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Nine miners who were trapped underground in northwestern Quebec have been rescued and are not injured. Mine manager Sylvain Lehoux said that after being trapped for nearly 18 hours, the evacuated miners were exhausted but were able to talk to family members. They were rescued by a tunnelling machine at the Iamgold mine in Preissac in the Abitibi-Temiscamingue region. The miners were trapped after a wall moved because of seismic activity in the area.
Lehoux says the section where the incident happened may not reopen, and a survey will need to be done with consultants and engineers to determine whether the area is safe.
The miners were in good spirits but added they were hungry. One miner was freed earlier in the day and the other eight Tuesday night. The company suspended operations for the day amid the rescue attempts.
It is the second such incident at the mine in four months. In January several miners were also caught in an area not far from the location of Tuesday’s wall collapse. The area is located on what he describes as the Cadillac fault and any movement can definitely cause an earthquake.IAMGOLD only started commercial production at the mine in July 2014.
in reply to: Miscellaneous #6028Thoughts and prayers with the 9 IAMGOLD miners currently trapped in Quebec.
in reply to: Clips from Alleghany #6027About 1250 Annual Reports left the Alleghany post office this Tuesday. Shareholders should have received it by now, so Scoop wants all of us who don’t own shares to read the latest from the President and mine. Following is the opening message.
Dear Shareholders,
Once again the time arrives for news from your gold mine. A year ago I wrote of three goals for the 2014-15 year: lower the present water level; remove blockages to access gold targets; work with a non-affiliated “high-tech” group to find a 21st Century detection system for our mines. The water level is about 400 feet lower than it was last year; the crew is preparing a detailed exploration operation in a previously blocked vein; the detection company has the hardware to see into the quartz greater than at any other time. Understanding what we are seeing remains unclear; now software interpretation is the focus. Step-by-step the obstacles are disappearing.
On June 20, 2015, our annual shareholders’ meeting takes place in Alleghany. There are no good or bad surprises to announce. The Underground Gold Miners museum is holding its annual gold specimen display that weekend.
One noteworthy event is our acquisition of a new gold detector from Australia. Promotional material claims a 40% increase in depth from prior models. In February the crew incorporated this tool into our detailed exploration program. Early results prove that the depth has increased. Where to explore is decided by historical production, geology and detection. This new Mine Lab detector gives us a fresh look at the vein throughout the mine. I am cautiously optimistic. Most every person familiar with this mine knows that more gold remains unmined, but where is it?
That nasty overhanging California water agency lawsuit settled on February 11, 2015. The government sought over $2 million for not filing thirteen test reports. The issue was never about pollutions or environmental damages. We settled for $234,000. I was not a happy miner. The agency ignored notifications that milling ceased in 1998. The time and expense for 1,460 annual tests became unmanageable. The agency denied repeated requests to change our requirements. Our attorney said to take the offer: lack of funds to continue the lawsuit.
The Alleghany district has long been famous for the high-grade gold ore of its quartz veins. Nearly all the production is obtained from small shoots. Owing to the particular type of ore prevalent, production is irregular. Due to a scaled back crew, the odds of mining those gold pockets have grown against us. Something must turn this around. Half our crew is attending the detection program. The other half is working on projects to open new areas for exploration. No one is mining for gold. This must change. The cure is to increase efficiency and in a miner’s words “break more rock.” How shall we do this? We must expand the crew, purchase supplies in volume and hire a couple of top maintenance men. Outside capital makes this happen.
The price of gold remains reasonably high for profitable mining. I’ve considered the likelihood of mining our way back to profitability. It is possible, but other options exist: sell stock through a private placement, offer gold futures below spot price or joint ventures creatively designed to meet all party’s needs. Money equals a shorter time to find that magical pocket of gold. We will, therefore, “break more rock.”
Our industry (as many others) is experiencing a lack of skilled employees. Reasons vary. While our crew is small in numbers it is large in background, experience and training. One other important factor stands out. This crew is highly motivated to succeed. We accomplished much last year; however, we define success as producing gold. You should expect it in the coming year.
The four following pages are worth reading, which is why they are printed in the Annual Report. It is background material for others to evaluate our Company. A financial lift does wonders to achieve our success. Suggestions are welcomed. Frequently people ask, “Why do you stick with this gold mining business?” I reply that my confidence in the richness of our mines has never wavered over forty years. I sometimes mutter to myself this quote: “You may be deceived if you trust too much, but you will live in torment if you do not trust enough.”
Sincerely,
Michael M. Miller, President
April 30, 2015
When asked to prepare a vision for the Sixteen to One years ago, I did. The original analysis was written in the Fall 2007. Investors from Silicon Valley figured it was a good thought to look into gold and called me. They called ours a ‘trailing edge’ business. They considered theirs ‘leading edge’ ventures. The point man wanted a SWOT paper (strength-weakness-opportunity-threat), a new concept to me. Everything came to a halt when the events of 2008 dropped on America. He asked me, “What is your vision for this old company and mine?” I searched my soul and wrote the following. It still rings relevant.WHAT’S IN ITS FUTURE
A VISIONThe vision for Original Sixteen to One Mine, Inc. (the Company) includes America’s natural resources but focuses on the plentiful natural resources of California. While the vision may appear to be rather explicit or narrow, it includes gold and other mineral products, timber and water. It encompasses their utilization, management, development and marketing for maximum yield. No other public reporting company incorporated in the United States shares this focus.
This vision includes the social aspects of natural resources and the desperate need to protect the cultural as well as the physical environment of our precious natural resources. The Company combines all social sciences as well as most physical sciences into an operational program. It is an enlightened business plan of operation. The Sixteen to One’s past reveals a necessary approach of maintaining long-term assets with the short-term needs of producing revenue. Its present status is demonstrative proof that a small natural resource company has survived the demands of natural resource utilization in today’s overly aggressive pro-environmental outlook.
The Company will become known as the model for future natural resource development in California and the United States. Its operations will challenge the erroneous myths and prejudices of well-meaning activists who hinder the sensible extraction of our natural wealth. These beliefs have turned the omnipresent demands for raw materials to natural resource production in other parts of the world, a dangerous reality.
A primary ingredient for our vision and subsequent model to expand is an infusion of working capital. There has been a noticeable lack of interest from Wall Street or private investors in forest and mineral production. The modest attention of the stock market towards America’s natural resource companies hurts future generations both in the United States and the world. Some patterns of investment are predictable. Investors’ interest in specific industries continues to move from one sector to another. The Gold Sector is abstruse, removed from the usual way of thinking and difficult to comprehend. The forest industry follows closely in its mystic.
A movement into natural resource ownership or participation is overdue. Unlike banking, savings and loan institutions, automobiles, real estate, airlines, pharmaceuticals, computers, utilities and practically every part of the complex mixture of America’s democratic capitalism, the natural resource companies are ignored. Perhaps one simple answer is that resource companies believe they must stay under the radar to function in today’s hostile anti-mining/anti-logging mentality. Perhaps a more likely reason is the pure misunderstanding that potential investment capital has about these small but vital industries.
The Company’s dream foresees an awakening of Americans to the realization that we need and will benefit from a return to domestic natural resource productivity. For almost fifty years America has been bombarded with media blame for past degradation to the environment. Some of the blame is justified. Many extraction and harvesting methods, however, are no longer practiced and cannot be assumed as what to expect from future operators.
American industries have learned from the past and clearly are the most environmentally sensitive operators in the world. This is one reason to bridge the ignorance gap of the population and our leaders. The “not-in-my-back-yard” position is a short-sided myth! Vital and necessary minerals and other resource products come from countries without the sensible regulations that have evolved in the United States over the past hundred years. The consequences of this are global.
Even though population growth and physical development exploded during the twentieth century, the world-changing role of the United States has taken a more dramatic turn. A counter cultural shift emerged. America was considered the can-do country. Democratic and capitalistic social ideologies opened the doors for an expanding middle class, especially from workers identified as “blue collar”. Our natural resources were developed and accessible. What changed?
Somewhat reluctantly America became a world power and responsible leader. The blue-collar worker of today is losing economic ground as our society turns more and more to the service industries. But the need for manufacturing contemporary products in America remains; and in order to produce, industry requires raw materials. America has them in abundance. America also needs the backbone of its labor resources to insure our freedoms.
The time has come to broadcast how to treat our inherited resources in the 21st century. Original Sixteen to One Mine, Inc., a US corporation, has all the pieces to lead this renaissance except one. That missing ingredient is explained in its Executive Summary. The oldest American mining corporation operating needs a grubstake to turn its dream into a reality. It will celebrate a 100-year, centennial birthday in October 2011. Happy Birthday America. On July 4, 2011, the land that we appreciate and love is 235 years old.
More years have passed. Time for testing this vision is overdue. Those external events beyond control have raised no new weaknesses or threats to our Gold Mining Company. The opportunities are greater for our company to prosper. In addition to our exploration program and maintenance underground work, our lack of adequate working capital must be solved. This is my main focus for 2015.
The following analysis combines internal and external aspects of the Company. Strengths and weaknesses capture internal examples. Opportunities and threats reflect external considerations. This analysis was conducted with outside professionals and is presented to assist potential participants in our growth in their due diligence of the opportunity.
STRENGTHS
Natural Resources (Timber, Water, Gold, Crushed Rock Minerals)
Monopoly of natural product (quartz and gold gemstone)
Toxic material handling
Environment acceptance
Historical gold production and profit
Strong geology supporting future gold production
Mining historical and cultural value
Positive local government and public support
Museum 501(c)3WEAKNESSES
Insufficient working capital
Lack of workforce
Unpredictable revenue stream
Restricted trading market for stock
Lack of general investor interest in Gold SectorOPPORTUNITIES
Participation in ‘Gold Bull Market’
Natural resource exploitation
Participation in new outlook towards forest management
Media and entertainment venue and products
Natural and organic cosmetics for men and women
Hydropower and bottled drinking water
Vision uniqueness
Cultural and social impact
Baby boomer interest in related areas
Recreation and tourismTHREATS
Increasing government regulations
Reduction in market demand
Size of market
Extreme increases in utility and supplies costs
Unknown government regulations
Inability to secure sustainable financial backing
Fire exposurein reply to: INTERSTATE COMMERCE AND SMALL MINES #6026I just sent a lawyer the following letter. My position does not reflect displeasure with her. The discussion is ongoing regarding a wrongful position that federal executive branch employees are taking with MSHA authority. The biggest financial threat to Sixteen to One is spending an unnecessary amount of time (time is money and we lack both to waste)with federal agents telling us how, what and where we conduct our business. This Forum topic has a long background. Eventually, authority must agree with Sixteen to One. If not, federal public servants in the executive branch will have cast aside the legislative branch of our three part republic. This leaves one, the judicial branch.
Dear Ms. Horn,
I acknowledge receipt of your letter to Judge Manning today. Unintentionally, I am sure, you misinformed ALJ Manning, that “Mr. Miller has asserted that MSHA has no jurisdiction over the Plumbago Mine”. You wrote that the Plumbago’s exclusion is “because it was not in production status at the time it was inspected”. This is not the position of Original Sixteen to One Mine, Inc. (Sixteen to One). The Plumbago does not meet the requirements of Section 4, Mines Subject To Act. This old abandoned property was purchased by Sixteen to One in 1999. It has no products entering commerce before or after our purchase. It has no operations or products affecting commerce. Isn’t it a logical and obvious conclusion for political historians and legal minds that Congress knew of its intentions when those elected Senators and Congressmen signed the law? If not, why write Section 4? They could have said all mines in America will be ruled under An Act. Instead Congress expressly defined its intent in the Federal Mine Safety and Health Act of 1977.Congress also wrote Section 103, (e) with similar intent. “Any information…shall be obtained in such a manner as not to impose an unreasonable burden upon operators, especially those operating small businesses, consistent with the underlying purposes of this Act.” Again our elected officials made a distinction to size. They showed their intent.
Like you, I support MSHA’s position that mines in pre-production status may fall under MSHA’s authority. I could present a situation where a mine was not in production but affected interstate commerce. After all, the basis for this consideration is in US interstate commerce and Congressional documents. I read every case sent to me by the San Francisco solicitor’s office. None have facts comparable to the Plumbago. None support our disgust with MSHA regarding this situation. Actually it is less the opinions of MSHA people that are disgusting, but with the lawyers. They seem to be the more powerful but with the least understanding of mines and mining. There are no case laws or decisions signed by an Administrative Law Judge that speaks to the essence of Plumbago and the Sixteen to One.
My favorite passages in An Act are in Section 2, when Congress declares that its first priority and concern must be the miner (a). The operators and miners get to take responsibility for health and safety in such mines (e). The disruption of production impedes and burdens commerce (f). I really like Section 2. Congress also declared that our industry’s most precious resource is the miner. I agree that our miners are America’s most precious resource. Now they need to be protected from the agencies empowered to protect them. Our miners have become America’s most endangered species.
Ms. Horn, we have had some good conversations. I have responded quickly to every contact you sent. I asked you to check with Vacaville’s MSHA personnel about further reviews of citations. MSHA may believe that citations have been wrongfully judged by the inspector. The last solicitor I dealt with left a rotten taste in my soul. Much time was spent reviewing the specific instances of each citation. We made some progress yet she continued to insult me in subtle ways before and during our hearing. I know that you are not of this ilk in your practice of law. Yes, I have not sent you settlement positions. MSHA is breaking our back with feeble accusations. The paper work is killing me. MSHA must get back into working for Americans and its miners. It is not the regulations that are objectionable. It is the manner of their interpretations and enforcement in the 21st Century.
If you want to send me your settlement positions, I will take the time to read, understand and evaluate them. I like going to hearings less than anyone because I am the only one in the room that is not paid to be there. Why doesn’t your side (solicitors) agree with the Sixteen’s position and let the other side (MSHA) defend it? Why not tell me how you intend to prevail and I can review your side’s position. If it passes the legal smell test, I will agree.
If Chief Justice Roberts can write that aspects of the Affordable Care Act do not affect interstate commerce, he and the court’s majority should agree that two or three men removing debris in an abandoned tunnel is not subject to the commerce clause or An Act. Why? They do not make a dent in commerce. The main reasons there are only two gold mines operating in the radar zone in California, a state with valuable natural resources, are related to MSHA and two California state agencies that have lost their purpose. As I told MSHA employee in my office three hours ago, MSHA can effectively prevent accidents or death of miners because there will be none working anymore.
We and most Americans have a problem exemplified by the manner of treatment Sixteen to One is receiving from federal and state regulators from the three agencies stated above. I look forward to your efforts to resolve the issues at hand.
Sincerely,
Michael M. Miller, president/directorin reply to: Miscellaneous #6025As for this being the worst drought in history, I, too, have wondered is that. Has there been less rain than in any other four-year period or is it simply because the demands for water are so much greater?
There are more people living in the state today than ever before. There might even be more acres under cultivation than ever before (not sure about that one, though) but the point is demand for water is extremely high then when it doesn’t rain or, more accurately, doesn’t rain enough…..
Part of the reason I started this thread was because I was wondering, with all the paranoia about running out of water, could this be a politically expedient time to completely dewater the mine?
I’d just LOVE to see those deepest levels dewatered and the ground penetrating radar equipment taken down there.
It would be neat to see a couple of big, high-horsepower pumps hooked up to 9″ pipes and tell the farmers downstream, “Comin’ at ya!”
FMC
in reply to: Miscellaneous #6024In the article written by Egan he states that California’s economy is robust and won’t collapse. Well, I guess we’ll just have to see as Martin Armstrong’s computer, Socrates, confirms that the business cycle turns down October 1st and that’s not too far away. I suspect Tim is just blowing hot ail.
in reply to: Miscellaneous #6023Wow, What allot of hyperboil. Back in the 80’s California went thru a 7 year drought.
The agriculture production from California is not the greatest money maker, but it does provide a great deal of the nations food. Some thing that we all need. A good thing has happened in congress, when they passed the water bill. In that bill is a stop order for tearing down federal dams. Which was slated to happen along the Klamath River. I hope it has direction to build more dams, and reservoirs. in the Sierras. Nevada County is planning to build a new reservoir. There is also a desalination plant being built in San Diego after the design that is used in Israel, by the Israeli contractors. We are a smart people here in California and we will fix the problem as long as we can kick a nuckle draging environmentalist out of the way.in reply to: Miscellaneous #6022Group,
I know where they could find a little bit of extra water – if only they’d look in the right place. 🙂
(You need to “copy and paste” that to your browser ’cause our URL’s don’t “highlight” for some reason)
ANGELS CAMP, Calif. — IN a normal year, no one in California looks twice at a neighbor’s lawn, that mane of bluegrass thriving in a sun-blasted desert. Or casts a scornful gaze at a fresh-planted almond grove, saplings that now stand accused of future water crimes. Or wonders why your car is conspicuously clean, or whether a fish deserves to live when a cherry tree will die.
Of course, there is nothing normal about the fourth year of the great drought: According to climate scientists, it may be the worst arid spell in 1,200 years. For all the fields that will go fallow, all the forests that will catch fire, all the wells that will come up dry, the lasting impact of this drought for the ages will be remembered, in the most exported term of California start-ups, as a disrupter.
“We are embarked upon an experiment that no one has ever tried,” said Gov. Jerry Brown in early April, in ordering the first mandatory statewide water rationing for cities.
Surprising, perhaps even disappointing to those with schadenfreude for the nearly 39 million people living in year-round sunshine, California will survive. It’s not going to blow away. The economy, now on a robust rebound, is not going to collapse. There won’t be a Tom Joad load of S.U.V.s headed north. Rains, and snow to the high Sierra, will eventually return.
But California, from this drought onward, will be a state transformed. The Dust Bowl of the 1930s was human-caused, after the grasslands of the Great Plains were ripped up, and the land thrown to the wind. It never fully recovered. The California drought of today is mostly nature’s hand, diminishing an Eden created by man. The Golden State may recover, but it won’t be the same place.
Looking to the future, there is also the grim prospect that this dry spell is only the start of a “megadrought,” made worse by climate change. California has only about one year of water supply left in its reservoirs. What if the endless days without rain become endless years?
In the cities of a changed California, brown is the new green. A residential lawn anywhere south of, say, Sacramento, is already considered an indulgence. “If the only person walking on your lawn is the person mowing it,” said Felicia Marcus, chairwoman of the State Water Resources Control Board, then maybe it should be taken out. The state wants people to convert lawns to drought-tolerant landscaping, or fake grass.
Timothy Egan
The environment, the American West and politics.
The Plutocrat Primary APR 24
The Boat to Lift All Tides APR 17
Remains From Lincoln’s Last Day APR 10
The Conscience of a Corporation APR 3
Traitors to Their Class MAR 20
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Artificial lakes filled with Sierra snowmelt will become baked-mud valleys, surrounded by ugly bathtub rings. Some rivers will dry completely — at least until a normal rain year. A few days ago, there was a bare trickle from the Napa, near the town of St. Helena, flowing through some of the most valuable vineyards on the planet. The state’s massive plumbing system, one of the biggest in the world, needs adequate snow in order to serve farmers in the Central Valley and techies in Silicon Valley. This year, California set a record low Sierra snowpack in April — 5 percent of normal — following the driest winter since records have been kept.
Photo
A redundant sign in a fallow field in Los Banos, Calif. Credit Ken Light/Contact Press Images, for The New York Times
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To Californians stunned by their bare mountains, there was no more absurd moment in public life recently than when James Inhofe, the Republican senator from Oklahoma who is chairman of the environment and public works committee, held up a snowball in February as evidence of America’s hydraulic bounty in the age of climate change.
You can see the result of endless weeks of cloudless skies in New Melones Lake, here in Calaveras County in the foothills east of the Central Valley, where Mark Twain made a legend of a jumping frog. The state’s fourth largest reservoir, holding water for farmers, and for fish downstream, is barely 20 percent full. It could be completely drained by summer’s end.
It’s a sad sight — a warming puddle, where the Stanislaus River once ran through it. At full capacity, with normal rainfall, New Melones should have enough water for nearly two million households for a year.
Even worse is the Lake McClure reservoir, impounding the spectral remains of the Merced River as it flows out of Yosemite National Park. It’s at 10 percent of capacity. In a normal spring, the reservoir holds more than 600,000 acre-feet of water. As April came to a close, it was at 104,000 acre-feet — with almost no snowmelt on the way. (The measurement is one acre filled to a depth of a foot, or 325,851 gallons.) That’s the surface disruption in a state that may soon be unrecognizable in places.
The morality tale behind California’s verdant prosperity will most certainly change. In the old narrative, the evil city took water from powerless farmers. Swimming pools in greater Los Angeles were filled with liquid that could have kept orchards alive in the Owens Valley, to the north.
It was hubris, born in the words of the city’s chief water engineer, William Mulholland, when he opened the gates of the Los Angeles Aqueduct in 1913 with an immortal proclamation: “There it is. Take it.”
But now, just about everyone in California knows that it requires a gallon of water to grow a single almond, or that agriculture accounts for 80 percent of the water used by humans here. Meanwhile, the cities have become leaders in conservation. It takes 106 gallons of water to produce an ounce of beef — which is more than the average San Francisco Bay Area resident uses in a day. Mayor Eric Garcetti of Los Angeles wants to reduce the amount of water the city purchases by 50 percent in the next decade, cutting back through aggressive use of wastewater and conservation.
It’s outlandish, urban critics note, for big farm units to be growing alfalfa — which consumes about 20 percent of the state’s irrigation water — or raising cattle, in a place with a third of the rainfall of other states. And by exporting that alfalfa and other thirsty crops overseas, the state is essentially shipping its precious water to China.
Still, casting California farmers — who produce about half of the nation’s fruits, nuts and vegetables — as crony capitalist water gluttons may not be entirely fair. Yes, the water is subsidized, through taxpayer-funded dams, canals and pumping systems. But that water, in some cases, ends up as habitat for birds and wildlife. As it drains away, it can recharge badly depleted underground aquifers. Farmers have already let more than 400,000 acres go fallow and took a $2 billion hit last year. They may add 600,000 acres to that total this year. Almonds, after all, are a healthy food source.
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The new morality tale becomes further muddled when you consider that San Francisco, praised for its penurious water ways, gets its life-supporting liquid from the Hetch Hetchy dam, in Yosemite. Many people, dating from the sainted John Muir, believe that flooding that mountain valley was one of the bigger crimes against nature in California history.
And not every city is Spartan with its water. On any given day you can find, as I did in a new housing development in the foothills east of Sacramento, water running down the street — at a flow rate that looked bigger than that coming from the anemic Merced River. It was pouring onto a grass median strip, and then spilling over, in a development called the Estates at Blackstone.
Or consider that wealthy communities — say, Portola Valley, woodsy home to many an environmentally conscious tech multimillionaire — use far more water per capita than do the poor of Compton, in the Los Angeles area. When cost is no object, there is very little incentive to cut back.
But there is no getting around the fact that agriculture, for all its water needs, still produces barely 2 percent of the state’s gross product, and employs only about 3 percent of its workers.
in reply to: How to Approach Thin Veins & Cost #6021Rob McEwen who originally built GoldCorp was a believer like Mike. Rob goes after gold where gold has been produced before. Consolidation is the formula that started Kirkland Gold. Years ago some past producers at Kirkland Lake were Wright Hargreaves and Lake Shore Mines, I know because I traded them. The two abandoned mines were consolidated with a few more and today, the company has respectable high grade production.
I predict the face of Alleghany will be greatly changed when the money bags journey up the mountain as gold makes new all-time highs following its final low sometime before the end of the year. The final shake is coming and it will be the last opportunity to pick up more shares at below bargain prices. Time is on the side of OSTO shareholders, finally. Just an opinion based on my increasing knowledge of markets based on my continuing education, mainly, from Martin Armstrong.
in reply to: How to Approach Thin Veins & Cost #6019Mines.Lode: Brush Creek $4 million+, Dreadnaught $50,000 to $100,000, Docile $100,000 to $200,000, Eclipse $20,000 to $50,000, El Dorado $325,000, German Bar $200,000, Gold Canyon $750,000 to $1 million, Gold Crown, Golden King $250,000, Irelan $350,000 to $500,000, Kate Hardy $700,000, Kenton $1 million to $1.25 million, Mariposa $50,000, Morning Glory $80,000 to $100,000, Mugwump (both lode and placer) $50,000, North Fork (both lode and placer) $125,000, Oriflamme, Ophir, Oriental $2.85 million, Osceola, Plumbago $3.5 million, Rainbow $2.5 million, Rainbow Extension, Red Ledge, Red StarOsceola- $200,000, Rising Sun $58,000, Shannon, Sixteen-to-One $25 million+, South Fork (both lode and placer), Spoohn, Tightner, Twenty One, Wyoming, Yellowjacket. Drift: Bald Mountain $3.1 million, Bald Mountain Extension $500,000 to $1 million, Gold Star $250,000+, Highland & Masonic $300,000+, Live Yankee $750,000 to $1 million, Ruby $1 million+.
Excerpt from: Gold Districts of California, by: W.B. Clark, California Department of Conservation, Division of Mines and Geology, Bulletin 193, 1970.
in reply to: How to Approach Thin Veins & Cost #6020Consolidation is a big concept in mining districts. My early adviser, WP Fuller, Jr, said “keep this in mind. Original Sixteen to One Mine, Inc.’s management knew how and why to consolidate and was successful in keeping the Alleghany Mining District strong and vibrant.” I did keep it in mind. Prior to the dollar production listed below by Bluejay, our company owned the following mines: Eclipse, Ophir, Rainbow, Rainbow Extension, Sixteen to One South Fork, Tightner, Twenty One, Bald Mountain, Bald Mountain and Extension. The Gold Crown and Plumbago were acquired after 1990. It is important that each mine retains its own identity but together, economic factors of scale, supply/demand, give each mine the edge to prosper.
Those dollar figures represent ounces produced times spot per ounce price of $35. For the value today, multiple the dollar amounts by 34. Do this and you’ll realize why shareholders kept the Company alive for over 100 years during its lows. Educated geologists estimate that 70% of the vein system remains untapped.
True, gold mining carry risks. Its history in California resembles a boardwalk roller coaster: that big high ride to the top, the plunge down, jerky turns and curves. I had many such rides on the Santa Cruz Big Dipper in my youth. When the ride ended and I step out of the car, I usually wanted another ride.
Reflections are great! I remember when this topic first started. A better name would be How to Approach a High-Grade Gold Deposit. Maybe changing thin to small is enough. Better yet, if you forgot what was written in the beginning, give 01/28/2009a look.
in reply to: How to Approach Thin Veins & Cost #6018Our biggest customer of our jewelry quartz & gold bought the mine the touted detector made in Australia. It promises 40% greater depth. Our detector guru has been trudging the underground workings with this new invention in hand. Things change when electronics say, “Hello, hear and see me. I am affecting your tool.” A signal can be determined sometimes with a rock pick or finn hoe, two handy tools to carry when detecting underground. The detector loves blasting caps. It also likes iron and what we call, “hot Rocks”. Life gets more exciting when a signal becomes a target. The transition takes place with human judgment. It may be the geology, the noise the machine is transmitting, information from historic maps or even a hunch. No matter once a target is identified, mining gets more interesting.
Our last two targets were disappointing. The first was a broken drill bit that was concealed in the quartz. The second was gold. Okay but only about one quarter of an ounce. We are pleased that this new machine could detect something so small. To go beyond that rock hammer or finn hoe is a time consuming and costly adventure. All we learned from those two targets was knowledge about the machine. Both were a financial loss.
Last week the miner told me that he has a target. The machine gave him information and we did all the rest in judging the next step. The third mining adventure proved it was gold and enough to have economic value. No, it isn’t another whopper or a million dollar day or even what my directors agreed was news worthy. But for us, we are pleased and plan to explore this area in the coming days.
Our belief in gold detecting began in 1992.
Send the old Sixteen to One some positive wishes with this target.in reply to: From the Sixteen to One Archives #6017Hi Mike,
Having read your previous letter and comments, I hope you are well. Youare agreat representative for the rights of the miner here in California. The conflicts in court should be done sooner for compliance to the Constitution.
in reply to: From the Sixteen to One Archives #6016I looked into the usefulness of restarting the lost organization of the Alleghany Mining District in 1978. I was very excited with the prospect of local control. Its value today is seriously compromised with this language taken from Clark’s text below. Second paragraph: “and not inconsistent with the laws of the United States”. Third paragraph: “This grant from Congress enabled miners in their respective mining districts to regulate their own pursuits subject to the laws of the United States.” The key words are, “subject to the laws of the United States.” Unless I am wrong (and I hope to be wrong) the Federal Mine Safety and Health Act of 1977, which defines the regulatory position for mines, preempts anything authorized in a Mining District.
The strongest law, called “An Act” is not followed today by the regulators, called Mine Safety Health Administration (MSHA). Section 4 identifies those mines Congress intended to regulate. MSHA now interprets Section 4 as all mines. This is an unlawful act by federal employees. An Act also qualifies inspectors’ background, experience and training authorized to write citations. Its inspectors do not have these qualifications. They are law breakers. If the Alleghany Mining District, a well-established district that has continued to operate since its inception, could enforce the law under An Act, I would be jumping to activate the process. Below is a recent communication I had with the Federal Review commission. No answer yet.
March 31, 2015
Dear Federal Judge,
There are four Dockets listed in the March 31, 2015, Order of Consolidation Amended Prehearing Order. Two dockets are for Mine ID #04-03065 not Mine ID # 04-01299. These mines are not compatible for a mutual hearing. My employer is concerned about the loss of productive time because of the multiple dockets combined at the last hearing. My memory recalls that all parties realized the difficulties in conducting that hearing.While I have your ear, my employer has serious concerns about the roles of MSHA inspectors and MSHA management with solicitors: conducting negotiations and hearing attendances. Is this the first time you have heard of this? Too many federal employees involved in carrying out the intent of An Act have lost their way at the expense of those they are required to protect…the miners. Perhaps it is just in the Western District. I don’t know what coal or other miners are experiencing. Most of the gold miners and operators in Northern California have experienced awful treatment from those empowered to protect them. This must change in order to implement Section 2 of the Federal Mine Safety and Health Act of 1977.
My mining experiences predate the legislation that was passed by Congress in 1977. My time in this important industry is also drawing to an end. Those people whom I have never met over the years can readjust the system now operating with serious imperfections. Are you aware of the root causes of malcontent amongst small underground gold miners? If so, what has been reported to you?
My employer, Original Sixteen to One Mine, Inc. is the oldest and longest gold mining operator in America. It offers its assistance in improving the interaction of MSHA and operators. According to the law, “the operators of such mines with the assistance of the miners have the primary responsibility to prevent the existence of such conditions and practices (unsafe and unhealthy) in such mines.” I agree with the law and pledge to work with people to get our regulators and operators working to carry out Congress’s mandate. America needs its natural resource industries to remain free.
Regards,
Michael Meister Millerin reply to: Miscellaneous #6015C.W.,
Didn’t most of this actually happen last year? I seem to remember finding a press release from Sutter last year stating that the development of this mine was “put on hold” pending the new $1.2 million investment that they can’t seem to find.
Regards,
Fred M. Cainin reply to: Miscellaneous #6014I was perusing some news and noticed another smaller-scale miner (Sutter Gold) in California recently ran into some serious problems:
Sutter Gold Mining Inc. yesterday announced plans to put its California-based Lincoln mine project on care and maintenance. Though the mill has processed about 1,000 tons of stockpiled material, it ultimately failed to get through all the material due to “weakness in the design and installation of the plant thickener.” Milling operations were suspended at the end of February due to the “inability to dewater tailings.” To correct those and other issues, the company requires an estimated additional investment of $1.1 to $1.2 million.
If I remember correctly, Sutter Gold mines in Amador county, and was bankrolled by an Aussie company/investor.
“I guess id it was easy, everyone would be doing it”
in reply to: Clips from Alleghany #6013Scoop,
Sounds to me like if I lived there I’d want to have a good wood stove. Or is burning wood no longer considered “politically correct” in California?
We met a girl on the train last year who was a German Baptist from somewhere in the Modesto area. The German Baptists are a little bit like the Amish except they’re not quite that old fashioned. But they do burn wood. She told us that they have “no burn days” when the smog is bad and that they can be fined if the burn wood on a “no burn day”. Seems strange to me ’cause I think most of the pollution is coming from people’s cars – not from the German Baptists heating with wood.
Years ago, I had an uncle in the Porterville area and I remember he had a wood stove. But that was back in the 1960s.
Good to hear about the new metal detector. I hope they find something. But I still think it would be a good idea to try it out on some of the deepest areas of the mine that still need to be dewatered.
Regards,
Fred M. Cainin reply to: Clips from Alleghany #6012Something strange happened today. Residents were confused. It brought back a distant memory. White wet stuff kept falling from the sky. Finally the County big trucks came clunking through Alleghany and everyone remembered: it’s called snow; yes, it has snowed all day.
The Sixteen to One office had its own problems. The propane tank emptied over the week end and wasn’t discovered until yesterday…no heat. A call to the gas company promised a delivery today. No delivery. The truck couldn’t pull the grade with snow on the road, so the company canceled delivery. That’s how it goes in the back country sometimes. Deal with it!The mine got the new Australian Mine Lab detector, which claims a 40% increase or greater depth potential. It picks up spent blasting caps real well says Britt. Do you think all the gold is gone from the old workings? Scoop doesn’t. Good luck, boys. You all deserve some breaks.
Not much news to report. Shareholder meeting coming up end of June. Price of gold holding well in the face of stronger dollar.
in reply to: From the Sixteen to One Archives #6011The Power of Mining Districts
by Clark Pearson
Director, Northern Office
Public Lands for the People
_______________The 1872 Mining Act was Congressional acceptance that miners can make needful federal rules and regulations governing their activities on federally managed lands. Specifically codified under 30 U.S.C. sections 22 and 28. Section 22 states:
“Except as otherwise provided, all valuable mineral deposits in lands belonging to the United States, both surveyed and unsurveyed, shall be free and open to exploration and purchase, and the lands in which they are found to occupation and purchase, by citizens of the United States and those who have declared their intention to become such, under regulations prescribed by law, and according to the local customs or rules of miners in the several mining districts, so far as the same are applicable and not inconsistent with the laws of the United States.” (Emphasis added.)
Essentially, this is by the miners, for the miners. This grant from Congress enabled miners in their respective mining districts to regulate their own pursuits subject to the laws of the United States. Most of the previous rules and regulations by miners in their respective mining districts were reabsorbed into state law. With the miners choosing to organize the traditional mining districts, they shall have federal supremacy over conflicting state and federal law upon federal lands.
The Mining Districts shall override conflicting state and federal laws that stand as obstacles to the full Congressional objective of the 1970 National Minerals, Mining, Reclamation and Policy Act (30 U.S.C. section 21a) and the 1955 Multiple Surface Use Act (30 U.S.C. 612 sections a – b).
The Mining Districts shall intervene upon the miner’s written request to resolve conflicts that unreasonably interfere with the miner’s right to extract, as defined in U.S. v. Shoemaker. Said in another way, the miners will police themselves, and the Mining Districts will have the first right to mitigate any claim disputes before going to the Interior Board of Land Appeals or any other federal or state court.
The Mining Districts shall be the arbiter of reasonable environmental and safety regulation(s). (See footnote 1.)
And most importantly, the Mining Districts can open the federal land to multiple-use by the public on principles of inclusion rather than the present day exclusions carried out by the extremist environmental lobby groups that work inside and outside all the other various agencies. (See footnote 2.)“A wise and frugal government, which shall leave men free to regulate their own pursuits.”
— Thomas Jefferson, 1801, on what constitutes good government.Miners, in their respective Mining Districts, have the ability to duly elect representatives to make rules and regulations governing their mining activities (customs of miners) in contrast to executive agencies that currently answer to the whims of the President and the bureaucracy. These duly elected representatives will have a proposed term of 4 years such that they will be accountable to their constituents — the individual miner — just as it worked in the 1800’s. And quite successfully I might add.
Once the organized Mining Districts take shape, the Minerals and Mining Advisory Council (MMAC) can and will submit to Congress for a budget for the administrative functions and clarifications of the Mining District’s relationship with the other federal and state agencies. The MMAC website will have a resource section which explains what your fundamental rights are as miners. The claim owners in those districts elect all the miners that represent the districts and upper tiers – nobody is appointed.
Presently, MMAC has developed some preliminary guidelines and clarifications (changes to HR 761 rev. 8, and ESA reform) and handed them to the Congressional House Subcommittee on Resources and Minerals. This preliminary notice from MMAC to Congress is open for more discussion but covers and fixes many of the problems the mining industry faces that have hit most miners especially hard. There are severe ambiguities in law that need clarification that stand as obstacles to the accomplishment of the National Minerals, Mining and Reclamation Policy Act of 1970 (codified under 30 U.S.C. 21a).
The MMAC will need the active participation of every miner, every mining organization, every claim holder and any other group that shares the multiple-use principles of our public lands. The tasks before us are for Americans that strive for accountability, self-determination, and for laws that are for and by the people. It could be said that miners can shine the light on the proper role of government in the darkest of tunnels.
Mining District Advisory Council website: http://www.mineralsandminingadvisorycouncil.org/
Ben Franklin once was asked to comment about our newly formed government of the United States of America, and he said, “It’s a republic, madam – if you can keep it.”
Now I ask the miners of today, we have Mining Districts — can we keep and run them?
_______________1. Before any agency such as EPA, DFG, DEQ, USFS, MSHA can carry out any existing or proposed regulations on the mining community, they must first get approval from the Mining Districts to implement them. (Clarified in modified HR761)
2. Items for example: roads currently closed now will be evaluated by the Mining Districts for determination on leaving them open to the public as intended.in reply to: Gold Enters Major Bull Market #6010Morgan Stanley’s gold price prediction in 2015 is at $1,185.
CPM Group sees the price of gold falling for a third year in a row in 2015. It expects the average at $1,208.
MacNeil Curry, head of global technical analysis at the Bank of America Merrill Lynch, sees gold perhaps reaching $1,300.
in reply to: Let’s back physical shares with physical gold #6009Hans,
Yes and a reply was sent moments ago. I look forward to your next email. Hurray for the Germans and its economy leading
Europe and our American economy.in reply to: Let’s back physical shares with physical gold #6008Hello Mike,
I have sent an E-Mail to you at mmeistermiller@gmail.com about two weeks ago. Did that E-Mail ever reach you?
Kind regards from Germany,
Hans W. Kummerow
in reply to: Miscellaneous #6007Government Out of Control
Burgers and Weiners Targeted by EPA
in reply to: Another U.S. precious metals miner goes foreign #6006Shareholders will lose all (including CalPERS, who own over 2% of the stock). Looks like Wells and Bank of Nova Scotia will provide financing. The Hycroft mine will stay operating, as this is essential for any of the creditors to recoup funds. It looks like they lost (mark to market) around $95 million on currency swaps, which were necessary because of operations in Mexico/S. America. Their all-in cost for 2015 is a little over $1000 per ounce – not much room for error.
There is a ton of info on the recent form 8-K.Good point on Barrick – I am very familiar with their current debt/leverage position. The Pascua Lama project in Chile/Argentine really set them back, bad…
in reply to: Another U.S. precious metals miner goes foreign #6005Sad news, cw3343. Wonder who will bail Allied out of its death. Will it become foreign owned? What about all those existing shareholders?
The bankruptcy is quite a step down for Allied Nevada. The US-based gold mining and exploration company, which holds the Hycroft gold-silver mine in Nevada and a variety of other properties in that state, reached a high of $45 back in 2011 when the gold price peaked.
Looking at how bad it got for the company, the news outlet states that Allied Nevada’s debt clocked in at $664 million as of December 31, 2014, with its assets coming to $941 million. Meanwhile, the company had less than $1.3 million in cash in November of last year; though it was able to bump its treasury up by later raising $21.5 million, by Tuesday its cash was back down at just $4.5 million.
As mentioned, Allied Nevada’s filing is in support of a financial restructuring that will allow the company to reduce its “funded debt obligations and provide [it] with additional liquidity” — specifically, it will receive a cash boost of $78 million. The majority of the company’s creditors reportedly support the restructuring, and its entire creditor and vendors are expected to be paid in full when it’s complete.
The first domino?
In addition to being heavily leveraged, many miners have had their credit ratings downgraded. Companies are heavily leveraged. Debt is becoming less and less available. Examples of miners that have received downgrades include Teck Resources and Barrick Gold downgraded in January. The miner’s debt-to-total-capital ratio was 45 percent, making its financial leverage higher than average. Its long-term debt was sitting at about US$1.3 billion.in reply to: Another U.S. precious metals miner goes foreign #6004Not sure if foreign ownership will result – but RIP Allied Nevada Gold.
Among other reasons for their Chapter 11, currency swaps exposure was mentioned.
in reply to: Let’s back physical shares with physical gold #6003Hans,
Well, I can say that your English is excellent ! I mean, words like “negotiating”, “spectacular” and maybe even “dealmakers” – those can be difficult words to translate!
To get our subject back on topic (my fault for the diversion), it is just really amazing to me all the different kinds of people from all walks of life who are interested in this mine.
Regards,
Fred M. Cainin reply to: Let’s back physical shares with physical gold #6001Hans,
I’m really impressed that so many Germans are fluent in English. They have certainly outdone Americans since very few Americans can speak or read German. (I can probably read better than I can speak).
But what concerns me is what does this imply for the future of the German language? Is that really a good thing? I’m not so sure.
Regards,
Fred M. Cainin reply to: Let’s back physical shares with physical gold #6002Fred,
The Germans have become global traders during the last decades and German dealmakers are travelling all over the place negotiating deals and signing deals. And usually, they are negotiating and signing in English language. Over here in Europe most people in business understand at least three languages. It is part of our everyday life. Nothing spectacular.
Kind regards from Europe,
Hans W. Kummerow
in reply to: Let’s back physical shares with physical gold #6000Thank you for your detailed response to my question Mike.
I agree that exposure of an Investment Opportunity to potential investors is a crucial issue. I also believe that language barriers between the American and the German investor scene do not pose a serious obstacle to any communication strategy because business oriented Germans speak English just like German today. They can read entries in this Forum without any problem.
The bottleneck is exposure. I shall write to you on that subject in a seperate message.
Kind regards from Germany,
Hans W. Kummerowin reply to: Let’s back physical shares with physical gold #5999Sehr interessante Ihrer Vorschag für das Forum auf Deutsche überzusetzen!
Wie viele auf unserm Forum können Deutsch? Ich kann etwas Deutsch aber nicht sehr gut !
Fred M. Cain
in reply to: Miscellaneous #5998Like your website, good stuff especially for keeping up with local mining info.
I am a local (Nevada City) Bullion treader and buyer. I buy from the locals with nuggets, buttons and fines. I refer people to your site from http://www.GoldCountryMine.com My current site does link to yours and I will continue to do so from my refurbished site hoping to finish in about a month.in reply to: Let’s back physical shares with physical gold #5997Hi Hans,
I’ll answer your question below and offer thoughts on gold, gold mining and related areas of investment.I like your phrase, “a more dynamic drive to win additional support from bystanders.” It acknowledges the existence of a dynamic and energetic drive in the past. It acknowledges that we have support by asking if I want additional support. It recognizes that others, maybe a few or maybe many are standing on the sidelines, not really in the game. I hope so.
What about translating our FORUM into the German language? This would be my first choice; however a financial adviser most likely would recommend the first additional language be Chinese. Would expanding the awareness to Germans that the oldest USA gold mining company seeks working capital to exploit its gold deposit pan out? I think the possibility is worth the risk.
Investors or gold hounds or gold speculators or people with a dream and some cash to put towards that dream have the opportunity to enter the small and limited stock market to grab some shares. This doesn’t meet our current needs. I want to sink a new shaft in the middle of our property. It is what mining companies do and this plan is well documented and studied. Our library has maps and records plus our miners have personal experiences in the northern end of our underground workings. This is not a guessing plan. It is solid, based on evidence.
I want to find hungry capital owned by a hungry man, a group of hungry people or a daring woman. The underlining requirement is they must have the temperament and resources to exercise the plan. In addition to my belief that together we will find a lot of gold, our project has large social benefits to America and the world. The natural resource industry is in the midst of trauma. It just depends what one reads to get the picture. The world cannot operate without the production of earth’s natural resources. Natural resource production is not a hot sexy topic and its discussions in the news are slight. So, where can I find these people capable of looking into Original Sixteen to One Mine, Inc.?
The next important question is: How can these people find me? Really, nothing else matters. There is so much information about our business in print. The details of putting investment capital into our company cannot be discussed in detail over the phone or in a venue like this website; however, this website has enough to get these people’s interest.
The selling price of gold is great. A $1,212 per ounce has plenty of room for us to run a profitable operation. It is positive. The risk of total loss can be mitigated with the issuance of negotiated preferred shares. This is positive. Will be find gold? This can best be answered by reviewing mining history, which spans 162 years, dating back to 1853. While this cannot be a provable fact, it is a most probable outcome.
As I wrote a month ago here in this topic, we could use some help about now.
If anyone wants to contact me privately, please use mmeistermiller@gmail.comin reply to: Let’s back physical shares with physical gold #5996Congratulations to our President for finally settling the Water Issue for good.
Is Origsix-Management now ready to kick-start a more replica handbags dynamic drive to win additional support from bystanders?
in reply to: Water and Arsenic: which came first? #5995Sierra county Superior ‘Court Judge signed the stipulated agreement last week. Company is informed by its
Attorney that the issue is finished.in reply to: Clips from Alleghany #5993HERE’S THE WEBSITE SITUATION
Sixteen to One was an early company to put its website on the Internet. A mining engineer named Johan Raadsma pushed the then novel idea in 1995. A couple of locals worked on it with so so results. In 1998, a very smart Hungarian redesigned it and has tweaked it as technology improved. Well, technology apparently has moved past the ability to tweak it further. It is old, a vintage website with outdated functions.
It must be brought into the 21st century, but its format will resemble what you see right now. It takes some time and money so bear with this old Company as it continues to move forward.
in reply to: Clips from Alleghany #5994re the post below:
All y’all are doing fine with the website. It is as good, or better than most of the other junior miner sites, of the dozen or so that I have looked at. Keep up the great work.
(one item that could be added, and/or improved upon would be a good map of the mine. An interactive map would be pretty cool – Although that is probably one of the more difficult things to lay out and display decently on a website)
in reply to: Clips from Alleghany #5992Scoop,
If they’re really so worried about a water shortage, I know where they could find some more water! All they would need is a good pump and a big pipe and Kanaka Creek will be raging!
Uh, well, I guess “that” water wouldn’t be “politically correct”, huh? What if it had minute traces of arsenic in it?
Regards,
Fred M. Cainin reply to: Water and Arsenic: which came first? #5990Fred, to your question below:
EXTORTION BY A CALIFORNIA PUBLIC REGULATOR
in reply to: Water and Arsenic: which came first? #5989Michael,
Monthly payments? Monthly payments for what?
R,
Fred M. Cain
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