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- in reply to: From the Sixteen to One Archives #5950
Newsletter#35 sent to shareholders December 4, 1996, was in my thoughts today. There is no doubt nor was there eighteen years ago that improvements in both software and hardware to recognize unseen metal in the Sixteen to One quartz will lead to gold production. It is the single most dramatic exploration tool for a gold deposit like ours. As previously announced, work with a private company that shares our beliefs is guiding our exploration at the mine. As said before, the relevant question is “when will the technology package be found?” Not if it can be discovered.
Off the shelf detectors have improved and some of the electrical tweaking we have tried has helped. Sadly, the last meaningful gold was mined in 2004. The Sixteen to One is far from dead but our operation has been crippled for a decade from the modest production. These underground gold mines have knowledge not found in books. Scholars, analysts and others struggle to learn.
Technological Summit #35
On October, 3 1996, we hosted a technological summit for selected experts who believe we can locate and mine gold more efficiently using their emerging technologies. Participants included Dr. Sandor Holly, a MIT and Harvard trained physicist and early developer of IBM laser research, now working on electromagnetic imaging; Jeffrey Oicles, director of Power Spectra, a Silicon Valley company now turning its attention to ground penetrating radar; Dr. Larry Stolarczyk, of Raton Technology Research, Raton ,New Mexico, who pioneered the development of subsurface radio waves for high resolution mapping of ore bodies in coal mining and is currently working on electromagnetic imaging techniques for detecting gold in quartz; and Curtis M. Romander, research engineer at Poutler Laboratory, of a division of SRI International, Menlo Park, California, who contributed the latest information on SRI’s patented low density explosives, of interest to us because they appear to produce specimens more suitable to jewelry and specimen sales than our current methods. Enthusiasm was high as Dr. Holly spoke of “the beginning of revolutionizing underground gold mining” and Mr. Oicles of a “significant promise for a quantum leap in gold detection and mine mapping.” As announced in the Annual Report, we have been designated a beta testing site by the participants in the summit. The companies get the use of our mine, a proven gold producer, as a field laboratory, and we benefit from the free use of the most innovative gold location technology in existence. We retain, of course, full rights to any gold found using these emerging technologies. To date, only Mr. Stolarczyk has performed experiments in the mine, and these did not increase the scope of the equipment we currently use. All participants have experiments planned over the coming year.in reply to: Ideal Time for Facts #5949With inquires about my post below, a follow up seems prudent.
The formal demands at the highest level of federal policy are out of touch with day to day operations of miners. The inspectors/investigators are encouraged to aggressively pursue hearsay evidence by this recent MSHA directive. Maybe it is required in the coal industry. Coal is vital to all Americans. Growing congestion on US railroads due to crude oil shipments is side-lining coal and worrying power producers nationwide. The fear is a reduction in power generators. I’m not familiar with the coal miners and their working situations. They most likely are not familiar with the underground gold miners, especially those few in California. Even though, my desire is to let them know that others in the mining world are not comfortable with MSHA going after hearsay opinions that will determine the outcome of an investigation.
When MSHA directs its inspectors to go after a particular area in the mining industry, the small operator and miners receive little or no benefit. Our mines do not resemble coal mines, yet the rules MSHA enforces (and how inspectors go about it) are best described as, “one shoe fits all feet).
America must correct this behavior or we will become extinct.in reply to: Ideal Time for Facts #5948Six weeks ago MSHA reissued its Procedure Instruction Letter “PIL” regarding inspectors investigating fatal accidents. The policy letter notes two changes. Both create more opportunities for inspectors to gather hearsay or secondary information from persons not at the accident scene. MSHA now encourages inspectors to “aggressively pursue interviews with witnesses (?) not on the mine site at the time of the accident”. This is a requirement placed on inspectors.
While this whole change of enforcement is somewhat troubling, this revision emphasizes the investigator approach family members to specifically seek potential hearsay evidence of “statements the victim gave to family members about safety issues at the workplace”. It also requires the accident team to create a Public Notice to encourage any person to contact MSHA with hearsay information related to the accident. MSHA will also consider this information as privileged, which prevents operators from learning the information until 48 hours before the MSHA hearing. The MSHA review commission now interprets Section 103(a) of the Mine Act of 1977 to require operators to turn over the home addresses and telephone number of miners to MSHA investigators.
in reply to: CDAA Conduct #5947Check the website heading “NEWS” for a recent front page article about CDAA. The criminal actions of Gayle Filter and his followers continue to draw front page attention. What happened to the Sixteen to One came close to breaking the Company. A mixture of some great ethical lawyers put time into our defense. Until our important and vital members of the judicial branch of the three divisions established in the federal constitution and defined in each state constitution, rules, statutes and laws wake up, the crimes perpetrated by a few lawyers and judges will continue to hold Americans hostage.
Interestingly attempts to draw attention to this serious problem never rest. Case No. S219052 in the Supreme Court of the State of California is about a case similar to the CDAA prosecution of us. We were contacted to join California Aware to file Amicus Curiae Brief in support of respondent, the City of Montebello. The Court of Appeal Case No. is B245959. Los Angeles County Superior Court Case No. is BC488767, The Honorable Rolf Treu.
in reply to: Clips from Alleghany #5946Here is an important SCOOP – following is correspondence back and forth on the security of this website.
Office: “Several people have told us that when they do a Google search and our site comes up Google gives a warning that our site may be hacked.
Do you know how to make this go away? It does seem to prevent some people from looking at our site.”Webmaster: “True, I see the label. I’m going to look after it.”
Office: “Thanks”
Webmaster: “After some actions, Google has removed the label. (They were pretty quick, far quicker than they promised.)” Regards
Now for an update: Yes, news from the Sixteen has been hard to get lately. Much is going on but true to Mike’s pattern of behavior, until activities are assured or he believes it required, advantageous or necessary, the Company’s business is not open for discussion. Just like those gold explorers, Scoop can dig around looking for a nugget or better yet a pocket of gold.
A MSHA brief of the hearing held in Nevada City in August is due early January. A settlement for the lawsuit filed by the water regulators for $2.3 million is under consideration. Exploration at the Sixteen to One mine and rehabilitation of the adit at the Plumbago mine continues. Thirteen feral kittens are captured and held in the mine’s office waiting to get a little older before a trip to the nonprofit shelter for a fixing. Six took the trip already. (This is not the first time feral cats were a problem in Alleghany.) This is a no kill shelter. History likes to proclaim that mining and prostitution are two of the oldest professions. Well this 103 year old mining company is now also a cat house.
in reply to: Stock exchange listing #5945i recently sold shares at $0.50 at a well known broker..
in reply to: Stock exchange listing #5944Michael,
I think I might know why. One guess is that who ever sold their shares for 42 cents needed to raise some cash very badly and was either unable or unwilling to wait and see if the share price rebounds further. As to why someone would buy them at that price, they didn’t get such a bad deal, either.
I bought my last “grey” shares for around 20 cents, I think it was, but I am going to get absolutely “soaked” on the certificate so it’s probably a “wash”.
I realize that these share prices must seem pretty paltry to some who have owned Sixteen To One for many years. But, compared with what some of these other small mining companiies are currently trading for, we’re actually not doing all that bad. Sutter Gold? North Bay Resources? Emgold? Western Pacific Resources? SHEESH ! The list gets longer.
So, I guess I’m optimistic right now and growing more so all the time.
Of course, the Water Board might end up throwing a monkey wrench in the machinery but I’m hoping and praying not.
Regards,
Fred M. Cainin reply to: Stock exchange listing #5942Yesterday our so-called “grey” shares closed at 42 cents and appear to have even briefly traded at around 55 cents.
This is the highest they’ve been in about a year. I like to think this is a sign that something’s going right.
Regards,
Fred M. Cainin reply to: Stock exchange listing #5943If you check the STOCK topic on the FORUM, 10,000 shares traded at $.42 yesterday. As to a question of why, I don’t know because I don’t know why anyone would sell shares at the prices we have seen over the past years.
I’ll have time next week to flesh out the water tentative discharge order.
in reply to: Water and Arsenic: which came first? #5941from the water boards: submit comments on the Tentative NPDES Permit of Public Hearing for Sixteen to One Mine to
in reply to: Stock exchange listing #5940What is the promotional history of all those “penny gold stocks”? How did they manage to generate stock interest in the past? Is that game over? Are they dead?
The past four years or more were gloomy for gold mining stock players. The public basically fled the market. The sizzle, the predictions of economic gloom and doom or war moved no one. The promotion game is not over. It flows and ebbs. Lately it is showing signs of excitement. Hold your breath about some of the news entering publications.
Stock promotion companies hire a press firm, standard operating procedure. The pattern of press releases is predictable. Companies that have no revenue from production have significant expenses on their income statements under public relations. It is big and important. (as an aside we abstain).
What is happening inside the gold mining company for the promoter’s news? Yesterday, there was an important news release about a company with a property in Peru. It got a second ball mill and it just arrived. It would be ‘commissioned’, whatever that means, in several months. Production is right around the corner. Look how great we are.Today, another company I had some news. A press release and lengthy announcement from the Investor Relations “department hit the publication networks: “the company announced that it has authorized three new studies to enhance the value of its 100% owned gold project” in eastern Oregon. The release goes on for 6 paragraphs. Wow!
For anyone following the gold corporate market place, the small cap gold mining and natural resource public companies need and want your scrutiny. This industry is under financed with some justification regarding its creditability. I have much information in my files about public companies that came to the Alleghany Mining district and screwed their investors. That taste does not leave those speculators. Others right now sit on the side with a thought that taking a risk in a small cap gold mine may be worth considering. Sadly or maybe fortunately these news operating, corporate predators play their game in other sectors as well: the medical electronic, technical industries. For reasons I cannot explain, people give them a pass. Gold is different. I’m not sure why but if you have some ideas, enlighten us. I offer one explanation. Gold mining has too many unfamiliar nuances. It is not a quick study. Each mine and each operator runs with the wolves. Its language can be confusing and distorted.
in reply to: Water and Arsenic: which came first? #5939Please take note to read the entries under this topic back to 10/20/14 at 3:41PM.
Reply to Fred: Anyone can comment. The only questionable over limit element is arsenic. Your question about sorely needed water makes sense, common sense. Unfortunately California’s regulatory situation in 2014 is illogical, outdated. Years ago when the environment was under attack from growth, drastic changes were necessary. The California legislature and executive agency leaders are too preoccupied to bring necessary environmental revisions. The levels of arsenic threaten no animal life. The loss of an important industry (gold extraction) threatens Americans.
I just finished a phone conference with Central Water Quality staff regarding the tentative permit. They were very helpful. Now it is the American public’s turn to help. What happens in Alleghany pushes an unpopular agenda. Every shareholder has will be affected by these over-reaching state or federal requirements. I encourage your notification to others and taking the opportunity and time to move our country in a positive direction. It is our choice.
Here is what I learned about ‘designated parties’. Letters will be reviewed by an executive committee with a lawyer. The request must explain the basis for status as a designated party and in particular how the person is directly affected by the discharge. If you read this website and are not a shareholder, you can still qualify. There are always letters from environmental individuals and groups lobbying the water board to thrash productive people (ranchers, farmers, loggers, miners, manufacturers). I know of some who are pathetic souls. Objection in favor of the environment pumps a low ego. Facts and evidence don’t matter. It is not necessary for you to attend the meeting. Letters from all designated parties will go to board members in advance of the meeting. I hope there are hundreds. The water staff has a direct email address for designated party requests, which I will post as soon as I receive it.
I will present evidence to the Board that the presumed adverse effects of the ground water are overstated. It is important to point out that the property owner does not treat or impact the quality of the water flowing through its land. This is an unavoidable situation. We could be pear farmers growing in Alleghany. Would the pear farmer be required to obtain a water permit and conduct numerous water analyses? A logical response to water regulators is to ask, why doesn’t every parking lot land owner test the water runoff and pay a permit fee? Perhaps it is our business, mining. The existence of the Sixteen to One mine causes zero nuisance or harm to all beneficial users of water. The law regulating waters in America were passed to protect water, a vital element for life. I support responsible enforcement of governmental regulations. Anything you can do helps overcome ignorance from otherwise smart and informed people.
in reply to: Water and Arsenic: which came first? #5938Michael,
I have a couple of questions about this.
First of all, if we do not live in California, how can we help? I would want to do what I can anyways.
The second question I have is what kind of contaminants, if any, are in the water in the deepest part of the mine?
I keep hearing and reading about this devastating drought and water shortages in the state. Then something occurred to me. With water in short supply, wouldn’t this be a good time to “dewater” the mine down to the 3,200-foot level? Maybe that water could be sorely needed downstream as long as there are no contaminants in it. Unfortunately, I am not a hydrologist so maybe I’m way off base here.
What do you think?
Regards,
Fred M. Cainin reply to: Water and Arsenic: which came first? #5937It sounds like the water regulators have a desk, but not enough useful work to justify their pay. Accordingly they unwittingly overreach and make trouble. To other bureaucrats this looks like they are actually working. This is a widespread problem in all levels of government.
in reply to: Water and Arsenic: which came first? #5936HELP HELP HELP HELP …If you can find the time.
The Notice of Public Hearing below has significant meaning for the Sixteen to One mine and all the gold mines in the Western United States. Before any gold mining occurred, the earth formed mineral rich deposits. An associate element to gold is arsenic. Arsenic is broadly distributed and has positive effects on life. It is also a killer in heavy concentrations. Few of these are in inorganic mineral-rich lands. While I have done a great deal of research and held numerous discussions with California’s water staff about the regulations impacting our important industry, their adjustment in attitudes remains marginal, when it comes to a permit for operating. YOU CAN HELP!
Read the notice below and take special interest in the paragraph below “The designated parties for this hearing are as follows:”. Please apply to become a designated party. Many businesses are closing or driven from California. The world knows California has the most egregious unfriendly arbitrary, unnecessary, unreasonable and at times unlawful regulations in the United States.
The major work of preparing a permit falls on the shoulders of the water staff. The heavy players in perpetuating the injustices that have occurred to the sixteen to One mine and many others both in the mining business and non-mining businesses is well documented. The heavy hand of what…Fear? Cowards? Bully? Greed? Stupidity? Jealousy? Ignorance? Disinterest? Laziness? Rests with the politicians and their appointed Boards. The decision regarding the classification of ground water passing through our property will be given to the California Regional Water Quality Control Board Central Valley Region in February. The PUBLIC must send notice of participation by November 3, 2014 no later than 5pm in writing.
Instruction are in the Public Notice following this entry. I offer suggestions but recommend you read this topic for background of the issues. People unfamiliar with the Sixteen to One should have an interest in just what is taking place in California. It might be taking place in your state as well. I’m not saying that the regulators are evil, bad or any of the fear, greed etc. cited above. Maybe it is apathy or a lack of motivation to change and correct misguided behavior. You can contact me as well. I will be writing more this week on ideas. MMM
in reply to: Water and Arsenic: which came first? #5935CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD CENTRAL VALLEY REGION
11020 Sun Center Drive #200, Rancho Cordova, CA 95670NOTICE OF PUBLIC HEARING
concerningWASTE DISCHARGE REQUIREMENTS (WDR)
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT NO.CA0081809
For
ORIGINAL SIXTEEN TO ONE MINE, INC.
SIXTEEN TO ONE MINE SIERRA COUNTYOriginal Sixteen to One Mine, Inc. (Discharger) is the owner and operator of the Sixteen to One Mine, located at 506 Miners Street, in Alleghany, California. The Sixteen to One Mine is an operating hard rock gold mine. Untreated mine drainage from the Sixteen to One Mine is discharged at Discharge Point 001 (at the 21 TunnelPortal) to Kanaka Creek, a water of the United States, tributary to the Middle Yuba, Yuba, Feather, and Sacramento Rivers. •The proposed Order contains new effluent limits for antimony, cadmium, copper, iron, lead, manganese, and nickel, and continues existing effluent limits for arsenic and other constituents to protect the beneficial uses of Kanaka Creek.
The Central Valley Regional Water Quality Control Board (Central Valley Water Board) will consider issuing new Waste Discharge Requirements for the facility. •
A public hearing concerning this matter will be held during the Central Valley Water Board meeting scheduled for:
DATE: TIME: PLACE:
5/6 February 2015
8:30a.m.
Central Valley Regional Water Quality Control Board Room
11020 Sun Center Drive, #200
Rancho Cordova, CA 95670The designated parties for this hearing are as follows:
• Original Sixteen to One Mine, Inc. Representatives
Only designated parties will have these rights: to call and examine witnesses; to introduce exhibits; to cross-examine opposing witnesses; to impeach any witness; and to rebut the evidence against him or her. All other persons wishing to testify or provide comments are interested persons and not designated parties. Such interested persons may request status as a designated party for purposes of this hearing by submitting such request in writing to the Central Valley Water Board no later than 5:00 p..on 3 November 2014. The request must explain the basis for status as a designated party and in particular how the person is directly affected by the discharge.
NOTICE OF PUBLIC HEARING ORIGINAL SIXTEEN TO ONE MINE, INC. SIXTEEN TO ONE MINE
SIERRA COUNTY-2-
Persons wishing to comment on this noticed hearing item shall submit testimony, evidence, if any, and/or comments in writing to the Central Valley Water Board no later than 5:00 p.m. on
3 November 2014. Written evidence or comments submitted after 5:00 p.m. on
3 November 2014 will not be accepted and will not be incorporated into the administrative record absent a ruling by the Chair. Any party requesting to submit late materials must demonstrate good cause for the late submission, and the Chair must find that accepting the late submission will not prejudice the Central Valley Water Board or any Designated Party. ••All designated parties and interested persons may speak at the Central Valley Water Board meeting, and are expected to orally summarize their written submittals. Oral testimony and cross examination will be limited in time by the Board Chair.
Anyone having questions regarding the hearing item should contact Elizabeth Thayer at (€)16) 464,4671 or beth.thayer@waterboards.ca.gov. Interested parties may download the tentative Order and related documents from the Central Valley Water Board’s Internet website at http://www.waterboards.ca.gov/centralvalley/board_decisions/tentative_orders/. Copies of these documents can also be obtained by contacting or visiting the Central Valley Water Board’s office at 11020 Sun Center Drive, #200, Rancho Cordova, California 95670-6114 weekdays between 8:00 a.m. and 5:00 p.m. The final meeting agenda will be available at http://www.waterboards.ca.govfcentralvalleyfboard_infofmeetingsf at least 10 days before the meeting. The agenda will provide the specific date the Board Meeting will be held for this item, indicate the anticipated order of all agenda items, and may include staff revisions to the proposed order{s).
The procedures governing Central Valley Water Board meetings may be found at Title 23, California Code of Regulations, Section 647 et seq. imd are available upon request. Hearings before the CentralValley Water Board are not conducted pursuant to Government Code section 11500 et seq. The procedures may be obtained by accessing http:f/www.waterboards.ca.govflaws_regulationsf. Information on meeting and hearing procedures is also•available on the Central Valley Water Board’s website at http://www.waterboards.ca.govfcentralvalleyfboard_infofmeetingsfmtgprocd.shtml or by contacting any one of the Central Valley Water Board’s offices. Questions regarding such procedures should be directed to Ms. Kiran Lanfranchi-Rizzardi at (916) 4644839.
The hearing facilities will be accessible to persons with disabilities. Individuals requiring special accommodations are requested to contact Ms. Kiran Lanfranchi-Rizzardi at (916) 464,4839 at least 5 working days prior to the meeting. TTY users may contact the California Relay Service at 1-800-735-2929 or voice line at 1-800-735-2922.
Please bring the above information to the attention of anyone you know who would be interested in this matter.
KENNETH D. LANDAU, Assistant Executive Officer
2 October 2014
in reply to: Gold Enters Major Bull Market #5933The proven fact is that gold goes up when the consensus distrusts government as a result of continuing failures to manage their affairs. People are very slow to get the big picture until they start suffering from the misgivings of government where they can’t deny it anymore with the growing difficulty in feeding their families.
The following is just the beginning of the energy that will restart gold’s bull run, sadly as people suffer.
French Government on Brink of Collapse
Posted on October 14, 2014 by Martin Armstrong
Hollande-Colition
French President François Hollande has brought his country to ruin and threatens to bring down Euroland with him. His insane budget plans have been admitted cannot possibly meet EU rules before 2017 and even that assumes some recovery. Meanwhile, Hollande has lost his last government partner. The PRG chief Jean-Michel Baylet on Sunday evening on television, announced that his small center-left party PRG will terminate the alliance with the Socialists. Prime Minister Manuel Valls has stated that if the tax burden on the middle class in the draft budget 2015 is not reduced, the party will abandon the Socialists and withdraw its three ministers. Hollande’s term runs until 2017.
These people cannot grasp that raising taxes is not the way to stimulate an economy. They people should spend their own money – politicians only confiscate and then spend according to their self-interest. Sorry – it just does not work.
in reply to: Stock exchange listing #5932C.W. WROTE:
“Noticed another block trade go through the other day, at $0.20 – that is two in the last month or so…”
Huh !!! Imagine that ! Someone’s buying OSTO.
Regards,
Fred M. Cainin reply to: Stock exchange listing #5931I would take dividends in gold, if given a choice. It would generate some wide interest, I think, as no other companies are doing that.
Noticed another block trade go through the other day, at $0.20 – that is two in the last month or so…
in reply to: Another U.S. precious metals miner goes foreign #5930This short report, below, is from a reliable source. Is it true? I only have doubts because I have not read this in a newspaper or TV or radio. I find it suspicious because it does not cite the volume. My source is “lemetropolecafe.com”. Answers appreciated because 12.5Kg is a big number time spot price for bullion.
Physical gold is being accumulated and used in exchanges
but very discretely as of now. In a recent report mentioned
in the UK Telegraph it is revealed that a record number of super-rich elite are buying gold bullion bars weighting
12.5 Kg. The report says “The gold buying secrets of the
UK come as it was recently revealed the number of 12.5kg
gold bars being bought by wealthy customers has increased
243% so far this year, when compared to the same period
last year.”I checked telegraph.co.uk and found the article entitled, “Gold hoarding secrets of the UK mapped”. The bars are worth 300,000 pounds, another big number but how many are purchased. This is a major reason for difficulties in talking price, supply and demand. This is my break from the issues of running a real gold mining company. Break over.
in reply to: Stock exchange listing #5927Cart before the Horse
While this debate is interesting, it puts the cart before the horse since we first need to figure out how to get past the liquidity constraints our company currently faces.
If we ever did reach a point of producing enough gold to pay off debts, build adequate liquidity for future development and have excess for shareholder distribution, cash dividends would be more practical to shareholders than a gold dividend. We could not logistically distribute physical gold to all shareholders in per share amounts so it would need to take the form of gold placed with a depository firm and only paper receipts provided as a dividend. Shareholders would probably prefer cash so that they could decide what form of reinvestment they want—more shares, physical gold, etc.
in reply to: Stock exchange listing #5929Well, well, well. It is not 6:21am in Alleghany right now. It is 3:23pm. With the problems we were experiencing with our internet server, we are now on Eastern time, as in New York. We just noticed this and will seek a repair. Thanks.
in reply to: Stock exchange listing #5928I agree with the problem cited below. The solution meets requirements for a “pro rata in kind dividend”. Another separate entity (not our company) has agreed to settle all unwanted gold with a cash payment. Even though people with small share ownership fit into the pro rata requirement, it is lawfully possible to declare a dividend in gold as done by Ranchers in silver years ago.
While an in kind dividend may sound rather outlandish, it appeals to many I have met. All this is speculation at the moment; however, it has been a serious consideration in the past. Your other points are well received. The main requirement is producing enough gold to pay debt, fund long term exploration plans and return a liquid stock market. Impossible at the Sixteen to One?? No. A sure thing?? No.
in reply to: Ideal Time for Facts #5926Mining is a global industry. Mankind recognized the value of natural resources from the caveman to the astronaut. Those who fail to recognize this are fools. Ignorance of this necessary industry is the enemy of behavior. Following are some short clips about news you most likely will never hear or read.
Polish miners block Russian coal imports at border
More than 200 Polish miners blocked trains carrying Russian coal at a border passage in northern Poland to protest against the cheaper Russian coal being brought in at a time when local mines are struggling, mining union leaders said recently. Poland, which uses coal to generate about 90 percent of its electricity, produced 76.5 million tons in 2013. It exported 10.6 million tons but at the same time imported 10.8 million, mainly from Russia and the Czech Republic. Comment: USA coal use is the cleanest in the world. Coal industry is under attack in America.
Indonesia probe into deadly Freeport mining accident to take a week
Indonesia’s mining ministry expects an investigation into a deadly accident at Freeport-McMoRan Inc.’s copper mine to take a week, and open-pit mining will not resume until its conclusion, a government official said. Freeport recently halted open-pit mining at its Grasberg copper mine, one of the world’s biggest, after a truck collision killed four. Comment: The open pit produces around 140,000 tons of copper ore per day and the underground puts out about 80,000 tons. Copper is necessary for communications, a very active pastime today. Few ever think about where or how this vital element appears for our benefit.
Gold price seen near tipping point for mine cuts, closures
The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations. Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces. Comment: I have trouble with this analysis. Gold traders pushed the prices beyond all reason near the $1900/ounce. Gold “analysts” participated in creating a false value, creating semi panic for those without gold, which created an ideal short play. Ignorance cost some nice people to lose value. The spot price quickly dropped. At the $1220/ounce range, spot price remains 50% greater than the 1980’s massacre (high of $800/ounce).
Gold demand outlook promising on lower prices, seasonality
The gold price is expected to languish for the rest of the year and test $1,200. For the year as a whole, the price is expected to average $1,270, which compares with the year-to-date average of $1,289. However, this decline may not benefit Indian consumers, as the rupee is forecast to average 61.4 against the dollar this year. This requires the rupee to average 62.3 over the next quarter. Comment: If you have Indian friends, ask them to explain their culture and the role of gold.
in reply to: Miscellaneous #5925Gold Districts of California
Bulletin 193 California Division of Mines and Geology 1976A considerable number of rich, small ore pockets or pocket shoots have been developed in mines in some lode-gold districts. Many of these pocket shoots were in districts commonly referred to as “high-grade” belts. The richest and most famous in California is the Alleghany district in Sierra County. Much of the output of this district has been from small but rich pockets.
Other noted high-grade districts are the Sonora, West Point, Soulsbyville, Kinsley, Whitlock, Spanish Flat, and Kelsey-Garden Valley districts. A number of other lode-gold districts, such as the Grass Valley, Nevada City, Sierra City, French Gulch, Cargo Muchacho, Bodie and several Mother Lode districts, have yielded appreciable amounts of high-grade ore.
in reply to: Clips from Alleghany #5923The Boles Fire in Weed mentioned below burned 150+ homes, and two churches. The mill, which employs 170, was saved except for some outbuildings. They should be back up and running at some point, hopefully soon. This all happened in one afternoon/early evening, as the wind was crazy that day. Shout-out to the firefighters, and especially the air tankers & helicopters, for saving as much as they did.
You are correct in stating that better forest management would definitely help reduce the fire danger.
I am glad that all y’all in Allegheny have, so far, not had to deal with any close wildland fires.
(It is a good thing that I am not in charge of punishing the guy that started the King Fire, as I would be tempted to set a new high bar for the various types of punishments that he deserves…)
in reply to: Clips from Alleghany #5924And yet the rains WILL come! They *WILL*. They always have and as long as the earth stands they will continue to do so.
I would like to recommend the book “STORM” by George R. Stewart. This book is just plain fun reading. I’m quite sure it’s out of print but most libraries have it or you can find a copy like I did on Abe’s Books.
Not only is it fun reading, but it gives you a very good insight into the workings and way of life of a California that is now gone. The California that my mother grew up in.
Another goodie is his book “FIRE” which also makes for fun reading.
Regards,
Fred M. Cainin reply to: Clips from Alleghany #5922For those readers outside California our State has been smoking for three plus weeks. Yes, the forests are burning. North of Alleghany the community of Weed was devastated when wind blew a path of flames through a major residential area. Nothing survived in its path. Over forty homes disappeared into ash. Weed has a logging history. Some residents’ say the town will never survive this blow. The cause of this fire has not been determined.
To the South of Alleghany some idiot purposely started a fire. We watched it grow form the hundreds of acres to over 95,000 acres this morning. Alleghany as most of the Sierra Nevada communities and upper Sacramento Valley have been covered in smoke. Eyes are burning, throats are raw, schools were closed and most outside events were canceled. The talk today is gratitude for morning rain. More than 7,000 fire fighters are attacking the flames. With this rain, the threat of greater loss may be gone.
What will the judicial system do with a man who brought so much suffering to people he did not know? No punishment seems adequate. Fires are burning in southern California as well. California is classified as a Mediterranean climate zone. That means dry summers. Fire potential is to be expected. The build-up of fuel (understory and pint sized worthless trees) is a problem that must be addressed. The idea that mankind shall not manage the federal forests is insane. It has been the mantra for many here in California. It is a kooky idea. Knowledge about how a healthy forest looks is the first step towards gaining the power to make it happen: cut weak trees, spot harvest or thin commercial trees, clear shrubs.
in reply to: Another U.S. precious metals miner goes foreign #5921Mali plans to boost funding opportunities for its artisanal miners and to improve the policing of a sector that produces about a third of the country’s gold exports, officials said at the start of a mining reform meeting. Artisanal gold mining is plagued by frequent fatal accidents, smuggling and reports of child labor while environmental issues have also been caused by the lack of geographical restrictions on miners.
Artisanal mining is on the rise in Mali as neighbors including Ghana, Senegal and Burkina Faso have imposed restrictions on the sector, driving more miners into Mali. Speaking at the meeting, Abdoulaye Pona, president of Mali’s chamber of mines, and mines minister, Boubou Cisse, said the government was negotiating with banks to give miners easier access to financing for equipment and newly formed cooperatives would be supervised and revenues distributed equitably.
“With this system, the miners will no longer continue to dig holes from right to left, here and there. Mining will be done in selected corridors and at the end of the activities we will close the holes to restore the ecosystem,” Pona said. President Ibrahim Boubacar Keita, also at the meeting, called on miners to end the practice of child labor.
“We will not allow children into gold mining sites,” he said, “We have to stop this.”
Our governments (US and California) had agencies to guide and assist the mineral extraction industry. Its employees were familiar with the nuances of mining. They were responsible advocates who had the background, experiences and training to protect both the miners and non-mining consumers of our vital and precious natural resources. No longer can these public servants be found.
The agencies now concerned with minerals are operated from fear based, police based or revenue based people and policies. Laws, created by our elected citizens, have given way to regulations no longer lawful. In this process the survivors are mostly large corporations. Their stream of income and political resources carries the day.
Look at Mali, a small perhaps third world country. Its government must realize the value for producing gold. Wow, the leaders are helping the miners financially as well as assisting the actual operations. What a concept! I can only wish for America to find such leaders. Our governments have become the biggest oppressor. Consider all the minerals America requires to sustain our way-of-life. If more were produced locally, our population will be richer and safer as well. I’m sure you know why.
in reply to: Gold Enters Major Bull Market #5920Time for an update:
Gold
$1224.10 OFF $11.50From experience, I feed on pessimism.
The short and intermediate trends remain
bearish, although the long term remains bullish. The critical area for the long term to turn bearish is the breaking of the $800 to $900 area.The public continues their sporadic selling which is normal during down phases. Usually, the public doesn’t have a clue. I am awaiting a mini smash in gold prices, possibly into the $1000 area, before I dump my airlines and rail shares. The stock market made, again, a new all-time high
today.The stock market may have another 100% left in it but if gold gets into the $1000 area it could easily be a five-bagger.
Everything is timing.
in reply to: Technology #5919Our crew received a spanking new pneumatic drill, one that is first in size for its exploration program. This drill looks like equipment the leading pioneers would take on any exploratory trip. Lewis and Clark had the best rifles at the time when they set out to find a waterway to the Pacific Ocean. The federal government, led by Thomas Jefferson knew the importance of uniting both of North America oceans. He gave Meriwether Lewis and open credit card and it paid off. That was 210 years ago.
Our new drill and necessary accoutrements were provided by other technology pioneers, not the federal government. For reasons that are partly unclear today, the federal governmental agency most active within the business affairs of California’s underground gold mines is funded in the Executive Branch administered by the Secretary of Labor. Not only is it unsupported of domestic mining, it continues an unwarrantable attack on the underground California gold miners, men just trying to eke out an honest living while adding to the national gross product…wealth.
How shall we reach those responsible and make them accountable? How do we tell and convince the Secretary of Labor’s network that its failures hurt those whom it is lawfully required to protect? More on this will be forth coming.
in reply to: Ideal Time for Facts #5918September 2, 2014
Dear Mr. Rice,The article you wrote regarding miners/ executives and price issues has merit; it tells one story but not the one I know. I entered the gold mining industry in October 1974, a couple of months before spot price controls were extinguished. I bought a mine in the Alleghany Mining District, the last active gold camp in California’s productive gold belt. I began mining in 1975. I also began a proxy fight to take over the second oldest gold mining company in the United States. Original Sixteen to One Mine, Inc. (incorporated 1911 in San Francisco) was second behind another California corporation Homestake Mining. I got enough shareholders to win a director seat in 1977 and enough proxies to vote in a new board in 1983. I became president.
I am a professional miner/executive with forty years of full time experiences in this unusual industry. There are topics that people like me rarely discuss publicly. My primary reasons for not being too concerned about the spot price vary; however what you did not mention is perhaps the most important. Spot prices are not driven by normal supply/demand economic standards. The market is a game played by the powerful. My understanding has resulted in the three really price runs since 1975, a date when the beginning of the modern gold rush began.
The prices were played beyond sustainability. We all knew it. Some took advantage by short selling or selling naked contracts. Some call it forward selling. Others never did this but sold gold when cash was required to operate as the directors saw fit. It will happen again. It always has. So, real miners/executives cannot fret about price swings. Go back and research how many public gold mining companies there were in the 1980’s, 1090’s, 2000 and today. Take a look how few remain over the past thirty or forty years. You may find more food for your thoughts. And for the heck of it, check out how many shares are outstanding.
Miners/executives (not all of them and not enough) do fight back. Yes, a “travesty of justice is being committed.” Gold mining could stand some closer looks by independent journalists/analysts. Most are afraid of what they will see in their reflection. Please write or check out our informational web site at origsix.com. Sadly, Original Sixteen to One Mine, Inc. is now the oldest company and the longest gold mine operator in the United States.
Bill Rice JR. article is found at : http://www.silverdoctors.com/why-wont-the-miners-fight-back/
in reply to: Risk Management Strategies #5917The August 25th edition of the Wall Street Journal (WSJ) ran an article that caught my attention entitled “Business Thrives in Abandoned Mines”. The article reported on how exploring abandoned mines looking for traces of gold in South Africa has become a popular (and very illegal) trade among hundreds if not thousands of people.
Compared to the U.S., the nation of South Africa is a relatively poor country and people with their backs to the wall are willing to risk life and limb in search of $50 a week in gold in abandoned mines.
The professional mining industry in South Africa has undergone a painful downturn that has resulted in the laying off of thousands of miners. The WSJ blamed this in part on cheaper gold mined in China.
South Africa, it seems, has a staggering number of abandoned gold mines. The WSJ put the figure at an unbelievable 4,400 abandoned gold mines in South Africa alone! They are almost impossible to patrol and have become fair game for impoverished, out-of-work miners looking for gold.
Many of the abandoned mines have been “permanently” sealed with concrete slabs at their adit portals or shaft collars. This has not been much of a deterrent. The illegal miners simply blast the plugs open again and descend. Some miners have been known to descend up to 3,000 feet or as far as they can before they hit water. Obviously, with the mines closed, the pumps have been silenced and the mines are no longer kept dewatered.
In addition to the ever present threat of cave-ins, the illegals also encounter a lot of violence with rival gangs of miners looking for gold. Life, it would seem, sounds like it’s cheap over there.
The whole article left me with an impression – or a reminder – over just how much we have to be thankful for here in America! Sadly, just what kind of a direction are we headed in? Could it be that with all our over-the-top regulations, mining might one day become no longer profitable for anybody? If that point is ever reached here in the U.S., could it one day pay more to simply abandon all of what’s left of our mines and “go illegal”? An illegal miner, as long as he or she doesn’t get killed, has to pay no insurance, pay for no permits or taxes, etc, etc. You have to wonder about this.
And here I am getting back to the Original Sixteen to One Mine. I think it is almost criminal on the part of our government to impose regulation after regulation after regulation on an operation like this. For its part, the Sixteen to One is bending over backwards to comply. But when we do the government comes back with, well, now we have to add new regulations “to keep everybody safe” and “protect the environment”.
Well, the liberal ideology pushing some of this stuff might end up with something one day that they never intended or figured on. Illegal mining would be far less safe and there would be no “environmental protection” observed by Illegal miners. To quote an old, worn-out cliché, “The pathway to hell is paved with good intentions.
-Fred M. Cain
in reply to: Stock exchange listing #5916Fred,
Some really experienced people have tried to figure it out. You may not know this but a driving force behind me is issuing gold dividends. It can be done in our corporation because of the shareholder make up and share outstanding.In 1995 our new detection technology and talented crew filled the safe deposits vaults of two banks in Grass Valley. My board of directors authorized my long held wish to start a dividend program. This Company has a history of dividends unequaled by any American gold mining company. The owners were handsomely repaid for their loyalty and financial/ management. How great it must have been to see those checks arriving all during the depression. I heard many stories from shareholders as I canvased California for proxies to redirect a stagnate board (1975-83).
The dividend caused us to establish a background on how to accomplish the deed. It is like most challenging things: the first time is usually the hardest. The paper work for a gold dividend will be a minor adjustment from a cash payment. The implications for cash vs gold are major, however, and still one of my burning desires.
It will be revealing when the holders of shares in street name are sought and their addresses, when the board of directors authorizes another dividend, this time from our inventory. The legal guideline the Company will follow will be the Record of Shareholders that have been meticulously maintained for over 100 years.
Perhaps then we all will have the answer to the question, What is going on with this odd grey market?
in reply to: Stock exchange listing #5915During the course of the last year and a half or so, I have been in the process of buying shares on the so-called “grey market” and personal finances have allowed. I bought some in my tax-sheltered IRA at Vanguard and more recently I have been trying to buy some through PennTrade – with the intention of eventually getting a certificate for those.
What I have noticed is that during the last six months or so this is getting harder and harder to do. It seems they just no longer trade and on those rare occasions where they do trade, someone else gets them.
There have been several instances where shares changed hands for a price that was nearly HALF of what I was offering and yet they were sold to the buyer at the lower price. Go figure.
Fred M. Cain
in reply to: Clips from Alleghany #5913Does Scoop hear the sound of snoring throughout this web site? Must be the summer doldrums! If you were in Alleghany yesterday, you would not think it was summer. It poured, not rained. It poured. California’s Sierra Nevada mountain Range is noted by whether, yes, Scoop knows, they call themselves weathermen. Really, as far as the Sierra Nevada goes the weather report say something like this: sunny; partly cloudy; scattered chances of rain; possible lightning and thunder clouds. How can they go wrong with these predictions?
The rain was a welcomed sight. Our biggest concern is fire. The concern remains but at least for a week or so, Alleghany area seems safe. There is more talk than action by our leaders with regard to forest restoration. The proper management of our National Forests in the West is the best fire repression tactic.
The Sierra County Public Works office prepared the best description of the problem we face. The Sierra County Board of Supervisors reviewed the situation and passed resolutions as fine and proper as any previously written…..better than most as well. All trees are not equal. Many are weeds disguised as trees. The under growth is sucking water when the lack of water is universally accepted as a concern. (Of course Southern California does not see this concern. Its water usage has increased lately as reported in the Sacramento Bee.
How about that Sixteen to One mine! Hey Mike, let’s have an update .
in reply to: Risk Management Strategies #5911Wow! I just finished reading this four year old topic. The best way is to start at the first entry and scroll up to the next entry chronologically. For recent viewers to the FORUM with an interest in learning about this one-of-a-kind gold deposit, I highly recommend taking a few minutes to review this remarkable exchange of dialog between serious parties.
Upon completion I had to smile and snort a laugh out loud. Four years later the questions, opinions and insights of the participants ring as true then as they do today. Time may be running away from me and my crew from mining another super pocket of gold; however, all familiar with the Sixteen to One know that it remains hidden from our drills and explosives.
Enjoy a look into the recent past but verified from over 100 years of experiences. We have a saying when someone asks, how’s it going at the mine? No gold right now but it could be in the next round.
in reply to: Miscellaneous #5912Some folks might find the linked description of California quartz veins quite interesting:
http://nevada-outback-gems.com/prospect/gold_specimen/California_quartz_veins.htm
in reply to: Ideal Time for Facts #5910Most people cannot understand the compounding effect that has befallen on California due to the enforcement of its political leader’s actions or inaction. Most people cannot comprehend that those elected public servants have place a bureaucracy to enforce their laws incapable of applying common sense. Common sense!
Californians let their government fall to special interest rhetoric. This rhetoric feeds on fear, fear instilled by untruths and self-preservation by public servants paid to carry forth the public’s work “for the public benefit”. California received an “F-“ grade , not an “F” for poor treatment of small business. Yes, that is an F minus. Can it get any worse? Of course it can. Can this pessimistic, non-economic and scientific exercise in public service management be turned around? Of course it can.
Are you interested? Will you help?
in reply to: Ideal Time for Facts #5909My friend [see entry below] thought Californians and Americans should keep getting facts like this. His letter to me follows mine. The subject is another costly and unneeded regulation. Read it before you read this July 15, 2014 email from Sierra County. What do you think? Good old Thomas Henry Huxley wrote it best:
Every great advance in natural knowledge has involved the rejection of authority. Peter, Paul and Mary sang, “when will we ever learn, when will we ever learn”.
July 15, 2014
Mike Miller,
As a follow-up to our conversation at the Sierra Fund lunch in Downieville, I mentioned that when CalEPA did an audit of our CUPA program here in Sierra County, they said that we were not regulating all of our facilities. They specifically identified the Sixteen to One Mine as not being included as a CUPA Facility and also the Agricultural Handlers (Farmers, Ranchers). I need to submit another CUPA evaluation follow-up report at the end of this month indicating progress on compliance with regulating our facilities in Sierra County. Therefore, I need to make arrangements meet with you & include the Sixteen to One Mine on our CUPA inventory and make sure that your hazardous materials inventory is updated in the new statewide electronic database (California Environmental Reporting System, or CERS).The Business Plan program was established in 1986. Its purpose is to prevent or minimize the damage to public health and safety and the environment, from a release or threatened release of hazardous materials. It also satisfies community right-to-know laws. This is accomplished by requiring businesses that handle hazardous materials in quantities equal to or greater than: 55 gallons of a liquid, 500 pounds of a solid, 200 cubic feet of compressed gas, or extremely hazardous substances above the threshold planning quantity (40 CFR, Part 355, Appendix A) to:
Inventory their hazardous materials
Develop site map
Develop an emergency plan
Implement a training program for employeesBusinesses Must Report Electronically to CERS (California Environmental Reporting System, or CERS) instead of on paper forms.
Website link: http://cers.calepa.ca.gov/
What is CERS?
The California Environmental Reporting System (CERS) is a statewide web-based system to support California Unified Program Agencies (CUPAs) and Participating Agencies (PAs) in electronically collecting and reporting various hazardous materials-related data as mandated by the California Health and Safety Code and new 2008 legislation (AB 2286). Under oversight by Cal/EPA, CUPAs implement Unified Program mandates that streamline and provide consistent regulatory activities. Could you be available to meet with me on Tuesday, July 22, 2014 in the afternoon? Thanks.
Elizabeth Morgan, MPH, REHS Director of Environmental Health
Sierra County Environmental Health P.O. Box 7 Loyalton, CA 96118
(530) 993-6716 emorgan@sierracounty.ca.gov (New E-mail Address 4-25-2014) - AuthorPosts
