will probably have to copy and paste it into your browser:

http://www.wabicorp.com/prospect-looks-golden-mine-rail-cars-due-rail-advantages/

[Fred Cain]

#6200

MINES WITH TRACKS

Group,

I thought I’d do a post on the sub-heading of this thread on mines with tracks since it’s been a while since we talked about that. To be honest, I have been kinda M.I.A. for the last 20 months or so.

As many of you know, many if not most underground mines have abandoned the use of rail vehicles in underground mining in favor of underground, rubber-tired “trucks”.

I am still not sure I understand why. I understand that the rubber-tired vehicles are much more flexible. That makes sense to me. I also understand that the maintenance departments no longer have to be constantly ripping up and relaying track as veins and deposites change. Sure.

But the rubber-tired machines also demand much larger drifts and passageways. That would seem to me to largely overwhelm any cost savings from using them.

Could it be that trackless mining has simply become “the thing to do” causing companies to shy away from mining with rail? In spite of it all, there are still a few mines (like the 16-to-one) that continue to rely on rail.

I hope that continues.

-Fred M. Cain

[Michael Miller]

#6177

Americans are becoming aware of the extraordinary expenses placed on small businesses due to questionable regulations and their enforcement. California and federal governments are guilty of valueless yet punitive standards and the execution of regulations by feebly qualified governmental workers. These are true and factual realities capable of proof at the Sixteen to One mine. I meet those whose job it is to enforce regulations. Some are reasonable but claim that the higher ups are the ones dictating how to regulate. Too many seem to enjoy the powers to run over the small operators, like us. It is an epidemic.

You probably have read that there is no underground gold mining industry in California. You know that the Sixteen miners are the last full time mining crew still employed. Can you guess what rate our Company is charged for the required workers compensation insurance? Go ahead and write down a guess. The rate is calculated per $100 employee income.

Insurance is a statistical numbers game. I have battled the rate setters with no results. Since there are no operations in California like ours and the private insurance companies don’t touch California underground gold miners, we are forced to buy the requires insurance from California State Fund. Since July 23, 2013 to November 22, 2016, our company paid State Fund $170,972.91. For what? How was our rate established? Is ours high risk?

There were no claims during that time period. Historically, there were no claims in the 21st century for workers comp insurance (accident or injury). We have four classifications: Mining underground (1123-1 code number) base rate is $68.51 per hundred; Mining Surface of underground mining 1124-1 code) base rate is $23.90; Jewelry mfg. (3383-1 code) base rate is $9.01; Clerical office (8810-1 code) base rate is $0.99. All amounts are for each $100 of pay.

Many followers here are interested in real mining, not blue sky hype. Ponder what a gold miner in California must experience. Here is what will help. Find an insurance carrier to cover underground workers compensation now. As our special niche grows in the important global economy in the coming years, all of us will need a better way to provide the required employee insurance. Workers comp is in addition to all the state and federal payroll taxes. Gold mining is not for the meek!

[Stephen Wilson]

#6021

Rob McEwen who originally built GoldCorp was a believer like Mike. Rob goes after gold where gold has been produced before. Consolidation is the formula that started Kirkland Gold. Years ago some past producers at Kirkland Lake were Wright Hargreaves and Lake Shore Mines, I know because I traded them. The two abandoned mines were consolidated with a few more and today, the company has respectable high grade production.

I predict the face of Alleghany will be greatly changed when the money bags journey up the mountain as gold makes new all-time highs following its final low sometime before the end of the year. The final shake is coming and it will be the last opportunity to pick up more shares at below bargain prices. Time is on the side of OSTO shareholders, finally. Just an opinion based on my increasing knowledge of markets based on my continuing education, mainly, from Martin Armstrong.

[Stephen Wilson]

#6019

Mines.Lode: Brush Creek $4 million+, Dreadnaught $50,000 to $100,000, Docile $100,000 to $200,000, Eclipse $20,000 to $50,000, El Dorado $325,000, German Bar $200,000, Gold Canyon $750,000 to $1 million, Gold Crown, Golden King $250,000, Irelan $350,000 to $500,000, Kate Hardy $700,000, Kenton $1 million to $1.25 million, Mariposa $50,000, Morning Glory $80,000 to $100,000, Mugwump (both lode and placer) $50,000, North Fork (both lode and placer) $125,000, Oriflamme, Ophir, Oriental $2.85 million, Osceola, Plumbago $3.5 million, Rainbow $2.5 million, Rainbow Extension, Red Ledge, Red StarOsceola- $200,000, Rising Sun $58,000, Shannon, Sixteen-to-One $25 million+, South Fork (both lode and placer), Spoohn, Tightner, Twenty One, Wyoming, Yellowjacket. Drift: Bald Mountain $3.1 million, Bald Mountain Extension $500,000 to $1 million, Gold Star $250,000+, Highland & Masonic $300,000+, Live Yankee $750,000 to $1 million, Ruby $1 million+.

Excerpt from: Gold Districts of California, by: W.B. Clark, California Department of Conservation, Division of Mines and Geology, Bulletin 193, 1970.

[Michael Miller]

#6020

Consolidation is a big concept in mining districts. My early adviser, WP Fuller, Jr, said “keep this in mind. Original Sixteen to One Mine, Inc.’s management knew how and why to consolidate and was successful in keeping the Alleghany Mining District strong and vibrant.” I did keep it in mind. Prior to the dollar production listed below by Bluejay, our company owned the following mines: Eclipse, Ophir, Rainbow, Rainbow Extension, Sixteen to One South Fork, Tightner, Twenty One, Bald Mountain, Bald Mountain and Extension. The Gold Crown and Plumbago were acquired after 1990. It is important that each mine retains its own identity but together, economic factors of scale, supply/demand, give each mine the edge to prosper.

Those dollar figures represent ounces produced times spot per ounce price of $35. For the value today, multiple the dollar amounts by 34. Do this and you’ll realize why shareholders kept the Company alive for over 100 years during its lows. Educated geologists estimate that 70% of the vein system remains untapped.

True, gold mining carry risks. Its history in California resembles a boardwalk roller coaster: that big high ride to the top, the plunge down, jerky turns and curves. I had many such rides on the Santa Cruz Big Dipper in my youth. When the ride ended and I step out of the car, I usually wanted another ride.

Reflections are great! I remember when this topic first started. A better name would be How to Approach a High-Grade Gold Deposit. Maybe changing thin to small is enough. Better yet, if you forgot what was written in the beginning, give 01/28/2009a look.

[Michael Miller]

#6018

Our biggest customer of our jewelry quartz & gold bought the mine the touted detector made in Australia. It promises 40% greater depth. Our detector guru has been trudging the underground workings with this new invention in hand. Things change when electronics say, “Hello, hear and see me. I am affecting your tool.” A signal can be determined sometimes with a rock pick or finn hoe, two handy tools to carry when detecting underground. The detector loves blasting caps. It also likes iron and what we call, “hot Rocks”. Life gets more exciting when a signal becomes a target. The transition takes place with human judgment. It may be the geology, the noise the machine is transmitting, information from historic maps or even a hunch. No matter once a target is identified, mining gets more interesting.

Our last two targets were disappointing. The first was a broken drill bit that was concealed in the quartz. The second was gold. Okay but only about one quarter of an ounce. We are pleased that this new machine could detect something so small. To go beyond that rock hammer or finn hoe is a time consuming and costly adventure. All we learned from those two targets was knowledge about the machine. Both were a financial loss.
Last week the miner told me that he has a target. The machine gave him information and we did all the rest in judging the next step. The third mining adventure proved it was gold and enough to have economic value. No, it isn’t another whopper or a million dollar day or even what my directors agreed was news worthy. But for us, we are pleased and plan to explore this area in the coming days.
Our belief in gold detecting began in 1992.
Send the old Sixteen to One some positive wishes with this target.

[Fred Cain]

#5985

Group,

The is a post to my sub-theme in this category, “Mines With Tracks”.

I just recently received the March issue of TRAINS Magazine that had an article on the so-called “Eastside Access” project in New York City. Billed as one of the hugest ongoing public works projects today, it is planned to come in at around 11 BILLION dollars.

For those of you unfamiliar with the project, it’s too difficult for me to describe in a few sentences. Suffice it to say that it is a HUGE mining endeavor that will result in a new underground train station in the City with many new railway tunnels.

They had a number of pictures in there and I was pleased to see that there were several showing underground mining locomotives, tracks and trains. So. Mining with rail is not dead. It’s alive and well in The Big Apple (and at the Original Sixteen to One gol mine.)

Regards,
Fred M. Cain

[Hans Kummerow]

#5964

Mike,

does the Sixteen to One still have a longer range horizontal drilling rig of say – 100 feet horizontal drill range?

If you still have it, could that rig be operated 360 degrees within the regular working spaces inside the workings?

I have made some progress on metal detectors with very small antennas and I plan to go to Australia this year to test my equipment on alluvial sands in a known fossicking area. It is much easier to rule out a true-false signal in an alluvial Australian sand rather than in a hard rock mine like the Sixteen to One.

If you could share your current plans for the furure development of the mine with me I would be most interested. A lot of many inside Germany is currently invested into overpriced real-estate. Some of that money might also become available for undervalued mining operations in California.

[Fred Cain]

#5965

Hans,

Believe it or not, ich kann auch etwas Deutsch aber nicht sehr gut!

I, too have wondered about what you seem to be asking here.

During the last couple of years, I have bought shares in the Original Sixteen To One Mine but I have wondered if that was the best use of those funds. After all, Michael doesn’t have the money I parted with – someone else has it who wanted to get out of the business completely or partially.

So, is there a better way to fund expansion? How? Any ideas anyone?

Regards,
Fred M. Cain

[Hans Kummerow]

#5967

Mike,

would such exploration drilling inside the mine be feasible or would it create unacceptable safety hazards?

Hans Kummerow

[Hans Kummerow]

#5966

Fred,

schön von Dir zu hören! Und schön auch zu hören, dass Du Dich in die Sixteen to One eingekauft hast! I have never seen a more interesting orebody than the hydrothermal quartz veins above the Melones fault.

The questions I have asked Mike are related to an exploration strategy that we have discussed in this forum several years ago. My suggestion was to use a horizontal drill to create bore holes that are wide enough to run metal detection antennas through them.

If this can be achieved in a technically feasible and cost effective manner we could explore a much wider radius around the existing workings than that accesible from the workings themselves. And we avoid all the “true falses” that are associated with ground radar detection and ranging.

If we are able to create a convincing plan on how to explore und verify the targets and then point the headings toward them in the shortest way possible, we might either find a large high grade pocket with our limited budget or be able to raise money for a challenging production plan in the financial markets.

And I fully subscribe to Mike’s statement that he has never seen a better time to move ahead with a challenging development plan for the Sixteen to One.

[Hans Kummerow]

#5960

Thank you Mike for your comments.

I remember a statement from a very old geologist on the vein systems above the Malone fault. He once wrote to me:

Historically, production numbers have always corresponded to the footage of new workings that have been cleared.

So I wonder, Mike, whether you could dive into your archives and sort out the numbers of onces produced as a function of the footage of new workings that have been added in that year.

And in a second step, give me a number for the 2015 cost of adding 1000 feet of workings in the good old drill-blast-muck sequence and hauling the ores on the existing rail-system to the most convenient ore-mill.

Could you do that Mike?

To answer your question on the financial industry in Germany: Since we Germans had three major reorganisations of our national currency during the last three generations the public perception of fiat money is – coloured ink on small slips of paper. That attitude prevails throughout the German financial industry and explains our focus on hard assets, like production plants rather the financial services.

[Michael Miller]

#5962

Hans,
I will continue to search for a file prepared showing gold production for the mines in Alleghany. The Sixteen to One held the highest value. It was calculated in a manner that I consider today when evaluating a target for mining: ounces per foot of mining in dollars. Up to 1934 the price per ounce was $20.67. The Sixteen came to $208 per foot. This sounds like a wild number but it was prepared by USGS respectable geologists familiar with the Alleghany Mining District.

So today this would be about $12,000 per foot. I can live with that as an historical perspective on working this mine. Following in a report written almost thirty years ago by a leading edge geologist on the subject. He was hired by our lessee in 1983 to evaluate the Sixteen to One. I just finished reading it and thought you would enjoy another professional opinion.

Exploration Proposal for the Sixteen to One Mine
Objectives and Philosophy
The object of exploration at the Sixteen to One Mine is to determine the quantity and location of gold within the vein system. In order to successfully conduct exploration in the vein system it is necessary to understand the ore controls.
Ore controls within a vein are the physical-chemical geological processes by which the vein and its ore minerals were formed. . Vein minerals are deposited in faults or other open spaces in the host rock from hydrothermal solutions that circulate though the fault zone and cracks in the surrounding country rock. Local heat sources, such as a cooling body of molten intrusive rock, are responsible for the circulations of the hydrothermal solutions.
Faults are usually relatively planar features with some irregularities in shape due to variations in the tectonic forces which create the fault and the variations in the host rock cut by the faults. Therefore, movement on the faults results in the development of open spaces where vein materials are deposited. Each episode of fault movement, of which there are usually many, results in new areas of open space and a new phase of vein mineralization.
The chemical conditions for the deposition of a particular mineral depend upon temperature, pressure, and chemical species concentration in the hydrothermal solutions. Quarts and pyrite, for example, are deposited over a wide range of physical-chemical conditions. Gold, on the other hand, is deposited in a relatively restricted range of physical-chemical conditions.
Therefore, the locations and quantity of gold within a vein are the result of geological controls, in turn reflected in observable characteristics of the vein and its wall rock, which may be measured by mapping and sampling a vein. Vein characteristics may be classified as either structural or mineralogical. The structural characteristics include strike, dip, thickness, and slickenslide orientation, which can be readily mapped along with the visible mineralogy. In additions, the elemental abundances can be determined by atomic absorption analysis and the sequence of mineralization can be determined by the electron microscope.
Analysis and Interpretation – Optimization of Explorations and Exploitation of the Sixteen to One Vein
A computer-resident model of the geological features and mineralization of the Sixteen to One vein should be initiated and continually refined to assist in defining exploration and mining strategy. Initially large amounts of old and new explorations and past productions data should be placed into a computer for storage, analysis and display. These data will then be used to build a model of the vein which can qualitatively and quantitatively predict area most deserving of early exploration, pointed towards locations of minable reserves. Use the computer model will bring discipline and a partial optimization of these ends.
A basic underlying assumption is that the economic gold mineralization is not randomly located within the veins. As in any mineral deposit, physical-chemical geological controls will have operated to determine the gold distribution; our problem is to recognize and measure these controls, and to then use these measurements to make predictions of areas in the vein with the greatest probability of further gold occurrences.
Truly random gold occurrence would be remarkable – but there are clearly observable preliminary indications that we are not dealing with in such a case. Visually, a map of the known gold occurrences shows several strong trends. Further, from measurements of these occurrences, both as to their size and spatial locations, a well-formed geostatistical variogram can be obtains, with a range from 400 to 600 feet. If further confirmation of non-randomness is desired, a test for a 2-dimensional Poisson distribution can be applied.

Philosophy of Exploration for the Sixteen to One Mine
R.A. Bideaux
January, 1986
“The race may not always to be the swift, nor the battle to the strong; but that’s the way to bet.”
Damon Runyan, Guys and Dolls.
Historical exploration of the 16 to 1 mine quartz veins, searching for gold ore shoots, seemingly has been carried out largely on the assumption that gold occurrences are at random. Here the word random is used to mean “by chance” or “without method”. It represents one end of the spectrum, where the other end would be “systematic” or “entirely predictable”. All gradations might occur, so we could have statistical regularity or predictability of the gold occurrences only to some degree.
Obviously any degree of predictability should be considered helpful for exploitation of gold reserves, so as to keep exploration and mining costs relatively low compared to the value of gold recovered. This is true so long as the cost of obtaining the data on which such predictions are based is lower than the additional cost of simply going ahead and mining out the entire vein, which likely would not be economic.
Ferguson states that it is best if operations are confined to the profitable portions of the vein, a nice sentiment, but perhaps a bit difficult to do in practice. Cooke indicates that is possible to locate the gold ore shoots within the barren veins material, and offers as evidence that the miner has been operated profitably to that time. This of course has no bearing on whether the gold ore shoots have in facts been systematically located and mined out more efficiently than compared to random encounters.
Suppose that the gold ore shoots are in fact random in occurrences, both in size and locations. The best way in which to search for them would be by making a grid of workings, parallel to the strike and dip of the veins. The maximum spacing would be proportional to the maximum size of target expected to be found; then the grid squares would be filled in with more workings, finally spaces to a closeness control by economics, such that the value of the smallest target would exceed the cost of finding it, on average. The details of shape and construction of such an exploration grid of workings would be dependent also on whether the ore shoots, while random in size and locations, had any observable preferred orientation, as well as mining considerations, such as gravity flow or rock versus mucking.
For truly random occurrences, but with some parameters known, such exploration grids can be optimally constructed. Over the last 20 years, a considerable body of literature has been developed on this subject, mostly concerned with the finding of blind deposits. With all other considerations equal, every increment of vein should be explored or mined out to the same degree.
What objective evidence do we have that ore shoots at the 16 to 1 are perhaps no random in occurrence, and can in fact be found with a frequency greater than by chance encounter, or selectively mined? A subtle indication is that the ore grade after the Second World War is higher than before, while the tonnage is greater than before. This is the effect to be expected if selective mining is in fact taking place, lower tonnage but higher grade.
More exactly, shoots containing large amounts of gold tend to occur in the near vicinity of other pockets also containing large amounts of gold; and shoots with smaller amounts of gold tend to occur in the vicinity of shoots of likewise lesser amounts of gold, etc. From an ore reserve point of view, this variogram is taken to mean that reserves can be estimated to some degree of precision, with block of vein perhaps 100-200 feet on a side assigned estimates of number of ounces contained. These estimates may have a very large estimation variance, that is the estimate of ounces may have a very large uncertainty, but the existence of the variogram indicates that blocks with relatively larger amounts of gold so indicated should in fact have such larger amount, compared to blocks with estimated lesser amounts.
Note here that randomness is a function of scale, both the size of objects being observed, and the scale of observational resolution. The gold ore shoots can be thought of as being random in occurrence, if the observer is only aware of the scale of Cooke’s indicators, some tens of feet, but it seems that their occurrence is not entirely random when observed at a scale of around 500 feet.
It is likely that their occurrence is controlled by some geological process which has a scale of this same magnitude. Only structural features of the fault can be candidates, related to the amount and direction of displacement, and possibly the rock types which in turn partially controlled these. If a positive correlation can be established with the causes of gold occurrence shoots, and these causes can in turn be projected into unknown ground, or used to reassess areas already mined, it should be possible to bias mining operations to the most potentially profitable areas of the vein.

You have asked me to think of several things concerning exploration of the 16 to 1 mine: as, what I think of the current staff’s ideas on the subject, what I think should be done, and what I might do myself.
For the mine to someday go into full-scale production, to produce 20,000+ oz./year, there must be some large areas of the vein which have a good chance of producing substantial amounts of gold. Defining the probably existence of such areas is a principle objective of the first two phases. My assumption here is that the occurrence of gold in the veins in not a random phenomenon, but has been controlled by observable maple variable which can be used to project favorable (and unfavorable) areas of the veins.
Current thinking of all the mine staff seems to tend toward the random occurrence theory: that ore controls are local at best, and that the amount of gold to be found will be a function of the amount of quartz broken in search of it, almost regardless of where the quartz is mined. It would seem that the mine has been operating in largely on this philosophy, pretty much successfully, too, but I would hope we could improve even on these results.
I have looked through the notes I made from the literature, almost a year ago now; revised copies of these are attached, better printed. They should replace the copies I formerly distributed, and are well worth reading at this time.
Every study on the 16 to 1 and related deposits indicates that the occurrence of gold is almost entirely controlled by mechanical and structural features, as distinct from chemical controls. Here we are talking of features to be observed at a fairly large scale, on the order of some hundreds of feet. As of this time such data simply has not been gathered nor adequately displayed for us to collectively judge to what degree such ore controls will be in fact useful.
I cannot predict what may come out of such displays. Usually I can make a formal proposal for data processing, since the techniques to be applied are well-known. In this case, I do not know of any really similar computer system, to assist underground exploration, so it is necessary (and I think desirable) to experiment a bit in building such a device.
The hardware is largely available to me right now, and most of the computer programs. Any additional programs will purposefully be kept quiet simple, to keep the overall cost low while allow enough experimentation with the 16 to 1 data to let us know is this approach will be useful.

[Fred Cain]

#5958

Michael wrote that “We will have a different look but what look remains unknown by 2016.”

Uh-oh. Whatever you do, I sure hope you decide to keep the rail system!

Regards,
Fred M. Cain

[Michael Miller]

#5959

No worry about the Sixteen to One workings remaining as a rail driven haulage system. Diesel doesn’t work efficiently in our deposit.

I have developed a mine plan that will require much luck (uncovering another 10,000 ounce pocket) or the financial participation of a grand person or group. There is no doubt among the informed that this 100 year old operating gold mining company owns one special gold deposit. Management is uncomfortable risking time for production on luck alone. Sure, we will take it but those green old paper dollars will increase our odds of success and greatly reduce the time it takes for the eventuality to happen.

Those with an interest in hard assets will reach a conclusion that I reached forty years ago: California holds much gold in its Sierra Nevada Mountain deposit, and the Northern Mines of Alleghany top the most favorable location to extract it.

How all parties meet and unite is the mystery or unknown. My point is that the most favorable time I have seen in four decades since gold price shackles put on the industry in 1934 were lifted has begun.

[Michael Miller]

#5957

Yes, Hans, much has happened the last year and the last five years as well. This 2015 year has the likelihood of historical importance for our 103 year old company. We will have a different look but what look remains unknown by 2016. The international gold market is of no concern to me. How is the money industry holding out in Germany? I laugh no snarl when I read about the depressed price of gold and how it is predicted to change. Who are these writers and what id their background? I doubt many are gold mining producers. A twelve hundred dollar exchange for one ounce of gold makes me wonder. The wonderment is not that it isn’t higher or lower. My wonderment is why does California have only one commercially operating gold mine in one of the world’s most spectacular and proven gold deposit?

We all know that the international banker’s crash in 2008 set the character for the following years. Does anyone recognize the start of basic economic activities that will end this speculative boom and bust? I have some ideas and it isn’t the record number of the DOW.

One of my good friends and mutual shareholder of this great little undervalued company figured a process to mathematically find “key neutral” positions. Bets can be placed (either up or down, for or against or other quirky opposites) minimizing risk once the key neutral point is reckoned. I remember our discussions that took place many years ago on this process of contemplating a risk/reward endeavor. We may come to the same conclusions but the factors used to reach those conclusions can differ greatly. This becomes somewhat personal. This is a good thing for many. Finding your key neutral position is a start.

Well, Hans, I am so pleased to see your input back on our FORUM. I also cut back my participation last year but continue to check it daily. You will see more from me in 2015 than last year.

[Hans Kummerow]

#5956

Happy New Year from Germany to you all, dear California gold-seekers. Has anything of importance happened at good old Origsix during the last five years?

[Fred Cain]

#5897

Michael,

A most interesting post from you as usual. I have a couple of thoughts on this. The first one is that I think I can see somewhat of an analogy here between mining and agriculture. There are many “BIG” farmers today who are using these absolutely humongous machines, many of which sell for a hundred or even TWO hundred THOUSAND dollars (or more) a copy. Needless to say, these guys end up taking on a lot of debt.

Many of the smaller farmers who are STILL farming with 1950’s era tractors (or at least 1950’s sizes of tractors) are doing every bit as well as the big guys, never mind some of the Old Order Amish who are still farming with horses!

The second thought is that I am still puzzled and bothered by the difference between so-called “trackless mining” and more traditional, rail-based mining. As you know, most if not all of the “Big Guys” have gone completely trackless. And, as you know, trackless mining demands absolutely HUGE adits and drifts to allow the trackless machines room to maneuver and pass each other. And the trackless machines themselves are not exactly small ticket items. How can this be more profitable than using rail haulage? My suspicion is that it might not be. So, why are they doing this?

To return to the agriculture analogy, why are big farms using quarter million dollar farm machines bought on credit? Does “herd mentality” play a role here? Or, is there an element of pride of farmers (and mining companies) all wanting to be the best at doing the “LATEST thing”?

One thing that would seem obvious to me is they go for this stuff in order to increase their volume. The big machines do indeed succeed at that. But if those huge machines increase your volume by a factor of ten and also increase your costs by a factor of ten, how much further ahead are you?

I am reminded of the old joke about the farmer who was driving watermelons to the market in his old, beat-up Ford pick-up truck. He found that he was losing about 10 cents per melon. Then he found what he thought was an obvious solution. He went and bought a much larger truck so he could haul more melons!

Is this what might be taking place with trackless mining? I also belong to a couple of other mining forums. One small coal miner from Pennsylvania told me that he likes the quaintness and the history of rail haulage but as a miner he’d rather work with trackless equipment (possibly in an air conditioned cab, eh?) because it’s more “flexible”. There’s nothing that’s worse, he told me, than dealing with a strategically placed derailment in a rail mine.

Another hard rock miner from Arizona told me there’s no way he’d even consider going trackless if for no other reason than he didn’t know how he’d deal with the fumes. He’d have to put in a much larger and more expensive ventilation system. So, right there you have two conflicting viewpoints from miners.

I still haven’t found what I feel are satisfactory answers to my trackless vs. rail questions but there is one thing I am sure of. The Original Sixteen To One mine is doing just fine using the methods that you’re using. Good for you! “If it ain’t broke don’t fix it”.

Regards,
FMC

[Michael Miller]

#5894

Even though my mining in California spans forty years, it still surprises me when the need and importance of defining our work becomes an “Ah ha” realization. No wonder so little of the general populace is in the dark about this vital industry. I just had an “ah ha” experience with the hidden costs of employing a miner. California has a very suppressive workers compensation history. The rates are high. Several governors tried to improve the system yet it remains a big reason why industry moves to another state.

State Fund notified us the base rates (per $100) will increase for underground miners ($41.38 to $52.85). Surface miners decrease ($22.86 to $22.16). Clerical decreases ($1.06 to $1.03.

I submitted the following work description for our miners during the construction stage of mining. It coincides with exploration and development, those methods of work prior to production. Tunneling is less expensive. The reason is somewhat clouded but I was told that there is a lot more tunnel work in California than underground mining. Therefore, accidents are spread over more hours in computing the risk for the insurer.

“Tunneling is an adjunct to or fore work to mining. It is a horizontal or inclined drivage for development or to connect mine workings, seams or shafts. It may be opened to the surface at one end and used for drainage, ventilation or haulage or as a personal egress (walking or riding) from mine workings. The tunnel miner is experienced in the use and handling of rock drills and shovel loaders and in tunnel blasting methods.”

My “ah ha” is the realization how much gold mining has changed to big automation equipment. The ‘miner’ sits in an air conditioned cab all day each work day operating his machine. It is skilled work and I’m not critical of the ‘miner’; however, he does not resemble the miners of the past. Our miners are a slice of the past. They multi-task, work in a small environment and the machines they operate are those used years ago. Why do the traditional California gold mines resemble the miners of the past? The gold deposit dictates how we mine the most efficiently. The 21st century is alive and well in the Sixteen to One but the method of mining reflects a prosperous past.

[Fred Cain]

#5850

Does anybody on our forum know of any other companies doing underground mining in California with trammers, ore cars and tracks? I have stumbled over a couple but they are dog-gone hard to find. I suspect they are out there but how do you find them?

I have this theory about underground mines that mine with tracks. I see or perceive, a company using rail to mine as having an honest, long-term commitment to their operation(s). I suspect that some so-called “trackless mines” are attempting to do business by getting in quickly, recovering any remaining resources that they can, also quickly, and then get out again.

Surely this is not the case of all trackless mines but I suspect it may well be the case for many of them. Does anybody else have any ideas on this? Is there a connection between mining with underground railways and commitment?

Regards,
Fred M. Cain

[Fred Cain]

#5849

I would like to add a recent development to my post below on North Bay Resources and The Ruby Mine. I found out today that North Bay is planning to “spin off” The Ruby Gold Mine Co. with a new I.P.O. of stock. The proceeds of the sale will go to paying a one-time “stock dividend” to current North Bay shareholders. It will be interesting to see how this pans out.

North Bay’s common stock is now around two cents. (OSTO shareholders take comfort!). Obviously investors don’t seem to enthusiastic about this.

However, from what I can tell Ruby Gold seems to have some good people working there. Of course, I don’t know them personally so maybe someone on our forum can expound on this.

I can tell you one thing, though, when I e-mailed them at their website they were responsive. Surely that’s at least a step in the right direction.

Regards,
Fred M. Cain

[Fred Cain]

#5831

David & Group,

Yes, that’s true! To this I could only add that you might look at the really nice photos on this page here:

http://www.northbayresources.com/ruby/rubytunnel.html

Please take note that in order to visit that page you have to copy and paste the address to your browser ’cause URL’s do not “highlight” on our forum.

If you can find it, scroll down and check out that awesome switch just outside the adit! I’d love to visit this mine someday, too, although I don’t know what their attitude is on mine tours. Hardly as liberal as Mike Millers! 🙁

Regards,
Fred M. Cain

[Fred Cain]

#5827

I just recently learned of the Ruby Mine also located in Sierra County. I guess North Bay Resources has been involved in project to reopen the mine.

I sent them an e-mail asking if they would continue to use their mining railway in the mine and the response I got back was something like “Yes, absolutely”.

Like Emgold,their stock is currently trading around 3 cents. But like the Sixteen To One it may be undervalued.

I am thinking about getting some. Comments?

Regards,
Fred M Cain

[David Ingraham]

#5828

If you have interest in the ruby mine, you need to look up the web site for NBRI. Clik on the Ruby mine project. Read the geoligist report. The ruby is in Production.

[Fred Cain]

#5804

And here is a simlilar article focusing on track:

http://www.miningweekly.com/article/track-will-result-in-savings-on-rolling-stock-2004-04-02

Track will result in savings on rolling stock

By: elizabeth rebelo

2nd April 2004

TEXT SIZE

In South Africa, the total yearly tonnages hauled on underground rail systems exceed the tonnages hauled on surface rail systems by about 30%.

However, South Africa’s underground rail infrastructure is infamous for its water-related problems, lack of maintenance and poor haulage performance.

Tubular Track, a Pretoria-based company, has developed a ballastless railway system, which is used in both surface and underground applications, with rails that are continuously supported on reinforced-concrete beams.

To further consolidate Tubular Track’s position in the South African market, a black economic empowerment company, Afri Technologies, has been formed to install tubular track, with George Negota as chairperson and Alex Mzizi as MD.

Tubular track has been installed in mines in South Africa, Zambia and the US, says CEO Peter Kusel. The first tubular track was installed in President Brand mine, in Welkom, in 1989. The system uses standard rail and turnouts, which are consistently supported along their length by a concrete beam under each rail that is held in place by specially-designed steel-gauge bars.

The gauge bars consist of steel channels that are welded to steel gussets and straps. For underground applications the gauge bars can be dished to enable a continuous drain to be cast between two rails for the effective disposal of water, adds Kusel.

The system is designed to suit the prevailing geotechnical conditions that occur in underground mines.

One of the most significant benefits of installing this product in underground operations is that smaller volumes of material are required for the construction of the rail.

“Owing to the fact that the mining industry is predominantly a mining and tunnelling one, it is important to improve the efficiency of transportation,” says Kusel.

He tells Mining Weekly that, with tubular track, hoisting time is decreased by 70%.

An enhanced by-product of the locally-patented tubular track is the iMPi modular- section mine-track system, which has shifted away from in situ cast track to precast modular track and turnouts, says Kusel.

The iMPi system, which was developed about two-and-a-half years ago, has undergone intense analysis and testing at the University of Pretoria’s faculty of engineering’s railway division.

Extensive lifecycle testing also took place at the Spoornet track-testing centre. The iMPi system is being installed on an ongoing basis at various gold and platinum operations.

Africon Engineering International is the system designer, and the same consultant administers and audits the quality-assurance programme.

Africon’s contract manage-ment director, Terence Kelly, tells Mining Weekly that the company has installed an underground management system at Mponeng which is in line with the ISO 9001 standards.

Kusel describes the modular-track system as a technological improvement on tubular track, which can be installed in all mine railway applications.

Further, no slinging is required as the modular sections are loaded onto standard flatcars and transported to the site.

“This means that shaft time can be reduced by up to 85%,” says Kusel.

The product can also be in-stalled by mine personnel after training.

All installations are quality assured by Africon International Engineering.

As with most other new technology, the modular-track system is still facing some resistance in the mining industry, in which sustainable production and returns on investment are significant priorities.

Often, mining companies want to see the immediate benefits of new technology.

Kusel says that tubular track provides operations with long-term benefits, which include substantial savings on rolling stock, due to the design of the rail, which, in turn, reduces the total cost of the operation.

With regard to surface applications, extensive testing of tubular track for main-line conditions has taken place at the Spoornet track-testing centre over the last 18 months. “Because of the good results obtained, it is hoped that a number of orders will be obtained from Spoor- net and the SA Rail Com-muter Corporation,” Kusel reports.

A contract for manufac-turing precast modular 1:12 turnouts for installation and testing under coal traffic in Ermelo yard is under way, he continues.

“There is no doubt that tubular track is becoming, and will continue to be, a viable and popular alternative to conventional sleeper systems,” says Kusel.

Tubular Track was founded and developed by Kusel, the incumbent CEO of the company.

Kusel is a railway engineer who spent much of his career as a railway contractor on the coal line to Richards Bay.

[Fred Cain]

#5803

Group,

It’s been a while since anything has been posted on this. Here is a piece from an online mining magazine. Although the focus is in South Africa, it clearly points out that in at least some parts of the world, mining with tracks is still important. Here we go:

http://www.miningweekly.com/article/the-status-of-underground-rail-transport-2000-06-23

The Status of Underground Rail Transport

By: System Author

23rd June 2000

TEXT SIZE

Transportation systems have been found to be responsible for 26 % of fatalities and 49 % of all reportable injuries within gold-mines, Robertson and Hitchins underground GM Neil Maslen tells Mining Weekly.

In addition, Department of Minerals and Energy (DME) mine equipment safety acting principal inspector Fred Wilmans reports that the Leon Commission of Inquiry into safety and health in the mining industry in 1997 identified haulage and transport accidents as the second- largest cause of accidents in mines.

“Within our hard-rock mining industry, rail-bound transport can be identified as the weak link, with the current utilisation level of locomotives and hoppers estimated at 28 %, compared with the 92 % level for vertical transportation,” says Maslen. He is disappointed with the status of underground rail transportation within South Africa’s hard-rock mines, specifically because railway technology had its origin within the underground coal-mining environment in the UK with great success.

Underground Railway Association chairperson Murray Franz maintains that there has been a steady decline in standards in South African underground transport since the years of high gold prices.

He believes that a general lack of regular maintenance is responsible for the dilapidated systems.

Similarly, he maintains that trackwork conditions, track installation and maintenance, communication, training and control constitute the most significant problem areas within underground transport systems. Maslen believes that the problem has developed because current management structures do not consider the logistical process with the same focus as the other two core mining activities; rock-breaking and mineral extraction.

In an initiative to solve these problems, Wilmans reports that a tripartite task group was established under the auspices of the Mining Regulatory Advisory Committee (MRAC) to revise the existing Department of Minerals and Energy (DME) guidelines for underground railbound transport, as well as the existing railbound Minerals Act regulations.

Such standards are necessary to ensure that the 37 000 km of track underground, as well as all the related equipment, is managed, controlled, maintained and operated in a safe manner.

Maslen is certain that established process-system management, coupled with superior standards of trackwork, will enable successful underground rail-bound lateral transport.

Furthermore, Maslen stresses that it is imperative to consider the important role of risk-assessment within the logistical process when considering the current situation with respect to health and safety.

In terms of the newly-promulgated Mines Health and Safety Act, it is the responsibility of mine management to initiate risk assessments, involving State, employer and employees, which will identify all potential hazards. Wilmans reports that the tripartite task group has submitted the draft guideline to the MRAC for comment and approval.

“This document, once approved by the Mine Health and Safety Council, will be issued by the Chief Inspector of Mines to the mines in terms of section 9(3) of the Mine Health and Safety Act,” he says.

“Draft legislation has also been forwarded to MRAC for approval, which includes proposals on brake performance, ratio of unbraked mass to locomotive mass, speed indication and illumination,” he adds.

“Progressive change is required in the form of a dedicated transportation management structure, responsible for all horizontal movements of people, material and rock.

[Fred Cain]

#5724

Group,

I belong to a different underground mining forum where we have also been discussing “mines with tracks”. One guy from Canada responded stating that there are a number of Canadian mines still using rail. Among them are the Dome Gold Mine, Kirk Lake Gold also has a rail mine, “Xtratra’s” Kidd Mine and Goldcorp’s Hoyle Pond Mine.
The forum can be found here if anyone is interested:

http://www.ironminers.com/mineforum/index.php (you will need to copy and paste that address to your browser.

The forum also had gobs and gobs of beautiful color photos taken in underground mines – many of them abandoned. I might also add it was from that forum that I first learned about the Original Sixteen To One Mine.
I truly believe that the forum is worth checking out.

Regards,
Fred M. Cain

[Fred Cain]

#5673

Michael,

I wish you the very best with the meeting. I only wish I could come. My thoughts and prayers will be with you nonetheless. Hopefully I can come next year!

I hope you are able to give us a full rundown of the developments at the meeting on the forum.

Best Regards,
Fred M. Cain

[martin newkom]

#5671

Interesting activity in recent oil
and gas exploration: You all have
perhaps heard of “fracking”. Well
they are using the process and with success and they have further refined theprocess with a new method known as “octopus” ie using the same drilsite to bore in several directions thus increasing the output of a single site.

[Fred Cain]

#5669

I was wondering if someone could tell me how much of the Original Sixteen To One Mine is actually open. If you click on “MINE” on the sidebar of the website, you will be taken to a page that offers a Map of The Sixteen To One Underground from 1998. I must say, that is a very impressive network of underground drifts and winzes! But how much of that is actually in current operation or eligible for operation?

Further back in this thread I found a post from 2010 which stated that “The current operation and the long range plan concentrate in the North Central. We will be there for another 100 years. The South Central is idle with no plans for immediate mining.”

Unfortunately, I don’t know what that means. What and where are the “North & South Central” districts?

I’m afraid that the deeper recesses of the mine might be flooded with water like the Empire & Idaho-Maryland Mines. Indeed, Michael Miller alluded to such in our annual report where he mentioned that parts of the mine need to be “dewatered”. The map shows a 2400-foot level, a 2700-foot level and a very deep 3000-foot level. Are those all flooded?

If that is the case, it would be really exciting to get the deep levels dewatered and send someone down there with the GPR equipment. Since these levels are so deep, it would be my guess that they haven’t been nearly as thoroughly explored and the possibility of a major strike would be higher down there. Then again, perhaps I’m wrong about that. Perhaps the gold-bearing quartz veins are only found at more shallow levels. Does anybody know?

Finally, what do the heavy lines and very faint lines on the map signify? Do the heavy lines signify the presence of rail car tracks or do the faint lines merely indicate that those passageways are abandoned and unsafe?

Regards,
Fred M. Cain

[Michael Miller]

#5670

Fred,
I sure appreciate your interest to details. I have answers but right now not much time. We are preparing for the annual meeting (my thirtieth as president). While it has become a fun day for me, there is much to do to make the grounds comfortable for the owners. Some will be first time visitors to the mine and others show up on a regular basis. We expect over 130 and less than 200.

We allowed the water to rise almost to the 1300 level about six years ago. Miners worked below the 2400 level in late 1990’s. We sunk a winze below the 2400 level to visit the quartz below the fault…found gold but the price dropped significantly and it was more expensive to mine that location than other targets. Pumping is like having a baby for a women or a kidney stone for a guy. While it may be always uncomfortable, the first time is the worse. Dewatering the mine will not be a problem and there is track along the lower levels.

I’ll catch up with the FORUM after this weekend. Always enjoy everyone’s input.

[Fred Cain]

#5646

Michael,

If you have time, I’d like to hear more about your experience getting disoriented in a mine when you were young. That must be an interesting story!

On the mountain lion, it is my understanding that mountain lions can actually be very shy and are usually no threat to human beings unless cornered, trying to protect their kittens or rabid. That being said, though, it is easy to see how a big cat could suddenly feel cornered if you encountered her in a mine.

If that animal was healthy, and she probably was, I agree that she has almost certainly left the mine by now.

Regards,
Fred M. Cain

[Author]

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