[SCOOP]

in reply to: Clips from Alleghany #1979

Over the years moisture rots the wood underground. Some of the stairs between the 800 level and the 1300 level in the 49 winze have decayed and need repair. There is no work place requiring using the 49 winze, but occasionally the pumps and water level are checked. Our long-term plan, which we are following the best we can, is to use steel instead of wood for ladders and support in the winze. Money is tight, so we will fix the ladders with the wood currently on site. The repairs will likely last 5-8 years in wood. Labor is about the same for wood or steel.

Over the past years the shops and storage facilities became cluttered. Many valuable pieces of equipment are inoperable. This week we have repaired the high pressure steam cleaner, the tires on the dump truck, the 400cfm air compressor and the 600cfm air compressor. Like the squirrels, we are all active preparing for winter. Anyone interested in coming to the mine to help organize our valuable stuff will be welcomed with open arms.

[SCOOP]

in reply to: Clips from Alleghany #1977

The Board of Directors met in Alleghany yesterday for its fall meeting, from noon to 4:30 pm. The financial and mine status were reviewed. We have about 100 tons of gold concentrates stored in 55 gallon drums. Assays are not exact because just like the mine, the mill produces gold cons according to the grade of the head ore. In mining this can be referred to as the nuggeting affect. Occasionally unscrupulous companies will announce assay figures ignoring to mention potential uncertainties of projecting the amount of gold based on assay results. We see it all the time in publications announcing drill results. Any real high-grade gold mine knows that its ore or concentrates are difficult to place dollar amounts with confidence. Having said this, we estimate the cons may contain $150,000. Barrack’s operation in Nevada will process the material, so the cost of transportation plus refining will reduce the net amount to the company. Mike plans to arrange shipping once the concentrates have been moved from the mill site to the county road.

The board accepted Steve Wilson’s resignation. Scott, Dan and Mike discussed what experience and skills would best serve the company in the future. Steve brought solid stock market talent to the company and helped us design the OAU X mart.

Years ago one of the houses in town was built over the boundary on company property. Also the mining family had expanded its yard beyond its property line. The heirs are selling the house and asked for a way to solve the problem. They and their agent presented a proposal, which we agree will solve the problem and create a very nice parcel. The amount of compensation will depend on the square footage but is not significant.

Mike will pursue funding for the following use of proceeds outlined in our private placement memorandum:
1. Open an heretofore-inaccessible area for exploration.
2. Re-establish compliance with the SEC
3. Place Company on one or more Public Markets.
4. Build a new Gold Detector.
5. Working capital including preparation of a Public Offering.
Before further stock offering are approved, the results of mining in the inaccessible area must be evaluated. We are cautiously optimistic that these veins contain scattered high-grade pockets, which will be detected by modern technology currently utilized at the mine.

The directors held a lengthy discussion about the damages the Company suffered because of the reckless activities of the California District Attorney Association. Several attorneys have reviewed the issues and presented a convincing argument both legal and factual as to the process. No decision was made to proceed with a suit for damages or to abandon this heading. The contemplated lawsuit is similar to the mining of high-grade pockets at the Sixteen To One mine.

The gold collection is back in Grass Valley. The Ketchum display was limited to about half of the pieces in the collection. We have yet to put the entire collection on display. It will be a fun project to show all 116 pieces in one location. Any ideas on a good site?

[SCOOP]

in reply to: Clips from Alleghany #1976

So far no action from PG&E. Rather than repair the electric compressor we are putting our old diesel compressor back online.
We also have a diesel generator that will be adequate for running the pumps. One of our main objectives is to keep the lower levels of the mine dry.
David and Larry Cates (father and son) continue to break rock. We all know that one good pocket (doesn’t have to be big by this mine’s standards) of grade A quartz and gold slab material will go a long ways towards reducing our debt. The demand (for slab) is much higher than the supply. The tenacity of those who work here is what has kept this operation going. It is always easy for bystanders to judge other’s decisions, but we all do the best we can under the circumstances. Our hats go off to the men who have labored hard looking for that elusive pocket! None of them doubt that it is there.
Roy will be busy building new ladders for the 49 winze for the next couple weeks. The new ladders will be metal, which lasts much longer than wood.
A meeting of the Board of Directors is scheduled for tomorrow.

[Stephen Wilson]

in reply to: Clips from Alleghany #1975

It sounds to me that we are sinking deeper into the abyss with the passing of time.

It is becoming clearer every day that the Company’s choices will utimately be assigned to its creditors thus relieving the indecision by the Board from making their painful but responsible decisions.

[SCOOP]

in reply to: Clips from Alleghany #1974

Our electricity provider, P.G.&E, notified us today it would turn off our power due to the outstanding bill. This has been its option for some time. We got behind for several reasons: the increase in kilowatt hour charges, the high cost for use between noon and late afternoon, our inefficient pumping system, and the decline in production of gold.

We hope P.G.&E. will realize that mining created the revenue and usage for its initial foundation, and the Sixteen To One mine has used its power for almost a century without reneging on any amount of money owed to the electrical provider. We hope someone in the company extends a little more time for us to work ourselves free from the financial hard times we have endured. The bill is $79,000. During P.G.& E’s bankruptcy, a lawyer who provided three months of advice sent the bankruptcy court a $300,000 bill.

The Sierra County Historical Society has an event at the mine site this Sunday. Rae and Mike will volunteer their time to show them around.

[SCOOP]

in reply to: Clips from Alleghany #1973

Friday the motor on the air compressor burned up. Roy and Ian are figuring out our best option for fixing it.

A good time was had in Alleghany yesterday into the night. Approx. 400 people showed up for Old Alleghany Days. Mark your calendar for Sat. Aug. 14th for next year’s event. (We are going to try and stick to the second Saturday in August for this annual event) If you want to be added to the mailing list send an e-mail using the feed-back form on this site stating that you want to be added with your name and address.

Following are the results of the contests:

Drilling Professional Class:
1st Place: Larry Cates
2nd Place: Mark Loving

Drilling Novice:
1st Place: Jenny Berry
2nd Place: Larry Wells

Mucking
1st Place: Mark Suden & Mark Loving

[SCOOP]

in reply to: Clips from Alleghany #1972

We were sad to hear of Johnny Cash’s death this morning.

The steam cleaner at the mine-site has been broken for some time. Joe managed to get it fixed yesterday, turned out to be the wiring.

Following are the introduction and conclusion of the post hearing brief. (77 pages of explanation in-between not included).

INTRODUCTION

On November 6, 2000, a miner died. As a result of this tragedy both State and Federal agencies ran amuck by casting blame on his friends and fellow workers. This company and its miners reflect the true intent of the United States Congress, when it ratified The Act of 1977, which requires the responsibility of the operator and its miners to create and maintain a safe work environment. The corporation is merely the means to unite the components of labor, property and capital. A dear friend was lost, a son, a brother and a good soul. Let’s put this in perspective. What is this all about? Is it fixing problems at the Sixteen to One mine or is it work for MSHA and other agencies of the Federal government? Perhaps it is about money or individual growth and promotion by individuals working in a bankrupt system of bureaucracy.
I apologize for the length of this brief. It is necessarily long because of the serious misstatements by the prosecutor in charge of the case. There are also serious misrepresentations of the law and the facts in this painful subject. In order for the Court to reach an equitable resolution to the allegations of illegal behavior by Original Sixteen To One Mine, Inc., I felt the Court would appreciate the testimony and supporting references rather than merely a conclusion of the testimony. I have taken exact excerpts from the transcript. .
My anguish over the dismal misstatements by the Secretary have affected my confidence that her emissaries in the field are actually looking after the health and safety of America’s most precious resource, its miners. Have the participants in this investigation followed the laws, regulations, customs and mores of health and safety in the mining industry? It has become a possibility that other forces drove this investigation and subsequent administrative hearing. Therefore, I also reviewed the Secretary’s brief, checking statements with the cited transcript reference. Time and time again the reference had nothing to do with the opinions of the statements. This has been a new experience for me to address. Is it sloppy or is it intentionally misleading?
Mining is inherently a dangerous business, much like automobile racing is inherently dangerous or professional football or space travel. Miners at the Sixteen To One mine are keenly aware of this. They are provided all the tools to minimize the dangers. It is a small mine with a very connected crew. Everyone interviewed by the investigators was properly trained. Written procedures and policies are in place. Safety meetings are regularly held weekly. Equipment is kept in proper working order. Spare parts and supplies for performing mining were on the mine site. Management has stressed the need to stay focused on mining once the crew enters the property. After work it was not uncommon for the miners to get together where the topics of conversation would expand. It usually came back to mining because these miners love their work. At the work place it is all business.
So, the day Mark drove his locomotive into a stationary chute and died was special. It had never happened before to anyone associated with the company. For people who never met Mark to refer to him as a victim is inaccurate. For Steven Cain to concoct a story as he did from no evidence and continue propagating its veracity is an injustice to Mark and all the miners at the Sixteen To One mine and elsewhere throughout America. It may even be a crime.
There is no legitimacy to the two violations alleged by the Secretary. All of us who knew Mark Fussell, know the mine and are associated with the mining industry want this record to accurately reflect the events of November 6, 2000. For Mark, we have pursued the truth. We hope his death will help make the mines of America a safer place to work. A momentary loss of attention caused this accident. There was no defective equipment and the company and its partners in safety, its miners, are not negligent and guilty of violating any federal regulations. This was a tragic accident that must be recognized, if all of us at the Sixteen To One mine and throughout the industry wish to avoid a repeat in the future. It was an error in human judgment. Only until we recognize it for what it was can we take the educational steps necessary to reduce the potential for it happening again. This will be Mark Fussell’s legacy.

CONCLUSION

In introducing this brief, I pondered, “What is this all about?” After preparing it, I now ask, “Is there such a thing as an accident anymore?” Mark Fussell would be the first one to testify, “I messed up. My death was my responsibility, and no one is to blame. It was caused by my momentary lapse in attention.”
Federal law requires a mining company to conduct an investigation of a fatal accident. My investigation was very thorough and very lengthy. It included hugging Mark’s father. We both shared an unwanted bond, the accidental death of our sons. My investigation included attending Mark’s funeral, where so many of his friends gave testimony about his free spirit of life. Charles Schultz briefly addressed this during the hearing.
Mark Fussell died in a tragic accident, underground at the Sixteen To One mine. The two citations later issued by the Secretary of Labor, Mine Safety and Health Administration attempt to lay blame where none exists. They deserve to be dismissed.

Respectfully submitted,

By: Michael Meister Miller, president
Original Sixteen To One Mine Inc.

On: September 9, 2003

[SCOOP]

in reply to: Clips from Alleghany #1970

Mike has been swamped working on the Respondent’s post hearing brief for the Administrative Hearing which is due. The finished document is 80 pages long.

Rae is very involved in the Community of Alleghany and has been busy getting ready for “Old Alleghany Days”.

The hoist rope inspection is due and the person who x-rays it for us will be up next week.

The pumps are going. Production is not.

Cool weather in Alleghany.

Something is better than nothing right?

[Jack S.]

in reply to: Clips from Alleghany #1971

This is nice to read..

I love the news SCOOP.

yes somethin is better then nothing

[Rick Montgomery]

in reply to: Clips from Alleghany #1969

Gol’dang, miss those daily updates! (But, hey Scoop, be sure to enjoy life up there…if I’m like the rest of us, we can’t wait for another clip!)

[SCOOP]

in reply to: Clips from Alleghany #1968

Yesterday the Sierra Economic Development District Board met at Casey’s Place for the second time within two months. Two members of the Board of Supervisors of Sierra County sit on this Board. President Betty Riley said the reason they were back was “because of the energy she saw at the previous meeting in Alleghany.” Hopefully some positive projects will manifest as a result of these interactions.

Joe got the loader fixed and is busy screening rock again.

Two small gold bars were shipped to the refinery on Wednesday. It takes up to three weeks from the time the refinery recieves the bullion for it be refined.

We are all impressed with the Gold Price these days. The P.M. London fix today is $375.80(You can check the daily gold market at Kitco.com) Will it make it to $400 per oz this year?

Previous employee Steve Shappert came by the office yesterday. Steve was our hoistman and safety officer for many years. He is a volunteer for the Camptonville Fire Department. It’s always good to see Steve.

A customer from Nevada is in Gold Sales bright and early this morning looking to buy a specimen.

[miner]

in reply to: Clips from Alleghany #1967

Love to hear about the everyday activities at the mine. Lets keep those Clips from Allegany coming.

[lynwood]

in reply to: From the Sixteen to One Archives #1966

The US Forest service works under the Department of Agriculture. Its leader workd under the Executive branch. Current bureaucratic actions with regard to America’s precious natural resources appear to weaken the security of Americans. The topic of the meeting I summarize below confirmed the that Smokey the Bear has inhaled too much smoke. Here’s my column to the local newspaper.
September 2, 2003
Downieville, California

Chairman of the Sierra County Board of Supervisors, Pat Whitley, spoke from her heart and trust in those attending the regular meeting in Downieville, when she said, “I am very proud of you and the manner conducted here today by you in this audience and speakers.” At issue is the continuance of rural cleansing for the residents of this high mountain county. The latest attack comes from the destruction of their culture by agents of the federal government. Testimony after testimony directed specific facts and evidence against the actions of the district overseers of the Tahoe National Forest, the US Forest Service. The room was packed. In addition to local familiar faces, the audience was stocked with members of the white hair, cue-tip club of summer folks, who were lingering in the county a little longer than their summer vacations of the past.

Federal employees sat amongst the audience in the small wood paneled public chamber. Some wore their customary green and others were un-uniformed. The courthouse entrance was also packed with those who expressed their support by their presence alone. They did not speak, possibly because they could not squeeze inside. They chattered amongst themselves or took turns poking their heads inside for an ear full.

The meeting was a public forum of elected officials, the forest service employees and the public. As a bystander, albeit one with a solid opinion, the facts presented by the government people conflicted with the locals’ presentation. The noon siren broke up the gathering before everyone could complete speaking. An architect named Bill related that the loss of the miners’ way of life being destroyed and plundered in the name of benefiting the publics’ best interest is seriously flawed. He compared it to attitudes in other countries where great appreciation of their cultures is in the publics’ best interest and preserved not destroyed by the government.

When C.K.Smith stood up and spoke, he said that the forest service has been hostile to the residents for eight decades. He noted it was from first hand experience from when he was a boy. He is past eighty and worked at the Sixteen to One mine as a youngster. He lives in Sierra City and has great stories about the mine. Although these were not her exact words, Sandy Bowman expressed concern from the intimidation and the fear of the forces of the United States government exerted by the forest people. The forest people protected themselves with a mantle of policy justification for their actions. Those speaking for the forest service interspersed “the Law” with regulations, standards or policy in their offense of righteousness. Forest service behavior is ultimately ruled by law not internal policies when they conflict. Clearly everyone else speaking was defending the further loss of miners’ heritage or the culture represented by the carnages inflicted by the forest service.

Several noted the Sierra County General Plan as the guiding public document for consideration in Sierra County by the public, including the forest service. Supervisor Brooks Mitchell and Supervisor Arnie Gutman both participated in the formation of Sierra County’s General Plan when they served as planning commissioners. Michael Miller, who shared and chaired the commission during the years the plan was developed in a county wide traveling show, stated that the quality of life was featured as the dominant concern, interest and guiding principle by everyone. Ranching, farming, logging, mining and recreating are specified as the foundation of Sierra County’s definition for the quality of life so highly prized by these rugged Californians. He said that the planners recognized that, “Our culture over the next twenty years is our greatest endangerment. It’s not the trees; they are doing well. It’s not the critters; wildlife abounds throughout the county. We must protect the living evidence so our children know their heritage.”

Donna Hayes, a former county supervisor, was called. She was visibly ready to explode after hearing the misstatements made by forest service personnel. She passed when it was her time to speak and sat down to collect herself. U.S. Congressman John Doolittle sent a representative, who offered to look into any type of conflict the public had with the law. It was pointed out that the U.S. Secretary of Agriculture is the appropriate branch of government to express concerns because the executive branch oversees the forest service personnel. Congress passes laws and the executive branch under the overall responsibility of President Bush is responsible for their execution.

Planted at the head table with the county supervisors was Steven Eubanks, who introduced himself as the district supervisor over the Tahoe Forest. He was the main spokesman for his six underlings present. He stated his goal is, “to be consistent in how we approach the issues.” He said he moved into this position five years ago. He said, “Word was out to do what you want” in the Tahoe National Forest. It was not clear if he meant just in the local area or throughout the forest.

Charges were made that certain district forest service employees were removing artifacts in violation of the federal Antiquities Act. Trees used to blaze an old miners’ trail through the Eureka Diggings were unnecessarily cut down by the forest service. Eubanks’ employees were carting off other long existing mining artifacts from public land and taking the artifacts home. The main issue to rally the large turnout was the systematic destruction of buildings. Eubanks’ position is, “where occupancy is occurring unauthorized, or in trespass, we are obligated to eliminate inappropriate and exclusive use of public lands.”

Eubanks says that this is not unique to Sierra County. The people here are not singled out or being picked on. Miller, president of the oldest operating American gold mining company, took issue with Eubanks. “What is unique with Sierra County is our great mineral wealth, and the residents of the county have recognized this. When it comes to gold mining, this place is unique.” He said the forest service employees did not use Best Management Practices, which they are lawfully required to do. He recited the purpose of the Multi-Use law was not to exclude one of the few statutory rights that Americans have to use the public lands: the exploration and mining of minerals. Many in the room may have missed what next occurred. Miller presented Eubanks a claim for damages of $512,000 to the U.S. Forest Service for the loss or destruction of property at the Telegraph Mine. He sat down to boisterous and broad applause.

[SCOOP]

in reply to: Clips from Alleghany #1965

Over a year ago a French television crew came to Alleghany to make a short documentary about California gold mining. Everyone cooperated with them, including a gathering of musicians at the Red Star Café. In return the French crew promised to send us a copy. We gave up on them but were surprised when a video arrived at the post office. If anyone wants one, send the company $15 or $20 and we’ll get one to you.

One of the transmission mounts on the loader broke Monday. It was taken out of service and a new one arrived today. It should be back in good working order tomorrow.

A brief rain and lightning storm hit today. Joe found a tiny quartz and gold rock in the screened the waste rock. You can never get it all, but even though we hope for a nice chunk, the miners’ confidence is reinforced when little gold is found in the waste rock. Decades ago the Company used to mill all the quartz. The mill was the equivalent of a giant assay system that helped the supervisors selecting where to look for high grade. Good gold detectors and skilled miners make this old practice unnecessary today.

[SCOOP]

in reply to: Clips from Alleghany #1964

August was the last month for one of the contract miners. Money is scarce and he had to take a regular paying job to get by. The price of gold for calculating production distribution is the last day of the month, which was $375.60 per ounce.

Today is a regular work day for all at the mine: a round was mucked, drilled and blasted underground, some high-grade was cut for jewelry sales, mike completed the first draft of our MSHA brief, and Melissa continued typing.

The Private Placement Memorandum is ready to circulate to qualified and interested parties. The Company offers one million shares of its treasury stock for working capital to perform specific projects.

[SCOOP]

in reply to: Clips from Alleghany #1963

Many of the pieces in the Company’s gold collection are on display in Ketchum Idaho at Barry Peterson’s Jewelry store. Ketchum holds an annual Wagon Day event on Labor Day weekend. The town is packed. A shareholder whose grandfather was a director of the company in the 1920’s telephoned our office this morning from the store. She lives part time in Ketchum and was thrilled to see the gold specimens. She was very impressed saying, “It is a spectacular display.” This is the first time the collection has left California. The display goes to September 14, 2003. Stop by, if you are in the area.

[SCOOP]

in reply to: Clips from Alleghany #1962

Our ATF # finally came in yesterday’s mail.

Mike is making a trip to Orocal today to sell slab.

Our PG& E usage for the mine was down this month from 63,200 KWH for July to 22,400 KWH for August. Part of this has to do with the pumps being out for a few days. It is also a reflection of conservation efforts being made including a unit that was recently installed on the electric compressor to help it idle more efficiently.

We’ve been screening our piles of waste rock for sales of road rock and landcape rock. The large piles of ore near the mine-site office will be screened and metal detected last.

Hope everybody has a safe,relaxing holiday weekend.

[Greg Schrontz]

in reply to: Clips from Alleghany #1961

Thanks for these posts Scoop! I really enjoy reading the details of what is going on up there.

[SCOOP]

in reply to: Clips from Alleghany #1960

The miners are sacking high-grade out of the footwall on the 1075 level. Hopefully it continues. This is Larry Cates heading. He is putting in 5 foot slab rounds and 6 foot bench rounds.

Today Melissa Cates is weighing the self-rescuers for their three month inspection.

The pump situation has improved with the repaired pump in-place.

The following citations have been terminated from our last inspection by MSHA:

The portal and Substation on the 1500 have both been painted with fire proof paint. (2 citations)

Cover plate on the 110 water heater has been replaced.
(1 citation)

Records of hoist exams have been updated.
(1 citation)

Hoist operators Ian Haley and Roy Stai have been trained on the BG-174 Draeger Unit.
(1 citation)

With such a small crew the miners wear many hats. Ian is the leader of the Accredited Miners Association (the group leasing the mine). Roy is versatile as an electrician, computer technician and metal detector operator among other things.

The water-usage reports were filed timely.

David was busy in Gold Sales yesterday with six walk-in customers (from Texas) who made several purchases. (Thanks for the p-nut brittle Rod)

[SCOOP]

in reply to: Clips from Alleghany #1959

We have been having e-mail troubles due to the “sobigworm” virus. Hopefully it will be resolved soon.

Here is a summary of our income statement for the six months ended June 30, 2003. These are unaudited financials.

Total Revenues: $96, 099

Operating Expenses:
Salaries and Wages: 23,205
Contract Labor: 8,645
Telephone & Utilities 40,643
Taxes-property&payroll 9,081
Insurance 1,655
Supplies 4,388
Small equip.& repairs 2,775
Drayage 4,970
Corporate Expenses 5,679
Legal and Accounting 1,464
Depreciation 7,941
Other expenses 2,807

Total Operating expenses $113,253

Profit (loss) from Operations: (17,154)

Other Income & (Expense) (14,913)

Loss before taxes (32,067)

Income tax expense $(800.00)

Net Loss $(32, 867)

It rained again this morning. The firefighters in Alleghany were up in the middle of the night responding to a false alarm at a remote Pacific Bell relay station.

Two of the 16 to 1 miners, Bob Hale and Roy Stai are volunteer fire fighters. Bob Hale is the Fire Chief.

We had a little flury of activity on the OAU x-mart today.

[SCOOP]

in reply to: Clips from Alleghany #1958

Today we had a visit from two Grandchildren of W.I. Smart one of the original partners who incorporated the 16 to 1 in 1911.

They said they have some photos that they will donate to the museum. We will include them in the photo album on this page as well.

The usage reports for our Water Rights are due this week as are the annual assesment work notices on all the mining claims.

Our General Liability Insurance comes up for renewal in October. Rae is filling out the application.

The financials for March and June are completed (with the exception of the managements discussion and analysis). Rae tried posting them to the forum but the formatting did not stay intact.

Our web-master will be adding a new link to the “Company” page for current financials soon. More on the results of the financials next time…..

[SCOOP]

in reply to: Clips from Alleghany #1957

We finally had to bite the bullet and purchase two new computers. One is for the Corporate Office and is used primarily for accounting, the other replaces the five year-old computer at the mine-site office which contains all the Auto Cad data on the mine.
Luckily one of our miners, Roy Stai is multi-talented and built the computers for us, greatly reducing our cost. Thank you Roy!

This August has been very unusual for Alleghany in that it has rained twice. We had an all-day rain storm at the beginning of the month and a two-day rain storm Thursday and Friday of this week. Our power was out for five hours on Friday.

[SCOOP]

in reply to: Clips from Alleghany #1955

I can SCOOP this because Five Scoops exist and all are directly affiliated with OAU.
The miners continue to find specks of gold. It is a big block of ground up dip from the Ballroom and to the north. All quartz with gold showing should be prospected.

Powder and cap magazines are almost empty. No ATF number yet. The miners are slabbing face rounds, which do not require the technology of rock breaking, as do drift, sink or raise rounds. Easier on the explosives demand.

The miners are here for pride as they are for profit.

MSHA brief arrives. The objective is to identify the really most likely root cause of Mark’s accident. The result will benefit future miners as the industry pursues safety for themselves. Mike prepared the transcript for his brief shortly after it became available. OAU will submit on Sept 6.

[SCOOP]

in reply to: Clips from Alleghany #1954

Congratulations! Burn the coupon book. Final payment was made on a 1998 bank loan of $95,000. The Company was never late or missed a payment in five years. The loan was secured with equipment and gold.

Wild blackberries are beginning to ripen throughout Alleghany. It is an annual event.

[SCOOP]

in reply to: Clips from Alleghany #1953

On July 31st, Bill Walker of Walker and Associates was on the property to inspect a small prototype plant for the removal of arsenic from mine discharge water. Walker and Associates are water quality consultants from Sacramento.

The plant was designed to use various forms of iron to remove arsenic from a small portion of the mine discharge. Results indicate that water discharged from the plant is well within the new standards for arsenic set by the EPA. The next step is to construct larger and larger plants until all the discharge water from the mine can be treated.

[SCOOP]

in reply to: Clips from Alleghany #1952

The booster pump (twenty horsepower) was installed and operating this morning. The importance of pumping includes keeping the expensive electrical transformers on the 2050 level dry.

Last week Mike had a phone conference with the lawyer representing MSHA. The topics were two old citations that fell through the cracks. Mike agreed to a modification of one for incomplete paper work ($55). The other was when Jonathan removed a modest hazard while on an inspection with MSHA. He tapped it away and was cited because he was not wearing safety glasses. Since he was not in any danger, the act (Mike agrees with Jonathan that the removal of the nail presented no likelihood of injury) does not meet the requirements for a ticket. Since Jonathan is management, the MSHA inspector made a big deal out of nothing. It is now up to the lawyer to review the regulations and determine the next move. Jonathan did the right thing and safely removed the “potential” hazard immediately upon finding it.

[SCOOP]

in reply to: Clips from Alleghany #1950

The magazine inspection went well.

One of our pumps had to be taken to Sacramento for repairs yesterday. It will be delivered to us this afternoon. Hopefully it will be reinstalled by this evening.

[Rick Montgomery]

in reply to: Clips from Alleghany #1951

I don’t know about the rest of you, but like Oak I’ve been yearning to hear about this kind of stuff. (I just hope that if one of us doesn’t write something back, SCOOP will continue regardless.)

[SCOOP]

in reply to: Clips from Alleghany #1949

Feedback and Forum participants have encouraged us to put something on the Forum about little events or stuff dealing with the company or mine. Here is the beginning.

Tomorrow morning an agent from the federal Department of Alcohol, Tobacco and Firearms will be at the mine to inspect the company’s powder magazines. The federal government has expanded its interest in the storage of explosives throughout the country. Until recently permits were required from the sheriff of each California County. MSHA agents and Cal-OSHA inspectors regularly inspect magazines. Apparently the new federal law will concentrate all explosive storage places in the United States into one data bank.

[Pete Oakander]

in reply to: Miscellaneous #1948

Ditto – the more news about the mine and what is going on would be a very positive step towards keeping us all informed about our investment.

[Gerard Forsman]

in reply to: Miscellaneous #1947

Thanks for changing the current picture in the “Photo Album”. It’s good to see that “Normal”, everyday life still goes on at the 16 to 1. Let’s get those camera’s clicking. I’m sure everyone would like to see 16 to 1 “Life”, above or below ground.

[Gerard Forsman]

in reply to: Miscellaneous #1946

http://www.kitco.com has an interesting article about the current price of gold. “African strike deadline, weaker U.S. Dollar drives gold higher”. Go to: http://www.kitco.com/ind/egs/jul282003.html

[lynwood]

in reply to: Another U.S. precious metals miner goes foreign #1945

China’s First Gold Producer IPO

Zhongjin Gold Co Ltd., China’s flagship gold miner, will soon become the first listed company in the nation’s gold industry after it launched an initial public offering (IPO) yesterday in Shanghai. The company yesterday issued 100 million shares at a price of 4.05 yuan (US $0.49) per share on the Shanghai Stock Exchange.

China’s first initial public offering by a gold producer was 82.4 times subscribed, the lead manager of the IPO said in an announcement published in the Shanghai Securities News investors subscribed to 82.40 billion shares in the one-day IPO subscription.

The move represents the first substantial step towards the market-driven reform of China’s State-controlled fragmented gold industry. “The move is part of our efforts to build Zhongjin into a top brand in China’s gold industry,” said Song Xin, company chairman. Zhongjin will produce more than 20 tons of gold this year, accounting for 10 percent of China’s total gold output, Song said. (China Daily)

China is a major gold player. It is the world’s third largest gold buyer and fourth largest gold producer. It has more than 1,000 gold mines and about 30 gold refiners.

Let me get this straight. One hundred million shares offered. Buyers wanted. 824 billion (1,000,000 for sale—82,400,000,000 buyers).

Any comments?

[Gerard Forsman]

in reply to: Water and Arsenic: which came first? #1944

I haven’t heard much lately about the ongoing battle of water quality in the sierra’s. I did, however, run across a story about the EPA trying to levy fines against the city of Portland, Oregon. It’s a case of the EPA seeing a problem where there is none. In fact, the city’s project is trying to correct a water problem! Go to: http://www.opb.org and click on the story, “City Says EPA Forces Delays on Big Pipe Project.” It shows that no matter who you are, there is always someone who wants to protect you from yourself and take your money for doing it! This time it’s the taxpayer who loses by having to pay for both sides!

[Pete Oakander]

in reply to: From the Sixteen to One Archives #1942

I am new to the 16 to 1, a stockholder, a reader of this very interesting Forum, and a first time contributor to it. Gold sure brings out the passion in everyone. I have been following the exchange between Gold Master, Mike, Rick, et. al. and there is a lot going on. Passion is what is needed to drive a company or any endeavor, but passion and emotions need to be tempered in making and executing the decisions that run the company. Ten Lb. has some valid points. I personally don’t know if Mike is running the company properly or not. My gut says he is – which is not to say he or the Directors can’t run it better. There is always room for improvement in any venture or pursuit. I attended that last annual meeting for the first time and was very impressed by the mine and Mike’s presentation – so impressed that I invested in stock – I got the fever – so there is my committment to the cause. I have to agree with Ten Lb. though on keeping a low profile with regulators. I work for one of the largest design/build construction companies in California and two of the first rules of construction are; 1. never assume anything, and 2. NEVER piss off the building inspector! It is a fact of life that we all live in a regulatory environment – there is no getting away from it – so get over it and deal with it. The old days of just going out and doing it are over. I can identify with Mike and Rick about wanting to get even for wrongs done – but what is the long term gain and is it good for the mine? Yea, there would be a lot of satisfaction in doing so if you win, but in the process of either winning, or losing, a lot of exposure to the mine will result. A lot of that exposure could be negative – which goes back to pissing off the inspector. Safety codes, procedures, and inspections in mining or construction are a given. The best way to stay off a regulator/inspectors radar screen is to pro-actively comply 100% with the codes. That way when they show up they will have very little to find. And they will find something, no matter what you do – it’s their job and mission in life. A little something is ok – it justifies their trip out. What I am suggesting is don’t rock the boat – think about the ramifications.

Gold Master, you obviously have mining experience and have brought up a lot of points for all to think about, but what is your ultimate point of doing so?If it’s just to get the Forum to wake up then you for sure have done that!

At the annual meeting, Mike mentioned several other income producing ideas such as selling rock to landscapers and bottling the water etc. (actually a damn good idea – it sure would cut the water quality regulators off at the pass if you were selling some of the best in the west – and it came right from the mine). I again agree with Ten Lb. that creativity will go along way in helping to pay the bills.

Mike a suggestion. It would be a very positive step if the News letters were more frequent. You mentioned in one of your last responses several days ago about finding some gold down in the Ballroom which I take is the dig you were doing at the time of the annual meeting. Finding gold is what the 16 to 1 is all about and keeping the stockholders appraised on a regular basis as to how the effor is going sure would relieve a lot anxiety about how our investment is going. Just a suggestion – we ARE interested!

And in the words of CCR – “Keep on Chogglin'”

[Rick Montgomery]

in reply to: 16 to 1 Mine #148

[Stephen Wilson]

in reply to: Another U.S. precious metals miner goes foreign #1940

The State of California is micromanaging the gold industry towards extinction. According to the Geological Survey, “(California’s) gold production declined 19 percent between 2000 and 2001, and is expected to drop by about 70 percent over the next two to three years.”

Almost all of the little hard rock gold mines have already been forced to close as a direct result of increasing regulations in the State and now California is after the open pit gold miners.

Governor Davis signed a new law into effect on April 7th of this year that requires open pit mining operations to completely backfill their pits when they are finished. This law came about directly following Glamis Gold’s application to extract gold from a proposed open pit site in Imperial County that would have been sized at 800 feet deep and a mile wide. The Company pulled its permit request following the Governor’s signature. I am not in favor of upsetting Mother Nature’s plan for us but the world needs gold and we have to start addressing compromises and stop pointing fingers at our ranchers, our farmers and our miners.

Richard De Vito, president of Canyon Resources, which mines gold in the Paramint Valley said, “We will not dig another hole.”

So here we are discussing citations and how “disgusting” the Sweet Sixteen is. So now, the pendulum of social justice swings back towards the last remnants of what used to be a proud and prosperous gold industry and tries to decapitate the last standing few with the sharpness of the guillotine? I think not.

The Sixteen as a result of all the excessive citations is on the point questioning and challenging its reduced rights to earn an honest living from its properties as it is guaranteed in the Constitution. Our society’s obsession for perfection is a recipe for self destruction in the end. Our government has to do a much better job in balancing compromise. If we put the backbone industries out of business who will supply our economy, the Chinese? If that happens, then you can kiss your international buying power goodbye and we’ll all be reduced to slaves in the end.

What will California be like in its new envisioned world of perfection concerning the working environment when many companies will have been regulated out of business and China continues to beat the hell out of us with their extremely low wage scale?

Has anyone ever considered doing some constructive reasoning at where all these increasing amounts of regulations and policing of them with excessive citations will eventually lead us? Is this just the beginning?

[Rick Montgomery]

in reply to: YOU JUDGE *** US COURT OF APPEALS #1939

Any review of the specifics of the alleged citations brings forth a universal truth: simply being charged with a citation by a politically motivated and politically appointed team of investigators with no other agenda than accruing political points and even worse, monetary gain, has no bearing on whether the a party is guilty of the allegations.

Goldmaster, you’ve got the whole picture backwards. The current economic condition of the mine was created by the very acts you cite below. I’m not the first to suggest you do some diligent research before reaching the conclusions you have. Your lack of insight into the very obvious reason MSHA has pursued the Sixteen to One merely shows how statistics can be made to cast private enterprise into a bad light.

(Go read the citations before you claim their severity. I have. I have attended many court sessions; I’ve witnessed the supression of evidence that exonerates the mine and M. Miller in the vicious attack that resulted in unwarranted man-slaughter charges; I’ve testified before the Water Board and watched the CRWQCB single out the mine for the arsenic content of Kanaka Creek upstream from any discharge, all in the face of ignoring arsenic content thousands of times higher in Sacramento’s Curtis Railyard; and I watch you bring vindiction to this website by suggesting that the presence of multiple citations over the last four years carries the gravitas which vindicates them, whether true or not.

Answer me this, please: Do you personally assign the lack of credibility to an individual or a private company simply because you see the actions of a government agency bent on destroying their Constitution rights?

Facts facts don’t lie, and in this case you’ve just done everyone a huge favor by pointing out the degree MSHA and the CRWQCB have been pursuing the Sixteen to One.
The fact is, there’s a battle being waged, and accusations don’t prove validity. It’s also a fact that most citations were challenged and many were simply throw out of court.

Which is it Goldmaster? Guilty until proven innocent, or the other way around?

[Gerard Forsman]

in reply to: From the Sixteen to One Archives #1937

Man, oh man!!! A guy goes to the mine for a week to see how his crew is doing and all hell breaks loose! Dead bodies on the Forum is just not acceptable. Play nice! Everyone has their opinions and insights. All are welcome. Disagreements are allowed but, if the topic gets to hot, start another one. Sometimes, I get the feeling that some of you are mistaking Forum participants as being connected to the 16 to 1 management. The only one that I know of is Mike Miller and he rarely participates in the discusions. However, He does read the Forum entries. I’m sure he enjoys the numbers and percentages you guys throw around. It’s a bit too much for me to understand. It felt like I was at a masquerade ball at midnight when Gold Master and Rick took off their masks and revealed a little more about themselves (Topic-Big Whopper;No Problem). I guess I could do a little of that… I am not connected with the 16 to 1. I do not own stock in the 16 to 1. I do not own any kind of stock. My investments are mainly Real Estate, Timber and Mining. I own several gold mines in Alleghany. I’ve known Mike Miller for almost 25 years. If I didn’t have my own mines to invest in, I would seriously think about the 16 to 1. Speaking of stocks, there is another large operation underway in Grass Valley, CA. Emgold is opening the Idaho-Maryland Mine. Reading their mining plan reminds me of an earlier operator of the 16 to 1 mine. He thought that bigger was better. Mill more ore, get more gold. It worked on paper but… The 16 to 1 is stuck with that oversized milling equipment. Emgold is looking for $45 million to make their plan work. So far, the Canadian mining companies who have come to the Sierra’s have not had the best long term track record. I wish them luck. As for the 16 to 1, the talk around the mining industry is that the 16 to 1 has been setting the example for standing up and not rolling over whenever an agency levels a fine. More mining companies around the country are starting to fight back instead of just paying the fine and not making waves. I think if Mike can personaly afford to take the CDAA to court and win, then the 16 to 1 would have an open path to pursue the same venue at a later date. As for the “X” factor, to me, “X” marks the spot. Finding a good sized pocket of gold is what needs to happen right now. The miners that are working underground know it’s there, somewhere. They are making the least amount of money in their careers in search of it. It’s not easy on them or their families. They have faith in the 16 to 1.

[Ken McNeil]

in reply to: 16 to 1 Mine #108

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