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- in reply to: Miscellaneous #3141
Thanks for the question. I wanted to know too, so I Googled: Patented Claims.
Patented claims are those whose title is held by the claim owner not the Federal government.
Unpatented claims are those upon which the claimant has only the right to explore for and to mine certain minerals.
in reply to: Clips from Alleghany #3140No word from Scoop means he’s been too busy to write. It has been very busy here at the Corporate Office. A board of Directors meeting was held on Friday the 29th. The date of record for proxies was set at May 4th. The annual meeting is scheduled for June 28th. Packets will be mailed no later than May 28th.
The 2007 10-K ( year-end financial statement) was filed with the SEC this morning. To receive a formatted copy e-mail corp@origsix.com and I will send you one.
With gold getting close to $1,000 an ounce the “gold bugs” are getting restless and crawling out of the woodwork. I imagine it will be a busy dredging season this summer. The phone has been ringing more than usual with individuals wanting prospecting advice, an opportunity to get involved or whatnot.
The snow is still thick in places and completely gone in others. Mike’s driveway is still a challenge. Just yesterday morning somebody got stuck in his driveway and had to be pulled out.
Thanks for the suggestions Gerard. The U-tube idea is good, just need to make time to do it. As you can imagine Mike has not made much progress moving his vehicles off your property. If we make it a FORUM topic maybe something will give!
Alleghany Days has been cancelled this year. I organized it since its inception in 2001 but decided I need a break this summer. Nobody else stepped up to the plate to take it on so it won’t be happening.
Mike is at a nuministic convention in Phoenix AZ with Fred Holobird. The are trying to peddle the gold collection. Minimum bid 3M.
The museum had a board meeting on Feb. 23rd. The annual membership meeting was set for May 17th. A special note of thanks to all who donated money for specimens! We actually have to file a tax return this year! I also am taking a break from mine tours this summer. So far nobody has stepped up to the plate for that either. I will continue to do the bookkeeping, secretarial duties etc.
Not much to report from the mine. The water level rose quite a bit while the power was out. The pumps were run continuously since the power came back on and finally early this week the water level was down to where it should be and the pumps were shut off. Under normal conditions the pumps are run three days on, two days off, four days on, five days off etc.
The severe windstorms we had this winter took their toll on many tin roofs in Alleghany including those at the upper shop. Most of the repairs have been done. A couple large pine trees fell in Alleghany. One crushed a shed and the other severely damaged a house. Luckily nobody was in the house. This is one of the reasons it is NOT a good idea to let trees grow tall near houses! I’m really razzing Mike today. You see we argue about cutting trees down. There are three cedar trees almost touching the corporate office building that I think should be removed. They are getting to the point where they don’t allow the snow to slide off the roof. Also they can be a fire hazard. Same is true of the museum building. We compromised a few years ago and he let me cut two out of five trees down that are next to the museum building. (Mike owns the building) The remaining three are also keeping the snow from sliding off that roof now. I love trees, don’t get me wrong. I just know what they can do to buildings.
The caretaker at the Plumbago has been snowed in for 11 weeks now. I grew up at the Ruby Mine and the heavy snow this year has been bringing back many memories from my childhood. My dad snowmobiled three kids (I was the oldest with two younger brothers) to school five days a week for several years. It was 14 miles round trip and he would drop us off, go home, then come back and get us. He loved it! My brothers and I felt so safe with him driving and we went FAST up on top of the hill! (Henness Pass Road)
One time he let our only neighbor “Gary” come pick us up from school. Gary had been snowed in for months and wanted to go out. This was not planned in advance so my brothers and I were surprised when we walked up Hell’s Half Acre after school to find Gary instead of our dad waiting for us. Rather than putting us all on the snowmobile like my dad did he made me ride in the “sled” being towed behind. It was a warm day and snow (slush) started flying in my face. I was yelling at him to stop but he wouldn’t until he got stuck. I got pissed and threw a fit and tried to make him let me walk. He violently threw me back on the sled and told me I would be sorry if I jumped off. He got stuck again and again where my dad wouldn’t have. I was able to turn around so the snow hit my back instead of my face but I cried all the way home. My dad heard all about it when we got home and Gary NEVER was allowed to drive the snowmobile with us kids again!
After months of riding the snowmobile to school when we would ride in an automobile we would all lean into the curves on the road by reflex. We also would “duck” for branches. Then we would all crack-up when we realized what we were doing.
in reply to: Miscellaneous #3138For those of you who would like to know the detailed statistics on the international gold market, go to the CPM Group Store at http://store.cpmgroup.com/ and purchase a copy of the CPM Group’s Gold Yearbook 2008. It includes analysis of supply and demand trends, bullion and futures market activity, projections for the next year, and detailed statistics on mine production, secondary recovery, central banks, fabrication demand, investment demand, prices, futures and options activity, and other aspects of these markets.
in reply to: Gold Enters Major Bull Market #3139Eureka!
Whatever hasn’t been discovered is worth more!
in reply to: Miscellaneous #3137Mike,
I had a thought about how to get the word out about the 16 to 1. It’s a little bit low key. It might not produce any results in the way of investors but, you just never know. Have you thought of putting some short video’s on YouTube? http://youtube.com/
Taking excerpts from past video’s would be an easy way to start. You might even get some volunteers to help you out.
Just go to their website and type in your favorite gold mining term into their search engine and see what comes up. I really like some of the open pit mining explosions they have for viewing.
Maybe, some of the other Forum contributors could chime in on this idea.in reply to: Gold Enters Major Bull Market #3132Gold $959.70
Silver $19.30
Gold/Silver Ratio 49.72
Gold/XAU Ratio 4.84In case you haven’t been told yet by the media, the price of silver is exploding.
It wasn’t too long ago that mention was made here of an important breakout to the upside on the silver price at $15.50. The price now is $19.30.
Does anyone get the feeling that smart people are turning in their dollars for precious metals as the country’s financial meltdown picks up steam?
The Gold/Silver ratio had been heavy on the chart at 53.00 and now gravity is taking over. If the ratio breaks 45 all hell will break loose for silver to the upside.
in reply to: Gold Enters Major Bull Market #3133Gold $958.20
Silver $19.25
Gold/Silver Index 49.73
Gold/XAU Ratio 4.83Our country is being run by a bunch of morons and we will pay the price in the end.
The following are a few excerpts from Mr. Jim Sinclair’s jsmineset.com’s website tonight.
Bernanke And His Talking Head Fan Club
The talking heads noted Bernanke’s repitition of the word risk more times in today’s presentation than any other since he became chairman.
Outside of one exception, I have never heard such rank stupidity in all my life. The worst part is these photo opportunities gangs really think what they say is intelligent.
With this thinking leading the USA by running the economic show there is a chance we will repeat a large percent of the Weimar experiment.
—————————-
Today’s biggest huh?
Regulators lifted the caps on Fanny and Freddy(Mac) so they could buy more mortgages. Fanny and Freddie are both the slowest train wreck in market history.
Both are loaded with failed derivatives which they have been trying to evaluate for more than 18 months. They are both losing big money and they have just gotten permission to go deeper and deeper into the OTC derivative and debt hole.
God help us all.
in reply to: Clips from Alleghany #3131Ouch! There wasn’t as much snow this last storm, which ended in rain and slush last night. For those of you who live or lived in snow country, need Scoop say any more?
Everyone is or was stuck in this morning. Layers of ice, snow and slush make for tough driving. But the sky is deep blue and the sun is shining like high-grader gold on a backing of snow white quartz.
in reply to: Clips from Alleghany #3130Some interesting numbers jumped out of the year-end SEC 10-K financial comparisons of 2006 and 2007. Accountants are reviewing the papers before they are electronically filed with the SEC. No significant revisions are expected. The losses were greater: 2006= $111,500; 2007= $291,000. Operating expenses stayed about the same for each year (increased about 6% in ’07). The revenue side, however, decreased by 18%. Gold production is historically the great unknown. When a company can find and sack over 3 Million dollars in one shift or can quadruple that in one week, it can also go a whole year with practically nothing. The expenses will be about the same either way. That can be the life of a miner.
At last year’s annual meeting director Scott Robertson, a CPA, brought up the fact that the company has cut expenses down to the basics. It is revenue or gold production that makes for a profitable or losing year. The Sixteen to One mine operation is a difficult one to project a realistic budget. It has always been that way going back to the beginning of the twentieth century. What set this company apart from the other companies in the Alleghany Mining District (or other areas in the Sierra Nevada) was the Sixteen’s ability to buy (or bank) its labor, utilities and supplies well in advance of their depletion. It has always been the revenue side that makes for exciting gold mining. Nothing has changed over the years.
This wily group uses previously discovered gold locations in the mine and inventory as the bank. Some were identified with metal detectors and some by the geology of the deposit. Some of those underground “bank accounts” remain, but for operational reasons the miners cannot get to them. A multi million-dollar inventory remains, but it has shrunk. If no wild, adventuresome and smart people appear at the Sixteen’s door with their checkbook and plans for investment, the inventory must be marketed to develop the mine. What a mine it is! What an opportunity lies ahead. What an opportunity to miss and not see!
in reply to: Gold Enters Major Bull Market #3129Gold $940.10
Silver $17.84
Gold/Silver Ratio
Gold/XAU RatioJust a reminder, as gold is making new highs this evening expect the anti-gold establishment to start bad mouthing it again.
It wasn’t long ago that an article in the Wall Street Journal attacked gold’s price on Monday, November 12, 2007.
The story was entitled, “Gold Record Is Distant Prospect.”
The story was staged in an attempt to hold gold back from bettering its indirectly stated January 1980 high of $873.
Melainie Burton brought up the fact that gold is a far cry from its inflation adjusted record which she states is $2,250. Whose inflation index was she using?
No mention in the article that western central banks have been dumping gold into the market for years.
In a concerted effort of attack on gold the metal’s price fell the following Monday to $816.80. Again, be prepared for continuing propaganda as gold has broken above recent highs and is positioning itself for an assault at the $1,000 level.
The financial health of our company would be significantly enhanced if these fiat crazed publications along with government employees had done what they were hired to do rather than depressing the price of gold and recklessly ruining the true value of people’s investments in gold and gold companies.
More than our wealth being compromised by a puppetmaster is the sad fact that Russia’s, China’s and India’s people are being afforded the opportunity to import gold at discount values. These people are holding it in the form of jewelry and central bank reserves, the very same gold that used to be at Fort Knox.
The gold at Fort Knox is no longer there. If it is, then send in an independent auditor!
in reply to: Gold Enters Major Bull Market #3128Gold $943.80
Silver $17.80
Gold/Silver Ratio 53.06
Gold/XAU Ratio 4.98Gold is currently making another all time higher.
This is what a major bull market is all about, continuing higher prices into the future.
You could make the point that our gold in the ground has risen in value too but so has inflation. The bottom line is how much money will it take to produce an ounce of gold and at what price can that ounce be marketed? In the future, inflation will increase and so should the gold price.
In our life time we will see prices of $200 a barrel for oil and possibly, $300 according to a money manager at Sprott Asset Management Group in Toronto.
The cost inflation basis for mining expenses is exploding. In 2006 they were up nearly 30% for North American miners. I can’t imagine their being lower for 2007 and going into the future.
It continues to make sense in owning gold coins as hyperinflation appears ready to rise its ugly head.
Remember what happened during the Weimar Republic and some of the stories concerning the public’s inability to mentally cope with daily price adjustments concerning the purchase of their necessities.
Going forward whether it be in the mining business or your own personal lifes, the realistic inflation factor needs to be given serious consideration. Believing the CPI figures will only get you into trouble.
The CPI figures are falsified to keep the moral inflation adjusted checks from becoming reality for the many millions of Social Security recepients.
The real rate of inflation may be in the 18% to 20% category. If the Social Security check amounts are being raised based only on the government’s skewed CPI Index of 3% or 4%, who is getting screwed?
in reply to: Clips from Alleghany #3126An article last week in the Sacramento Bee relates a recent purchase of a 26-pound nugget found in the Sonora Desert in 1989 for $1,553,500 or roughly $4,000 per ounce. (Nuggets do not bring the same multiple over spot price as other specimens.) All of the Sixteen to One mine inventory has a book value based on the spot price of bullion at the close of the accounting period. The entire inventory has a market value greater than the spot price. The entire inventory is available for purchase.
The 100 piece company collection is dynamic, which means that some pieces are replaced if a specimen is sold and some pieces are replaced when a new gold find will add a unique perspective or a better example of an existing perspective. In other words the specimens in the collection change over time.
Private parties hold the Whopper and others as security for their cash advances to the company. These individuals are strong supporters of the mine and its plans for future development, which means their collateral will not be sold to cover their cash loans.
Underground Gold Miners of California museum owns outright five specimens, which were formally included in the Company’s collection. These purchases were made at different times and made possible by the farsighted and gracious donations of Sixteen to One shareholders and museum members. The sale price for all of these remarkable specimens was $36,355.
One specimen from the collection recently sold at the Tucson show for $21,000. It was named “the Tower”. Another specimen in the collection is very similar, so nothing was lost with the sale of “the Tower”. A specimen that does add a new, one-of-a-kind improvement that heretofore was in the non-collection inventory replaced it. Year-end gold inventory was 739.287 fine ounces (fau). The gold collection accounts for about 400 fau.
One of my favorite specimens has about twenty dollars of gold. It is incredible and more than likely we will never see another one like it. It is very small and will take the breath away from the most devoted collectors. It is by far the most difficult to price; therefore, it will only be sold to whomever buys the entire collection. It is priceless.
A shareholder came to Alleghany last Friday and took some pictures. He plans to create a slide show and put it on the Internet. When this happens, I’ll tell you how to find it.
in reply to: Clips from Alleghany #3127Dear Mike,
Maybe you could suggest to the purchaser-philanthropist, via Heritage Auction Galleries, that the UGMC Museum would be glad to exhibit, on loan, the Boot of Cortez along with the Whopper. And perhaps the Whopper could likewise be exhibited elsewhere.
Best regards,
Dick
in reply to: Clips from Alleghany #3125GATA took out a full page add in the Wall Street Journal on page C5 January 31, 2008 entitled, Anybody Seen Our Gold?
GATA basically states, the gold ain’t there no more.
Having the Treasury guard the country’s gold has apparently been a big mistake.
If we put our collection in Fort Knox, it would probably go to “deep storage” and that would be the end of that.
Does anyone know what is still in the collection? Where’s the Whopper these days? Has any of our collection gone to the saw?
in reply to: Clips from Alleghany #3124Sounds like the collection
should be stored someplace like
Ft.Knox,Kentuckyin reply to: Clips from Alleghany #3123A small chunk of gold was found during the clean up around the pump. The water level is held above the 1500 level but Mike wants to lower it below the 1500 level in case the power goes off again. The mine will have a larger sump by doing so. Maintenance continues with both the surface equipment and the travel ways along the 800 level. The heavy snowfall remains along the sides of the roads. It has been cold…in the twenties at night.
Interest in the gold collection is growing. Don’t expect a running account of how the offering is going because it will not happen. Once a deal is executed, Scoop will break the news. With gold prices today and the industry standard appreciation for rare gold collectables, the collection at base value exceeds $3 million. Mike has been taking photos and came in a few days ago with the attitude that the collection is actually “priceless”. Does $10 million sound better? Well, all the beautiful carvings and the other pieces, which make for a hundred-piece collection, will be sold to some wise and fortunate buyer. Scoop wants the old miner taking a bath in the ore call, which was carved by Buddy Miller (no relation to the prez).
in reply to: Stock exchange listing #3122A shareholder sent me the following exchange:
Morgan,
How does the Grey Market work? 21,000 shares just traded at 0.27 even though I have a bid in for 0.55. And there’s a friend of mine who has a bid for 10,000 at 0.50. And yesterday two transactions went through for 300 shares at 0.25 . Who’s arranging the sell below higher bids? Should I try a large volume bid at a much lower price just to see if it goes? There’s actually a bid for 0.80 on the web site.
Thanks, SterlingHi Sterling,
Let’s say ACME Securities and Jones Financial Group both make markets in OSTO. That means both firms must be willing to buy and sell OSTO at any time during the trading day. Both firms will post a bid price at which they are willing to buy, and an asking price at which they are willing to sell. So let’s say we open the day with the following spread:
ACME Bid $0.40
Ask $0.70
Jones: Bid $0.38
Ask $0. 60You come along and place an order with Global to buy at $0.55. We have to place the trade with one of the market makers. So let’s say your order gets routed to ACME. The spreads now change:
ACME Bid $0.55
Ask $0.70
Jones: Bid $0.38
Ask $0.60Note that Jones is not required to reflect your bid, since they don’t have it. Now, someone in the world comes along and sells shares of OSTO through Jones. The trade occurs at their bid price of $0.38/share, well below the price you are willing to pay..
Hope this helps. Morgan
in reply to: Miscellaneous #3121Anyone who wants a copy of the letter I’ve previously mentioned, just ask.
in reply to: Clips from Alleghany #3120It has been a week of snow removal, loader repairs and messing with the tire chains on the Cat 966 loader. It’s not over yet. Tomorrow will be another day of digging out from the recent storms that left four feet of snow on a base of ice. It’s winter and it comes every year in these mountains. With a short crew the effort just to get underground consumes the days. Maintenance is an ongoing activity.
For those of you familiar with the physical layout of the roads and buildings, visualize the long roof on the mill building. The road to the mine portal is about ten feet wide in front of the mill. Snow piles up on the metal roof and comes sliding down, covering the road. On your right is a two hundred foot drop with no place to dump the twenty-foot pile of snow. Therefore, the loader driver must back up about sixty feet to reach a spot where he can dump the snow. Back and forth he goes. There is no room for error. The road should be cleared by tomorrow so Monday the miners can shovel the snow off the train tracks from the shop to the portal. Once inside the mine this lusty winter snow over the Sierra Nevada Mountains will disturb no one.
in reply to: Miscellaneous #3119The year-end inventory of silver is 325 ounces. Some is in the form of “shot”, pure little droppings used by jewelers. The balance is jewelry, such as mini mine bars and mining related charms. There is no pure silver ore in our deposit. The silver is a bi-product from the refining process. The “gold” that we find is actually about 84% fine au and 15% fine ag. After refining the bullion (.9999 gold) is ready for market. So is the silver.
in reply to: Miscellaneous #3118Mike, do you get any silver
and/or platinum out along with
the gold?in reply to: Miscellaneous #3117The year-end financial draft in completed and awaits review by company accountants and the directors. Once accomplished, the company will file the financial information with the Securities Exchange Commission (SEC) via the electronic process commonly called EDGAR. These filings occur four times a year. The company has had timely filings since 1989 or seventeen years or seventy-one filings without being delinquent. They are called 10-Qs (quarterly) or 10-KSBs (annual) and are available on either the SEC web site or go to our web site. The annual report is sent to all shareholders of record each year.
For the year 2007, gross revenue was $831,558.65. Year-end evaluation for the increase revenue from the increase in the spot gold price accounted for $$66.941.61. The balance of $764,617.04 was from gold sales of jewelry, specimens and the rareness of gemstones, the famous Sixteen to One quartz with gold.
Gold production during the year 2007 was the skimpiest in the company’s long history of mining. You are able to follow the frustrations of the company by reviewing the messages written by Scoop under Clips from Alleghany in the FORUM. Gold production was a pitiful 88.26 ounces. It still seems unbelievable. I do not know the average spot price for gold but will use $700 an ounce, which amounts to $61,820 of revenue from new mine production. Pitiful!
If you wonder where the other $702,835.04 in revenue came from, it was from inventory. Are you still with me on the math? Okay then, the next piece of information required to analyze the company’s financials will be some inventory data.
Beginning inventory for 2007 was 1,025.95 ounces of fine gold (fau). Ending inventory for 2007 was 739.28 fau. The inventory was depleted by the difference or 286.67 ounces. Using the estimated spot bullion price of $700 an ounce, it amounts to $200,669. When this figure is deducted from the $702,835.04, the remainder is $502,166.04. Now you have some solid data. Can you figure the how this happened?
The diamond market does not come close to the excitement and profit of mining the Sixteen to One. Bluejay, I do not know the various grades of diamonds, but they are very subjective and easily mistaken. The Sixteen to One raw quartz has ten grades. All have a different price. Once a jeweler puts his mark on the gemstone, the price (grade) escalates accordingly. While there are similarities between diamonds and gold, gold stands alone in liquidity, safety and storage. The Sixteen to One quartz and gold deposit stands alone against all other producing mines be them diamonds or gold.
When an entrepreneur or gambler or speculator steps up with some money, we will find lots more. In the last decade the greatest annual production was 5,869.92 ounces fau. If you have figured out how much money we make from the Sixteen to One gold deposit, you should be a player in the next game of mining this most unusual and special mine.
in reply to: Miscellaneous #3116Today, Rockwell Diamonds(TSXV:RDI) reported diamond sales completed on January 29, 2008 for the previous year’s December diamond production from their South African properties.
The company stated the completed sale involved 1,863.53 carats averaging $2,316 for each carat. Two stones, including a white 25 carat diamond sold for $19,000 per carat.
Then the idea came, how nice it would be for our shareholders to be advised of our monthly sales. Why not?
I hear from the Forum that gold production is sparce. I also know that we have financial obligations of current expenses plus monthly debt payments. Although there is a dore bar sold here and there, the bulk of our gross sales must be coming from gold and quartz slab.
If mine production is slow or nonexistent, is our gold specimen collection going to the saw? If so, what pieces have been sliced up and what pieces remain?
It would also be nice to know how much the grades are fetching these days? Unlike diamond sales which have many grades, our slab doesn’t have that many clases.
The board should direct that shareholders be given a closer look at what is happening with our gold sales and our gold inventory.
If other shareholders of other companies are receiving detailed accounting of their product sales and inventory, then why can’t we?
in reply to: Gold Enters Major Bull Market #3115Gold $909.40
Silver $16.77
Gold/Silver Ratio 54.23
Gold/XAU Ratio 4.93More propaganda from the news papers, this time from USA TODAY. The negative jab to gold was presented in the article, “Striking gold online is easy, but buyers beware.”
The writer, Matt Krantz, in the USA edition for Monday morning says, “While it(gold) may be used as a hedge in times of trouble, gold, historically, hasn’t been a good investment, and many financial advisors don’t advise holding much, if any. But I understand the animal of investing speculation, and it’s hard to resist piling into an asset when it’s rising and everything else is sinking.”
All this was in response to an unidentified source for the question, Is there a way to monitor the price of gold online? A simple answer would have been yes, go to http://www.kitco.com but instead the question was used as an opportunity to attack gold in the press once more.
Mr. Krantz professes to be an expert in “animal spirits of investing speculation.” What’s that suppose to mean?
It appears that Mr. Krantz knows very little of monetary history of which gold is the center piece as he attributes its growing strength to animal spirits when he should have been more responsible.
in reply to: Gold Enters Major Bull Market #3114Echoing Bluejay tonight:
I call on the principal board member to chime in here. (Am I also refering to the principal share holder, I think.)
If I’m wrong in my facts on who’s “who”, PLEASE correct me and retract this entry from the forum page.!!!
Out here in the flat-lands of the Sacramento Valley, I dream of an assault on the veins of our mine. It seems like a win-win situation is for a major share-holder to step to the plate, invest in development.
My brain tells me it’s not Mike, since he’s stuck his neck out most likely beyond his means, and in defense of this posture. I, for one, am behind his defense of the mine, and will stand with him all the way on the legal front and all the way into development. Everyone who’s read the Forum knows this.
The big X-factor is for the entity waiting to jump in with an extremely promising outcome, to jump now…essentially investing equity in the value underground. Who best, than someone to embrace their own value?
I wish it were me. If I could, I would.
in reply to: Gold Enters Major Bull Market #3113Gold $907.90
Silver $16.79
Gold/Silver Ratio 54.07
Gold/XAU Ratio 4.91Gold has finally elected to take a rest after laboring above the $930 level for some days now. Whether it was just normal profit taking or aggressive short selling by the bullion banks will probably be discussed by Dan Norcini at jsmineset.com in a few days or so.
Usually, large dollar drops in the golden metal are primarily engineered by the Fed or Treasury through their bullion bank lackies on the paper gold COMEX market in New York.
The anti-gold establishment is forever creating nagativity and forever searching for it to suppress the metal from seeking its natural level or value.
According to James Turk who is the founder and chairman of GoldMoney.com The value of gold is “viewed in nominal dollars, but nominal dollars provide a distorted picture.”
“After all, everyone knows that because of inflation a dollar today purchases much less than it did twenty-eight years ago, so clearly $850 today(currently $907.90) does not have the purchasing power it did back then. The question therefore arises, what price does gold have to reach in inflation adjusted dollars to equal the purchasing power of eight hundred fifty 1980-dollars?
The full content of James Turk’s recent thoughts can be read on kitco.com under the article heading, “The Real Gold Price.”
There is an extremely revealing chart that is contained in Mr. Turk’s presentation that clearly depicts that gold is way under valued compared to the inflationary growth pressures, especially, since the 1980 time period.
Mr. Turk sums up a Real Price of Gold(CPI Adjusted) chart using the original CPI(figures provided by ShadowStats.com) from 1980 and the currently changed CPI Index that has been evolving since that time by saying:
“There are a couple of important conclusions from the above chart. First, gold at its present price of $900 today(currently $907.90) is still very cheap. In other words, it is a long way from the purchasing power an ounce of gold achieved in January 1980.”
“Second, both measures on the above chart show that the dollar is losing purchasing power every month. So if gold in the future were to reach a $6,255 price, the inflation between now and then would require gold to reach an even higher price to equal the purchasing power it had in January 1980.
Albert Einstein’s philosophy of a disturbed mind is a person or group of people repeating the same thing over and over again and expecting different results. Selling gold to prop-up a currency based on promises and promises only, does not work and has never worked in all of the world’s history and will not work anytime in the future.
What works is that it buys the Fed and the banks more time to ream the general public out of their wealth.
The BIS reports that the world derivatives market has grown to be over $500 trillion in a time period when the derivative instruments are failing, fueling a financial meltdown.
The only way to prevent yourself from becoming a serf in the approaching new feudal system as a result of the continuing redistribution of wealth from the growing poor to the top 1% or so in this country is through gold ownership.
Above all, you do not want, as Jim Sinclair has been repeatedly stating lately, any financial intermediaries between you and your gold or any other important inflation protected assets.
The American people are basicaly sudsidizing immoral criminals that are methodically ruining their currency and basically burdening them with a heavy tax through inflation that no one wants to talk to you about including on the presdential debates.
Some good news for the mine is that the price of silver apparently has surmounted the important $16.50 level.
Although, some silver comes out of the ground with the 16-1 ore it’s not that much, but every little bit will help.
When will the Board reward its patient shareholders before inflation eats them alive? The mine has inflation problems of their own but the mine holds gold, the currency of the world.
Can the Board please make some decisions that will bring gold out of the mine?
in reply to: Gold Enters Major Bull Market #3112Gold $923.00
Silver $16.69
Gold/Silver Ratio 55.30
Gold/XAU Ratio 4.93National Bank(Canada) Boosts Gold Target to $1,500 US
John Morrissy Tuesday, January 29th Canwest News Service
“National Bank Financial boosted its target on the price of gold to $1,500 US within the next 12 to 18 months as bullion reasserts its status as a safe haven in troubled times.”
“With bullion having broken through its previous record nominal price of $878 in January 1980, it’s time to revisit our outlook and reiterate our view that gold is poised for a comeback as an investment haven,” National Bank chief economist Clement Gignac said in a research note.
“Investor confidence has been shaken by writedowns of more than $100 billion(this is just the start) announced by large banks around the world.” Gignac said
“Unfortunately, the U.S. recession expected by many observers this year must be expected to swell that number in the months.”
As well, the U.S. Federal Reserve’s 75-basis point cut last week “tends to underline the seriousness of the situation” in global capital markets, with analysts predicting a further rate cut of up to 50 basis points on Wednesday.
With borrowing rates falling below the rate of inflation, gold should be well bid, Gignac said, as negative real interest rates have historically been a boon to its price.
THE VALUE OF GOLD
In an extremely well written and educational article that was presented at Kitco. com on January 21, 2008 Dr. Antal Fekete president of the Gold Standard University states the following in the entitled article, “Gold: How High Is High?”:
“Gold is the senior monetary metal(silver being the junior). This has nothing to do with denials, derclarations, and desires of devaluation-happy governments. It has to do with the fact that the value of gold, unlike the value of other earthy wares, depends far less on scarcity, and is threatened far less by increasing supply. One may even say that the value of gold is exempt from the effect of the law of supply and demand.”
“Often the rising of gold causes a contraction of supply. A blow-off may indeed cause a withdrawal of all offers to sell. After that happens, gold is not for sale at any price. But again, a blow-off may bring out an avalanche of supply. The essence of the value of gold, however, is stability. We conclude that the price of gold has nothing to do with the value of gold.”
Dr Fekete in conducting session three of Gold Standard University Live to be held in Dallas, Texas, from February 11 through 17. For further information contact him at GSUL@t-online.hu or details about the session can be found on the website: http://www.professorfekete.com/GSUL.asp
Dr. Fekete states, Be part of the uplifting undertaking to resurrect monetary science. Discover the truth about money as the giants of monetary science, Adam Smith, Carl Menger and others have handed it down to us, before bribe and blackmail have overtaken the search for and dissemination of knowledge in economics.
Dr. Fekete nearly concludes the main article with the following powerful paragraph:
The world’s finance capital is on its way to total annihilation. The essence of the subprime crisis was not the slack of lending standards. The essence is that the worm of doubt is eating confidence away. Banks no longer trust the promises of other banks. Under a gold standard trust could quickly be restored by paying out gold. That’s what gold is for, to restore trust whenever doubt arises. But gold has been removed from the banking system. Now irredeemable promises can only be redeemed by issuing more irredeemable promises. In such a system the erosion of confidence cannot be checked. Lack of confidence becomes cumulative. It is like kicking garbage upstairs. When the attic can take no more, the day of reckoning has dawned, and the garbage comes crashing down.”
in reply to: CDAA Conduct #3111Re: Miller, et al. v. Filter, et al., Sierra County Case No. 6293;
Judgment for Attorneys’ FeesOn January 8, 2008, the Court mailed its Notice of Entry of Judgment ordering Original Sixteen-To-One Mine, Inc. (“Mine”) and Michael Miller to pay attorneys’ fees and costs to CDAA. Pursuant to California Rule of Court (“CRC”) Rule 8.104, there are 60 days from January 8, 2008 to file a Notice of Appeal (March 10, 2008).
The Court of Appeal’s decision granting CDAA’s anti-SLAPP motion creates a basis to appeal the constitutionality of the attorney fee award. In essence, the Court of Appeal held that CDAA was entitled to prevail on its anti-SLAPP motion because CDAA employees were uncompensated employees of Sierra County and “de facto” government officials and were therefore entitled to claim governmental immunity. By deeming the CDAA employees to be government representatives entitled to government immunity, the Court of Appeal effectively converted the Mine’s lawsuit into a claim against the government, instead of a claim for damages against private actors.The award of attorneys’ fees against the Mine creates several potential grounds for appeal. First, the award of attorneys’ fees against the Mine and Miller for an unsuccessful challenge to an abuse of government power creates a dangerous precedent that allows the government to collect attorneys’ fees from private citizens whenever a citizen files an unsuccessful challenge to government action.
The Court of Appeal did not and could not define the Mine’s suit as frivolous, because both CDAA and the Court conceded that there was no California law on point – which is why the Court of Appeal ordered its decision to be published. The Sierra County Superior Court’s order awarding attorneys’ fees against the Mine and Miller based on the mandatory attorney fee provision in the anti-SLAPP statute makes that statute unconstitutional as applied, because it impermissibly burdens a citizen’s first amendment right to petition the government for redress, and to challenge an apparent abuse of government power. The previous U.S. Supreme Court decisions allowed an award of attorneys’ fees only if a Court found that an exercise of first amendment rights was frivolous. A statute or precedent that allows the government to routinely recover attorneys’ fees from a citizen who unsuccessfully challenges government actions constitutes an impermissible burden on a citizen’s first amendment rights, and chills the exercise of those rights. As argued to the Sierra County Superior Court, if this precedent is upheld and followed, only the richest citizens or organizations could afford to challenge an apparent abuse of power by the government.
Secondly, the Superior Court’s ruling that CRC Rule 3.1702(c) does not apply to CDAA’s motion for attorneys’ fees effectively reads that section out of existence. The Superior Court noted at the hearing that CDAA’s interpretation of the statute made subdivision (c) meaningless, but the Superior Court decided to adopt CDAA’s interpretation based on Carpenter v. Jack In The Box (2007) 151 Cal.App.4th 454. The Superior Court’s interpretation of CRC Rule 3.1702 raises a second potential issue for appeal.
Third, the Superior Court and the Court of Appeal lacked jurisdiction to award attorneys’ fees against Miller, because CDAA’s anti-SLAPP motion was filed against him while CDAA was in default on his complaint. For the reasons set forth in greater detail in Miller’s Opposition to the motion for attorneys’ fees, the Court of Appeal’s decision only (and improperly) found an absence of argument on the point, and therefore held that it would dismiss your complaint against CDAA as well. The Court of Appeal’s over-eagerness to dismiss Miller’s complaint against CDAA does not create jurisdiction when CDAA was clearly in default at the time it filed its anti-SLAPP motion against him.
The Third District Court of Appeal has shown absolutely no sympathy or understanding for the Mine’s position: therefore challenges should expect a hostile audience in the Court of Appeal in any future appeals. A successful appeal may require filing a petition for review with the California Supreme Court and the U. S. Supreme Court, and the probability of obtaining review by either court is uncertain.
in reply to: Another U.S. precious metals miner goes foreign #3110Ecuador says seizes foreigners’ mining concessions
QUITO, Jan 25 (Reuters) – Ecuador’s leftist government seized 17 mining concessions held by foreign companies as it seeks to overhaul the rules for the growing sector, the mining minister said on Friday.S.African power crisis halts gold, platinum mining
Fri 25 Jan 2008, 12:03 GMT
Shares in most of the affected firms dived as the government said the power cuts that have darkened homes and hurt businesses in Africa’s biggest economy were “a national emergency”.
AngloGold Ashanti, Gold Fields, and Harmony said they had stopped all gold mining after they were informed by state-owned power utility Eskom that it could not guarantee power supply to their operations.
The world’s No. 1 platinum producer, Anglo Platinum (Angloplat), also said it had shut down production at all its South African mines to reduce electricity consumption.
“This is a disaster in terms of production and economic growth,” said Fidelis Madavo, analyst at the Public Investment Corporation fund. “The government has to find an emergency solution to this problem.”
The South African government blames the power cuts on the closure of power stations for maintenance, breakdowns at other plants and faster-than-expected economic growth. Critics say the government has failed to invest in new power generation, arguing the country has too little power capacity to meet demand from its growing economy.
Gold Fields said it would lose 7,000 ounces of gold a day while production was halted. Eskom informed its key customers, mainly big miners to plan on survival levels for the next two to four weeks.
“This will have a serious effect on the South African operations and will negatively affect our gold production,” Ian Cockerill, chief executive officer of Gold Fields, said. Harmony said it would lose about 300 kg of gold output, or 60 million rand, a day. AngloGold said it could not estimate its daily losses as it calculated its output on a quarterly basis.
“We are only running power for emergency supplies, such as pumping water out, and have stopped producing at all mines,” Steve Lenahan, a
“It seems to me this is not going to be a quick process (resolution). They issued us with a warning that we should only do emergency work, so we can’t take a chance sending our people underground,” Harmony CEO Graham Briggs told Reuters.
About 900 kg of gold (28,935 ounces) and 590 kg (18,969 ounces) of platinum output could be lost a day, an analyst said.in reply to: Clips from Alleghany #3109Yesterday, a crazed man who consumed too much alcohol, went over the gate and walked through the snow to vent his rage and vandalized the lower shop. He was later cornered into a house in Alleghany, where he locked himself inside. Sierra County sheriff cars and a CHP officer responded to the call for help. Due to a threat of a lawsuit against the county deputies, they refused to enter the house to arrest the suspect. If he were on the streets or anywhere in the county, they would arrest him. Mike wanted him to stay put so he wouldn’t damage any other property or worse yet start a fire. He shouted loudly that the suspect had better stay inside the house til morning. It would be safe and he would help him get out of the county. A sheriff car was parked by the back door and by the front door. The CHP parked on the road leading out of town in case he made a run for freedom.
The guy had no money and since no one actually saw him vandalize the shop, he probably would be released in Downieville. Therefore, punishment was not the solution. Getting him permanently out of Sierra County was.
Mission accomplished by 11 am this morning. He was driven to North San Juan and Nevada County. The biggest loss was broken glass and a $400 electrical tester, which is a regular tool important to the mine. Mike called the sheriff office in Downieville to notify them that he was gone from Sierra County. The dispatcher said, “Nice job. We knew you could handle the problem and we count on you doing so.” Mountain justice.
in reply to: Clips from Alleghany #3108Snow is falling and accumulating. A series of snowstorms are forecasted for the Sierra Nevada throughout the week. The last storm did a lot of damage in and around the mining village. It was mostly due to high winds. Today the snow is dropping like a rock. The road to the mine portal appears to be passable but no one has traveled down today.
Geologist Ray Wittkopp and President Miller spent most of last week underground. They were looking at gold targets previously identified that could be activated on a shoestring budget. Even a shoestring budget requires somewhere near $200,000 to give it a realistic chance of finding gold.
Two important budgetary facts support a temporary, underground shoe string program: the spot price looks like it will stay above $800 an ounce and the demand for quartz/gold gemstones is very strong. The Company does not nor should spend any money marketing its quartz/gold because the current needs of its established users will gobble all production that the mine can produce.
Original Sixteen To One Mine is a very unique and misunderstood situation that potential investors, considering whether to supply the much-needed working capital to go after targets, fail to grasp or plug into a risk/ reward, due diligence analysis. Scoop hears Mike’s discussions and sees his frustrations when otherwise bright people get mushy when it comes to figuring out the Sixteen to One mine and its envious prospects for success. It has no comparisons (always a difficulty); however it’s a no-brainer, which may explain why smart and intelligent men are not knocking down the door to get a chance to join this gold adventure. They apply their brains “inside the box”. Problem is, it’s not a meaningful box.
So, on this cold snowy afternoon, Scoop will take a stab at solving Mike’s problems in communication. He spent time developing a thoughtful Strength/Weakness/Opportunity/Threat analysis far superior to this analysis, but here goes anyway:
1. The mines produced over $1.3 billion from deposits never close to depletion (1.6 million ounces of gold). Calculations at $800 spot. A small pocket of 1,000 ounces brings over $3 million in the jewelry market.
2. The confluence of these mines and technology was never available until now. This is not science fiction. Detection works! It is a twenty-first century fact. So, all you with technology backgrounds get into this action. “Snooze you lose””, no guts no glory” or “he could paper his coffin with worthless stock certificates” will be a lot of guy’s epitaph when it comes to gold!
3 A great plan and the people to execute it are in place. So is a perfect business vehicle. (How many of the start-up and unproven junior gold company operators and promoters drool gallons of hot, wet saliva over the prospects of having the oldest, longest active gold producer in the United States to develop? Every one.)
4. Financial risk is nil. Upside potential for GOLD dividends or stock appreciation is huge. Proceed and check it out.
Still snowing but got a call to check out a rare sighting of a ring-tailed cat. The company’s detailed analysis follows for your convenience.
INTRODUCTION
The ultimate end of all mining is profit. Metal in the earth can always be recovered, but the work of recovery will not be undertaken unless it is expected to yield a profit and will not be continued if profits are not realized. Finance dominates the technical process of recovery. Thus, the miner is restrained by financial considerations. All his operations are governed by the anticipated financial results. This is the domain where finance and technique meet.
Mining is not wholly a question of engineering and metallurgy; it is intimately concerned with finance. A mining engineer cannot conduct operations as he would but as the funds available or that can be counted upon will permit. Metal mining requires prolonged study and experience for its successful exploration.
Honest opportunities for mining and finance are rare. One side or the other knows of horror stories that poison a just union of the two. I am looking to break the reluctance of proven financiers to join miners in the common goal of profit. In my thirty-three years of gold mining, I cannot point to a more favorable time for successful financial institutions to participate in the Gold Sector of our economy.
Original Sixteen to One Mine, Inc. is an anomaly in the world. Even though it is not a mainstream gold producer, its existence since 1896 deserves your serious look. With this in mind I prepared an abbreviated picture of its operation. Please consider a further review and becoming its financier.
Sincerely yours,
Michael M. MillerOriginal Sixteen to One Mine, Inc.Executive Summary
Company Name Original Sixteen to One Mine, Inc. (http://www.origsix.com)
Main Contact & Position Michael M. Miller, Director and President
Phone Contact (530) 287-3223
Industry Major Industry: Metal Producers & Products ManufacturersSub Industry: Gold Producers
Company Overview The oldest US gold mining company will benefit from an infusion of capital at a time when gold shows strong price stability. Professional pundits believe that additional increases in demand and price are probable.
Market Gold (bullion) is sold at will into various markets at the current “spot” price per ounce for cash. The Company is known as the standard barer for another product, quartz and gold gemstones that bring a considerable price above the “spot” price. Demand for these gemstones exceeds supply. Gold companies have historically increased in market capitalization (share price) in diverse bull markets. The financial markets are in such a bull market today. It is important to recognize that the number of true gold companies significantly decreased as a result of the past ten plus year bear market in the Gold Sector. The Company will bode well as the current gold bull market develops over the next four years as investors look for quality gold positions.
The Opportunity Secure an equity position in a well-established gold mining company with undervalued natural resource assets including land, timber, water rights, and minerals. Participate in a well-proven gold mining district in California. Participate in the next gold rush for gold by investors at a bargain price ahead of the pack.
Financial Summary A balance sheet rich in unrecognized natural resource assets, poor in working capital with modest debt. Uneven gold production creates budgeting problems.
Capitalization Requirement/Use of Proceeds Five million dollars ($5 million) towards the following uses: Reestablish public stock market, complete and test new gold detector, upgrade equipment, special target development, reduce liabilities and increase working capital.
Corporate Management Michael M. Miller, director and president, has thirty-three years of underground mining and management experience. He has been a director for thirty years and president for twenty-four years. He has broad experiences in conducting the affairs of a SEC reporting company. Ian Haley, mine manager, has twenty-eight years of underground mining and experience.
Corporate Advisors Charles I. Brown (retired mine executive), Leland Erdhal (retired mine executive), Willard P. Fuller (geologist), Sandor Holly (retired director and physicist) Klaus Kolb (attorney), Scott Robertson (CPA), Raymond Wittkopp (geologist), Charles Schultz (mine safety consultant), Jason Burke (mining and civil engineer),SWOT ANALYSIS
The following analysis combines internal and external aspects of the Company. Strengths and weaknesses capture internal examples. Opportunities and threats reflect external considerations. This analysis was conducted with outside professionals and is presented to assist potential participants in our growth in their due diligence of the opportunity.
STRENGTHSNatural Resources (Timber Water, Gold, Crushed Rock Minerals)
Monopoly of natural product (quartz and gold gemstone)
Toxic material handling
Environment acceptance
Historical gold production and profit
Strong geology supporting future gold production
Mining historical and cultural value
Positive local government and public support
Museum (501c3)
WEAKNESSESInsufficient working capital
Lack of workforce
Unpredictable revenue stream
Restricted trading market for stock
Lack of general investor interest in Gold SectorOPPORTUNITIES
Participation in ‘Gold Bull Market’
Natural resource exploitation
Participation in new outlook towards forest management
Media and entertainment venue and products
Natural and organic cosmetics for men and women
Hydropower and bottled drinking water
Vision uniqueness
Cultural and social impact
Baby boomer interest in related areas
Recreation and tourism
THREATSIncreasing government regulations
Reduction in market demand
Size of market
Extreme increases in utility and supplies costs
Unknown government regulations
Inability to secure sustainable financial backing
Fire exposureThe Company and Proposal
Original Sixteen to One Mine, Inc (the Company) is a California corporation with thirty million shares authorized and 12,867,250 outstanding. There are 1,642 shareholders. The Company has a history of trading on the Pacific Stock Exchange (now defunct). It files unaudited reports to the Securities Exchange Commission and maintains a public market on its web site. Management consists of a board of directors and officers elected annually. Its president, Michael Meister Miller (1983 to present), has been a director since 1977, and is responsible for the day-to-day operation. He has thirty-one years of gold mining and corporate management experience. The current mine manager, Ian Haley, has twenty-five years of mining experience. Former Directors and seasoned professionals maintain an active interest in the affairs of the operation and are called upon for specific situations.
The primary operation is the Sixteen to One mine from which more that 1,200,000 troy ounces of gold have been retrieved since the mine began operation in 1896. The Company began doing business in its present form in 1911 and has operated continuously. It employees fifteen people and operates year round. The Company has a long history of acquiring significant gold properties. Consequently, its assets are recorded well below market price. (See Addendum A for a market analysis.) Its real estate is offered as collateral for the requested money. Recent purchases are the Brown Bear Mine (1994), Plumbago Mine (1999), and Gold Crown Mine (2005). Total gold production from all the Company’s mines exceeds two million ounces (over one billion dollars). As important as this statistic is, the professional opinion that less than twenty percent of the gold bearing vein systems have been utilized is most relevant.
For accounting purposes gold revenues are accrued when the metal has been recovered. For tax purposes revenues are not recognized until the gold is sold. Rare high-grade gold and quartz is sold at a significant premium above the daily “spot” price for bullion. Gold inventory is recorded at the bullion price without an allowance for its proven added value as a precious gemstone or prized specimen. Over the last decade the Company established and retains a world-class gold specimen collection valued at $3.5 million.
On May 28, 2003, the Company issued a press release announcing its intention to develop a new shaft and reposition the Company into additional activities; however it did not seriously pursue the funding until this year. It prefers to fund its development program in two phases. The first phase ($5 million) may include an equity secured loan, a secured line of credit or a private placement. The time period for execution of this program, once funded, is one year to eighteen months. The second phase may include the above methods or a public offering. The primary use of proceeds in the second phase is sinking a new shaft and developing the vein from the shaft. The amount of money sought depends on the success of the work conducted in the first phase.
Use of Proceeds for Phase One
1. Consolidate and pay off all liabilities = $1,000,000
2. Reestablish public stock market position = $250,000
3. Complete and test new gold detector = $250,000
4. Upgrade current mining and milling equipment = $320,000
5. Working capital = $2,580,000
6. Special target development = $600,000
Total = $5,000,000
Upon the completion of the above six projects, the Company will realize immediate gains exceeding the costs in time and money. Special targets ($600,000) with the criteria of short time duration, quick start-up time and exceedingly high gold potential are planned and ready to initiate immediately. A working capital budget ($2,580,000) allows the operation to undertake known gold targets that require six months to one year to develop without the need to find gold during that time. The success of any mining operation absolutely depends on the operator’s ability to lead its mine plan with long-term development. For most of its ninety – five years of mining, the Company was financed to do just this type of development, which is one reason for its longevity.
The Company is one of the world’s pioneers in electronic gold detection technology. Beginning in 1992 and continuing to the present, it has worked with numerous companies and individuals to improve the sensitivity and depth of detection equipment. With each improvement it has retraced prior areas in the vein system previously mined and found additional gold. The historical results prove that with better technology more gold will be mined. The budget ($250,000) allows for finalizing the detector, conducting programs where signals are identified and massaging a software program for the miners to use on a regular basis. Currently, detection has not exceeded seeing four feet into the quartz. The Company has a realistic expectation that reliable detection from ten to fifteen feet is possible. The Company is a leader in underground gold detection. This new tool will change the face of gold mining in California’s Sierra Nevada goldfields as well as other areas with quartz and gold deposits. The Company will own the equipment.
Much of the mining equipment in use today has been a standby in the small vein underground mines for many years. The drill-blast-muck sequence continues to be the most cost efficient method of mining; however improvement in these areas will increase efficiency for the Company. Because of its use of and knowledge of metal detectors, the Company developed improved ways to process its high-grade gold and mill its low-grade ore. The budget ($320,000) buys new equipment, thereby increasing productivity, efficiency and reducing utility and labor costs.
There have been many changes in the gold industry over the last two decades. The Company plans to rejoin the public marketplace at this time by listing its stock on two or three foreign exchanges. Those under consideration are: Germany, Ireland, Iceland and Hong Kong. The budget ($250,000) will accomplish this and provide money to put forth a selective public relations program. The share price has been stable at $1 per share; there is no liquidity. The effects of this decision benefit the owners (shareholders) and the Company. Management believes its shares are undervalued due to its total absence of exposure to the market place. Its market capitalization is far lower that many small non-producing companies with inferior assets and no history of operation. In fact most “gold” companies rely on stock promotion and a healthy promotion budget for their revenue. Another relevant fact that has changed over the past decades is the reduction in real gold producing companies. The major companies have been growing through acquisitions and mergers. The choice for investors that are seeking some type of gold position has shrunk, leaving Original Sixteen to One Mine, Inc as an honest choice for joining the current interest in gold.
The Company is confident in its ability to repay its loan or line of credit from gold production and sales. Gold production will increase, footage production will increase and costs will decrease. Also by consolidating its debt into one master loan, interest charges will be less. The Company is confident that the marketplace will respond favorably towards its improved promotional plans for broadening its share base. Participants in the initial private placement ($5 million equals ten (10) percent ownership in Original Sixteen to One Mine, Inc) should significantly benefit from an increase in interest in the public availability of stock. With a more established market capitalization, the Company will be inclined to offer treasury stock to fund additional projects.
Corporate Advisors: Charles I Brown (retired mine executive), Leland Erdahl (retired mine executive), Willard P. Fuller (geologist), Sandor Holly (retired director and physicist) Klaus Kolb (attorney), Scott Robertson (CPA), Raymond Wittkopp (geologist), Charles Schultz (mine safety consultant), Jason Burke (mining and civil engineer).
Financial Summary: The Company files quarterly and annual financial statement with the Securities and Exchange Commission (SEC).
WHAT’S IN ITS FUTURE
A VISION
The vision for Original Sixteen to One Mine, Inc. (the Company) includes America’s natural resources but focuses on the plentiful natural resources of California. While the vision may appear to be rather explicit or narrow, it includes gold and other mineral products, timber and water. It encompasses their utilization, management, development and marketing for maximum yield. No other public reporting company incorporated in the United States shares this focus.
This vision includes the social aspects of natural resources and the desperate need to protect the cultural as well as the physical environment of our precious natural resources. The Company combines all social sciences as well as most physical sciences into an operational program. It is an enlightened business plan of operation. The Sixteen to One’s past reveals a necessary approach of maintaining long-term assets with the short term needs of producing revenue. Its present status is demonstrative proof that a small natural resource company can address the demands of natural resource utilization in today’s overly aggressive pro environmental outlook.
The Company will become known as the model for future natural resource development in California and the United States. Its operations will challenge the erroneous myths and prejudices of well meaning activists who hinder the sensible extraction of our natural wealth. These beliefs have turned the omnipresent demands for raw materials to natural resource production in other parts of the world, a dangerous reality.
A primary ingredient for our vision and subsequent model to expand is an infusion of working capital. There has been a noticeable lack of interest from Wall Street or private investors in forest and mineral production. The modest attention of the stock market towards America’s natural resource companies hurts future generations both in the United States and the world. Some patterns of investment are predictable. Investors’ interest in specific industries continues to move from one sector to another. The Gold Sector is abstruse, removed from the usual way of thinking and difficult to comprehend. The forest industry follows closely in its mystic.
A movement into natural resource ownership or participation is overdue. Unlike banking, savings and loan institutions, automobiles, real estate, airlines, pharmaceuticals, computers, utilities and practically every part of the complex mixture of America’s democratic capitalism, the natural resource companies are ignored. Perhaps one simple answer is that resource companies believe they must stay under the radar to function in today’s hostile anti-mining/anti-logging mentality. Perhaps a more likely reason is the pure misunderstanding that potential investment capital has about these small but vital industries.
The Company’s dream foresees an awakening of Americans to the realization that we need and will benefit from a return to domestic natural resource productivity. For almost fifty years America has been bombarded with media blame for past degradation to the environment. Some of the blame is justified. Many extraction and harvesting methods, however, are no longer practiced and cannot be assumed as what to expect from future operators.
American industries have learned from the past and clearly are the most environmentally sensitive operators in the world. This is one reason to bridge the ignorance gap of the population and our leaders. The “not-in-my-back-yard” position is a short-sided myth! Vital and necessary minerals and other resource products come from countries without the sensible regulations that have evolved in the United States over the past hundred years. The consequences of this are global.
Even though population growth and physical development exploded during the twentieth century, the world-changing roll of the United States has taken a more dramatic turn. A counter cultural shift emerged. America was considered the can-do country. Democratic and capitalistic social ideologies opened the doors for an expanding middle class, especially from workers identified as “blue collar”. Our natural resources were developed and accessible. What changed?
Somewhat reluctantly America became a world power and responsible leader. The blue-collar worker of today is losing economic ground as our society turns more and more to the service industries. But the need for manufacturing contemporary products in America remains; and in order to produce, industry requires raw materials. America has them in abundance. America also needs the backbone of its labor resources to insure our freedoms.
The time has come to broadcast how to treat our inherited resources in the 21st century. Original Sixteen to One Mine, Inc., a US corporation, has all the pieces to lead this renaissance except one. That missing ingredient is explained in its Executive Summary. The oldest American mining corporation operating needs a grubstake to turn its dream into a reality.
MEMORANDUM
Date: June 30, 2005
Subject: Northern New Mine ProjectThe Sixteen to One Mine which contains over 26 miles of workings over a strike length of one and a half miles has produced over a million ounces of gold and paid more than $5,750,000. in dividends at a time when the dollar was worth more than it is today. At the present time, much of the gold production is sold as specimens and jewelry at a premium over the spot metal price.
A compilation of both new and old data indicates that a new and richer portion of the 16:1 mine exists north of the presently developed mine. This new portion of the mine starts at the very south of the 16:1 owned, patented, Red Star claim and exceeds north for another mile toward the town of Forest. The 16:1 vein in this area lies below Tertiary volcanics and Tertiary auriferous channel gravel known as the Blue Lead. In this northern area the vein has not been as extensively eroded, so higher more productive portions of the vein are present. Historically, the upper portions of the vein have been most productive. As pointed out by W. P. Fuller, former mine geologist and later a director of the company, the last big pocket removed from the mine was above the 250 level, very near the south end line of the Red Star claim. This was during December 1957 and early 1958. Cross sections constructed by Fuller for this area show at least 460 feet of back above the 250 level.
The only logical way to develop this northern area is to sink a vertical shaft one mile north of the present 800 level portal, just south of Wet Ravine on the Red Star claim. A detailed study has been made of all company maps and cross sections that cover this portion of the mine. Additional elevations have been protracted from Geological Survey maps.
The two most important aspects of this project are geology and elevations. According to my notes, the collar of the shaft will be at 4,655 feet, the base of the Tertiary, bottom of the Blue Lead, will be 4,480 feet and the 250 level of the mine will be at 4,120 feet. This will make the shaft 535 feet deep. (The exact elevations will be confirmed soon using GPS). It is necessary to connect with the 250 level as a secondary exit and for drainage.
The cost of the shaft and engineering details are not known at this time. Whatever the cost will be, it will be justified by the rewards of developing this area.
R. W. Wittkopp
Registered Geologist #3321
State of CaliforniaAddendum A
MARKET VALUE APPROACH OF ASSETS
Property and Property Rights, Equipment, Buildings and Inventory:
1. Unpatented mining claims (110) based on Company’s arms length purchase in June 2005 at $5,000 per claim. Market Value = $550,000.
2. Patented acreage (472) in Alleghany (includes mineral rights, timber rights and water rights).
No comparable sales; however the Ireland Mine (nearby) is for sale, asking the equivalent of $30,760 per acre for similar rights. Its actual gold production and potential are significantly less than the Sixteen to One. Alleghany acreage Market Value = $10,163,104.3. Brown Bear Mine (540 patented acres) in Trinity County includes mineral rights, independent drilling records, timber rights and water rights. It also has strong recreational potential. At $15,000 per acre the Market Value = $8,100,000.
4. Residences (3), other buildings and equipment = $985,000.
5. Gold and other inventory = $ 2,500,000.
6. Goodwill. Being an old school economics major at UCSB in 1960-65, my accounting teacher taught us the value of “goodwill” on a balance sheet. Original Sixteen to One Mine is a California corporation in good standing since 1911, and is America’s oldest and longest producing gold mining company. Today goodwill is not found on a balance sheet; however, in this particular review should be considered.
Reasonable but speculative Market Value of Company is $22,298,104.
Revenue History
1995 = $2,655,575
1996 = 1,442,459
1997 = 2,177,150
1998 = 1,466,702
1999 = 841,818
2000 = 1,729,659
2001 = 716,151
2002 = 588,030
2003 = 401,094
2004 = 1,377,458
2005 = 514,104
2006 = 794,086Addendum B
Proforma Statement: ORIGINAL SIXTEEN TO ONE MINE, INC.Factual production:
Historical production from Plumbago veins is four (4) ounces of gold per foot.
Historical production from Sixteen to One veins is eleven (11) ounces of gold per foot.
Historical production (Recent) from Sixteen to One mine between 1992 and 1997:
Total production is 32,924 ounces of gold, which average 5,487 ounces per year.Assumptions consistent with Use of Proceeds:
Spot price of bullion gold: $650.00 per ounce.
Footage mined: Four hundred (400) feet per month.
Development mining = Two hundred (200) feet per month.
Production mining = Two hundred (200) feet per month.
Ounces of gold from development are zero (0).
Ounces of gold from production are eleven (11) per foot.Conclusions:
Production and revenue based on actual mining between 1992 and 1997:
Annual production: 5,487 @ $650 per ounce = $3,566,550.00
Production and revenue based on actual early historic figures:
Total production: 26,400@ $650 per ounce= $17,160,000Proforma statement for Special target #1
Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is eighteen (18) weeks long or thirty-five percent (35%) of a year.
Total production: 1,920 @ $650 per ounce = $1,248,000
Proforma statement for Special target #2Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is twenty (20) weeks long or thirty-eight percent (38%) of a year.
Total production: 2,085 @ $650 per ounce = $1,355,250Total first year production and revenue for Special Targets:
Recent Assumptions:
Total Production 9,492 @ $650 per ounce = $6,169,800
Historical and Actual recent Assumptions:
Total production 30,405 @ $650 per ounce – $19,763,250Notes: The Company sells gemstone quartz/gold that exceeds the spot price.
The use of proceeds includes a long term mining plan without projections of gold production and is classified ad “development”; however a study of the history of the Sixteen to One suggests that it is highly unlikely to develop the vein to the extent planned without encountering an ore shoot.
Production per foot: In high-grade ore deposits any attempt to express the average grade of the ore in dollars to the ton is meaningless. To obtain a rough measure of the production of the different veins, geologists compare the amount of work done (footage or per foot) with the production.
Addendum C
CALCULATIONS FOR PRIVATE PLACEMENT
Shares outstanding ….. 12,890,204
Options outstanding…. 765,000
Total…………………. 13,655,204
New Shares issued….. 1,502,072
Total outstanding…… 15,157,276
New share ownership is ten percent (10%) equity in Original Sixteen to One Mine, Inc.
Guarantee: $6 million market value two years from date of funding.
Additional consideration: $5 million secured by deed on Brown Bear Mine real property.
: First right of refusal on purchase of dore or bullion.in reply to: Miscellaneous #3106The consensus is your rock shows several metallic sulfides, primarily pyrite. While a trace of gold may be associated with the sulfides, it has little value. Oxidation is obvious and gold does not oxidize. So, when you see a rust color or rainbow colors, oxidation has taken place.
Four of us looked at your pictures and agree. Fortunately the company geologist is in Alleghany and was one of the four. Now, we could be wrong. It may look different in person. An option for you is to break off a small representative piece and send it for assay.
Thanks for trusting our judgment and visiting our web site.
in reply to: Miscellaneous #3107Now, if thers no stain on it like rust and it ways a bunch an comes from a good place like this mine OAu yuor rich.
in reply to: Miscellaneous #3105hi and thanks for the reply. first of all I would like to pay off a bill or 2 gold mining isnt the only thing thats been slow . and I dont really need the rockbut I got it and if I can benefit from it good.also I will consider your valuation but I will not give it away since it is likely to be the only one I find. I dont need a expensive education . will send lics thanks larry
in reply to: Miscellaneous #3104It was a low year for gold production, so you can sell your 10 pound rock to me.
Why are you selling it and what are the reasons you want to sell it now?
Do you want me to set the price? and will you accept my valuation? It’s cash and carry to strangers. Send the picture to the corp@origsix.com
One picture will never determine the value of a quartz with gold.
in reply to: Miscellaneous #3103Hi I am new to the forum but have been interested in gold and a compulsive hunter for a while . I was wondering how to determine what a quartz rock with gold in it is worth and where to sell it with out getting an expensive education. any help would be appreciated . the rock weighs more than 10 pounds I can send pics if it helps . thanks again.
in reply to: Gold Enters Major Bull Market #3102Gold $904.00
Silver $16.38
Gold/Silver Index 55.19
Gold/XAU Ratio 4.57The country’s financial management is being run by a group of incompetents.
Keep listening and believing in them while the Fed takes you for a ride with your eroding purchasing power and in the end, you will be poor.
Gold is the international currency. Get out of dollars and dollar related items as fast as you can.
House prices are due to decrease 15% in the year 2009. At a 20% inflation rate that equates to a 35% drop in the purchasing value of the average person’s key asset.
If you don’t have, at least, a good portion of your assets devoted to ownership in gold and some silver coins you may end up being a statistic as the great majority of people’s wealth is being washed down the river as a result of financial mismanagement of our elected representatives and our so-called leaders plus an out of control central bank that worsens inflation daily by creating more dollars out of thin air.
in reply to: Miscellaneous #3101I wish Mr. Sorlein could have
known my uncle, William Forman
who was a well-known mining
attorney both in Nevada and
Nation-wide and was the Chair
of the mining and metals di-
vision of the American Bar Assoc. He was raised in To-
napah, NV; went to Hastings,
not Harvard but was a super
lawyer in his field. Both he
and Mr. Sorlein were very
gifted and lucky and missed.in reply to: Miscellaneous #3099Many of you may remember Dick Sorlien. I encourage you to go to our web site under Company, past directors and read his resume. When the power came on last night we found an e-mail from his wife, Becky, sent January 7 that Dick died that morning. She wrote, “Dick enjoyed so much his association with both of you and the Sixteen to One board and crew, so thank you for being a special part of his life.” Following is my response. Dick was one of my mentors. Here was a double Harvard grad, a Philadelphia lawyer and a very important businessman, who took an active interest in our gold mine, our company, our community and me. Words will not express his loss. He would drive us crazy at times with the way he worked out issues or problems, kind of a delving into the what ifs of the situation. He was a thorough man with the highest ideals and ethics. He was a rare individual amongst lawyers, more of a throwback to the American lawyers who signed our constitution in 1787. If any of you have a story to share about Dick, please do so for me and the rest of us who hold him dear in our hearts.
January 11, 2008
Dear Becky,
Cai (Dick’s nephew) told me several months ago of Dick ‘s condition. We talked about how much Dick influenced our lives and what a joy to have him in our lives. I have many memories that are not only in my head but continue to affect the way I live. In other words, Dick is still with me and always will. I have said this before. Other than my father, Dick has been the greatest male influence in my business persona. He taught me so much. His thoughtfulness gave and gives me courage to persevere when times are rough. I know his interactions with me were consistent with the way he conducted his professional life and led his demanding business life.
I also had several occasions to be with Dick during non-business times. One lasting memory was when the two of us traveled to Arizona. He wanted to see everything, didn’t want to miss a beat. We drove by some museum or interesting place on the way to our destination. After passing by this interesting place he said, “Wait, stop the car. Let’s go back and look at this.” I was taken back because we had to see one of his friends and time was against us. Dick probably caught my concern and said, “We may never pass this way again so let’s go have a look.” I think that says a lot about one way to pass through life. Everyone is busy but there are times when what is before you at that moment becomes preeminent. Dick reinforced that for me. I don’t remember what we wet back to see but I do remember Dick’s expression as he quickly mulled over the pros and cons of taking time away from one important thing and giving it to another. I am sure this became routine in his legal practice and could be one explanation about his deep love for gold mining.
I remember one time we packed thousands of ounces of gold out of the mine during the time the directors were meeting. Everyone was excited, especially Dick. It did not represent money to him but something much more. I could see it in his eyes and the way he held and looked at the quartz and gold. To remember these past events brings tears to my eyes as I write,
We were twenty years and a day apart in age. Until a couple of years ago I never gave a thought that Dick would not be here to counsel with. His advice was from his heart and tempered with his brilliant mind. He deserved that mining highest award, the gold hard hat, we had so much fun giving him.
There is nothing I can tell you about Dick that you don’t know. You made him so happy. He bounced with joy around you. I wish I could be there next Monday to see you, his family and friends and be a small part of those who knew, worked and played with him.
My love and well wishes are with you.
Michaelin reply to: Miscellaneous #3100I stood there whiff of powder smoke the wonder of its smell.
The open stope above me the broken muck below me fell.
I kicked away the quartz
I watched a boulder fall.
I shoveled away my youth
it was my life all in all.
I moved away a mountain
one shovel at a time.
I threw away my youth
my hell was my sublime
I wondered in the muckpile
as I scraped and picked the face.
How others could endure
to live such a boring race.
Those who lived in town
in their “normal” life they lose.
They never make a miner and are only good for selling shoes.
They will never see the hand of God Never seen the plea.
With every round that I took
His work was given me.
I bow to the Master the maker of the earth.
His servants called the miner
they truly know His worth.
The gold is for the seeking
where the vein matrix runs
Powder smoke in heaven
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