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- in reply to: Clips from Alleghany #2413
Thank you Blue Jay! That is very sweet of you. We will take a look.
in reply to: Clips from Alleghany #2412In regards to Missy, I wouldn’t hesitate to contact Newton Laboratories for a recommendation on what could stimulate her recovery the natural way.
They sell a broad range of homeopathic formulas for pets and people. I have personally used their pet products for years with great success.
You can get a toll free number from their website at http://www.newtonlabs.net. After you order what she nees send me the bill.
Thanks,
Stephen Wilsonin reply to: Clips from Alleghany #2411Hot days in Alleghany, although compared to the Valley it is cool.
Monday morning the power went out for about an hour. We never did hear what the cause was, but it was out in Downieville as well. Later that evening there was a fire in Goodyear’s Bar due to a downed power line so maybe there was a connection. The fire was under control within an hour and burned a couple acres. There is still a bit of moisture in the foilage thanks to the late spring rains we had.The vet thinks that Missy the Cat has Chronic Irritable Bowel Disease. Getting a positive diagnosis would require a visit to an internist and a biopsy, but a special diet usually works as a cure. We have decided to try the diet and see if it helps her.
The miners are finishing up the block of ground they are in and then have two new blocks one to the North and one to the South of the area they in. Ian estimates about two more weeks to finish where they are.
in reply to: Clips from Alleghany #2410Scoop, What happened to Ian’s idea about opening up a new block of ground? Also, how is Missy the cat???
in reply to: Gold Enters Major Bull Market #2409The following is an excerpt from a July 15, 2005 article by Mr. Paul van Eden entitled “The devaluation of gold” that appeared on kitco.com
By comparison, the U.S. money supply(as measured by M3) has been increasing by an average compound rate of 7.8% since 1959.
While gold devalues at 1.73% per year, the dollar devalues more rapidly.
The value of gold in US dollars has therefore increased at an average rate of 6.07% since 1959.
Note that I did not say “the price of gold” in the previous sentence.
We all know that gold was underpriced at $35 an ounce in 1959.
According to work I have done, I estimate that the gold price should have been about $51.22 an ounce in 1959 and, if you assume that that is more or less correct, you can calculate what the gold price should be today.
Compounding $51.22 at 6.07% for 46 years results in a current value for gold of $770 an ounce.
——————————To better understand why the value of gold depreciates by itself without weighing any factors plus some more interesting facts concerning gold go to kitco.com and read the informative article.
in reply to: Gold Enters Major Bull Market #2407The price of gold continues to build up strength for its next advance. During the past six months gold has been resting roughly in the $420 to $440 area. Its price today is in the bottom area of its current trading zone at $419.
Gold’s price since its bull market started in late 2002 has basically been to hit new extreme trading highs every 11 months. The last high took place 7 months ago near $460.
If the advancing perpetual motion that has been in effect since 2002 continues, gold should hit $490 an ounce during the month of October. Usually tight trading ranges, like the one witnessed during the past period, provide fast short term advances which could consume up to eight weeks in duration.
Currently, the major gold stocks are taking a breather following a few weeks work at their overhead resistance levels. The major gold stocks have recently been displaying excellent relative strength compared to the gold price. This in the past has indicated that an impressive move higher in those gold mining shares is near.
in reply to: Clips from Alleghany #2408Today is one year from mining the most recent pocket. A year apart complicates the cash flow. The ground looks just as favorable today as it did a year ago when Ian, Joe, Reid and others strung themselves out because of their belief in the mine and each other. The mine faces less severe cash flow management than it did last year prior to the pocket. The company and crew were badly beaten up!
A strong lack of working capital hurts most businesses but especially the Sixteen to One. Why? Well, with no idea when the bank will be replenished, capital expenditures needed to increase production or merely maintain an efficient operation cannot be given. Right now finding Mister Pocket is required to complete the shop, change room, mine office and other surface work that is either planned or begun. Winter is not that far away.
in reply to: CDAA Conduct #2406Mike, you and I are cut from the same cloth. Perhpas we’re naive to even speak of the inner play at work within the juris fabric, and as purists we are out-raged to discover practices that breach moral fibre, albeit between the banter of courtroom gun-slingers (meaning, those posturing lawyers who breach rules and law for the ultimate victory, the win), yet you’ve just written and related how it is standard practice.
From my perspective I recognize how “lying within inner court-room dialogue” can be fabricated, or construed as “normal procedure”, and eventually to be decided as “proper” (or not) as a subject to the discression of the bench, each case unique, and each case with the eventual explanation in layman’s terms.
In other words, “Yeah, that happens all the time; there’s just nothing we can do about it.”
Let me clarify why I say we’re cut from the same cloth:
I’m a purist. I refuse to believe that our system of checks and balances is so corrupt that it will no longer work; I refuse to believe that everyone lies, (even though we witness most often those who do, we cannot condemn those that do not); and I believe that when we witness our judicial system’s participants who procede with “lying” as protocol, we need to, as citizens, fight it.
I will always refuse to yield this crucial point, because to yield to the notion that “everyone’s corrupt” would undermine the existence of our “representative democrocy” since we need, by definition, to trust our representatives; otherwise, why even have our system? The bigger question, as a derivative, could become, “Why trust anyone, since everyone lies?”
(Do I need to even answer?)
In cases outside the scope of our representative democracy (those issues not defined by the legislative nor executive branches) we have only the courts to interpret the law, as passed. And with legal interpretation, the participants are lawyers.
You and I, Mike, want to kick them the hell out when they stand in the midst of honor and willingly break the honor rules that make our system even feasible, and yet some that have been annointed within the public sector feel immune, and have not only acted that way, don’t give a damn about the honor of our representative democracy and the power that lies within honesty.
ARE WE THE ONLY ONES WHO ARE WILLING TO FIGHT?
There are those of us out here who are old-fashioned, die-hard purists who belive it the concept that “not everyone lies”… but when they do, we’ll fight like hell to show them the rope.
in reply to: CDAA Conduct #2405IT’S AGAINST THE LAW TO MISLEAD A GRAND JURY OR A JUDGE
The July 2005 issue of “California’s Lawyer” features a story written by Eric Berkowitz headlined, “Why I Stopped Litigating After 20 Years”. Upon receiving the magazine and after reading the letters to the editor, I went right for this story. It is about a lawyer who discontinued his practice of civil litigation and participation in the Judicial Branch of California’s government. The lawyer decided to retain his shingle but entered University of Southern California to study journalism.
He writes, “Instead of indulging in introspection, I worked harder. There were still times when what happened in the court (both good and bad) seemed random, and lawyers and parties routinely lied, but I learned to accept those frustrations as part of the Real World over which I was gaining mastery.” Here are statements from someone who does not know the Sixteen to One mine or me. He clearly writes that lawyers lie in the Superior Courts of California. I knew it to be true in Sierra County, and I suspected it was true in other counties as well. Think about his statement. Lawyers are routinely lying to the judge! Could Mister Berkowitz qualify in a civil trial as an expert witness to testify that the California District Attorney Association pack is courtroom liars? Could his opinion reach the jurors? Of course.
A lie is intended to shield the truth or mislead the Court. If its effect will mislead the Court, it is an unlawful act. It breaks a California law regarding those members of the California State Bar, who appear in the courtroom. “Lawyers and parties routinely lied” is an indictment of perjury. Mister Berkowitz continues, “Rather than hiding harmful information from a court or jury, I will focus on showing all sides of an issue”. Wow. Couple this admission of his past behavior as a lawyer as hiding exculpatory evidence (harmful information to his client) and his witnessing routinely lying lawyers in the courtroom. He or other lawyers may pass the “smell test” lawfully, ethically and professionally. In Miller v Filter as the case develops, testimony will be given that the behaviors of the defendants fit the indictment of Mister Berkowitz. They will not pass the “smell test”. Maybe lawyers should be unchallenged in lying to each other over the phones or anywhere, anywhere that is except the courtroom. Maybe their clients expect and demand that of them. But in Sierra County the client of the five defendants is the people. The people expect the truth. The harmful evidences with held both from the grand jury and the courtroom were exculpatory or a lie. The notion of harm was to themselves not their client (the people). The people suffered revenue and other social benefits because of the behavior of attorney Gale Filter, Kyle Hedum, Anthony Patchett and Denise Mejlszenkier.
This magazine is supposed to reach many of the 200,000 California’s lawyers. The Original Sixteen to One Mine web site probably is read by only a couple of dozen. More of California lawyers should evaluate the “smell test” in their profession and even take a position: suborn perjury or cleanse the courtroom. A by-product of great social benefit from our lawsuit will be ‘collateral good’. The more lawyers who see the illegal, unethical and unprofessional behavior of the five defendants, the more hastened the rebuilding of trust between the public and those who enter our courtrooms to argue civil or criminal disputes. When lawyers either see that California will disbar or suspend lawyers for failures within Rules of the Court and for violations of the Penal Code, they may rise to the occasion and change their ways about perjury in a courtroom or misleading the judge. If they are not presented with the opportunity, the public will never know. Help spread the challenge.
in reply to: Clips from Alleghany #2404Two clues about the ransom note. (see photo) The fine print reads “Empire Mine State Historic Park” and there is a 966 loader which lives between the Empire Mine and the 16 to 1. Most recently it was at the 16 to 1 for a month or so, which is when the note arrived.
The miners are breaking rock again.
Missy the office cat still seems sick. Rae took her to the vet again today and they drew blood to run some tests. We will know the results on Monday.
in reply to: CDAA Conduct #2403Yes, it is late to be working at a computer; however, for those of you who indicated they were planning to come to Downieville for the court date on July 8, here is an important update. The Superior Court called and left a message that we just received two hours ago. The date of our hearing has been changed to August 16, 2005. No explanation was left on the message machine. Frankly, I am disappointed. The bad guys are using the system in a specious manner and they will lose. They have not even answered the complaint, which was filed over thirteen months ago. They continue to mislead the Court.
A hearty band of experts gathered in Alleghany tonight to ponder the issues, including 149 pages of nonsense submitted to the Court by Mister Knox on behalf of the nasty lawyers, who conspired to put Original Sixteen to One Mine, Inc out of business and imprison its two top employees. (I cooked dinner for this group of “good guys” this very evening).
It should be a concern to all Californians and Americans when members of the prestigious Judicial branch of our government abuse the intent of another prestigious branch of government, the Legislative. ( It should be more of a concern to the judges and other lawyers who practice their trade with ethics and an understanding of the law.) That is what is happening now and what happened three years ago. That is why we Californians and Americans created a third branch of government, the Judicial, to judge the machinations between the Executive and Legislative. Stay tuned.
in reply to: From the Sixteen to One Archives #2402Recently rediscovered historical article, part of a series. Scoop will be posting one per week for the next several weeks.For a printable version, go to ‘The Mine’ section of this website.
MINES AND MINING—Activities in the ore districts of the Southwest
Oct. 24, 1909
Bonanza find at Forest City
South fork finds Alleghany veins’ extension?Grass Valley (cal.) Oct. 22- The discovery of Bonanza ore in the South Fork mine in Forest city is considered one of the greatest strikes ever made in this district, and if the vein ultimately proves to be the great Tightner ore body, as everything indicates, it will mean the development of a giant property. The South Fork is owned by Los Angeles people and work has been moving ahead for several months under the management of Fred W. Kuhnfeld. The tunnel has been crowded ahead for over a mile and several promising ledges intersected. But the last find is far and away the greatest ever made in this section. The extent of the vein is still undetermined but it is known to be several inches wide with very high values. The ore is identical with that found in the Tightner and other Alleghany properties, containing free gold and arsenical sulphurets. Forest is just across a range of hills from Alleghany and it is considered that the strike in the South Fork demonstrates that the veins of Alleghany strike across the hills to the Forest district. The management is pushing development and, if the find continues to show as well as at present, shipping will soon be under way, the same people are developing a number of other claims in the district, with encouraging results.
The Rainbow mine at Alleghany recently cut a bonanza shoot and is sending out high grade. It is reported that arrangements will be made with G.M. Taylor, who recently jumped the Rainbow tunnel, whereby the company will be enabled to resume extensive work through the adit. The Red Star mill is running on good ore. A large number of claims are receiving attention, but the trouble between the leading companies is greatly holding back the district. With the Sixteen to One, Bonanza King and other mines tied up by litigation, with no early prospect of settlement, with the Rainbow handicapped by the loss of it’s tunnel, and with winter at hand, Alleghany is not reflecting the activity that characterized it a few months ago. The miners appear to be all right, but the tactics of the warring owners militate against advancement.
GRASS VALLEY
The Grass Valley district continues to maintain its’ position as the premier quartz gold producer in the state. The North Star Mines Company is producing at the rate of $180,000 per month with eighty stamps in commission. Extensive work is going on below the 4000 level, where the six-foot vein is running about $12 per ton. At the Empire, sinking is about to commence from the 3500 level. The two Mammoth electric pumps have been placed in commission and everything is in readiness for rapid work. The Dana Company has resumed work with a small force of men. The Brunswick shaft is progressing steadily, but it will be several months before any depth will be attained. The Kenosha continues to intersect small high-grade bodies with the shaft going down steadily. The Pennsylvania, Sultana, Idaho-Maryland, and several other properties are producing steadily. The deal for the Eureka has not yet been consummated, but it is reported that it will be carried through in the near future.
SIERRA COUNTY
The important deals are pending in Sierra County, and will probably be consummated before the end of the month. Eastern capitalists are examining the Brush Creek mine and express themselves well pleased with the property. The Brush Creek has a good productive record. But disagreements between stockholders led to its closing. The property is located near the Kate Hardy, where a bonanza strike was recently made. An English syndicate headed by W.A. Wood of London, is negotiating for the Phoenix mine near Sierra City. The Phoenix is a low-grade proposition with immense bodies of such ore to be developed and equipped with a stamp mill. The English capitalists already control the Four Hills and Bunker Hill mines, in the Sierra City district, and are well pleased with the success that has attended their efforts.
PLACER COUNTY
The Ophir district, Placer County, is attracting considerable attention. Operations are to be resumed immediately at the famous Hathaway by a strong company. This was formerly one of the great producers of central California. Work will be prosecuted on an extensive scale. At the Crater, new machinery is being installed and operations conducted systematically. It is reported, that the Crandall has been sold to Colorado capitalists for a large consideration. A number of other properties are receiving attention with several showing well. In the Michigan Bluff section W.H. Fletcher and associates of Los Angeles and Pasadena are preparing for extensive work at the Home Ticket and other properties. These mines are well-known producers and have a bright future.
EL DORADO COUNTY
Articles of incorporation of the El Dorado consolidated mines companies have open filed with the County Clerk of El Dorado County. The capital stock has also been increased from $500,000 to $ 750,000. The company is organized under the laws of Nevada and is composed of Nevada, San Francisco, and southern California people. It is empowered to engage in all kinds of mining as well as other lines, such as the operation of power plants, railways, ect. The company expects to operate a number of properties in El Dorado and is arranging to secure numerous holdings.
SHASTA COUNTY
The Stauffer Chemical Company has landed the celebrated Oro Fino mine, near Shasta, for $10,000 and will at once commence active work. The ore holdings of this mine carry an excellent gold percentage and give excellent signals of continuing to great depth. The Mammoth Copper Company is continuing to spend………..(illegible text)………. -The Bullychoop is about to resume with a large force of workers. This is considered one of the promising properties of the county and has produced considerable gold. The time for the expiration of the truce between the farmers and the smelter operators is rapidly approaching. The Mammoth and Balaklala companies have experts on the plants and botanists in the field. It is expected that the latter will show that much of the damage in the trees has been caused by the neglect of the farmers properly to prune and spray them. November 1, when the truce comes to an end, promises to be an interesting day in the Shasta copper belt.
CALAVERAS COUNTY
The Reiner mine, near Angels Camp, has entered the bedrock in the ancient channel and has opened an excellent body of pay gravel. Pannings thus far have exceeded the expectations and the outlook for excellent production is good. Many southern Californians are interested in the company, which has expended a large amount of money in developing and equipping the property. The Calaveras Copper Company, which recently acquired the Union, mines at Copperopolis, is arranging to commence extensive operations. The smelter and concentrator can easily handle 1,500,000 pounds of copper per month. The Utica, Lightner, Melones, Etna King, and numerous other gold mines are producing steadily. No further talk is heard regarding rumored later troubles.
MONO, ALPINE, INYO.
The announcement by senator Newlands of Nevada to the effect that the Virginia and Truckee Railroad will be extended into Mono, Alpine, and Inyo counties has been halted with joy by mining men in these districts. All that has held back splendid districts in these counties has been the lack of transportation facilities, and with the advent of the Virginia and Truckee the greatest boom in the history of these counties will be inaugurated. Connections will be made with the Bodie and Benton and Tonopah and Goldfield lines. A large number of promising Nevada districts will also be opened by the line.
CONTRA COSTA COUNTY
The farmers of Contra Costa County have requested the supervisors to pass an ordinance against the Mountain Copper Company’s smelter at Martinez, alleging that the escape of fumes is damaging orchards and farms. The board has promised to take steps in the matter, but it is probable that the plants will be incorporated in the expansion plans of the town of Martinez, which will block the plans of the complainants. Considerable bitterness has been aroused by the plan, the farmers maintaining that the town of Martinez will not seek to prevent the escape of the destroying fumes. Accordingly they have filed a protest of the annexation of additional territory by the town. It is unlikely that the protest will be heeded.in reply to: Clips from Alleghany #2401The rebuilt 58-horse power pump is back on-line. It was overhauled to the tune of $4500. This pump provided four years of service and should do it again. It is placed at the lowest water level and should be left unattended unless the company decides to pump down to the 2400-foot level. The chief downside has been the inability of the crew to go mining for Mr. Pocket. The are a few long faces around town because of the long drought of finding Mr. Pocket. No one is whining and no one should. The past six weeks or so have been mostly maintenance. Word on the street is, “Go for the gold”.
in reply to: Another U.S. precious metals miner goes foreign #2400Mike,
You are not alone in this experience. We had a similar occurence at the K2 Mine up in Washington starting a couple of years ago. The Bellingham MSHA office wanted to get “underground experience” for their new inspectors and they wanted to “visit” more often than once a quarter. We were trying to remain cordial with them but had to tell them that if it wasn’t a regular or special inspection that they could/should phone ahead and let us know because it was taking up too much of our time and affecting production. It use to be that MSHA was someplace that old miners and mechanics could go after years in the mines but that isn’t so much the case anymore. With the increased regulation of sand and gravel operations, MSHA is hiring anybody they can and most of the time they don’t have a clue about mining, let alone underground mining.Gordon Fellows
Chief Mining Engineer
Bulyanhulu Mine
Tanzaniain reply to: Another U.S. precious metals miner goes foreign #2399David Dye, Assistant Secretary June 29, 2005
MSHA
U.S. Department of Labor
1301 Airport Road
Beaver, West Virginia 25813-9426Dear Mr. Dye,
Congratulations on your new appointment to head the federal workers safety program for America’s most precious resource, its miners. I am president of America’s oldest gold mining company and perhaps the only working hard rock, traditional, underground gold mine in continental United Stated. It is not something to brag about; it is something to mourn and investigate why there are so few. I also operate as an independent contractor for several projects and have been in the gold mining business since 1974. Your agency is partly responsible for the decline in the domestic natural resource industry. I am not sure that you are aware of the decline in the partnership between MSHA and operators to keep the miners safe. I write today to give you a recent example of how your agency is hurting the small operator.
On June 22, and 23, 2005, MSHA conducted a regular quarterly inspection. Accompanying the inspector was a young trainee. She had no experience working in an underground mine. She said that she had never been underground before. During the inspection she began lagging behind. It required a second employee of mine to stop and accompany her. She was unprepared for the inspection both physically and with her provisions. She put herself in danger, our crew in danger, compromised the agency’s credibility and endangered the operator and owner of the mine.
I request the following:
1. By what authority grants MSHA the right to bring trainees onto our property?
2. Is this practice occurring elsewhere?
3. Who at the Western field office approved her visit?
4. Please notify the Western office to cease bringing trainees on inspections or at least unqualified and unprepared ones. Please let me know their response.I support the reasonable enforcement of the Act of 1977 as Congress intends it. The practical benefits for those of us in the trenches were lost almost a decade ago. Reasonableness no longer is a concept practiced in the field and offices. MSHA no longer is meeting the best interest of the American public. Maybe you will be able to enforce better training for those attending the National Mine Health and Safety Academy as a first step to improve operations of the mining industry in the United States. I hope so.
Where will there be mining jobs in the future? Not likely in this country if the misdirected regulatory agencies continue their trends. Why are federal tax dollars passing through MSHA to China to help them development mine safety teams? The International Mine Contests are held every two years and about fifty teams compete. Last year in Las Vegas, China participated for the first time and placed third. China will likely win the next contest, which is fine with me; however, public money is going to them while MSHA has introduced a policy of increasing revenue with citations and penalties against the operators in the United States. Poland gets as much money or maybe even more than China granted through MSHA. Why?
MSHA employees take frequent trips to China and elsewhere. I was told that someone goes to China at least every other month from MSHA headquarters. How is this expense justified as helping America’s most precious resource, its miners? China has invested heavily in Australian natural resources. None of this bodes well for America’s economic freedom. China has something like a trillion dollars foreign trade asset.
Last year there were forty deaths related to mining. Last year in China the government admitted to 10,000 mine related deaths. Last year 658 people died every day in automobile related accidents on our roadways. My point is the mining industry in America is a responsible industry. It should be treated that way by MSHA, which has not occurred in various operations in the west. Right now there is an insidious and specious effort to further impede the American operator by insisting that the category of “lead miner” reflects a management position within an operation. This is not true. Most within the mining industry both public and private know this is not true. Yet our small company has been forced to challenge this reckless assertion by MSHA agents and lawyers working for the Secretary to establish this position. The case is in the hands of the Ninth Circuit Court of Appeals. Your agency is driving this outrageous myth. How about getting involved and putting an end to this costly abuse of process?
Does America derive benefits from the money it spends to send agents onto private property under the authority of the ACT of 1977? The answer is “no”. Should America continue to fund an out-of-touch agency like MSHA? The answer is “yes”. Good luck. I am at your service to improve the situation.
Sincerely yours,
Michael M. Miller, president Original
Sixteen to One Mine / owner Morning Glory Gold Minesin reply to: Clips from Alleghany #2398193 people came to the annual meeting on June 25, 2005. The meeting went from 10:30am to noon. It was a huge success from this reporter’s perspective. A film operator was busy all day. The rumor is a video will be offered in the near future. Miller is personally making a documentary on mountain rural culture, which he intends to enter in the fall film festival. Here are some of President Michael Miller’s remarks.
“Wonderful people gathered here over the years. The first mine meeting was in 1991, the year the company took back its mine from lessees. Last year we were beaten down and only three miners remained on the gold participation contract. One shareholder stood up and addressed the group. He encouraged everyone to bring the mine into their thoughts, provided energy and spirit to find a pocket of gold. Twenty days later the tired and worn miners knew they were into something. It turned into a fourteen hundred ounce pocket, which we used to pay down debt and manage to keep mining. Maybe there is power in positive thinking, I believe it is so. We are running low on the gold and quartz from that pocket. He called to say he could not attend the meeting this year. I said that his interest may have been the difference. So, if you were here last year and remember the conversation, do it again. We need a pocket again. If you were not here, give it a try. I believe in the power of positive thinking.
“By the way, how many of you are here for the first time? Raise your hands. Whoa, that was too quick. Keep them up, please……about ninety of you. There are some rules that you need to know or be reminded of again. No litter, please. Pockets or trashcans are where the stuff you don’t want must go. Drink water and watch the sun. It is cooler today but we are at almost 4000 feet elevation. The air is very clear today and that old sun is pumping down. Sign in at the portal and remember to sign out. This is a working mine. The lines are carrying 4100 volts. It’s the real thing, not an amusement park. There are well-practiced emergency procedures in place. All the miners know what to do, so listen to them. Be patient. We will stay here so everyone can go underground. One year a shareholder was exiting the mine. He dropped to the ground right at the portal. Either the heat or something got him. It is fifty degrees in the mine so dress appropriately. That should not be a problem today. If you feel claustrophobic, turn back. Have a good time. It is a rare opportunity to see the Sierra Nevada Mountains from the inside out and this is a special sight to see.
“There is bad news and there is good news. Rot and decay have taken their toll on looking for gold. Over the past month the crew has been busy in non-mining activities. The good news is that the mine is maintained and the water has not risen above the expensive electrical equipment on the 2050 level nor has the super hoist at the 2483 raise been compromised. The other issue just comes with mining. We are running low on inventory.
In light of this I have an exciting announcement to make public. The company closed escrow on a mine known as the Gold Crown in Alleghany. It is contiguous to the Sixteen to One. It has a practical high-grade mill, twenty-four patented acres, fourteen unpatented claims and mineral rights to three other parcels. Other assets were packaged under one negotiated sale. There were three other buyers, all connected with the company in some way. The sellers chose to take cash and a note instead of any stock. The company exercised a five-year note for $144,000 and paid no money down payment. The others put up $156,000 in cash. The sellers owed the mine for almost thirty years. They worked the mine and had various lessees over the years. At one time a group of investors, speculators and gamblers prepared and offered a $5 million plan to develop the mine. It was circulate in New York. The owners are very supportive of gold mining and are gathering maps and documents about the mine for us. When I receive the data, it will be summarized and entered on the web site under MINES.”
Scoops notes of conversations with shareholders and miners will follow later, perhaps.
in reply to: Clips from Alleghany #2397Funny that the topic of pasty would come up.
In May I rode the miners’ elevator 1300 feet straight to the bottom of the shaft of La Mina Rica in Real del Monte, Mexico. There we hiked and rode the miners’ railroad to the face of the silver vein, over a mile in. We were told that many miners had come from Cornwall and their lunch buckets carried “pasties.” When we exited La Mina Rica, about 3 hours later, we were greeted with a light meal, a pasty, a turnover, filled with seasoned meat. You don’t have to take a tour of the mine. In the plaza, under the arches, in Real del Monte, it’s on the menu.
Real del Monte and other historic mining towns are just north of Pachuca, Mexico, a couple hours from Mexico City.
Best regards and strike gold!
Dick Davis
in reply to: Clips from Alleghany #2395For those who cannot be here tomorrow in body, you are here in the spirit. Much will be revealed tomorrow. The site looks great but Scoop found out something confidential. Oops, some lawyer may allege that general talk somehow compromises professional ethics. Much like an ignorant lawyer, an inexperienced lawyer or a Knowing and Willful lawyer who misleads the court or abuses the judicial process with malice must be challenged and stopped. “Insider trading” sound possible? No. There must be evidence that the public or shareholders were misled for a case to proceed and that damages or a crime have occurred. Monetary, like moves in the buying and selling of shares, must have occurred. Scooped the following from MMM’s trash:
“I decided to draft a paragraph of my shareholder presentation and see if the statements trigger rapid increases, decreases or volume in OAU shares. Only then will |Scoop know his power.
For those others reading tonight’s late entry, there are other ways to mislead the court, whereby monetary and punitive punishment is warranted. One is to file papers that present general talk that is known and accepted in judicial circles as polite and socially appreciated and accepted by all to have occurred. This would mislead the Court, a crime in California, as well as a violation of a plaintiff’s justice. This behavior is what the Company is facing with the defense of CDAA and its defense team led by Tom Knox.
Detail his “specious’ verdict.
Explain the sale of Brown Bear and show photo board. Upside: needed liquid capital. Downside: Discount in future market place ten times if sold.
Acquisition of the Gold Crown.
The upper landing, the lower landing and the gathering or the company’s proven iron reserves were of primary focus for the small crew. Unfortunately the 58 hp pump gave way. The propeller wore down (it pumped from the lowest level where we are holding the water line for four years) taking precious time and money. It is in Auburn and will return next week.
We are small but mighty and we are ready. Chance of showers and for sure sun.”in reply to: Clips from Alleghany #2396Hey Scoop. Is it a pastey or a pasty? Beleve it or not I bought a dictionery. I herd that ones something you can eat. I no what the other on is.
in reply to: Miscellaneous #2394Rae: When I say the new road, I called the Forest Service in Camptonville and they told me they constructed it. This is after the Brush Creek road that washed out.
in reply to: Miscellaneous #2392Nose for Gold, where did you get this info? I know Brush Creek put a new road in there when they had it, but the Forest Service?
in reply to: YOU JUDGE *** US COURT OF APPEALS #2391The US Court of Appeals asked for an explanation as to why I was addressing the Court without a lawyer, giving me fifteen days to respond or have my appeal dismissed. I chose that an argument justifying why it was proper for me to address them was not the issue. I want this group, the first and only judicial bunch to review the specious report of the accident prepared by Stephen Cain, to cancel MSHA’s accusations, as the ALJ, Mr. Gary Melick should have done. I asked George to sub in for me (he has long standing credentials to appear before this Court). He said okay but fifteen days is not a lot of time to come up to speed. An extension by phone was assured to be granted. We thought, let’s give it a shot and get it out of our minds( July 8, 2005, coming up in Downieville with four motions by the bad guys for review).
This new brief lacks the sermon aura of the brief filed on August 23, 2004 (following the second one). Scoop is right. George and I allowed two hours for driving uncertainties from Alleghany to the East Bay and finally to the Beautiful federal courthouse on Mission and Seventh. We bolted into my truck, he signed the sixteen copies we needed to file between Grass Valley and Auburn. Here it is.
in reply to: Miscellaneous #2388Gfxgold, were you expecting a response from TominGV? I was. You must have severed his thread. It is disappointing that he never continued his topic. Grass Valley and environs also house wide spread “meth” users, a very dangerous illegal drug. Having witnessed first hand its effects in Alleghany, I will bet the noisemakers in the late night time hours are not gold miners but drug users. It could not be a Tommy knocker. Tommy knockers are considerate chaps. If they were working late at night, no one would be disturbed.
Other than our crew and a few scattered operations, there are no active miners left in the Grass Valley area. TominGV is likely a ‘newbee” to the area or the world of hard rock mining as practiced in the Sierra Nevada. Like so many well-meaning people who have migrated into the gold country of California, his perception of what it takes to find gold is pitifully lacking truth. Mining ranks with the world’s most intense blue-collar jobs. It requires a complex variety of talent, knowledge, equipment and money. If the noisemakers are gold miners, they are hopeless dreamers and will quickly discontinue their activities.
So, TominGV, where is your credible thread. This topic is headed for the Misc. file. I’m sure Gfxgold, Bluejay, Nose for Gold, Rick, Auriferous and others are interested in your views of the nighttime underground miners of Grass Valley. Two points: The bat reference is for real. I have worked at the Sierra County Park called the Kentucky Mine. The bat population was a factor to consider. In the Plumas Eureka State Park bat habitat was also a factor. There is a foam product that seals abandoned portals. I agree with Gfxgold: fix the safety issue but don’t destroy the asset. A while ago I reported that current USGS maps have eliminated the pick and shovel designation for mines. Is this another aspect of reducing the American’s knowledge of our natural resources?
If you really want to know who has been ripping off and destroying the mining artifacts and culture in the Sierra Nevada gold belt, look no further than the United States Forest Service. Working out of Nevada City and Camptonville, the top management is leading the cultural rural cleansing campaign. Ignoring federal law (the Antiquities Act) forest service employees have been loading their green trucks with iron, important iron, and hauling it away. Many times it goes to private parties or is sold. What a shame! What a loss!
in reply to: EMPIRE STRIKES BACK #2387The following was sent to State Parks. Its here because of questions and blank looks regarding the problems of mining dirt verses hard rock.(Prior post). Dirt and shooting concrete against a wire mesh is one way to efficiently mine through dirt. It was an option. I had an expensive machine at the portal that we had experimented with at the Sixteen to One mine. We fired it up and shot a little as we turned under. We also installed crown bars for workers safety. I made a decision to mine consistent with the historical perspective of the park and the region. A large part of a mine experience is the smell. Just ask a Sierra Nevada miner. The experience is what the intentions of some locals brought before the Park as an educational idea eighteen years ago.
The same cannot be said for the mines around the world running of underground diesel power. Those mines where it was tried have failed to hold the ground or make a profit. The Empire adit could have been driven either way, according to the specifications.
Subsurface conditions encountered during construction have restricted the advancement estimated for the following reasons:
1. Drill holes are collapsing after drilling is completed. This requires time to blow out or clean the holes before loading with explosives. If the drill hole cannot be cleaned, a new hole must be drilled.2. The uneven material has collapsed on the drill steel during drilling, resulting in the steel becoming stuck in the hole. Solutions are to first attempt to remove the drill steel. Other solutions are to cut the steel, leave the steel and drill a new hole, use other drill steel and drill bits. All have been implemented.
3. The ground is so unpredictable in its consistency from foot to foot that no reliable drill pattern has been developed to control the break. For example, closer to the brow of the adit, four hole broke five feet after barring down the loose rock. Veins of competent rock are surrounded with mud and clay of varying thickness and size. Many times the face has shown one type of material but beyond the face the material changes in its composition. This has caused delays.
4. The amount of tonnage broken has been inconsistent, due to the wide range of weathering, strength, fracturing and the rock type. Many times the round will over break. The miners are shrinking the drill pattern to minimize this unwanted affect. Several times the rock has under broken, and the miners must bar down and then return to the face to drill out additional rock to install the ground support.
5. The unusual wet winter has caused compressed air driven equipment all over California to malfunction. IR dealers will verify that water build up in the air lines has been a problem. Since the drilling and mucking are performed by air equipment, the miners have lost time due to slowed production.
6. More time used to dump cars due to mud sticking in the bottom.
7. Drill steel water hole plugs with dirt.
8. Pour concrete in hitches.
This is not an all inclusive list of the reasons for progress being slower that anticipated. Of all the unanticipated problems, the only one not likely to occur again is the problem with water in the air lines.
MarchToday we are at 0.00 plus 380 feet. The ground continues its unpredictability with the drill log, on which all bids were calculated. Bid predators will testify the need to build a dollar amount for the “unknowable of the ground” above the regular percentage estimated on the cost. For workers safety (nothing for the ultimate public adit drifter) we repeated the crown bars installation necessary at the portal. The slip faults between the clay, dirt and the occasional chunks of rock turned horizontal along with the vertical dip we were experiencing twenty feet ago. Barring down becomes especially interesting for the guys at the face in these conditions. Chunks will fall out without a sound or many times no warning. Next to the high dangers of haulage, getting “slabbed” by debris from the above is a miner’s serious concern.
in reply to: YOU JUDGE *** US COURT OF APPEALS #2390in reply to: Miscellaneous #2389At the Carson mine, the US Forest Service built a new road into the property so employees could remove ore cars, sell them and pocket the money.
in reply to: Clips from Alleghany #2386The miners have been busy upgrading the pumping system in the lower levels of the mine. The combination of that project and getting ready for the shareholder’s meeting has been consuming all of thier time. No rock is being broken.
Wednesday the weather was perfect. Highs in the upper 70’s with blue blue skies. Yesterday clouds rolled in, the wind picked up, the temperature dropped and by afternoon it started raining and yes even a little snow was mixed in. It is still cool and cloudy today but so far no rain.
The clampers were supposed to have a campout in Forest City this weekend…not good weather for that. FART (Forest Alleghany Rapid Transit i.e. The museum van) has been commisioned to shuttle the clampers from Forest City to Casey’s Place so no drinking and driving takes place.
Mike and George put in two very long days ealier this week getting a filing ready for the ninth circuit court of appeals. Somehow they always end up jammed against a deadline. There is always a sigh of relief when they head out the door documents in hand.
Kyle has been busy counting proxies and pre-registration forms. So far 83 shareholder’s and guests have RSVP’d.
Rae and Kyle recently upgraded the acconting program in order prevent the data from becoming un-upgradable. This is something Rae always puts off as long as she can. Upgrades can be frustrating. So far everything seems to be running smoothly.
in reply to: L.A. Times Article #2383When I was eight years old I started buying the L.A. Times for its sports section, mainly following the L.A. Angels of the Pacific Coast League and the Brooklyn Dodgers. Even today when I’m down south I buy it as the Dodgers are still my team. There’s not too much slant on their sport’s pages.
The L.A. Times has an enormous amount of the paper’s weight devoted to advertising. Actually, it’s quite repulsive. The people that used to run the paper when I was young are long gone. Their replacements appear to be less interested in reporting the real news compared to their predecessors.
Generally speaking, papers in the U.S. stink for reporting the real news. If a person is seriously interested in reducing most of the slant I personally enjoy the Financial Times out of London. Subscriptipons to the paper can be acquired at 1-800-628-8088. They are not a perfect news source as the paper is anti-gold but they report news that is not available in U.S. along with excellent editorials.
The L.A. Times can’t hold a candle to the truth that is presented on Jim Sinclair’s website at http://www.jsmineset.com. Jim informed its readers many months ago about the approaching threat that was presented by Avian Flu.
The World Health Organization has been warning governments around the world lately about the potential of the virus. If you are interested in being informed go to their website.
Rumors have been circulating that in Qinghai, China more than 120 people, including tourists, have died of Avian flu plus hundreds have been quarantined.
The question is: Why is the L.A. Times picking on the company and restricting one of its reporters from presenting to its readers an historical perspective of one of California’s famous high grade gold mines? Plain and simple, the paper is anti-gold.
What is the L.A. Times doing to probe government officials on their preparedness to protect people concerning the approaching Avian flu?
Are there any papers left in the U.S. that respect the intelligence of their readers? Maybe, the Christian Science Monitor.
in reply to: Clips from Alleghany #2385Proxies are coming into the post office. Too soon to predict a turn out. The crew has not spent time preparing for the June 25 annual meeting. The surface is a mess! They have a plan but there were more pumping problems the past week. It rained hard and steady last Tuesday and Wednesday. Ian had the whole crew underground working on the pumps. It would be a great project to drive a tunnel from the 1500 foot level south to the Yuba River. Another worthwhile project is to use the tremendous hydro potential for making electricity. Either of these realistic propositions will significantly reduce overhead and be a huge long-term improvement forever.
Missy, the most affectionate office cat was looking a little skinny. Rae took her to the vet, who prescribed worm medicine. Missy steals everyone’s heart when they visit the office, even cat haters.
The gemstone federation has its annual meeting this weekend in Roseville. Mike promised to display the Sixteen to One gold. He and David selected the six-piece Jug band, some slabs, cabs jewelry and a special rock from the July pocket. Mike drove it down Thursday after work. The show lasts through Sunday. The Underground Gold Miners Museum offered a special tour for the show. Ten people came up today and a bunch more are expected tomorrow. Mark Loving and Ray Witkkopp are conducting the tours. The museum has an important drill collection on display at the museum in Alleghany. It could sure use some supporters, either financial or volunteers.
in reply to: EMPIRE STRIKES BACK #2384The adit project has cycled into a routine, not the routine anyone expected because of the ground. Years ago a few drill holes were placed along the proposed strike of the new adit. Representations were drawn from the limited core samples and plans were drawn. Budgets and time lines were estimated, which have turned out to be wrong. Progress is hampered due to the dirt like consistency of the ground. The adit is over 368 feet (distance is 770 feet to intersect the Empire shaft). After an aggressive campaign we prevailed in replacing timber sets with steel sets. The timber specifications called for pressure treated wood. Even though chemically treated wood last longer than non-treated wood, it would decay and cause serious problems in the future for the park. The steel is actually more historically correct than chemically treated wood, but it was a battle to get approval for the change.
Heavy rain has slowed progress. The crew, however, has not missed a day no matter what the weather conditions. Miners are used to working in the wet and the mud. I have kept a very low profile with the work we have undertaken. No press. There were so many ridiculous ideas propagated by people, which were upsetting our plans that the down side of informing the public about this wonderful mining operation taking place in the heart of Grass Valley seemed inadvisable. The adit looks great and everyone is proud and pleased to be a part of mining the Empire.
The thirty-pound rail and 6 by 8 track ties are way over kill. The twenty-four gage, however, is something that is new to us appeals to me. Everything in Alleghany is eighteen gage. When we lay out the new Red Star mine in Alleghany, it will be with twenty-four-gage track. Other than being months behind the initial finish date, life at the Empire mine is pretty good these days. We are getting a round in each day. When the ground finally turns to solid rock, we will increase the length of each round. The steel sets are placed on four foot six inch centers so that is the depth of drilling. Our mantra is: where’s the rock!
in reply to: L.A. Times Article #2382Ceilia writes a regular column for the Los Angeles Times about past and present interesting historical spots around California. She called the office a month or so ago on a recommendation from the Grass Valley Chamber of Commerce. I invited her up to Alleghany that day. We talked about the mine, its history and cultural. Although I have never read her writings, she seemed positive and well grounded. She writes pleasurable stories which delight her long-time readers. Since shareholders live in southern California, I decided to accommodate her request for a story. It would be a fair historical view of America’s oldest good mining company. Surprise, surprise. Here is the card I recently received:
“Mike-
As much as I’d like to write the story of your mine and Alleghany, my editor said “no”. Guess you’ve been in the news too much. Sorry and thanks for the loan of these binders. Here are a few stories I thought you might like to add to your collection.”The first LA Times article was in 2002. The only other article was April 2005. Is this “in the news too much”? Am I missing something because this LA Times writer’s story more than likely would be intellectually positive to the company and gold mining in California? Does the LA Times have an agenda or does it slant its “news”?
We learned that Lee Romney (author of the prior two stories) established a relationship with Gale Filter (CDAA defendant and head honcho) and actually did research for him. Source is the Sierra County District Attorney files.) What is the point of her articles verses the point of Ceilia’s proposed article? I do not know the answers but do know that the LA Times misleads its readers.
in reply to: CDAA Conduct #2379FILED
MAY 23,2005
SUPERIOR COURT OF CALIFORNIA COUNTY OF SIERRA
MICHAEL MILLER, et al,
Plaintiffs
Vs.
Sierra County Case No. 6293 Judicial Council # 126841-05
GALE FILTER, et at,
Defendants
DETERMINATION ON MOTION TO DISQUALIFY JUDGE
C.C.P. 170.1
On May 12,2005, the above matter was referred by the Judicial Council of California to the Superior Court of San Joaquin County, Judge Bob W. McNatt, under Assignment Number 126841-05 for the determination of a Petition to Disqualify Judge Stanley Young, Sierra County Superior Court.
The record provided included:
-Notice of Motion for Disqualification filed by Defendants on April 5, 2005 -Memorandum of Points and Authorities in Support of the Motion
-The Declaration of Thomas Knox in Support of the Motion, with attachments -Defendants’ Request for Judicial Notice with four attachments
-Answer of Judge Young tiled on April 11, 2005
~
“The greatest injustices proceed from those who pursue excess, not by those who are driven by necessity.”
_AristotleThe legal machinations of Thomas S. Knox are raising interest from other legal practitioners. He has filed a motion to change the venue from Sierra County, a motion using a theory that his clients being denied free speech (even though they break the law), and a motion to disqualify judge Stanley Young. The following filing is the determination of a third party regarding Judge Young’s position. (Judge Young determined that he should not be disqualified). It is worth pondering Thomas Knox’s understanding of law by Judge McNatt’s decision to deny the disqualification. He writes: “Tellingly, Defendants cite no case authority for this novel proposition. The reason is clear; there is none.” And “The speciousness of this argument is apparent.”
This Court, pursuant to C.C.P. Section 170.3(C) (6) deems it unnecessary to calendar the matter for further hearing or argument.
Although the history of the litigation appears extensive, and the Motion itself somewhat confused, when stripped to its essence, Defendants appear to argue that Judge Young should not hear the case because:
1. He might have overheard a courthouse conversation between a party and the former District Attorney concerning this matter, and therefore became a “key witness”; and
2. Judge Young has prior knowledge of the facts surrounding this civil action because he also heard and granted a motion to dismiss in the prior related criminal case.
Neither of these grounds constitutes sufficient reason to disqualify Judge Young.
First, judges overhear conversations between parties and counsel virtually every day in and around courthouses. To hold that such events make judges “key witnesses” is to create a powerful tool for “judge shopping.” To require only a naked allegation that a judge might have heard something in the courthouse in order to disqualify that judge is clearly not a practice to be sanctioned. This conclusion is buttressed by the Answer of Judge Young, in which he clearly states under oath that he has no knowledge of such an alleged conversation.
The second stated ground for disqualification is that Judge Young has prior knowledge of the underlying facts from his handling of the prior criminal matter. Tellingly, Defendants cite no case authority for this novel proposition. The reason is clear; there is none. If accepted, Defendants’ position would mean that a judge who conducted the preliminary hearing in a criminal matter would thereafter be barred from conducting the trial because he or she would be familiar with the facts of the case. The speciousness of this argument is apparent. It is irrelevant that a party in discovery identified the trial judge in the criminal action as “a person with knowledge of the facts.”
In support of their Motion to Disqualify, Defendants have provided extensive documentation, including (inter alia) medical reports, discovery responses, OSHA communications, and mine safety regulations, asking that all these be judicially noticed. While a court may take judicial notice of the existence of certain things, it “…cannot take
notice of the truth of hearsay statements in decisions or court files, including pleadings,
affidavits, testimony,…” etc. (emphasis added), [People v. Woodell (1998) 17 Cal.4 969B]. A court is authorized to judicially notice the fact that a declaration has been filed in superior court proceedings per Evidence Code Section 450, but this authority does not extend to the truth of matters contained in those declarations [People v. Pantoja (2004)2122 Cal.App.4th 1, 12]. The law is clear that none of the documents provided by the
moving parties can be judicially noticed for the truth of the contents.
The Motion for Disqualification of Judge Young is denied.
May 17,2005Judge Bob W. McNatt Sitting on Assignment 3
in reply to: Miscellaneous #2381TominGV, Of course, trespassing on private property or mining claims is frowned upon. If the police didn’t find any evidence of wrong doing, then, some of the noises and voices that are reported may not be from living people. Mining areas are known to have unexplained noises and voices.
As for closing mine portals… If you’re having illegal mining, then you have to have a place to get rid of the bodies, THEN you close the portal. Just kidding (wink,wink).
Blasting a portal closed is a last resort!!! Should you need or want to reopen the mine… well, it’s a pain in the butt if it’s been blown shut. Also, old mines are viewed as an environmental gold mine (no pun intended) as bat habitat. Go to: http://www.batcon.org/mines/industry.html
Now, to recap each of your points. If it’s someone elses property that is being hygraded (illegally mined) tell the property or mine owner and let them deal with it. However, they might be the ones who are doing the mining, in which case, we’ll never hear from you again (gee, was that someone blowing a portal shut this late at night?). If the mine is open to being claimed, more power to’em. If it’s just the noises that people are upset about, get a priest and have him pray for the lost souls in the tunnel and may they rest in peace. If you want to close some mine portals, Why use explosives that “Real Miners” need for their jobs. If I were you, I’d be collecting money to build bat friendly gates to close the portals… that is, if you really are trying to stop illegal mining and not just trying to stop mining.in reply to: Miscellaneous #2380I want to start a new thread here on the poaching that is going on in old mines throughout Nevada County. Once in a while in the Police Blotter, you will see mention of people hearing machinery noises, hammering, even groups of people talking or other symptoms that “seem” to come from beneath the ground, from people who live in the vicinity of old gold mines. As we know, Grass Valley and environs are literally riddled like Swiss Cheese with old mine tunnels.
I first want to find out how “real”/legitimate miners view this poaching and illegal or surreptitious mining activity?
Then I’d like to get into how, if it’s going on in our area, to find and stop it. And, how to find the old portals so we can get them blasted closed.
Thanks to all.in reply to: Clips from Alleghany #2377Thanks for putting the shareholder letter up for us non shareholders to read.
Jeff Smith
in reply to: Stock exchange listing #2378June 6, 2005
Securities and Exchange Commission
Division of Corporate Finance
Washington, D.C. 20549Re: Original Sixteen to One Mine, Inc. (File No. 1-10156)
P.O. Box 909
Alleghany, CA 95910To: Patti J. Dennis
Thank you for the time over the phone on June 3, 2005. The Registrant acknowledges that it is out of compliance with its reporting requirements under Section 13(a) of the Securities Exchange Act of 1934. Registrant requests time to bring itself into compliance. Shareholders, the public and the United States will mutually benefit.
I have been associated with the Registrant as a director since 1977, and as its president since 1983. I declare that the following is a true and correct representation of the history and status of Original Sixteen to One Mine, Inc. The company was founded in 1896, incorporating in California in 1911. There are 1334 shareholders of record. Some current ownership can be traced back to the founders. Ten shareholders hold the majority of shares outstanding. The company has a very stable ownership.
The company began reporting and trading on the Pacific Stock Exchange in 1989. Its history goes back to the San Francisco Mining Exchange in the early 1900’s prior to the Securities Exchange Act of 1934. When the Pacific Stock Exchange ceased its operation, small single market companies were left without a home. A number of other events were unfolding as well, which left the company insolvent and overwhelmed. They included: a ten year bear market for gold, lack of interest by investors, who were enamored with the dot-com bonanza, overzealous regulators, who honed in on the mining industry, scofflaw private lawyers (usurpers) preying on rural California, obscene electrical power costs and rising workers compensation costs (in California).
The Registrant plunged into an economic abyss and could not pay its bills. The miners went to work on a percentage, the small office staff took a pay cut and the president took no salary. Unfortunately the independent auditor was not paid and could no longer conduct its audit. Therefore, the company was no longer in compliance with the reporting requirements. One by one the past bills are being paid. I am confident that the company will be able to pay the delinquent auditor’s bill at the close of this year or about six months from now.
Registrant made a decision to do all it could to satisfy the intent of the Securities Exchange Act of 1934, and continues to file its financial reports. The reports clearly state that the filings are not in compliance. Registrant also has remained in contact with its auditor, who completed a physical inventory at the close of 2003 and 2004. The effect of this is that the auditor will be able to account for the current assets as reported in the unaudited reports.
Everyone associated with this fine old company has worked diligently and fairly to survive. We know the sacrifices are worth the eventual outcome. Original Sixteen to One Mine, Inc is America’s oldest gold mining corporation. It is important to the workers, the community, the owners and eighty other families who make their living by adding value to our product (quartz and gold). By allowing us until the end of this year to regain compliance, the Commission should receive praise. An example of a similar situation occurred with our electricity provider. Our electrical bills grew to just under $100,000. There was pressure from some people to shut off the power. We asked for understanding and time to work our way out of the crisis. It worked, and we made our last payment this month by mining our way out of the financial hole. The auditors have moved to the next position for pay back..
I do not know what else to say. We are very small players in the complex corporate America scene, but we believe our country is a better place with companies like ours participating in the business world. Our desire is to be a SEC reporting company in compliance. I am dedicated to make this happen.
Sincerely yours,
Michael M. Miller
Presidentin reply to: Clips from Alleghany #2376Now that shareholders have received this year’s annual report, Scoop has permission to get it to all non-shareholders. It will be posted under the Company topic with all the others right after Scoop harrasses the office to post last year.
Dear Shareholders,
Does our company have the tools to excel as a gold producer? Will our company profit and if so, what can its owners expect? Where are its strengths and its weaknesses? Can it overcome the weak areas? How?
Our crew, including officers, directors and a growing number of professional supporters, are discussing these questions and many others. The “growing number” is significant and is a key to our successes. There are so many options or paths to travel towards achieving success. What is “success” anyway? To understand our choices it is necessary to understand our corporate goals for the company. If you understand these goals, you should know the role you want in our future.
I am not content or satisfied that all my decisions the past year have been the right ones; however they were the best choices when factoring the likelihood of success, the potential loss and the all important rewards. Our supporters remind me to focus on the goal, be patient, know what you want from each situation and be ruthless when necessary. This is what I remind the miners: Safety First, Quality of Work, Accountability, Responsibility and Efficiency follow. The miners are the ones whose work turns potential into reality. By adhering to my reminder, they will achieve our common goals.
Our corporation owns a number of gold mines, whose total gold production has approached 2,000,000 ounces. Are these mines depleted? We think not. Can our gold deposits be profitably exploited? We think yes. A goal is to increase production. Production last year was 1, 725 fine ounces. We netted a profit of $399,863.00 and reduced debt. We invested the remainder of the money in the Sixteen to One mine. The Sixteen to One is our primary target; however, the goal is more than preserving the asset or maintaining its existence. The Sixteen to One is a unique operation. According to federal sources it is the only single product underground mine still operating in the West. We know that it is unique for additional reasons: the deposit contains very rich concentrations of gold; the existence of gold cannot be “proven” as in other gold mines but the location of “pockets” within the well defined vein system is predictable.
The largest “pocket” found in the Sixteen to One was 83,000 ounces. It rested just below the 800-foot level between the 49 Winze and the Tightner Shaft. A careful study of the trends of “pockets” suggests a high probably that a larger “pocket” exists up dip and to the north of the Tightner Shaft. Our goal is simple: find and mine this “pocket”. This is our plan and this is what we work for: sink a new shaft in the Red Star and drift on the vein. It requires an infusion of major capital. The risks of mining in Alleghany are always present, but in this specific proposal the rewards are obscenely worth the effort. At today’s spot price of gold an 84,000 ounce pocket yields $35,275,000 (much more as gemstones). The estimated cost of the project is $3,500,000, which includes sinking the shaft, driving 1,000 feet of drift and opening the lengthy 250 foot level for drainage, ventilation and secondary escape way.
The Red Star is a legitimate target and one that has been written about by many mining men. Our goal is the execution of this plan. Raising the capital to complete the shaft project is challenging because of the many choices. But choices must be made and made now. Therefore, the board of directors approved the sale of our Brown Bear mine in Trinity County. I am not happy to sell the Brown Bear mine. It was my hope that our mining would produce the capital to sink the Red Star Shaft; however, mines are not built on hope.
On a much different yet related subject, the Company is aggressively pursuing its claims for damages against the four lawyers and their employer, California District Attorney Association (a non profit California corporation) who prosecuted the heart of our company. Not only did they prosecute to put our two main employees in prison, but also prosecuted to put our company out of business. The consequences of their actions made it impossible to attract investors to supply the working capital proposed to sink the Red Star Shaft. Their illegal, false and negligent behaviors have significantly tainted our reputation. If you were able to follow the case on our web site or in the newspapers, you will remember that I estimate the loss to you and me as shareholders is $2.00 per share. This reasonable estimate adds up to $25,734,500. None of the defendants have this much money, but Lloyds of London does.
Another relevant subject is finding a suitable market place for you to increase or sell your ownership in the company. The OAU X-Mart (web site) has provided sellers and buyers a fair market. We do not pretend it is liquid, nor are we suggesting it is satisfactory. A goal is to find a mainstream market place. A summary of transactions is included in this report.
The last goal to mention today is our desire to see you at the annual shareholder meeting this year. Unless you read the entries at http://www.origsix.com, you know very little of past events. Last year was the poorest year for direct communications from the company. I apologize without excuses and pledge it will not be repeated again. I recently found a new way to reach you and am anxious to put it in place to see what you think and evaluate your reactions. Join your crew this June in Alleghany and learn why we anticipate a profitable and rewarding future. We have planned a new walking tour of the active headings. You will be thrilled to be a part of America’s oldest gold company and see its underground operation.
Best wishes,
May 23,2005 Michael M. Miller, president
in reply to: Clips from Alleghany #2375The annual report took center stage last week. An office crew will gather Monday to finish stuffing the last printed document to be mailed to shareholders. The package will be mailed on Tuesday. Scoop was surprised and pleased to find a summary of Clips from Alleghany from last year’s meeting in June to May of this year in the Annual Report. The president hit his mark with the annual shareholders letter. He has written in the past how thought provoking yet enjoyable process it is for me to write this letter. This year the mood appears different. What do you think? It is printing right now as I type in Santa Rosa. If the Company gives its okay, Scoop will bag the file and get it to non-shareholders who follow the Forum.
Water problems impacted the miners’ productivity last week. Gold was found in a new spot about 100 feet below one of the active headings. It must wait its turn to blow up. A mid size slusher was brought to the shop for an overhaul. It was out of service for three days but miners hauled it back to the 1000-foot level Friday. The Company held a safety drill that succeeded in evacuating the “injured miner” with a minimum of difficulty.
in reply to: CDAA Conduct #2374The time is now, to find one pocket and deflect the other. “The other” in this reference is the CDAA.
I think it correct for OAu and Mike Miller to pursue the damages caused by the CDAA. I also know that whether or not such pursiut will be fruitful in the hands of a court, is not stopping the vigilance of the crew.
I could see the spark in their eyes. Yes, I made a visit, as all should. No idle action at the mine, whether or not we see it in pictures!
in reply to: Miscellaneous #2373I’d check the crevices!
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