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- in reply to: Ideal Time for Facts #2503
I have been the “recipient” of awards as membet of a “class” in three class action suits. Two were against Providian; I did not realize that I’d been harmed….but the two checks, one for thirty seven cents and the other for two cents made me feel much better. The last was more recent. It seems that NetFlix had harmed me to the point that they had to offer me a free month of 5 movies at a time rather that just my usual three. I feel so vindicated. I am PROUD to be a shareholder, no matter how small, in a company run by people with principal and balls that Mike and his minions have shown.
in reply to: Gold Enters Major Bull Market #2500Correction:
The top channel line is 520 and not 515. If gold can stay above that level it will be extremely positive and the precious metal will enter its second bull stage of greater price appreciation.
In the meantime, it would not be out of character for gold to go into a price correction lasting from weeks to up to a few months.
in reply to: Ideal Time for Facts #2502Reading about our frustration from the lack of tangible production up in Allegany, I’ll agree, it sucks. Yeah frustrating as hell on wheels.
With the miles and miles and miles of drift, why isn’t it a no-brainer to foster a dedicated crew to go locate the next million-dollar pocket? Why is the president of this historically productive icon of hard-rock gold-quartz mining so involved in a court-room, instead of involved in sending a crew underground where all the gold is? Why, as some may ask, is he wasting time? Why, again from the same ones who ask the legitiment question, is he dallying in a bunch of legal crap, instead of rallying a crew, enticing an invesor base, putting forth a plan to extract the ultimate pocket? Why is Mike Miller, the president of our company, director of operations, spending his time in court, with endless motions and appeals and then more and more and then even more motions, instead of hiring more of a crew for Ian, the most competent hard-rock miner in all of the Allegany Disrict?Because it’s the right thing to do.
And, defeating the ones who would love nothing more than to take away the prospect, no-one could possibly propose the contrary. What would we have to look forward to, when there would be no mine?
Court cases, lawsuits and all that crap sucks. Remember, Mike Miller and the Original Sixteen to On Mine didn’t fire the first shot; in fact, instead, has done something that so many of our culture under assault by the massive public sector (or psuedo-public sector, aka CDAA) rarely has the balls to do….fight back.
Always fight back when its the right thing to do. You know when its the right thing to do when its the truth. This, of course, takes patience.
in reply to: Ideal Time for Facts #2501Mike,
Thanks so much for your trip to Elko and your wonderful presentation you gave to us in Elko at our WUMA meeting. It was great for me personally to see who all turned out. As for me, who works at Queenstake Resources here, almost all of our geologists and engineers showed up! I also saw many people who I have not seen in such a long time. The Sixteen to One I know holds a facination for a lot of people here. For many different reasons. I wish you the best of luck and you are welcome any time here! I hope to see you at the Mine Expo this June. With gold prices the way they are, I would expect it to be a record year. Please contact me for more information. Thanks again!
Samantha Dutton
Vice President
Western Underground Mining Association.in reply to: Ideal Time for Facts #2498Hey Mr. Yuma,
You are right about Ian. He was seated when I stopped by the mine shop. He was upstairs in the new office working on some maps. Think it had to do with a second exit map to go to MSHA. Later his small crew decided on their best shot for high grade, which is where they are working right now. Can you think of any place except the Sixteen to One mine where a small crew have the potential to mine $500,000 to $1 million in a single shift? What an opportunity for someone who is not in the gold game to hit the jackpot.
in reply to: Ideal Time for Facts #2499IMPORTANT NEWS FLASH
“Victory for Truth”The State of California’s Occupational Safety and Health Appeals Board issued the following order on December 1, 2005:
On November 10, 2005, the Division and Employer submitted to the Appeals Board a written motion entitled “Stipulation of Parties and Motion to Board to Approve Same,” which, by mutual agreement of the Division and Employer, disposes of all the contested issues on appeal. The written motion is attached hereto as Exhibit A.
GOOD CAUSE APPEARING, the Appeals Board hereby grants the written motion of the parties, thereby disposing of the instant appeal as set forth in the motion. Because no other issues remain on appeal, this proceeding is hereby closed.
Candice A. Traeger, Chairwoman
Marcy V. Saunders, MemberThe contested citations were issued after the tragic accident that took the life of miner Mark Fussell on November 6, 2000. One citation alleges that, “the 1 ½ ton Mancha battery operated locomotive had a defective speed controller and was not removed from service.” One citation alleges that, “no warning device was installed on an overhead chute that restricted clearance.” Both allegations were considered as accident related, especially the later, which was considered as “Serious Accident Related.”
The first citation is withdrawn by the Division on the ground there is insufficient evidence to sustain the Division’s burden of proof that the speed controller on the locomotive was defective prior to the accident or whether the defect was caused by the accident. The second citation is reclassified to “Serious Non Accident” related. “The Employer Appellant has provided new evidence to the Division indicating that the cause of the accident was not the failure to have the chute marked but was the fact that the victim was distracted by another miner and by personal problems that caused him to be inattentive just prior to the incident. The Employer contends that the incident would have occurred regardless of whether or not the chute was marked or if warning devices were in place since the employee was not looking at the chute or in its vicinity just prior to the accident and consequently would not have seen markings on the chute or other possible warnings of the restricted area caused by the chute.”
There you have it. All the information was available to CDAA prior to its ill-conceived assault on the mine and its employees. The administration process in California was preempted by the private lawyers now defendants in a civil action for damages.
in reply to: Ideal Time for Facts #2497I can tell you, since I was there yesterday. Nothing is going on. Ian, who we all know and respect, is sitting on his ass waiting for someone to show up for work so he can chase a target on the 800 level south of the Tightner shaft.
in reply to: Gold Enters Major Bull Market #2495Gold’s last bid price in international markets tonight is 505.40. The high in earlier trading was 508.60.
Gold’s current chart position is near the top of an ascending monthly channel formation. In the past few years this ascending higher parallel line has temporarily defused gold’s intermediate term energy bursts for the following two to four months.
It would not be surprising to see gold exhibit some short term weakness during the next few months. This foreseen weakness, if it develops, will be just another buying opportunity in this major bull market.
If gold decides to trade above 515, the top of the monthly channel and stays above this area, the old monthly chart formation will prove to be the stepping stone for the start of the second stage of this three year established major bull market. During this second stage prices will move up faster and the declining swings will be scary for the inexperienced.
Unfortunately for the holders of gold related investments, today the Sunday Times in London took a few shots at Gold’s recent strength. This is all to be expected from supporters of the paper factory. It wasn’t too long ago that England sold their people’s gold at under $300 an ounce and now the current price is too high?
These guys are on the wrong side of the market. First, they have no business selling treasury gold and secondly, they have no business calling tops in a bull market that they sold like ignorant fools much lower.
If people are intested in gold’s full potential they need to read Jim Sinclair on a daily basis at http://www.jsmineset.com or obtain his DVD entitled THE CASE FOR GOLD. Scroll back in this section to find out how to acquire this historical DVD.
Jim Sinclair is the source of the truth for this once in a life time generational bull market in gold that will last for the next five to ten years.
in reply to: Ideal Time for Facts #2494You are correct. The time for serious gold mining programs is at hand. The rapid rise in the commodity price or the price of storing ones wealth surprised me. Lee Erdahl, a retired director, used to respond to the question of gold’s price situation was, “ It could go up some more or it could go down.” His fundamental position (he was a director of Freeport Gold and a past President of a great small gold corporation) was to leave the market speculation to others. The possibilities to make money or lose money in gold should be with us for more than a couple of years.
You are correct. The operation has little cash to expand its operation into the area it has determined is the most lucrative. Obtaining the working capital with an eye to the long range interests of the Company is my focus. We have assets to liquidate for no short term downside; however they will have far greater value to our Company in the long run than they would sell for now. During our managements recent discussions about the financial dilemma we face, a proposal floated to the top. It will please current shareholders and it provides significant gold returns to newcomers. If you are a shareholder and want a copy of the proposal e-mailed or regular mailed to you, e-mail corp @origsix.com.
in reply to: Ideal Time for Facts #2493This recent surge in mining interests deserves a topic heading!
(I realize right now there is a small crew…and that money’s super tight…)
We’re starved for even a hint of news, such as how walking in the 1621 adit makes the heart skip because of prospect, not necessarily results!
in reply to: Ideal Time for Facts #2492The S.F. Gold Conference on Sunday and Monday was a mob scene of people wanting to invest in gold exploration and mining companies, all with a wish and a hope. With gold over $500/oz it is time to cash up
in reply to: Ideal Time for Facts #2491Looking for some gold on 800 level south of Tightner Shaft and rain. How was the gold show in San Francisco? Are the exploration guys spinning their tales?
in reply to: Gold Enters Major Bull Market #2487This morning, around 5:10 AM, I was listening to the Wall Street Journal Report (a daily one-hour radio show aired on 1530 KFBK) and their focus was on gold and the building market. One guest analyst mentioned the opinion of the CEO of the world’s largest gold-mining company (was it Barrick?) who believes gold to actually reach $1000/oz within the next five years. The analyst didn’t necessarily reflect this exact prediction, but did say that gold has established a firm base this time around, unlike 1987, and jewelry demand in India seemed to be driving the supply-side, followed by China. Some cultural issues in India apparently push gold jewelry ahead of other practical personal belongings (cars for example) and the demand will continue to grow as the population grows.
Demand for product is, of course, so much different than the trading on a commodities exchange, yet this analyst went on to suggest that acquiring a position in gold through the mutual fund market was a wise choice, foremost in gold mining companies who hold not only potential but gold itself; the commodities exchanges would naturally try to stay ahead of this game, but the general public should try the more practical approach. This such talk, from a reputable source through the reputable Wall Street Journal Report, suggests what this Forum topic has been saying all along. It also may be the first time in quite awhile that gold may be rising due to demand, not inflation fears as in the past.
Lets get that shaft sunk!
in reply to: Ideal Time for Facts #2490What is going on at the mine?
in reply to: Gold Enters Major Bull Market #2489Purists know that stock markets are driven by the technical considerations or the fundamental considerations. The advent of television started the broadening of the role of the stock analyst has led to the “gold expert”. Today, we have gold opinions coming from many directions. How does the reader know if the opinions offered by the writer “expert” are believable? One way is to become familiar with their personal background and disclosures. This is something that Bluejay does when he references Mr. Sinclare or others. He knows their background.
I shortened the following from a lengthy article written by a gold expert I trust. I asked his permission in a letter that you can find in the FORUM under Correspondence from the President. I received no answer but fell you should read this man’s opinion.
2005 Jackling Lecture
THE GOLD CONSTANT
“ For his outstanding achievements as a mining executive and philanthropist; in particular recognition of his ability to consistently provide superior returns to the shareholders of Newmont Mining and Franco-Nevada Mining for more than two decades; his generous contributions to higher education with focus on mining careers; his always energetic and productive ability to creatively challenge the status quo in the mining industry; and for his lecture: “ Gold: A Lesson in Monetary History.”
Recipient of the 2005 D.C. Jackling Award
PIERRE LASSONDE
Gold has two interesting properties: it is cherished and it is indestructible. From the very early days of civilization in Egypt 4,000 years ago, gold has appeared as a constant for the appreciation of beauty, the storage of riches or the exchange of goods or services.
In that respect, gold can be melted down but the process never damages its chemistry or weight. Gold never disappears. It does not tarnish, oxidize, or burn. Every ounce of gold ever produced still exists today- somewhere, all 136k (15,000 st) of it. As money, it is not an IOU or the obligation of something else.
Gold’s value over time has been a reflection of our civilizations. Humans have fought and died for it. We have expressed our love and admiration with it. And we have created wealth with it and preserved it for future generations. It is The Gold Constant.The 20th century
Looking back at the 20th century, there have been two major influences on the gold price. On the production side, it’s the total dominance of South Africa, where some 46.65 kt (1.5 billion oz) of gold came out of South African gold mines in the 20th century. That is 40 percent of all the gold ever mined. The Witwatersrand Basin stands as one of the greatest natural resources ever discovered. However, this resource passed its peak in 1970 when South Africa produced more than 995.3 t (32 million oz) in that year. Today, its production is about 404.3 t (13 million oz), down 60 percent and falling.
The other major theme is inflation and its corollary, the depreciation of the value of currencies. At the dawn of the 20th century, Britain was at its apogee. The Pound Sterling was anchored to gold and there had not been any appreciable inflation in commodity prices in 200 years. Imagine the price of a loaf of bread was the same in 1914 as it had been in 1717. That was to change dramatically in the 20th century.
In 1971, the price of a barrel of oil was $2.71. By 1973, it had increased to more than $12 per barrel, a five-fold increase. We had a full-blown energy crisis on our hands. By 1978, the price had reached more than $40 a barrel. And every one believed it was only a matter of time before it reached more than $100 per barrel. Because the world economies were very energy intensive, the price rise was very inflationary.
Fast forwarding, in 1988 oil bottomed at $12 per barrel. Since then it has increased over four-fold to more than $50 per barrel. Yet inflation is still tame. Or is it? The perfect conditions for higher inflation have been in place for the past year or so: high oil prices, a weak dollar a very stimulative monetary policy and accommodating fiscal policy. Yet the official government indicator, the consumer price index, which has not shown much of a concern. It does not help that most people think that the consumer price index is a “ massaged, fudged, and assumed seasonally adjusted, figment of some bean counters over-active imagination.” We are paying more for gas at the pump, housing, medical services, restaurants and football games. On the other hand, the microwaves we purchase from Chine have fallen in price by 50 percent, as have most electronic products, clothes and 70 percent of the “stuff” sold at Wal-Mart. So who is right? It is a bit like having your head in the oven and your feet in a bucket of ice. On average, the temperature is just fine, but it is hard to tell.
In 1971, President Nixon had to make a choice. He could keep the dollar on the gold standard and see the U.S. gold reserves melt away as France, England and other European countries wanted to redeem all their dollars for gold. Or he could close the gold window and let the dollar float. He chose to go down the slippery slope of inflation. He chose the politically expedient solution: allow the dollar to float. The currency plunged and gold soared. It went from the fixed $1.12/g ($35/oz) to $2.90/g ($90/oz) in a matter of months. As inflation ratcheted higher, the gold price followed.
From 1970 to 1978, the dollar lost about 50 percent of its value against the German Mark and Japan’s Yen. Faith in the dollar reached its nadir in 1978 when the Fed issued the infamous Carter bonds. As the world did not want any more dollars, these bonds were denominated in German Marks and Japanese Yen. Gold soared even higher, reaching more than $25.72/g ($800/oz) in January 1980. A rise of more than 2000 percent. The world had never seen any thing like this. It had lost faith in the dollar and rediscovered the role of gold as the ultimate currency of last resort.
As we enter the 21st century, the major differences from 35 years ago are the following:The savings rate. In the 1970s, the U.S. savings rate was around 8 percent. Today, we are in the 1-percent to 2-percent range. I call that negligible. If you do not save, you do not have any money to invest. And so it is today that all our investments are paid to foreigners. In effect we are selling 1 percent a year of our economy to foreigners. Not a healthy situation. As the boomer generation begins to contemplate retirement, they will have to change their behavior. They will have to save more and that could have a dramatic effect on the economy.
Debt. In the 1970s, the total debt in the economy- personal, corporate, and government- was 130 percent of the nation’s gross national product. Today we stand at a towering 210 percent. The last time it was that high was 1933, when national income had fallen by 33 percent. This is not a good sign, particularly at a time when interest rates are at an all time low. Whet will happen when interest rates inevitably rise? I shudder just thinking about it.
Inflation (or the lack thereof). In the 1970s, labor had an inordinate amount of power. It was able to extract huge wage gains that pushed inflation in a viscous tandem between cost-push and demand-pull. It took Fed chairman Paul Volker, with sky-high interest rates of more than 20 percent, to break the back of the inflationary spiral. Today, China, India, and much of Asia are exporting deflation, not only in manufactured goods, but also in wage deflation. China has 18 million workers moving to the cities every year looking for work at $5 a day or less. The good they produce are exported worldwide and compete with local goods that quickly become over priced. The result is that the local manufacturer closes its plant, resulting in massive lay offs at home. The manufacturing sector in the United States has lost millions of jobs during the past ten years because it cannot compete.
The choice that President Nixon had to make in 1971 is made daily in the foreign exchange market and the offices of the Central Banks of Japan, China, Korea, ect. In fact, we have seen the first major cracks appear. South Korea, the fourth largest foreign holder of U.S. dollars, announced earlier this year that it would start diversifying its holding with other currencies. Earlier, Russia quietly made the same decision. It is only a question of time before China and Japan, the two 800-pound gorillas, to come to the same view. When they finally move, the ground under the dollar will shake and then part. Gold is up almost 80 percent but I do not think that’s the end. Far from it, and here is why.
My view is that we will see a return of gold as currency. The launch in November 2004 of the gold exchange traded fund on the New York Stock Exchange is the first step in that direction. This instrument brings a new, easy way for people to own gold. And in less than a few months, more than 280t (9 million oz) of gold had been purchased through this fund. This is just the beginning. Investors, pension funds and institutions will come to a point where they will use gold as an asset class diversifier.
Gold is the only currency that is not the debt of some one else. Let me say that again, gold is the only currency that is not the debt of some one else. It has intrinsic value, unlike currencies that are only as credible as the state that issues them. That is why gold has had such a fundamental role in financial history. And history repeats itself. I suspect that gold 20 or 50 years from now will still have the same purchasing power as it has today. I do not know that I could say the same for the U.S. Dollar. That is why we call the yellow metal “The Gold Constant.”in reply to: Gold Enters Major Bull Market #2486Up until recently I was unaware of the depth of the Dubai gold situation. I know so little about it that I am unprepared to offer opinions on its effect. Why has so little been written about a truly wild and crazy new twist in the old historic gold market? Dubai could be one important reason explaining the rapid increase in the spot price of gold. Next time you are in the coffee shop or out and about with friends or strangers, ask them what they know about the Dubai entering the gold business. I plan to do this. My belief is that few will have heard of the newest worldwide player, Dubai.
SUMMARY
Dubai Gold & Commodities Exchange (DGCX), the world’s newest commodities exchange began operations on November 22, 2005. The DGCX also confirmed that the Dubai Commodities Clearing Corporation (DCCC) has been incorporated. DCCC will perform the role of clearing house of DGCX and will handle clearing and settlement functions for all the trading related obligations, according to reports in the UAE’s dailies.
DGCX is planning for a bright future straddling East and West. The exchange expects to be trading several thousand gold futures contracts a day by the end of next year, with four to six products on the market, according to chairman David Rutledge. The exchange, a joint venture of the Dubai Metals and Commodities Centre, Financial Technologies India Ltd and the Multi Commodity Exchange of India Ltd, will open with the trading of gold futures. Silver futures will open in the first quarter of 2006, followed by gold and silver options and then by steel, freight, cotton and fuel oil futures.
The exchange is also fortunate to launch at a time when gold prices are at historic highs and interest in gold is rising, Rutledge said. Spot gold was trading at US$499 an ounce after hitting a near 18-year high of US$480.25 last week. Funds have begun buying gold as a hedge against inflation that is expected to be fuelled by record oil prices. The exchange, which will trade seven days a week, is aiming to serve as a bridge between the Far East and Europe. DGCX is also likely to benefit from its proximity to India, the world’s largest gold consumer. Rutledge said the exchange’s primary focus was to attract participants in the precious metals business in the Middle East, South Asia, or even the United States, since it allowed remote trading.
Gold is unusual in that it is both a commodity and a monetary asset. Because it is virtually indestructible, all the gold that has ever been mined still exists above ground in some form or another and, theoretically, the majority of above-ground stocks could easily be mobilized. That is to say that they are in simple, relatively unfabricated form. As a result of this feature, any upward spike in price is often met by the resale of above-ground stock and this is one of the reasons why the gold price is historically less volatile than the majority of other commodity prices. It also explains why gold’s forward markets are generally (but not always) orderly.
The World Gold Council estimates that at the end of 2004, above-ground stocks represented a total quantity of approximately 153,000 tons, of which 63% had been mined since 1950.in reply to: From the Sixteen to One Archives #2485I stumbled upon this forum while searching for info on the Blue Ledge Mine. Apparently it’s drain water has affected Joe Creek. There were internet documents pertaining to research at the university in Ashland, Oregon and a geological society meeting in Denver in 2004 about that issue.
My profession involves trees, so forests are an interest. The mine and and acid produced by some is information I’m including on a forestry article on my arborist / landscape web site.
My father is also active with mines from a production / profit standpoint. So he has shared a few things about mines that caught my interest too. Not environmental things – just the methods, tools and means.
On this forum, this thread triggered a seach with this text posted 8-24-2005
“…Development at Alleghany. [Colorado Capital plans big operations.] June 13, 1909- L.A. Times…”
“…In other mother lode counties mines are in full blast.
Southern Californians in the Blue Ledge copper district, Siskiyou County, are opening excellent properties, and recent developments indicate that as soon as the copper market sufficiently improves, the Blue Ledge will rank next to the Shasta belt. At the Blue Ledge mine, large reserves of excellent grade copper have been developed with a smelter installed; the company would be in a position to produce on a large scale. The St, Albans, Bloomfield, Joe Creek, Medford, Copper King and numerous others are also showing well. Several eastern, British and Spokane people are interested. The chief drawback of the district is the lack of adequate transportation facilities…”I took a hike up there last week. Facinating scenery.
It crossed my mine that there may still be copper reserves in the ground. But that mine may be a touchy one to open for two reasons.
1. It’s already affecting a Joe Creek that leads into tributaries of the largest lake of Rogue River National Forest. The toxic pH is limited, but it’s obvious even by looking.
2. The Applegate valley apparently has a fanatical group that opposes things – even like a big church springing up in the valley, let alone mining the ground where tailings produce sulfuric acid.
I started a page at my site to tie-in to forest and forestry.
By the way, I’m an arborist, but I’m not a tree hugger. I’m middle ground.
That page is at:
http://www.mdvaden.com/blue_ledge_mine.shtml
It’s on http://www.mdvaden.com
So much mining has occured here near Jacksonville and Ruch, Oregon, that I may just try my hand at it sometime.I suppose my dad can help me figure out how to go about it right.
Thanks for letting me join the forum. Hope I have time to get back on.
in reply to: Gold Enters Major Bull Market #2484The gold cartel is short 16,000 tons of gold.
To get the full story go to http://www.FreeMarketNews.com and listen to an eRADIO broadcast with Mr. William Murphy.
in reply to: Clips from Alleghany #2483The operation closed for the holiday traditional thanks and recognition of our good fortunes. The search for gold will continue on Monday. Hey, what about the price of gold? Common sense says it must fall back to $450 area, but when have speculative markets behaved logically? The interesting variance with the recent moves is the absence of the public. Do you have a gold position?
in reply to: Clips from Alleghany #2482Rae and Kyle are caught up with the paperwork that relentlessly flows through the mining operation. A recent report commissioned by the Small Business Administration found that small businesses are most severely impacted by environmental and tax compliance regulations. Environmental regulation compliance costs 364% more for small firms than large companies. Regulatory compliance and paperwork for costs for firms with fewer than 20 employees have soared to an estimated $7,647 per employee, the study said. One conclusion said that, “the regulatory burden we impose on our businesses has severely handicapped our ablity to be competitive in the domestic and international markets.”
The gold sales department continues to receive orders for the grubstake pendants and other jewelry from the website and referrals. The company has an ad in the California/International Mining Journal that has been in each monthly edition this year. Time to order for the holidays.
Ian’s crew is staying the course with the headings. Mostly mucking until the vein is fully exposed and a spot is selected for drilling. The 910 front-end loader is acting tired and needs some maintenance before the snow sets down. It has been a great piece of equipment over the years.
Mike is off to sell some slab. The inventory of uncut quartz and gold is not looking too good. Production for 2005 may be the annual lowest in over two decades, but then again, the year isn’t over yet.
in reply to: Clips from Alleghany #2481Mining at the Sixteen to One fascinates most people. It is such a foreign operation to most people, even miners in the large open pit or high volume underground mines. Scoop has problems writing about the operation when most of the time the work is routine. Government snoops show up often because this blue-collar occupation attracts more inspectors than other more dangerous blue-collar jobs. Why? That is a question that has never been answered. It is probably a control thing. Gold is a world wide special product yet very few companies throughout the world actually produce it. Governments understand its economic significance. Politicians do not. There are more paper chasers than hard currency followers, so judging by the numbers of “financial players” paper is king.
The operation in Alleghany has scaled down its monthly outlay, thereby also cutting down its gold potential. One of the best improvements was the installation of an electricity device that shuts off the air compressor when there is no demand for air. The PG&E savings is significant with no downside in production ability. With a full crew in five or six active headings, the machine would run all the time, but with only one heading, the time of operation has been reduced about sixty to seventy percent.
in reply to: Clips from Alleghany #2480I’ve been re-reading much of the Forum this morning, and found Johnny Yuma’s single-line question more than once, “What’s going on at the mine?” One time I answered him and he responded, “What could be more important to the mine than the mine? Think about it mate.”
Since then, I have been thinking more about it, and must thoroughly agree with him. Thanks Johnny. It made me remember that whenever I talk with Mike on the phone or in person, when it’s usually about some upcoming court appearance or stategy, I always ask, “What’s going on underground? How are the guys doing?” I ask because it is really the whole point. When I bring up the web-site and scroll down to the Forum, what I always anticipate and wish for is the news of a fantastic pocket.
Sure, it’d get me excited to read about a court victory, but then what? Those of you who’ve read some of my entries know how passionate I am about the legal stuff; challenging the illegal actions of the CDAA comes from my core, as I detest mis-representation, especially from an organization impersonating a public sector police force. Yet, isn’t a court victory, whether it happens or not, to simply restore the value base that should already be recognized? While a fight in court over unconstitutional authority trying to shut the mine down is huge, when I reflect on how it should never have happened to begin with, we’d be back where we were some four years ago, mining for gold. An unfortunate accident presented some sharks a chance to score political points, and it didn’t necessarily derail the focus, it broadened it.
It is impossible to say what would have happened if the CDAA had not been challenged. Would they continue to try their assault? They threw the first stone, and the mine took issue. It defines perseverence, much the way the guys break rock.
If the accident never happened, the mine goes mining. If the lawsuit is successful, the mine goes mining. If the lawsuit isn’t successful, the mine goes mining. The accident did happen, and still, the mine goes mining.
Johnny Yuma, you must be a miner and have a gold-vein system as the core of your heart; you’ve been able to cut through all the crap and ask the most important question, (one I’m ill-equiped to answer since I’m not a miner), “What’s going on at the mine?”
in reply to: Ideal Time for Facts #2478Thanks Mike for taking the time to write out your speech for us.
I enjoyed reading it sense I could not see it in person this was the next best thing.Good Luck,
Jeff
in reply to: Ideal Time for Facts #2477Reflections on ELKO Trip
My purposes for accepting an invitation to address WUMA were mixed and many, clear and uncertain, business and curiosity. Having completed the journey and now home safely, the choice to go was a good one. Not only did the miners and miner supporters walk away with new knowledge, but also some expressed a renewed sense of purpose. I left with a more refined idea of how to present the tangential points of my life’s work that continue to drive me in a public setting.
I had never conducted a discussion with a room full of miners with the background and experience as those working the Nevada type deposits of gold. It is as foreign to me as speaking to a room full of coal miners in eastern United States. However, my senses said that we are more alike than our differences. If I relate honest facts, opinions and feelings, the listeners can screen them and reject or accept my words. Each one will leave with something to remember. I had no other purpose but to tell them what we are up to and what we are experiencing and how I saw our future.
I only brought the Drill Rock from the July pocket, (when Joe’s drill plugged up in solid gold) to show what we define as a high-grade. Even though David and I picked out 50 unique quartz and gold specimens to offer the group as a souvenir, selling specimens was not my goal. Neither was selling stock. Neither was raising money for the Red Star. Neither was selling my Underground Gold Miners of California photo essay published in 1991. (Just for fun I lugged an unopened box to the meeting along with a nifty full sized fold out poster I put together. I decided not to open the box or even tell them copies were available to buy.)
I sort of followed the outline I had hand written, but as I spoke and searched each pair of eyes for clues as to the points that interested them, I developed some different ideas. I liked everyone I saw, was honored they came out on a Friday night and learned of their frustrations during the association’s meeting, which preceded my talk. So, I improvised: “miners’ contribution to the West and America is under appreciated. Just looking around this city, I see the cowboys all over the place. Pictures are in the halls of my hotel, my room. Signs of cowboys are everywhere. Where are the miners? Why has the cowboy risen to reverence? Our work and the works of our mining ancestors equal or surpass the extraordinary achievements of the cowboy. Now I am not trying to take away the value of cowboys. No. But for the future of our country, at least how I see the future I want for my children and grand children, America needs its miners mining domestic minerals.
We live on an island. North America is an island viewed from a global perspective. Today much of our manufactured goods are imported. A lot is shipped across the Pacific Ocean. This takes fuel, usually foreign owned ships and labor. If our basic raw materials are no longer available domestically, we are dependent of the economic goodwill of foreigners and the ability of our military to protect the flow of shipping for our basic needs.
Mining has the same rugged appeal as herding cows. It has its romantic side. Its ‘waste’ is no more of a poison than cow shit. It is getting a very unfair and bad rap by its critics. Those of us, and there are not many working the mines of California, associated with the Sixteen to One have developed a sense of value beyond just showing up and getting a pay check. Maybe we are lucky. You probably do not have the same opportunity to make a significant difference in the success of your company as the miners have in a high-grade mine. But from now on, in order to survive domestic extinction and for our beliefs that the country benefits by keeping a mining culture, please consider taking what big or small steps you can to tell the miners’ stories. Ignorance is the current enemy (along with the absence of financial support). It is possible to inform the public and in the process gain the understanding and respect miners deserve.”
Aside: Friday afternoon I read a newspaper story about local mines, which pointed out that finding workers was a problem. There is a shortage of miners. When we were forced to cut back our operation, some of the guys went to Nevada for work. The pay is very good but all complained about the working conditions. We are spoiled. We have excellent working conditions underground in Alleghany. After awhile some left the Nevada mines, mainly because of the affect of diesel inhalation underground.. I learned that the particulate density of diesel emissions were to be lowered next year. It is shocking if true. This is a delicate issue. If companies must lower the threshold to stay competitive, the miners cannot complain because they may lose their employment if the mines close down. I told this group of miners to check our web site for job openings. Once we raise $3.5 million, we will be hiring in ten to fifteen positions. I related my only experience underground in a diesel-fueled mine was Homestake in Lead South Dakota. When I got off the skip at the 7000-foot level and passed through the air doors into the active headings, I felt the loss of air or its pollution. I also felt a moment of panic. No amout of money could make me show up daily to work in a diesel heading. Perhaps the principle benefit to our company from this talk will become the benefit to the Elko underground miners: a new opportunity to mine in a healthy environment.
in reply to: Ideal Time for Facts #2476Just returned from a long drive from Elko and before I get side tracked, here is your request regarding my talk to WUMA. This is the outline I prepared the afternoon before speaking. I changed direction in areas that I thought would interest those in attendance. It was a fun talk and appears the group enjoyed. The association plans to design and build a monument in Elko commemorating miners killed in duty in the area. It also plans to start miners’ competition next summer. Before the meeting was called to order and as the members and guests arrived, our three hour video was shown on a large screen. It was a huge success.
INTRODUCTION: cite local paper about pictures. While all here have the bond of mining, our underground high-grade mine in Alleghany is nothing like the underground mines you work in Nevada. Our workings are deliberately as small as conditions warrant. We don’t use diesel (more traditional track miners). We fight similar foes but in a different manner.
Method of Mining: Drift on vein—raise—winze—stope. Miners make daily decisions and adjustments in how to proceed.
Chasing Gold: Great histories of Alleghany mines. Indices. Gold is best. Comet.
Processing Gold: Sacking. Reporting. Recording. Jewelry. Crush. New tech. in advancement. Detection stories: Man with Longhorns of front bumper, Cosmic ray guy, Rim Tech (radio imagine method).
Revenue History: Impact of spot price. Break down typical 1000-ounce pocket into slab sales, specimens and crush. 1000 oz= potential $2.7 million.
Dinosaur or Cutting Edge of New Gold Rush
Fate of dinosaur: extinction according to MSHA. Cal/OSHA hoist story.
Define traditional operation rail-decline shaft-no diesel; California’s 200 mile gold belt.PASS Specimens. Hold Drawing
Reasons for inactivity: population spread, environmental concerns v operating costs in third world or other countries; competition from real estate, dot.com gambles, past bear market.
Overwhelming Reason for us: Lack of Speculators. Abandonment of gold investors in market. Too small a mine. Perception of “unknowns”.A very advanced student of high-grade gold mines and our district offered me his opinion to share with you, “The bottom line is that when well financed and thereby able to invest in current and new technology, high grade gold mines can be obscenely profitable.” (Thanks Johnny Yuma)
Another fellow very intimate with Sixteen offered, no demanded I relate his view. “The Sixteen to One offers a dream to those who choose to follow their dreams.” No touchy feeling but what he means is to acknowledge the miners and merry band of supporters. (I went into several areas of the importance of the human side of our operation)
The Company has continued a 100-year-old pattern: Consolidate the district. It owns outright much of this high-grade deposit. Those familiar estimate that 80% of the productive vein remains unmined. Will extinction come from no gold left to mine? No.
Is a 21st century gold rush for high-grade possible? Gemstones market is a virgin. Beta site (after seven years of serious scientific research $200,000 should clear us to 10 to 15 feet of penetration with at least 40% accuracy. Explain Red Star project.
Questions.
in reply to: Ideal Time for Facts #2475Thanks Johnny Yuma. I think I will quote your last opinion for I believe it is obscenely valid. I’m on the road soon.
in reply to: Ideal Time for Facts #2474The Barcus – McClung report dated October 1959 is a good report, but I do not see how it relates to the title of your talk. The bottom line is that when well financed and therefore able to invest in new technology, highgrade gold mines can be obscenely profitable.
in reply to: Ideal Time for Facts #2470Thanks for your interest and support regarding the talk to Western Underground Miners Association (WUMA). I’m also interested in hearing the speech, which means it is still in the preparation stage. It’s a provocative topic: a future as a dinosaur v. the cutting edge for a high-grade operation. If any of you have suggestions as to which we will become or why we will become either, type it here for me to consider. Maybe, your thought will be of interest to the Elko gathering this Friday and eliminate the dinosaur scenario.
Here are some thoughts: Extinction is a prime distinguishing mark between the dinosaur comparison. What will drive the last known high-grade mine to die? If the Sixteen were to die, it would likely have done so by now, but it could happen. Mining history relates how many times the goldfields blossomed and withered in California and western United States.
Liquidity, money, working capital for development and gold are basic factors to hold back extinction. It seems that some technological discovery or break through in exploration or beneficiation as well as social/economic conditions have fueled or throttled activities in pursuing gold. Sources for the fuels are diverse: investors, speculators, adventurers or gamblers. Maybe a high-grade mine will not suit an investor. The gamblers do not provide the stability necessary to allow the profitable exploitation of the mineral deposit. The speculators or the adventurers have the best track record of beating the odds that naturally play against all high-grade gold mining. SPECULATORS ARE INDIVIDUALS WHO OBSERVE AND ACT UPON MARKET SIGNALS.
Technology: the metal detection in a high-grade mine is successful. Let’s go deeper.
Processing: high-grade gold is a sought after gem stone, demanding a high value over spot price.So Johnny Yuma help me out with some pearls of wisdom to pass on to the Elko audience.
in reply to: Ideal Time for Facts #2473I plan to mention the Mountain Copper report on the mine by Barcus and McClung. If interested see report summary under Correspondence from President dated 10/21/2005.
The report states, “rather than taking 16 years to produce $8 million, it should take eight years.” The $8 million amount represents about 220,000 ounces of gold at 1959 prices. By calculating actual figures today, from our sales, those ounces would yield about $216, 600,000. Conclusion: high-grade gold mining in the Sixteen to One vein has high risks and obscenely high rewards. The risk/reward analysis that most people conduct before speculating or investing is a foreign process or not as common as the evaluation of the low grade gold producers.
in reply to: Ideal Time for Facts #2472Highgrade gold mining today is like most other industries. In order to be successful you must invest in modern technology. A good example is the Beaconsfield gold mine in Tasmania. They raised money and invested in pumping equipment that pumps hundreds of gallons per second at low cost, a tripod hoisting system and a good exploration program. They now pay a 5% dividend. (www.beaconsfieldgold.com.au)
in reply to: Ideal Time for Facts #2471Hi Mike.
Besides technology and gambling, (not to dwell on the challenge of all the obstacles of the past five years) there’s the one reason you’re still there, and the mine is alive.
Talk about the dream. It’s why you’re there, and why our hearts are.
in reply to: Ideal Time for Facts #2468I also would love to see some slides and be able to read your speech.
Good Luck,
Jeffin reply to: Ideal Time for Facts #2467Good luck with your talk in Elko,Nevada next Friday night. Hope you will post a copy with slides etc. on the web site for all of us to read and enjoy.
Thanksin reply to: Stock exchange listing #2465Makes you wonder if its just better off to live underground…
in reply to: Clips from Alleghany #2463Glad to hear the safe explosives act inspection went so well !!
in reply to: Stock exchange listing #2464The Sixteen to One mine has been a year-round operation with a few intermittent closures for harsh weather. Old reports talked about the mines stock-piling winter supplies, which was a tidy sum of money for all. The family type small operations usually took a break for winter. The Sixteen to One, Oriental, Plumbago and others in the Alleghany Mining District continued mining year round. The men had families to feed and needed to work. The hardships of winter were getting to work and back home, fixing a broken truck or other equipment in the snow and frozen water pipes. Once underground the temperature is a stable 50 degrees.
in reply to: Stock exchange listing #2462Does mining activity usually shut down this time of year or later when the snows hit? Or does it remain active all year around?
in reply to: From the Sixteen to One Archives #2461WESTERN COMBINE BY MINERS
Six western governors will participate in the Western Governors Mineral Policies Conference in Sacramento, November 7 and 8 (1955). They include Goodwin J. Knight of California, Charles Russell of Nevada, J. Bracken Lee of Utah, Robert E. Smylie of Idaho, Milward Simpson of Wyoming and Stephen L.R. McNichols of Colorado. Approximately 500 are expected to attend the invitational conference. Governor Knight will give the keynote address. Senator Thomas Kuchel will speak on “Building a Permanent Domestic Mining Industry” and Governor Smylie will speak on “The Nation’s Need For a Strong Mineral Industry”.
In issuing the call for the conference in Sacramento, Governor Knight said:
“The permanent welfare of the mining and mineral-consuming industries in the Western states is strategically important to national defense and vital to the economy of the United States of America.”This conference was reported in The Mountain Messenger fifty years ago. The need to address Senator Kuchel’s and the Governors’ topics is more important today than much of what both business, government and media people are giving us. The base of our quality of life includes industrial economics. Its basis can be found in mineral extraction, commonly called “mining”. Gold mining, exploitation and America are good words, ideas or concepts. Fifty years ago 500 people gathered in Sacramento to lead the nation in understanding the importance of the welfare of the mining and mineral consuming industries. Would such a conference draw 500 participants today? Likely, no. Help!
News Flash:
We just received word that Barrick made an unsolicited offer to buy Placer Dome for $9,200,000,000. Read past entries. - AuthorPosts
