[SCOOP]

in reply to: Clips from Alleghany #3268

“All things will come to him who will but wait.”-Henry Wadsworth Longfellow. So, this gold mining village waits. We are not waiting for a pocket of gold. We wait for something else. Albert Einstein said it best, “A hundred times every day I remind myself that my inner and outer life depends on the labor of other men, living and dead, and that I must extend myself in order to give the measure as I have received.”

It is quiet in Alleghany and will be until someone who can afford the luxury of owning the priceless gold collection steps up with the cash. Mike is concerned that while many financially solvent people would leap at this opportunity, too few know the collection is available. The catalog is a delight to page through ($10 and you can own one).

Maintenance underground and on the surface is keeping the property safe and whole. It is frustrating to see the summer passing by. Work underground is not climate sensitive. It may take four-wheel drive and some snow removal time but all in all the seasons matter little. There were problems with the water lines, which malfunctioned at the shareholders meeting in June. The lines continue to break for unknown reasons. The water to the portal is off right now because of another broken pipe.

Does anyone have a not needed Cat engine for a 910 Loader? The engine number is:3204445V-10692-4N 303. The crew uses the smaller loader regularly for many applications. Water is leaking into the oil. The block has a crack. It may be forced to visit the cat house for a fix because the guys miss it.

The community garden is doing well: tomatoes, squash, peppers and some ufo’s. This is the first year for a community garden. It adds a nice touch to the front of the office. Life feels as if the community and mine have turned into a Lake Wobegone epic.

[David Stockwell]

in reply to: Gold Enters Major Bull Market #3267

any word on when some new bars will be for sale on this site?

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3266

The head of China’s economic department in the Party’s policy office is advocating using their hoard of U.S. dollars in exchange for natural resources and mines abroad. Humm, maybe they’ll show up in Alleghany. Maybe, the Board should give them a call with a joint venture proposal.

China urged to spend FX on mines, resources

Mon Jul 21, 2008 1:49am BST
Reporting by Zhou Xin; Editing by Alan Wheatley

BEIJING, July 21 (Reuters) – China should invest more of its $1.8 trillion of official reserves in natural resources abroad, a Communist party researcher said in remarks reported on Monday.

Buying tangible assets, from mines to farms, would not only help China’s foreign exchange reserve management but also ease domestic inflation, Li Lianzhong was quoted by the official China Securities Journal as saying.

Chinese companies have been busy buying into natural resource producers, notably in Australia and Africa, but the only reported investments bought with the central bank’s reserves are small stakes in oil producers BP Plc and Total SA.

Li, who heads the economic department in the Party’s policy research office, called China “the biggest victim” of a falling dollar and said the government must do something to turn its stockpile of reserves, the world’s largest, into “sources of wealth creation”.

[Michael Miller]

in reply to: Gold Enters Major Bull Market #3265

Speculation about gold price has been with us since gold sales were allowed to float freely in 1975 in the good old USA. Pundits and many not so pundits jumped into the gold excitement with newsletters, books or other ways to help, sway or just profit from people looking at gold. A few remain in business today and a fresh crop of pundits and want-to-be-pundits sprouted. I know most by reputation and a dozen or so from conversations. Personally, their opinions have little effect on the Sixteen to One. But not for the reason you may suspect.

Americans are spenders not savers. Gold as an investment or for financial speculation requires disposable income, savings or the sale of an already owned asset. Tomorrow, when you encounter friends, acquaintances or total strangers, ask them if they own gold or have any position in gold, such as a corporate equity. Keep a tally of how many you ask and how many have any gold under their control. Let me know the results. You cannot ask someone that you know has or does not have gold. I think you will find that the tally will be ten percent or smaller for those with some form of gold (personal jewelry does not count in this survey). This is a significant fact for future speculative beliefs.

Having said this, I do not suggest that a discussion like the one under this topic is meaningless. Quite the opposite! I read this topic regularly because not only the writers have something to say but also Bluejay, specifically, offers us views of pundits and others. There are too many items that influence the gold price. Has anyone written about the declining production in South Africa? Do pundits write about how the permit process in Nevada, a very important supplier of gold, will influence future gold production? If the US congress puts a royalty on gold mined from public lands, will that affect exploration? As India becomes more affluent, will that decrease or increase the Indians interest in gold?

Like Rick, I find gold in the streams, buy gold and own Sixteen to One shares as well as shares in other companies and have for thirty years. The market provides us an exit option when we choose to change our gold position into something else. Pundits and non pundits practicing in the gold sector influence future gold activity, no doubt; however I believe their value for predicting usable pricing trends and stock plays has little value for me. I do believe it is important for persons considering gold to develop a well-rounded background in the global Gold Sector to be successful. I believe this web site should be included as a source of information.

Martin, companies in production with proven reserves have forward sold gold for years. In a rising market it isn’t the smartest thing to do. My question has always been, “If Barrick, Newmont and other forward sellers can mine at such great cost to price ratios, how come they sell forward? The simplest answer is because they think they will get more dollars. Every time a company uses someone else’s money, a price must be paid. I am negotiating with some foreigners the right to buy bullion from future production at a price ten percent below the spot price at the time of sale. I have warmed up to the idea over the past two weeks since it was presented to me and fine it an attractive way for us to get the working capital to increase mining.

[martin newkom]

in reply to: Gold Enters Major Bull Market #3264

we might want to entice our own
member of the BOD who is a very
successful cartoonist to insert
some subtle info about the 16-1
ie Odds Bodkins at the Sixteen
to One, etc.

[martin newkom]

in reply to: Gold Enters Major Bull Market #3263

If Southwest airlines can re-
main viable by hedging fuel, ie
buying futures contracts, the 16-1 might want to look into
some sort of plan or scheme that enables the company to do like-wise.

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3261

Here’s a primer to the wise words of Howard Ruff and a case on why you must own gold.

The article was sent to me via Email without credit being given to its author.

FINANCIAL SURVIVAL 101

Most people are oblivious to what’s going on in America. They don’t”get it.” You may not either. If so, I’m going to give it to youstraight. It’s time for a wake-up call. It’s time for you to “getit.” If you don’t “get it”, your financial
future is dim.Last week I was talking with my 72-year old corporate counsel, who is planningto retire. I told him he couldn’t afford to retire. “You only have amillion dollars,” I said. “Subtract a $100,000 a year for inflation.In nine years you have the purchasing power of $100,000. You’ll be greetingpeople at Wal-Mart.” I was only guessing about his net worth. Perhapshe’s got $2 million or more. I continued, “You’ve got guys managingyour money who don’t “get it.”. You’ve got these establishmentguys with conventional investments in stocks and bonds, and they don’t seethe big pictures. They could wipe you out.” “I suppose,” hemumbled.My lawyer doesn’t “get it,” doesn’t want to “get it.” Iunderstand that because almost nobody “gets it.” It’s over for theAmerica we’ve known. We’re on the down escalator. The assets we’ve reliedon to keep us secure are now
riskier than ever.In the fall of 1999 I wrote a newsletter that warned about a pending crash inthe stock market. The NASDAQ collapsed a month later. Subsequently, I wrote anewsletter about a coming crash in residential real estate. In 1999 I wrote anovel about gold rising to $1,000, people losing their homes, high inflationand a bad economy. It was right on the money. I’m not bragging, I’m makinga point. How did I write such accurate forecasts? I learned the economics ofsound money and free markets. There are incontrovertible truths in economicsand when they are violated, the outcome is easy to predict. It’s noparticular brilliance on my part, only common sense conclusions that anyunbiased reader would arrive at.Eighty years ago, in 1928, Babe Ruth, the greatest baseball player of all time,made $50,000 a year. Alex Rodriguez, a Yankee star of today, makes $28 million.The Babe made
1/5 of 1% of Rodriguez’s salary. That’s .002. In a way, youcould say the money of 1928 has become virtually worthless.Let’s go back 40 years – half way to 1928. In 1968 Willie Mays was votedthe most valuable player in the All-Star game. He made $120,000 that year. Doyou “get it”? $50,000 – $120,000 – $28,000,000. The rate ofdepreciation of the dollar is increasing exponentially (the bigger it gets, thefaster it grows). Somewhere in America today (or in South America), a two yearold kid tosses around a rubber ball. In less than 30 years he will earnone-billion dollars a year to play baseball.In 1934 the politicians gained control of the money. The free market haddetermined that gold and silver were money. (Remember, the free market is theclearinghouse for the buying choices of the citizens. In the free market theconsumer is king, not the government. The consumers decide who succeeds
and whofails through their buying choices. The free market is the essential componentof liberty.) I’m not stumping for a return to the gold standard. Thereisn’t enough silver available to be money on Wake Island and gold would haveto be $40,000 to $50,000 an ounce. However, the one thing to remember about thegold standard is that politicians couldn’t create it out of thin air. That’swhy it was good, and that’s why they got rid of it.When government gained the monopoly on money, abolished the gold standard andallowed politicians to gain control over spending and money creation, the diewas cast. It opened the door to ever-expanding social programs, wars anddeficits. Before long, money and credit creation were used to stimulate theeconomy. Artificially low interest rates (not free market rates) spawned boomsthat invariably turned into recessions when the money growth slowed or
interestrates rose. Today’s bubbles are created by excessive money and credit. Wecurrently have bubbles in farmland, commercial real estate, art, antiques andcollectors items. It’s the consequence of inflationary money and credit. In1928, the national debt was $17 billion, in 1968 $347 billion, in 2008 $9trillion. You see it’s running away.Wall Street doesn’t “get it,” the public doesn’t “getit,” the politicians and bureaucrats most certainly don’t “getit” and, it seems that even the Federal Reserve doesn’t “getit.” They just keep spending, borrowing and printing more money.Government liabilities may now exceed $60 trillion and the astronomicalexpenses from government social programs are going ballistic. Furthermore, thecurrent crisis is calling for billions to finance bailouts and otherguarantees. There’s no possibility of paying for all this without debasingthe currency.
Washington claims the inflation rate is under 4% and Wall Street,Main Street and the media buy it hook, line and sinker. Truly they don’t”get it.”The high inflation of today ruins the plans of retirees and throws many of theminto poverty. Our inflation rate of 15% (my estimate) also acts as a hidden tax.It impacts the poor, low income workers and those on fixed incomes at exactlythe same rate as the rich who can better afford it. This cruel tax, brought tous exclusively by the government, makes poorer those who can least afford it.No person, rich or poor, escapes this terrible depreciation of their money andthe subtraction of their purchasing power.That’s not all. Historically, inflation stokes hatred towards businesspersons and free enterprise. It elevates left-wing demagogues who promiseredistribution. It encourages a bigger nanny state, more lobbying, politicalcorruption and loud
demonstrations by subsidized activist group. Ultimately,runaway inflation leads to enormous social unrest, civil disobedience, riots,strikes, radical politics and other destabilizing upheavals.In the history of severe inflations (including the Weimar Republic and two fiatmoney episodes in 18th century France) only a few nimble investors andspeculators survived and prospered. The vast majority of people lost theirshirt. Most of them didn’t know or understand what was happening. Theydidn’t “get it.” There was much speculation gambling, debt andleverage, but in the end, all was lost.Figure it out for yourself. Stocks are down 20% and inflation is 15%(Shadowstats.com says inflation is 12%). That means many investors are out 1/3,and if inflation stays at this level, in twelve months they will be down 50%.Virtually everyone will argue with this viewpoint. That’s because theydon’t “get
it.” Eventually they face ruin.Savers and bondholders are also taking a shellacking. Back in 1980 there was anelderly currency analyst by the name of Franz Pick who spoke at monetaryconferences. He was fond of saying, “Bonds are certificates of guaranteedconfiscation.” He may have been premature in 1980, but no longer. In 2000I bought an old Superman comic book. This high-grade 1941 copy has more thandoubled. So far in this century comic books have been better than governmentbonds.The secret to financial survival now and in your retirement is to own tangibleassets that will appreciate at a level that exceeds the rate of inflation.Convert depreciating paper assets into tangible assets. Make sure they are notin a bubble, and still promise appreciation. Don’t use leverage. Never try tomake a killing. Be patient. Do not wind up on the financial scrap heap with thevast army of
inflation-ravaged investors who didn’t “get it.” Mostinvestors are going to get killed. Be one of the select few who “getsit.” Remember that in every big inflation those who listened to governmentspokesmen were ruined.I don’t want to terrify you, but there is one more thing I see happening. Itcould happen soon or it could be a long way off. Pray it’s the latter.Foreigners who hold trillions of U.S. dollars are losing billions as the dollarsinks. The Asians could have losses approaching $2 trillion. Chinese exports tothe U.S. amounted to only 2.1% of their rapidly growing economy last year. Theworld doesn’t need our business as they once did. The stronger the worldeconomy outside of the U.S., the less they’re going to be willing to holddepreciating dollars. Plus, many countries would like to stick it to us.If too many countries abandon the dollar as the world’s reserve currency,
andif a few large Asian countries are unwilling to buy our bonds, our governmentwould soon be insolvent. The dollar would be next to worthless and a paralyzinghyperinflationary depression would lay the U.S. low. Don’t think it’simpossible. We can’t live beyond our means for decades, bury ourselves indebt, and consume more than we produce without a day of reckoning. That sad dayis coming, I promise you.

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3260

Dick

Thanks for the perspective concerning some financial writers at johntreed.com/bestseller.html.

[Rick Montgomery]

in reply to: Gold Enters Major Bull Market #3262

All the gold I own I found myself. It’s not much, but it is certainly sitting over there in my box. The next best thing to finding gold myself is having confidence in entities I’ve selected to find it themselves and own stock in the potential.

This is why I know how what Bluejay suggests is the wise course of action.

And of course, concentrating potential. Our Sixteen to One Mine has the most potential and reward in the small cap investment potential.

As I get older I recognize that it becomes more and more difficult to find my own gold; it also isn’t much of a hedge (since it’s so little…yet the life-quality fun-factor is worth the endeavor), so I continue to have faith in OAu potential.

Bluejay’s analysis can be condensed into this: buy gold; or buy interest in those who will actually find it. I’ll add this…find some yourself if you can.

[Michael Miller]

in reply to: From the Sixteen to One Archives #3259

Below is the last of three reports I found in our achieves, which paint a good picture of activities a dozen years ago. This was the year the company issued a stock dividend. Hope you find them interesting.

~ Executive Summery ~
Third Quarter, 1995
What’s New?

· Increased pump storage on the 2400 Level
· 5,000 fozt from the 1719 heading
· Tailings dam on the 1900 Level broke
· Gold on the 2600 level in the 2483 Winze
· Significant labor turnover
· Sixteen to One is on the Internet
· Rainbow exploration

PERSONNEL

1995 probably represents the highest turnover of underground employees to date. Ernie Locatelli and Walt Grimes are out on disability for prior employment back injuries, Scott Robertson went to Newmont in Nevada, Dave Brown got a job as a trainee mineral officer for the Us Forest Service, Jason Bell and Tom Alling went mining on their own, and Glenn Knapp went to Brushcreek.
We are still competitive in the local employment field, especially with respect to Siskon and Brushcreek. Out wages are lower ($15 versus $20), however our working conditions and bonus program are far better. Also, this turnover is far less than what Siskon and Brushcreek are experiencing.
The only two terminations that concern me are Scott and Dave’s. I have discussed this with Mike and the general approach is to create a form of a reward system whereby people are compensated with increasingly greater 401K (i.e. company stock) depending on the length of employment. There should be at the same time some form of punishment for early leaving/

Present labor force consists of:
Miners:
· Mark Loving
· Billy Joe Van Meter
· Dan McCloud
· Britt McDaniels
· Tony Langdon
· John Covert
· Sam Griffith
· Jeremiah Farrell
· Fred Lacey
· Jake Venable
· Jay Noble
· Mark Fussell
· Ray Standring

Hoist:
· Steve Shappert
· Dan Stafford

Surface:
· Gar Cochran
· Kenny Newell
· Mike Gray
· Rick Harmon (office)

Salaried:
· Ian Harey
· Chuck Baird
· Mike Lucas
· Jonathan Farrell

Rick Harmon has moved from the specimen department to the mine in capacity of administrative assistant/office manager as well as company information administrator on the Internet.

PRODUCTION

Over 5,000 troy ounces was recovered in June 6’ in from the old timer’s face in the 1719 heading above the 1700 level. This target was delineated from metal detector signals and reported historic production. High-grade from the preceding month came from a spot immediately above the 1700 Level as located by metal detectors.
An old tailings dam from the Royal Gold days gave way at the same time. Heavy rains over winter saturated previously dry tailings, causing the wooden bulkhead to fail and spreading 600 tons of tailings along 350’ of drift on the 1900 Level. This access became important to us in order to continue mining the 1719 Level and two large blocks of ground below that area. Our present crew expects to complete this clean-up work by the end of November 1995.
The 2483 Winze project incurred setbacks due, again, to increased influxes of winter storm generated ground water. Our pumps suddenly became marginal in keeping up with demand. We dealt with this by building a reinforced concrete bulkhead on the 2400 Level. The advantage is increased pump storage from the 2400 Level to the 2200 Level. The disadvantage is loss of target areas on the 2400 Level north of the 2483 Winze.
Gold is expected to come from two areas and hopefully more: the 1719 and the 2483.

PRESENT AND PROPOSED HEADINGS

· 2600 Level drifting north and south
· 1585 Raise (almost completed)
· 2211 Raise (one more month)
· 1900 Level tailings removal (one more month)
· 1719 Gold stope on hold until 1900 Level is cleared

· Proposed headings include the 1571, 1900 M drift, and the Rainbow

EXPLORATION

For the purpose of testing geophysical instruments underground we have constructed a test zone off the 1500 Level south. It consists of a series of holes drilled in a measured pillar at various depths from the face.

Geonics – In September 1995 we rented an EM61 from Geonics, Canada. We have used the EM61 before underground with some success, however the instrument was new and changes were in the works. The EM61 can see a 6# rockbolt through 9’ of rock. At the same time we sent two high-grade specimens to Geonics, which they used to measure signal responses from. The Electro Magnetic signal produced by the machine generates eddy currents in the target. The signal strength and time taken for the eddy current to drop off is measured. High-grade gold has a very fast drop-off rate. (10 microseconds) The EM61 is not capable of handling such a fast gate. New instrumentation they are working on will. Time frame is 2-3 months.
Acoustic Tomography – Bill Honjas from William Lettis & Associated, Inc. is very eager to employ high resolution Tomographic Imaging Techniques underground. Bill seems to be very qualified and the project has merit. My hesitations are discussed below.

Jim Wright:
Jim is an individual from Yreka that the company has entered into confidentiality agreement with to test his Pocket Gold Locator I and II. His background is in radar techniques. Contrary to some other radar experts, Jim is persistent enough to overcome early obstacles and obtain encouraging results on the surface.
It has been our experience over the past three years that the field of geophysics is vast, complex, and expensive. Due to the aforementioned observation, various “experts” all have their own narrow field of interest and knowledge. This leaves us with two alternatives:

1) Continued hiring experts until we have blanketed the field and crossed a suitable system for this deposit, such as the conventional metal detector.
2) Retain either a consultant or the university system to identify all geophysical parameters of our deposit and research principles of geophysics as they apply to this deposit. Then mathematically determine what parameters would be suitable for locating and identifying high-grade pockets, and research what instruments are commercially available to fit those parameters.

Proposed costing for this research would be around $20,000. This figure is a fraction of what has been spent in that direction to date.

WHAT’S NEXT

I propose to delay milling until some time in 1996. There are still two months of work to complete the fine ore bin and be ready for processing. Several thousand tons of or ore is stored on the surface and underground. It would unnecessarily stress the work force to rehab the mill, surface underground ore, process ore, and deal with tailings.
The Rainbow target, once delineated, may be reached by conventional drifting and raising. Put into balance with some viable small block targets and a well-running 2483 Winze, this exploration target would make a lot of sense.
Rock from the 2600 Level is handled 7 times before it enters the mill flow sheet. My philosophy is to verify and block out the ore continuation below the 2400 Level down to a 2800 Level. Once blocked out, do some long-term planning of how to improve material handling from the level by i.e. a vertical shaft, before mining that block and deepening the 2483 Winze below the 2800 Level.
I feel very confident that the ore zones will continue down depth. Once we verify that extrapolation, it would be too easy to continue mining with the present inefficient system in place. Remember, multiple handling of rock was one of the main pitfalls of the old company when it ceased operations.

[Michael Miller]

in reply to: From the Sixteen to One Archives #3258

Second of three reports for your review during a very exciting time in Alleghany. Our metal detector technology changed every aspect of how to mine the Sixteen to One high-grade pockets. Many of the specimens now for sale in the gold colection were found during this time. ~

Executive Summery ~
Third Quarter, 1993

Present Status
Labor force – Personnel at the office have increased from two to three, and the mine from 12 to 13. During this quarter and into the next, we are doing major evaluation of long-term projects and upgrading of mine maps onto a CAD system.

Short-Term Development Mining Projects:
2203 – This area, mined by Ernie and Glenn, has produced some the most beautiful and highest grade gold encountered by us so far. It is expected that this crew will remain there until at least the end of this year.

1333 – A new block of ground discovered by Randy. It is located in the vicinity of the Ophir and Sixteen junction with the hanging wall mined out. Randy and Tom have underhanded approximately 500 ounces of heavy gold with arsenopyrite. They have set up a slusher and are ready to start raising up the gold. This block is approximately 100’x 100’.

1783 – Gordon and Fred have virtually completed this area, which produced 323 tons of good mill rock and 70 ounces of high-grade.

849 – Comically also know as the $8.49/ton slope, this was a GPR target with some high-grade in the face. We spent a month on verifying the target, which proved to be wall rock inclusions.

2283 – Mark and Scott have almost completed rehabbing this area and are getting ready to continue this raise for another 60’ to the 1700 level.

RIMtech – It is anticipated that during the next quarter Mark and Scott will have evaluated the three major targets in the 2283 area.

Gold Production:
High-grade – As may be seen from the enclosed monthly gold production table, in the third quarter we produced 1880.42 fozt in bars and 579.41 fozt in specimens. Year to date gold production is 2945.32 fozt in bars 759.35 fozt in specimens for a total of 3704.67 fozt. A sample high-grade lot report and summery of monthly gold production are included in this report.

Specimens – Tom Woodfin will be spending more time on cleaning and marketing specimens. He will accountable for all specimen gold, with crosschecks by Mike and myself. I will process the high-grade lots at the earliest opportunity after the volume accumulates to 230lbs, but will not be responsible for specimen gold kept in the vault beyond the maximum value to be determined.
It is my estimate that we have between 1335 and 1558 fozt in the bank and vault in the form of specimens. At present we have an estimated 400 fozt of specimens in the mine vault.

Mill Rock – At this time 900 tons of mill rock, minimum grade 0.2 fozt/ton, are stockpiled on the top landing.

Mill Concentrates – We reworked three barrels of mill concentrates and then sent a total of 16 barrels (gross weight 16,760lbs) to Asarco in Montana. Estimated gold value is $35,000.-

Metal Detecting – This quarter we commenced a program to drill and shoot weaker signals in a systematic manner. This program has been put on hold with the gold find in the 1333.

Safety and Compliance:
CalOSHA and MSHA – We continue to get excellent reports from rigorous inspections. This crew’s member one priority is safety, and we remain free from lost time accidents since Butch’s mishap during the 90-day program.

Water Quality – The EPA has mandated a new series of compliance figures for water discharge. These figures are being forwards to us in our new permit and we will be given 2-3 years to bring this facility into compliance or approach the legislature to change these values.

SMARA – We continue to get out from underneath the classification on Surface Mining and Reclamation Act with its accompanying $2,000 annual fee.

BLM – We have paid the $100/unpatented claim as well as performed a $100 worth of annual assessment work per unpatented claim for both our land in Alleghany and the Brown Bear.

Security – Two elaborate security systems were purchased and installed. These systems are concealed and will record motion around the lower portal, the upper landing, and inside the vault. Tapes are reviewed on a weekly basis or whenever foul play is suspected.

Future Status:
Gold – For the month of October it is expected that gold production will be minimal because of the amount of deadwork in the 2283 and 1333. However, the 1333 and the 2203 have excellent potential for gold discovery.

Targets – Again, we are rapidly running out of areas to go mining along this line of targets. This may change at any time with the discovery of additional mining blocks or the success of alternative exploration methods such as RIMtech.
Chuck Baird will be giving a presentation on the merits and status’ of several long-range development programs. All of these programs would create an unnecessary burden on the Company if we were to start them with resources at hand.

[David Stockwell]

in reply to: Miscellaneous #3255

one place I used to pan was up the river below helltown, ca (with permission)

[Dick Davis]

in reply to: Gold Enters Major Bull Market #3257

Looks like Howard isn’t writing a new book but recycling the old.

I can recall when Howard jumped out of gold on the way up. (I’m an old guy too.) So I Googled. The original 1980’s version, How to Prosper During the Coming Bad Years, is available used on abebooks.com, goes for $1.

28 years…. My friend Dr. Everett tells me, “Even a blind squirrel occasionally finds a nut.”

Google also turned up:

John T. Reed’s web site mentions the author of How to Prosper During the Coming Bad Years, Howard Ruff, declared bankruptcy.

See: http://www.johntreed.com/bestseller.html

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3256

Our financial system appears to be melting down. What can you do to protect yourself? The following article may be of some help, especially with inflation heating up.

Jul 15 2008 11:56AM

Can Anything Stop It?

For weeks, I’ve been doing talk-radio interviews to help me sell my book, How to Prosper During the Coming Bad Years in the 21st Century. It’s déjà vu all over again, and I’m enjoying success.

But often I’ve been asked: “What advice would you give to the presidential candidates to head off the coming hyperinflationary depression?”

My answer is two-fold:

“I would tell them to stop lying to us. They are all making promises no president can keep. Our president is not an emperor or an absolute ruler; many promises being made can only be kept by Congress. No president can keep all those promises, and in many cases, even he if could, he shouldn’t.”

“I’m not in the business of curing national problems; I’m not smart enough to do that. I’m trying to help middle-class Americans who aren’t economists and are less concerned with solving the national problems than protecting themselves. My role is to help them know what to do with the money they have. Many of them have never “invested” before, and certainly not on Wall Street. But the average American is making investment decisions whether he knows it or not.”
We all have earned a certain amount of money by performing our jobs. We have to decide what to do with that money, so my advice is two-fold:

It is defensive. The real problem is not a depression like the 30s coming back. That’s not likely. That depression was deflationary in nature. 25 percent of the people were out of work and had no income, but you could buy a loaf of bread for a nickel. In the inflation we face, the cost of a loaf of bread will be measured in dollars, perhaps many of them. It’s a different problem entirely. We face runaway inflation, which has already started. My job is to teach you how to cope with the fact that during hyperinflation, commerce becomes undependable. Every store depends on trucks which roll up to their back doors every day and restock the shelves which were attacked by buyers the day before.

In an inflationary environment, the cost of fuel soars. Independent truckers, especially, cannot afford to drive their trucks because of the cost of fuel. Strikes become endemic. Although there will always be some commerce, it will not be as dependable as you would like. You may not be able to buy what you want when you want it, at a price you can afford.

My defensive advice is really simple; when you buy anything, don’t just buy one. Buy five or six for storage. You will pay today’s prices and consume them at tomorrow’s higher prices. That’s a fine investment.

The storage program is described in detail in my new book (you can buy it on my website http://www.rufftimes.com or at http://www.amazon.com). It doesn’t require some kind of national calamity to make sense, but we will have a national calamity – hyperinflation.

When you have cash to invest, don’t invest in anything denominated in dollars because dollars will become worth less and less (including most stocks, bonds and cash).
The dollar is supposed to be a means of exchange and a store of value. It is still a means of exchange and will continue to be for some time, but it has long ago ceased to be a store of value.

One common question from the radio hosts has been “what proof do you have that you are right about a runaway inflation?”

Haven’t you been looking? It’s all around you! It’s already started. Look at the price of gasoline, wheat and corn. Eggs are up 30 percent. The major factor in the increase of a barrel of oil is not that oil is becoming scarce or more valuable. There is enough oil in the United States to meet demands for the next 60 years. There is more oil in the shale in Utah and Colorado than there is in Saudi Arabia. There is no real actual shortage, although it is a function of price and politics.

As oil becomes more expensive, it becomes more useful to consider the oil shale in the Rockies. It is approaching a price where exploiting oil shale is profitable. We know the oil is there.

What causes the increase in the oil price? Inflation, pure and simple. Oil is denominated in dollars, and the value of a dollar is shrinking, so producers want more dollars for a barrel of oil. The oil price simply reflects of the decreasing value of the dollar.

Oil is not the only sensitive indicator of the value of the dollar. The dollar is now in its twilight years; it is rapidly diminishing in value. You once could buy the best suit of clothes in town with two pairs of pants from the best tailor around, for one American gold piece. You can still buy the best suit of clothes with two pairs of pants from the best tailor in town with the value of one American gold piece. The price of gold also reflects the loss of value in the dollar.

There are really two things to watch, the price of oil and the prices of gold and silver.

Will Rogers once said, “Invest in inflation; it’s the only thing that’s going up.” That’s pretty funny, but it is also a profound truth. There are ways to invest in inflation. Stop buying most investments which are denominated in dollars. The stock market is denominated in dollars, although certain stocks are the same as investing in inflation.

I like uranium stocks because we will be building many nuclear plants, and there is only half enough uranium above ground to fuel them, so Uranium Mining Stocks will do very well over the years.

I like Oil Service Stocks – companies that build and service oil rigs.

I like Mining Stocks, not just for gold and silver, but for basic metals like copper because of the soaring demands of an exploding population in China and India which will lead to more and more construction. They will need raw materials. So we are now in an age of basic raw materials, and we must look beyond America to see what’s happening in the rest of the world.

Doing these interviews has caused me to think far more broadly about the roots of the problems we face, especially if it is denominated in shrinking dollars.

It’s very simple. You should get rid of your dollars by investing in inflation. What is the alternative? Not foreign currencies, which is what Wall Street would like you to do, because inflation is contagious and will affect every currency in the world. You must base your future portfolio in gold and silver and their derivatives because the world is changing; the lead article in this newsletter explains how you have to make occasional market changes in how you approach these metals.

The fundamentals are changing, and your outlook must change also. Hidden behind these problems is a glowing opportunity. Perhaps once in a lifetime we face a change as fundamental as this, allowing us to invest early in the game and turn small amounts of paper dollars into genuine wealth. That is what The Ruff Times is devoted to.

The Collapse of the Dollar?

I’ve received several emails and letters from subscribers asking “what will happen to gold and silver denominated in dollars if there is a collapse of the dollar and it becomes worthless.”

The term worthless is a combination of two words – “worth” and “less.” I’m of the opinion that the dollar will not become worthless, it will just become worth less. If we have runaway inflation, the dollar still exists and has some value, it just won’t have as much value as it has now, and it will take more dollars to buy stuff.

Currency is supposed to be a means of exchange and a store of value. The dollar today is a means of exchange and will continue to be a means of exchange as long as it is in existence. But it has ceased to be a store of value. Consequently, this argues that one of the worst long-term holdings is cash in the bank. It sounds prudent to have a lot of cash, but that assumes that the dollar is stable and continues to maintain its value. That is not the case now and will be the case less and less as years go on.

So gold and silver will retain their value. Denominated in dollars the nominal value will multiply many times over.

A similar question is, “what will happen to gold and silver if the stock market collapses.”

The price of gold and silver has nothing to do with the stock market. It is an international phenomenon. If the dollar becomes useless as an everyday currency, you can bet that gold and silver will become valuable as currency. It has happened several times throughout history, ever since the invention of the printing press. When a currency becomes less valuable, gold and silver becomes more valuable.

I remember during the metals’ bull market of the 1970s when we were worried about gas rising to $1.50 a gallon, some enterprising gas stations put up signs selling gas for a dime a gallon. Of course, they wanted pre-1964, 90-percent silver dimes which had value in excess of a gallon of gas. If you were smart, you didn’t fall for it. You were better off keeping the coins to yourself.

Let’s make sure we don’t throw words around carelessly, like “worthless.” I am not suggesting the dollar will become “worthless;” it will become worth less in terms of its utility in buying every-day commodities.

The value of the dollar is measured in two ways:

its value relative to foreign currencies like, for example, it will cost you considerably more to go to Europe because the Euro has increased in value relative to the dollar, and everything will be more expensive;
and
It is also a measure of what the dollar will buy in America, which is an entirely different matter. In either case, gold and silver are historically the best answers.
By Howard Ruff
The Ruff Times

[Stephen Murray]

in reply to: Miscellaneous #3253

Thank you gfxgold for your reply. I will look at those websites to see where it takes me. Steve

[Michael Miller]

in reply to: From the Sixteen to One Archives #3254

~
First of some past reports prepared for director meetings by mine manager, Johan Raadsma.

Executive Summery ~
2nd Quarter, 1993
Labor forces:
Personnel at the mine have increased 11 to 13. Chuck Baird was hired to delineate targets below the 1500 and 2400 levels, and Scotty Robertson is a new miner. There were no resignations or lay-offs.

2200 Level:
Ernie and Glenn are raising from the 2200 to the 2050 level, a distance of approximately 150. 100 ounces of solid slugs were found on the footwall, raking flatly up dip to the North.
RIMtech has completed the survey on this level.

1500 Level:
Mark and Scotty broke the 1584 raise into the 1250 level. Utilities were extended from the 1500 into the Red Star stope, through the 1584 raise, for future work. The level is now well ventilated.
The 1500 level is surveyed and mapped. Chuck has made cross sections of the ore zones in that area to determine drilling targets, if any.

1700 Level:
Gordon is minimg above the level in the 1785 area, when his other engineering duties permit.

Metal Detection:
On June 1, Randy and Tom commenced a program to selectively drill and blast weaker signals. This entails running airline to a block of ground and drilling all signals within the range of influence of the utilities. Their starting block is the Eagle Raise area.

Small Block Mining:
We have five small blocks that will be mined and the ore taken to the mill. There are numerous other small blocks that will be mined, but the ore may need to remain in the stope. These blocks all show gold or metal detectors indicate signals. Mark and Scotty heave set up on the 800 level to tackle the first one.

2400 Level:
The level is pumped out, however a permanent pumping station has not been installed yet. Gordon has run some utilities to the level and is prepared to survey. Chuck will map the level and delineate drill targets.

Ore/Waste:
Over the period of 4/1/93 thru 6/7/93, 258 tons of ore and 306 tons of waste were stockpiled on the surface.

Exploration Methods and Equipment:
Gordon is keeping detailed accounts of all the exploration techniques and equipment employed in the mine. The following is a brief summery.

Person/Method: Status:
1) Ray Wyatt – electron activity Adapting
2) San Jose GPR Phone check
3) Mad Hungarian – electron activity Inactive
4) Tom Fenner – GSSI GPR Exploring
5) RIMtech – Radio Imaging Modeling
6) Psychics I Inactive
7) Psychics II Inactive
8) Geonics EM61 – Canadian MD Adapting
9) Jim Allen – Consultant In contact
10) Lawrence Livermore Lab Call
11) Menlo Park Technology Call
12) Cosmic Ray Monitors Adapting
13) Prof. H. Frank Morrison – Cal Berkeley Coming
14) Microwave dielectric meter Inactive
15) RIMtech – 3’ detector Discussing
16) Deliverance Brothers – adapted White In use
17) GISCO Sending info
18) EG & G Geometrics Inactive

Metal Detectors:
1) Minelab In use
2) Garret Gold Stinger Call
3) Midas Call
4) Compass – Gold Scanner Call
5) White’s Gold Master II In use
6) Tenetics/Bounty Hunter Call
7) Hot Head Profession Search Coil Call
8) Omnitron 2/Filter King Data rec’d
9) Laser Temperature Sensor Sending info
10) Hand-Held EM equipment Call
11) In-Hole MD – Falcon Gold Probe Sending info

RIMtech:
The attached diagrams represent data collected by four RIMtech employees over a four-day period. Radio imaging waves were transmitted and received between the 2200 and 1700 levels, and the 2200 and 2050 levels. The result are difficult to interpret due to the many factors such as vein thickness and splits. So far we know the system works, but we don’t know how effective it is until we mine some targets. We will meet with two RIMtech employees all day June 22nd to discuss these results and prioritize targets.

GPR:
GSSI sent their best man, Tom Fenner, out for two days. Although he is very encouraged by the data he received, we yet have to fulfill that encouragement. One target on the 1700 Level proved to be a wallrock inclusion. Another target at the 800 Level shows promise and we will mine that this month because we have MD signals on three sides.

The Future.

Gold:
With one crew detecting/mining we expect to maintain a 200+ monthly production. This will hopefully be supplemented by gold from two other mining crews working “long shots with large pocket possibilities”.
Besides going for the “sure thing”, we will remain flexible and use the two mining crews to prove or disprove new exploration targets such as determined by RIMtech and GPR.

Targets:
We are progressing from metal detecting to metal detecting/drilling to small block mining to long-term development. Chuck is mapping and analyzing the area below the 1500 level Red Star and 2400 level Sixteen vein for future development. This will include the suggestion for 300-400 foot drill holes with a core drill that we own. The method of mining the development targets will depend on how successful we are in our small block mining program.
~ Other Projects ~

Brown Bear:
· 577 acres of patented, 400 acres of unpatented.
· Historical production of 500,000 ounces Au from 500,00 tons.
· Ray Wittkopp indicates potential of 10,000ozs/year for 5 years.
· 30 minutes outside Redding, CA.
· Environmentally friendly district.
· No known existing environmental hazards.
· Property has a minimum of $50,000 net timber value.
· Optional at $600 for two or three months.
· Indicated purchase price at $300,000.
· Patented property tax of $1,927.19/year

Forest Project:
· 16-1 has this property.
· Good time to attract joint venture partner.
· Management costs will be shared with Sixteen to One mine project.
· Sixteen to One mine will not be able to do this for many years.
· All permits are in place.
· Ore can be milled at the Sixteen mill.
· Buildings are in good shape.
· This company needs activity in Forest on its unpatented claims.
· Strong vein system and past production in Forest.

Red Ledge:
· Unpatented claims.
· History of museum quality high-grade specimens.
· Possibilities of lease option.
· Warrants quick, low budget look.

Others:
Upon further development of other technologies we need to be ready to acquire other properties exhibiting similar favorable vein and gold characteristics as ours.

[Gerard Forsman]

in reply to: Miscellaneous #3251

There are many websites that deal with open areas for panning in California. A couple sites to get you started are: http://miningold.com/states/ca.html
and http://www.goldfeverprospecting.com/cagolopapr.html
With all of the fires in California this year, it may limit where you might want to go. As for the smoke, some days are better than others, depending which way the wind blows. If you do find someone who is willing to let you go on there claim, a percentage of the gold found is the usual payment. That could be anywhere from 10% to 30% on the average (get the agreement in writing). Of course, a lot of times, if you are only panning for a day or two, someone might let you pan for nothing. If you see someone dredging, there’s a good chance that they own the claim. It’s always best, if someone is willing to let you pan, to ask them how much of a percentage do they want, up front.
Happy Gold Hunting.

[Fireman]

in reply to: Clips from Alleghany #3252

Thank You Rockin Robin for the update on the annual shareholder meeting. I am sure that there are many people anxiously awaiting word as to where the mine is headed.

Hydropower would be great asset for the mine. Hydropower is readily available, renewable, and a clean domestic source of electricity. Perhaps most important, it is a clean source of power–it produces no carbon dioxide, sulfur dioxide, nitrous oxides, or any other air emissions. In addition, it produces no solid or liquid wastes. If the 16 to 1 could produce its own hydropower it would reduce the monthly PG&E operating costs of keeping the mine dry. As a side benefit of hydropower, the mine would be contributing to the conservation movement of “Going Green”.

Now if the 16 to 1 could just sell the gold collection, they could be breaking rock again! I look positively forward to the future that soon the Miners will be back in the heart of the mine searching for the next big strike!

[Stephen Murray]

in reply to: Miscellaneous #3250

Could any one point me in the right direction? I am traveling to the area from the UK for a vacation with my children of 7 and 5. We would like to go prospecting. Does any one have a claim or know of an area we could camp and prospect. Willing to pay a fee for the use. Thank you. Steve@stevemurray1.com

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3248

Gold $960.90 +$14.50
Silver $18.74 +$.45
Gold/Silver Ratio 51.13
Gold/XAU Ratio 4.93

Rick

I went down the driveway this morning to retrieve our morning paper(The Press Democrat out of Santa Rosa, California) and read on the front page, “It’s A Bear Market Out There” superimposed on a chart showing a drop-off.

The fact of the matter is the paper, owned by the New York Times, is using a misnomer for an event that has not happened.

The Dow Jones Averages(DOW have been in a bull market since 1983 and that has not changed, at least not yet. I find that newspapers and TV commentators do an inferior job of reporting the facts as they relate to markets on a consistent basis.

How many times have I mentioned here that papers around the country have been telling their readers that gold was a bad investment over the years? Sure, the papers are influenced by our keepers but we have to know better what the markets are saying.

The DOW is off today over 200 points at just above 11,000. I would suspect that the “Plunge Protection Team” will try and steady things at or around the 11,000 level.

In 2002 the bull market almost ended but it righted itself around 7,000 and continued moving higher.

Personally, I am letting fundamentals weight 50% with my thinking in relation to a bear market analysis of the current DOW with all the debt problems and the failing contra-sides of the OTC derivatives. Basically, to my mind, we are already in a bear market without technical proof being presented just because of all the financial problems that currently exist. If you want to fail, just keep piling on the debt.

If the DOW goes below 10,700 and stays below that level for a period of weeks, then we are officially in a bear market and IF the 10,000 area fails later, WATCH OUT!

I do not own one share of anything outside of my precious metals and precious metal related companies and I sleep well at night.

[Rockin Robin]

in reply to: Clips from Alleghany #3249

Since Scoop, Mike or another shareholder hasn’t reported about the annual shareholder meeting in Alleghany last June 28, I will tell you non-attendees what I saw and heard.

Attendance looked to be about 160-180. About a quarter were first timers. The sky was smoky and the air was foul, yet everyone was in pretty good spirits. Mike told us the meeting would start late because of a large number of late arrivals still checking in. Most of us were seated and since no one moved he offered to tell us happenings that were not scheduled for discussion at the meeting. Even though I’m a regular at the annual meeting, there’s always new and important info and insights for me to learn about my company.

Mike should ask how many in the audience follow the mine’s web site? It would help him selecting areas of interest, promote questions for additional information and use the time for info not already known. One thing is absolutely clear about everyone who speaks for the mine… open dialog and transparency is offered and practiced.

The voting for directors, review of minutes, mine status and financials, which were presented by Director Scott Robertson took about fifteen minutes. Mike updated us about the specimen collection sale. A beautiful catalog was offered to shareholders for $10 not the $25 price by the company in Reno. I bought one for my collection. Oh, I was standing at the gold sales tent when the man who financially helped the Alleghany museum purchase over $27,000 of specimens was commenting about our 100-piece collection. He said that in twenty or thirty years from now people will recognize the value of preserving this one of a kind assemblage of natural and man made art and thank the wisdom of those who made it happen.

Ron Ott, a shareholder and retire hydrologist took the podium. Work on the hydropower progress since last year and PGE is anxious for the mine to get on line with its pelton wheel. He and Mike measured the water flow throughout the year. He determined that the plant would produce $4,000 to $5,000 of electricity per month. He praised the mine for its positive activity in conservation. The equipment and set up may cost $100,000 with a live time efficiency of 20 to 25 years. The shareholders were pleased with Mr. Ott’s news.

The owner of Orocal, a fourth generation family owned business that specializes in gold, David Connor, was invited to speak. Orocal is the largest purchaser of the Sixteen to One quartz and gold gemstone. He said that with gold at its all time high, it is not time to quit. He laid out the stream of additional money created by developing this jewelry market. He spends over $100,000 advertising this in Alaska. Because of the shortage of Sixteen to One production over the last year several years, he is having a hard time supplying the existing market let alone introduce his jewelry to other areas. He said, “Because the Sixteen has gained so great a reputation in this industry it sets the standards.” He reminds us that the mine creates jobs, he creates jobs and his sales accounts create jobs. It is an important industry.

Mr. Connor then said and did two things that surprised everyone and I remember his words, “The way I see it, if God created it in the first place, then He knows where it is so it wouldn’t hurt us to keep asking for his help in finding it. Please pray for the Sixteen to One. There are people who need these jobs.” Then he said: here is a $35,000 check for prepayment of gold/quartz slabs because I believe you will find it.

Ray Wittkopp, the mine geologist was invited to speak. He pointed out some geology of the Red Star project and gave a brief history of facts that support its success. There is a trend of larger pockets of gold as the mine was developed in the higher elevations.

Mike told us about his work with people using side scan radar and how another company has solved some of the technical problems they found years ago with gold detection in the mine. My take…new improvements in computers, detection technology and some seed money to test the equipment will enrich us beyond our expectations.

I liked this meeting as well as any. Also the new pasties lunch was great. If you were there and find things I missed, pipe up. I almost forgot one important item. The fish pond is back on the 800 level.

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3247

Rick

The big picture of the primary bull trend in any market gives you the confidence to buy into, sometimes, severe sell-offs.

The reverse of this is to sell into rallies in a bear market. The Dow Jones Averages(DOW) are currently in an intermediate bear market. I think I mentioned the entry to this event in my observations somewhere page on these pages.

Whether the DOW enters a primary bear market which it may or may not, remains to be seen. Within stock groups in the general market some financials are in a primary bear market and are absolutely getting pounded.This is what people need to be on the watch for to avoid the destruction of their wealth.

Just pull up some on them at bigcharts.com and see the historical decimation. A few are MER, BAC and FNM along with others.

Never be afraid to buy a sell-off in a primary bull market. Learn to control your fear emotion.

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3244

Rick

I have been thinking about your question this morning.

Jim Sinclair once said that if anything happened to him he would recommend his children turn over their funds to Monty Guild to watch for them at Guild Investments in West Los Angeles. Monty lives in Malibu so he gets a good amount of fresh salt air which is, in my opinion, quite conducive to reasonable thinking.

If you want to go it alone on your decision making concerning gold I would strongly suggest following Alf Field’s analysis of the trading cycles of gold.

Alf knows his business and is almost, in my opinion in a league by himself, excluding Sinclair and a few others. You can access his free commentaries at kitco.com concerning how he does it in the commentaries section when they appear. If you check there now I believe there is current commentary available.

Gold is lower today at $916.30 and has made its intermediate bottom already at $845 or so and reamins in a major bull market. No better time to buy it than on sell-offs.

Hope this will be productive for you as Americans are in store for one hell of a shock with their money and wealth in the many months to follow.

[Rick Montgomery]

in reply to: Gold Enters Major Bull Market #3246

One more thing….when we read about gold being lower at $914+/oz it is time to remember the big bigger picture, eh?

[Rick Montgomery]

in reply to: Gold Enters Major Bull Market #3245

Blue-jay, thanks. Perhaps I’ll become 1/3 of a winner if I only jump 1/3 of the way from securities into gold…later to find out how I should have perhaps been 4/3 in gold or not.

Long ago I took your advice for accessing kitco.com and it is my very first go-to page. Everyone reading this should do the same.

I’ll take your recent advice and inform myself further with your direction.

Thanks, Bluejay

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3243

Rick

Harry Schultz just sent out an alert warning people to be prepared for the coming international financial storm.

I believe he said, “Get out of U.S. dollars. Put 50% of your funds into governement bonds, not the U.S., but other big countries.” I believe he said the Swiss Franc is the better choice.

“Put about 50% into various gold futures and the rest into good senior gold companies and the rest into oil and special situations.”

I found it odd that he didn’t mention gold coins. I guess the British government going into safety deposit boxes without the owners permission spooked him. What happens first over there usually finds it way over here.

I have lately been reading some business writers who are very concerned with the banks and the investment banks. Saying that we are approaching a time that not everyone will be bailed out.

Everything, excluding our home and some debt on it, that we own is heavily weighed to gold and silver and the related companies that are producing the metals or are looking for them.

Good luck my friend.

[Rick Montgomery]

in reply to: Gold Enters Major Bull Market #3242

BlueJay…I’ve been averaging into a down market with mutual funds. More shares in the broad spectrum while the value is lower; latent effect a better value if/when they do.

Now it’s become an “if” instead of a “when.”

I’ve toyed with the idea of selling low (not high) to instead buy gold. Or gold stocks; against all instinct since selling low is generally just plain dumb and results in losing money.

All sound rules point to holding an existing equity position (hold the nose) all the way through a downturn, since so far history shows how the long-term patient and wise holder of main stream securities ends up with a rebound, instead of a potential loss by bolting.

My gut says, “Hey gut? Buy gold.”

My bank account, and portfolio says, “Woah, not here, we’re going to withstand and with pride will rebound the temptation.”

What, in your opinion, (and if Sinclair had a voice with your answer,) figuring the gold picture-to-immerge, would someone like me do?

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3241

The key to making money in stocks is not to get scared out of them. –Peter Lynch

Posted On: Friday, July 04, 2008, 7:25:00 PM EST

In The News Today

Author: Jim Sinclair

Dear Friends,

The problems out there are incalculable. Both the Fed and Treasury know this. That is why we got the show and tell the day before the ECB raised rates.

The damn OTC derivatives gang has killed us all to some degree. Oblivious to the obvious and driven by greed, those criminals are still writing OTC derivatives.

Hang on as the default derivative problem blows sky high when called on to perform.

Could GM be the match that lights the default derivatives fuse? The Financial Big Bang is just around the corner.

Are you prepared?

Regards,
Jim

[Larry Evans]

in reply to: Stock exchange listing #3240

Hey Kyle – Thanks for going to our site, but I’m not sure why you couldn’t leave a note? There is a pull-down menu at the bottom left that opens up another field to fill out and submit your message. Maybe your browser is not up to snuff? Our website has no problems sir. 🙂

[Stephen Wilson]

in reply to: Gold Enters Major Bull Market #3238

Posted On: Tuesday, July 01, 2008, 11:43:00 AM EST

It Is Now!

Author: Jim Sinclair

Dear Friends,

There are two subjects of extreme importance today.

I sent you an email months ago saying, “This Is It.”

1. I am now telling you, “It Is Now.”

Gold is preparing for an assault not on $1000, but for a brief penetration of $1200.
Violent chopping will occur, then off it goes to $1650.

This violent chop we have been living in here and now will resolve itself very soon and the take will be seen by history as having occurred in this last formation HERE AND NOW.

2. Where your juniors are concerned please give equal attention to the fundamentals before you make any decision. When beaten down, as they have been, think about gold at $1200 and $1650 coming sooner than anyone expected.

Call the company and respectfully demand to speak to management, not an IR officer. If management is in the country but will not speak to you, put that in the debit column. Allow time for a call back as many other investor may be doing the same thing.

The questions are simple. Property, finances and costs are the subjects you approach.

As an example, a high cost mining company in Ghana just experienced an increased production cost per ounce of gold as a byproduct of increased electrical costs in the country. Before you push the panic button the question to the company is “What are your total costs per ounce, not cash cost?” Once you have that answer think about gold at $1650.

I will discuss the “why” of all this on http://www.JSMineset.com this evening.

Respectfully yours,
Jim

[Larry Evans]

in reply to: Stock exchange listing #3236

Greetings – As a longtime follower of the 16/1 and frequent visitor to the Alleghany region, I must say I have high hopes your operations find the necessary resources to continue its undergtround operations. My background is in the advertising and marketing sector w/25+ years experience and a staff of 12 ranging from designers, marketing managers, production artists, media strategists, copywriters, etc. It sounds like a little PR and a direct marketing campaign is in order. Understood that funds are tight, and there may not be any “budget” for such eforts, but maybe my company of Zukor Design (www.zukordesign.com) here in Southern California could help. There might be a way to do it in trade or stock options to keep the cost manageable without drawing down real dollars. I also have a personal interest in mining that couldn’t hurt such an endeavor. Not that I have any experience doing the hard-rock drilling, blasting and mucking, but my passion for the industry runs deep as a whole. Mineral collecting/reselling as in jewelry and sculpture are my focus with education to new buyers of the trade being the key.

On another note, with your goal (Mike) of trying to gain funds for the 16/1 to get back to mining on a larger scale, may I suggest you break the massive $3,000,000 collection into smaller lots? Maybe this has been suggested before and tossed aside as a bad idea (if so, my bad) but after doing a fresh read on your forums, it might be worth considering. I remember this collection was “available” a few years back at $1,500,000 and it didn’t sell? Sure the cost of the raw material has more than doubled, but i just don’t think there are many buyers with $3MIL in their wallet for such things today. I’m not suggesting the combined worth of the “collection” is not correct, only that finding a buyer (or group of buyers working in tandem) will be tough to land. And with time running short on the mine’s operational costs and outstanding liabilities, a reassessment of selling strategies my be in order. I for one have many contacts who would step forward today in closing deals on select pieces and/or smaller groups. Sure, it would dissolve the “collection” as a singularity that’s magnificently rich, and an extensive tribute to the 16/1, but if it’s dollars you need, there may be a better way to achieve this goal. As a matter of fact, I wouldn’t be surprised that if it were sold in small groups and specific specimens, the net proceeds would surpass your $3MIL target by a long shot. Sure, it would take more effort to deal with multiple buyers, but it sounds like you have some time on your hands to manage such transactions.

Anyhow, I’ve never posted to this forum before but do keep up on your team’s efforts. I figured it was time to drop in my 2? and sincerely wish you all the best. Feel free to post a reply here or contact me directly as you see fit. All the best!

[Kyle Hall]

in reply to: Stock exchange listing #3237

Dear OakRockRanch….
I checked out your website and unfortunately – I couldn’t even leave you a note. Your website needs some help too. I agree the 16 to 1 could use some help in the marketing but a website that has problems of its own isn’t the best place to start.

[Craig Robson]

in reply to: Stock exchange listing #3235

I think most of us know the mine needs a grubstake to get back underground and start mining again.The stock is easy to buy now I can get shares through E’Trade or U.B.S. I put in a order for say a thousand shares at .75 cents or better and get it for .35 cents,what I think is happening is that guy who bought thousands of shares for less then a nickel is selling them for thirty five cents & once they are gone & the mine starts blasting again it should go back up to .75 cents or more.
Unlike other mining companies the Sixteen to One Mine only has thirteen million shares out & I value the properties at at least twenty million without the gold.
Look at Goldspring in Nevada they are sitting on gold and silver worth billions like the 16 to 1 but have 800 million shares out so their stock stays around 3 cents.
Once gold goes over a thousand a ounce”and it will”more people will become interested in gold mining companies & if the gold collection is sold and you get back to mining I think the stock in this company just might go crazy & the seventeen million that can still be bought will go fast at well over a dollar.
Mike you might want to try Westamerica again a lot of banks lost big time in this housing mess and are looking for other things.
Good luck today

[SCOOP]

in reply to: Clips from Alleghany #3233

WE ARE HAPPY TO REPORT THE AIR HAS CLEARED SUBTANTIALLY AS OF TODAY.

[Michael Miller]

in reply to: Stock exchange listing #3234

Who is writing or saying it is a quick fix? The financing, and really financing ruthfully is the plan we are following…sell our priceless gold collection (inventory). It is basic capitalism or business, nothing more and nothing less.

Our assts have increased while we took on more debt last year as the crew followed the crumbs of gold. Our choices of where to mine were severly limited by the two week need to “make Payroll”. That expense stopped in December. The inventory has been managed to net the highest amout of money possible, no quick moves to just sell it at spot, as some suggested awhile ago.

Personally, I will be delighted when our company has a public market. It won’t be tomorrow. Anyway, most of the junior gold copmpanies are searching for money while share languish in a lack luster market. It seem as if oil is the object for speculators to play the currency game not gold.

So Ryan or Bluejay, explain the value to shareholders of AngloGold the rights offering of AngloGold (see entry below). Help me out here.

I can offer some insights about the industry wide lack of interest in the smaller mining companies and will next week. We have about 200 people coming to Alleghany tomorrow for the meeting. As always, I appreciate the comments made on the FORUM. Oh,Steve, I really could use a vacation, but a vacation is in my future once one or more of the business prospects I continue to develop is realized.

[Ryan Baum]

in reply to: Stock exchange listing #3231

Scoop, thanks for the info. I must admit that I’m still confused. We continue to focus on owning three mines but have displaced all the miners. We have a history of producing awesome pockets but don’t have the manpower to produce. We have a gold inventory greater than the liabilities but are delinquent on our taxes. We say that we’re in a position to respond when investors take a fresh look at making money in gold yet we’re not concerned about our share price or view ourselves as a promotion enterprise.

Seems like we’re in a classic liquidity trap of property rich but cash poor. Seems like the largest shareholders are worried about dilution instead looking at ways to raise fresh capital to accelerate development and unlock the value we all agree is there. Maybe we should look at what Tejon Ranch did a decade ago with their rights offering to begin their property development or what AngloGold is doing this month with their rights offering to eliminate their hedges and expand development.

[Michael Miller]

in reply to: Stock exchange listing #3232

After reading your input, I accesse3d the AngloGold web site for the sole purpose of reading about the rights offering you suggested we implement. Here is what I found (and it was not an easy quick search).

A rights offering was prepared on March 22, 2006 for 10,300,00shares at the closing price on NYSE of $48.33.

Shares outstanding on February 28, 2006 were 265,096,732.

The web site quotes share price today on NYSE at $32.08.

Do the market cap comparison. What do you think about the successful strategy of management in regards to dilution according to the Use of Proceeds (published)?

Using a vastly over issued corporation certainly keeps the labor force working. Personally I would not boast about an idea that the rights offering was a success. If our company had tens of thousands of shareholders with over a quarter of a billion outstanding shares, I may do what the AngloGold management did to keep the company in play with the stock market.

Let’s talk some more. We are busy preparing for the meeting Saturday. I have no info about the Tejon Ranch approach to funding. They are smart guys and took care of the owners I am sure.

We have choices and took the best one: sell our priceless gold collection. I am actively pursuing other methods of getting the working capital that we, like every mine, need from time to time to improve mining. Perhaps one of these solutions will materialize; however puffing up these real but unknown solutions at this time does seem to me like stock fluff. The major shareholders decided a long time ago that what is, is and what is a wish is not. Since we own the real deal, a gold mine that continues to operate by mining and marketing gold, we will not hype our stock. That does not mean we will not undertake a program to infor the non-shareholders about the great potential here in Alleghany and also at the Brown Bear.

Yes, we are asset rich and cash poor. Yes, we need a well-informed, confident person or persons to join us in developing our mine plan. It is a good one. I along with others are confident it will be very profitable for everyone.

Thanks again, Gotta go but tell me about Tejon.

[David Stockwell]

in reply to: Miscellaneous #3229

looks like I jumped the gun. that tool only works on a couple of international countries. I guess its still a bit of an experiment.

however, i did manage to find the streets for the mine:
http://maps.google.com/maps?f=q&hl=en&geocode=&q=527+Miners+Street,+Alleghany,+California+95910&sll=39.466415,-120.847099&sspn=0.007338,0.015085&safe=images&ie=UTF8&ll=39.466696,-120.845768&spn=0.007338,0.015085&t=h&z=16

or tinyurl: http://tinyurl.com/67v5ay

[Michael Miller]

in reply to: Miscellaneous #3228

Thanks. Great idea to include Sixteen to One mine and Original Sixteen to One Mine, Inc on the google map. So, I tried!. Got an account opened, read the info but never got a map of Alleghany, Sierra county or sixteen to one mine to edit, add info etc. Giving up for now. Will someone better on computers give it a try?

[SCOOP]

in reply to: Clips from Alleghany #3230

SMOKE ALERT!!!

Due to the many fires burning in our area the air quality is VERY bad in Alleghany. We advise that people with any kind of sensitivity to bad air NOT attend the annual shareholder’s meeting.

IF conditions change (which they are not expected to) we will post an announcement here.

[Author]

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