Forum Replies Created
- AuthorPosts
- in reply to: Clips from Alleghany #5991
Western Sierra County lost electrical power last Friday. Our neighbor to the west, Pike, got power back Saturday. Alleghany got it back Sunday morning. The remote line going to the Washington community remains out of power. This storm was wind damage not snow (there isn’t any).
The rain fall was less than projected but every drop helps. Expect the water shortage to continue this summer.
Sierra County officials held a community meeting at the Pike firehouse Sunday afternoon. Sunday and rain but about 50 people arrived to here the supervisor, assessor, sheriff and public department chief. Topics were roads, dumpy properties, and marijuana. Sierra County passed an ordinance which goes into affect now. People are not opposing grower use of pot but definitely object to non property owners and residents from growing. Another objection was seeing or smelling someones pot. The bush must be shielded from view.
in reply to: Water and Arsenic: which came first? #5988Electric power was lost Friday in our area due to high wind more than rain. Alleghany was last to get it back, sometime early this morning. I opened my email and read the two following letters. Though it is news worthy.
From the California district Attorney’s office: Hi Klaus. The Board approved the settlement in closed session today, and the Executive Officer signed the Stipulated Judgment. I’ve attached a fully executed copy, and I’ll send the original to the Court.
From Klaus, Company attorney: Hi Mike: The settlement is done – see below. You’ve dodged a potentially fatal bullet for the Mine, but now have the headache of finding the money for monthly payments until you find that big pocket of gold to finally pay everyone off!
Sierra County superior Court scheduled a court appearance dater on February 27, 2015 at 8:30 am for a hearing on the settlement. Other people are happier about this settlement than I. Perhaps additional revelations will better inform the regulators in California that there are reasons why California was rated as the lowest state in the union for its regulation enforcement against business. On the positive side of these matters, the Chicken Little advocates and doomsday criers have bent their pic. Our governments with elected, appointed and advocates must stand back and look at the positive environmental results that have occurred. Remember the Cayuga River in Cleveland on fire? I do and was there on a visit. We’ve come a long way. I just think some people need to bitch!
in reply to: How to Approach Thin Veins & Cost #5985Group,
The is a post to my sub-theme in this category, “Mines With Tracks”.
I just recently received the March issue of TRAINS Magazine that had an article on the so-called “Eastside Access” project in New York City. Billed as one of the hugest ongoing public works projects today, it is planned to come in at around 11 BILLION dollars.
For those of you unfamiliar with the project, it’s too difficult for me to describe in a few sentences. Suffice it to say that it is a HUGE mining endeavor that will result in a new underground train station in the City with many new railway tunnels.
They had a number of pictures in there and I was pleased to see that there were several showing underground mining locomotives, tracks and trains. So. Mining with rail is not dead. It’s alive and well in The Big Apple (and at the Original Sixteen to One gol mine.)
Regards,
Fred M. Cainin reply to: Let’s back physical shares with physical gold #5984Michael,
Arrogant? Ah, that’d be a no. I don’t think you sound arrogant at all but rather being careful what you post on here is just common sense.
Mining is a difficult business. Kinda like farming. Sales and revenues can be high but expenses even higher still. Then there are all the legal issues. Mining just isn’t considered to be “politically correct” these days.
Your last sentence caught my eye, though. Not sure what you meant by that. I really mean to meet you someday. I just don’t know when I can get out to California. But, one of these days!
Regards,
Fred M. Cainin reply to: Water and Arsenic: which came first? #5987Remember discussing the water permitting process and the public meeting to be held? It will take place Thursday February 5, 2015 at 10:30am. The staff proposed a permit with significant reductions in testing, which relates to less costly a process. Water is a hot topic in California. Last January was the driest January recorded. San Francisco had zero rain. Sacramento had .01 of an inch. Alleghany did better but not by much.
California and all states must meet federal water standards. States may write more restrictive regulations up to a point. California is one of those states. You may remember that after a national review, five states rated a “F” for hostilities towards business via regulations. Only one state got an “F” minus. Yes, it was my home state, California. This is not something our governments should be proud of or gloat about. I believe that changes are occurring. The pendulum swung beyond reason and may be moving towards a healthier environment for our state. Working with the staff over the past two years is better than working with staff in 1998, 2003 and 2008, when the permits were reviewed. I remain argumentative about two areas that seem to be in conflict. We have fifteen minutes to make our Sixteen to One points to the Board.
Below is my response to a new mandatory requirement called an Infeasibility Analysis. It will be discussed on Thursday.
February 2, 2015
Gayleen Perreira
Senior Water Resources Control Engineer
NPDES Permitting
Sacramento OfficeAn infeasibility Analysis for Original Sixteen to One Mine, Inc. (Company) for underground water leaving an old adit named the 21 tunnel is speculative to evaluate as to complying with the revised limits for drinking water by the federal government. The Company spent much time and money with various suggested methods for public water districts, private water systems and home owner drinking water to reduce arsenic in drinking water. The results caused discoloration and the release of iron into the water. Site conditions contributed to these results. The discharge is remote, difficult to access in winter and inches above the intermittent Kanaka Creek during normal seasons.
With the assistance of the California Water Boards, the Company will continue to explore and test methods to reduce the level of natural arsenic to or below the federal level for drinking water. Here are four ways: (a) introduction of additional water for dilution; (b) pump water for irrigation; (c) identify abnormal isolated influx of arsenic and treat underground; (d) locate natural runoff underground at higher elevations and eliminated flow into Kanaka Creek.
It is believed that the water sources are directly the result of storm water seeping into fractures very close to the old tertiary gravel contact with bedrock. This area has been inaccessible for over eighty years. An exploratory expedition through old workings will be considered as a possibility to catch the water before it enters the 35 miles of underground levels. Perhaps an area of highly mineralized arsenopyrite will be found and can be isolated from surface water runoff, thereby eliminating native arsenic entering surface water.
The Company estimates that two years are required to explore the actual property in order to establish the best management practice for a reduction of arsenic. The Company will continue to explore the scientific or technological industries for a better solution than those known today. Considering the various paths to follow, it is reasonable to expect a significant process that will permanently bring the Company’s property in compliance within drinking water standards, if required, will occur before or in 2020.
Michael Meister Miller,
Presidentin reply to: Let’s back physical shares with physical gold #5986Fred, my last sentence is, “Maybe we will just mine our way back to prosperity; however it sure will be more fun and profitable if someone steps in this business with us.” It is not meant to be oblique. I thought it rather straight forward, not evasive but in a direct line to my history and the mine’s. Our histories are well documented in this web site; however it is my error (which I continue to do) of understatement. I despise the record of small cap mining companies when it comes to press releases and claims by management. Even many successful and unsuccessful writers, investment advisers and analysts proclaim incidental events as somehow great accomplishments. It is a continuous flow of BS to excite the modestly informed public about gold mining. It seems to work but is not my style.
So, for the modest number of readers of this FORUM, the last sentence of the 01/31/2015 clip will be rewritten. Maybe no one will take an interest in joining our hunt for gold in the properties we own outright. It sure will speed the process, make a lot of money from the gold we find and sell and also be rewarding in becoming a member of the team igniting the 21st century California gold rush. Oh, it will also be a fun adventure.
But our history is replete with the absence of taking outside money, when times are tough. I’m a piss poor money raiser. Instead, we have kept alive by mining gold. So, instead of writing, “Maybe we will just mine our way back to prosperity”, I now write, “We will mine our way back to prosperity.” It is an historical truth over the past thirty years.I realize that followers on FORUM lost interest: Scoop, Michael Miller, and the other frequent writers took a break. I’m glad you stayed the course, Fred. I did not lose interest. I chose to avoid hype and tell what happens instead of writing speculatively. Maybe I should loosen up. I’ll give it a try.
The Sixteen to One has proven gold targets that we allowed to be submerged or failed to access. This will change in March, due to the underground work we have been doing the past two plus years. The horrendous legal attack by a California water board (filing a claim for $2.1 million) engulfed my time, consumed scarce money and presented a barrier to most for financial help. It will be settled in February. We prepared an in-depth look into Original Sixteen to One Mine, Inc., plans for the future. Our powder is dry and our team is hungry. Do we need a little help from our friends? Yes, we sure could use it right about now. Nevertheless, we will mine our way back to prosperity because there may be no other choice on the horizon.My paternal grandfather, Reid Miller, had an interesting career. Born in Sacramento, California, his father and grandfather were bankers in Sacramento (D.O. Mills Bank). They ran the business as the Secretary and Treasurer. Reid took a job at the Midas Gold Mine as accountant. He later bought the Red Bluff newspaper. When I was going through my dad’s desk, I found an article and a note signed by some guy named Josh Billings, a friend of Reid’s. Josh wrote, “Consider the postage stamp; its usefulness consists in the ability to stick to one thing till it gets there.” Joaquin Miller was another writer in California. (There is a Joaquin Miller junior high school in Sacramento.) He said it another way, “Brave admiral, say but one good word; what shall we do when hope is gone? The words leapt like a leaping sword: Sail on! Sail on! and on!”
The Sixteen to One mine joins a few great mines in the Sierra Nevada Mountain gold belt. While there is little activity, some owners stick to the one thing they know: produce gold. This attitude reflects the perseverance of another American Abraham Lincoln who wrote: “Hold on with a bulldog grip, and chew and choke as much as possible.”
Hans, I agree with you as well but you must honor our position of caution. It is because of our 103 year history, we have a plan for today. Germans know historical relevance as well as my English ancestors knew what to do.. The Meister brothers (maternal great great grandparent) came to California from Germany for the lure of gold and opportunity. They tried and quickly turned away. They stayed and found gold in building wagons, trains and cars in Sacramento.
My house that I built in Alleghany 38 years ago is riddled with woodpecker holes. They were particularly annoying early in the morning as they tapped away. The woodpeckers are endangered so I will not shoot them. Even the woodpecker owes its success to the fact that he uses his head and keeps pecking away until he finishes the job he starts. Gold mining in California is not finished.
in reply to: Let’s back physical shares with physical gold #5983There is a plan. It will not be detailed to the public for reasons as those in other businesses do not reveal sensitive strategies or tactics; however it can be discussed in private conversations with qualified people. Sounds a little arrogant?
Think again. I have mine development plans priced down to the track spikes. I have corporate plans solidified by directors and consultants and professionals in a variety of fields. What I do not have is a list of men or women mentally and financially able to make an effort to view them.
Maybe we will just mine our way back to prosperity; however it sure will be more fun and profitable if someone steps in this business withus.
in reply to: Let’s back physical shares with physical gold #5982Hi Mike,
Have not been on your forum for a long time, but I do have to agree with Hans. Those who want to invest are concerned as how you plan to mine and what to expect for your effort. That would be the prospectus of your future.
in reply to: Let’s back physical shares with physical gold #5981Mike,
I agree with the eight points you have outlined below. And would like to add two more points.
Ninth: Our 103 years old company needs a concise plan for action. A written outline which corporate goals shall be pursued in 2015, 2016 and 2017 and which resources shall be employed to achieve these goals within a reasonable degree of probability.
Tenth: As soon as we have our action plan, we need to tell the world about
that plan. Only by spreading the word about our plan we will be able to start the dynamics of selfsustaining processes that will focuse on the achievement of those plans. And if the plan is sound then the results will be sound too.In difficult times it is well worth to look at what we have already got to make things happen.
Well we have got a glorious past and an experienced Director and President who can write the action plan and seek Board Approval to go ahead with that plan.
What do I have to make things happen?
Well, I have an established German Publishing Operation with established distribution channels. I could publish a book in German language on the 100 year history of Origsix and its action plan to win another 100 years of hard rock mining in Nothern California.
The only support I would need from Origsix is the action plan for 2015-2017 and an accompaning letter from the President to the German readers.
If sales should exceed 1000 copies I shall make a royalty payment of 1,00 US$ for every additional copy sold. In addition you will get two pages of free advertising space at the end of the book.
Let us kick-start a dynamic process now. And let us see in about three years, where these dynamics will have taken us.
Hans W. Kummerow
in reply to: Miscellaneous #5980From Martin Armstrong:
Bureaucrats have Been Corrupt Since the Start
The greatest problem with government is how it consumes capital until it kills the private sector. This has been the course of every government – power corrupts universally. The bureaucracy has also gamed the private sector for personal gain. They currently are exploiting of the people through Civil Asset Forfeiture which is reminiscent of the Roman legions who just began to sack their own cities to pay themselves.
Pictured above are “Fouree Denarii” or Claudius (41-54AD) a member of the Julio-Claudian line just prior to Nero. These are genuine coin dies struck on copper planchets silver plated. The people inside the mint were pocketing the real coins and producing a small quantity of debased coins illegally. This demonstrates that corruption within Rome was systemic and it kept growing. This is like the missing $2 trillion from the Pentagon budget that Rumsfeld promised would be investigated 1 day before 911 attack where the missile or whatever struck the only room in the Pentagon where the evidence was stored. What amazing coincidence.
in reply to: Let’s back physical shares with physical gold #5979With this topic and discussions, an idea for whacking the Sierra Nevada gold deposit via its only commercial active mine is growing. If you are a new reader, a plethora of information exists on our web site. You will gain an understanding of how and why our Company is the last one standing in California’s Sierra Nevada gold fields. You may even agree with most that it is one hell-of-gold mine-gold-mine. In the likely need for us to obtain funds from other, not from gold production, this topic is evolving. Eight points are becoming clear in my mind:
First: knowledge and beliefs exist the Sixteen to One will become a producing asset with value beyond the present;
Second: capitalized with Thirty Million shares authorized and 13,399,505 shares outstanding, it is positioned for expansion;
Third: by design, it ignores its public market value due to the priority of operating its properties first, which results in an unbelievable market cap value based on minimal stock transactions and no stock manipulations.Fourth: An influx of working capital will likely reverse the economic dynamic of scale formula in effect for the past decade; however the method of encouraging risk capital to obtain the investment is elusive.
Fifth: the issuance of a preferred stock will both interest investors by narrowing risk and be true to shareholders as anti-dilutive to their beliefs.
Sixth: a yet to be percent of gold bullion will be impounded in kind for a pro rata distribution to common shareholders by director decree.
Seventh: preferred stock will secure the working capital investment with three covenants. These covenants are: (a) upon any liquidation of the company, proceeds will be applied first to a buyback of preferred stock; (b) a yet-to–be-determined preferential percent of gold bullion will be allotted to the preferred stock holders to recover its purchase. It could be set at X amount below spot price; (c) a formula to convert preferred shares to common shares will be offered.
Eighth: time is truly of the essence. Gold mining can be a lengthy process from concept to production and profit. No reasons exist for Sixteen to One to re-invent the process. It has a realistic pattern for success. One must decide what “success” means. For our Company it means rewarding its owners with another 100 years of gold.
Well, Hans, and anyone else following the course of this mining adventure, ideas and people with a financial interest please continue this discussion or contact me. Time is important because gathering miners, management, supplies, equipment and more plus some of the necessary dead work to get gold targets in sight takes an effort to do it right.
Additions beyond the above eight points are welcomed. It has taken me a many years to put this package together. It is ready now for the last ingredient. Help is needed to get this underway.
in reply to: Let’s back physical shares with physical gold #5978Michaels remarks reflect the finest virtues in corporate responsibility: Thoughtful consideration of a proposed major change in policy, based on several decades of experience in the trade.
Nevertheless I would like to argue my case in one more detail.
Having studied the Fiscal Report for 2013 and assuming that there has been no significant change in 2014 it seems to me, that a near term influx of working capital will be more important in 2015 than during the years behind us.
To my knowledge there are many companies who are declaring dividend payments although they are carrying debt on their balance sheets. It is a game of adequate proportions – not a matter of conflicting principles.
In absolute numbers the debt figure on our balance sheet is low now. And it is owed to friendly parties. In my opinion management has been very successful in eliminating the much higher debt, that the company has carried in the past.
The time has come to attract additional investments into treasury stock at a reasonable price by introducing a dividend policy in real gold.
The resulting capital influx may resolve two issues at the same time. It may provide working capital and eliminate remaining debt. Therefore I would like to ask the board to look at the bottom line of the proposed policy change and not worry too much about priorities in the employment of funds.
in reply to: Gold Enters Major Bull Market #5977Gold $1294.10 Off $8.00
Silver $18.29 Off $0.02
US Dollar 94.99 Unch.According to the analyst, Marin Armstrong, the world is at the beginning of a war cycle and shortly, will be at the beginning of a world sovereign debt crisis as well as entering a cycle of trading in public debt for private debt. Otherwise, we are at the very beginning of witnessing the bond bubble burst. So, how does all this all relate to gold?
The metal’s current intermediate down phase continues with recent short term strength being generated by folks in Europe looking for a safer home for their wealth. Sure, most of the international flows have headed into dollar related assets with some spillover entering the gold and silver markets. The Greek election is next week and if the anti-austerity vote wins, there could be more turmoil in the Euro possibly pushing gold higher.
The folks in Brussels are a bunch of morons. They are day by day making economic fools of themselves insuring that the European states suffer. It is so bad that the cost of their labor is twice the amount in the U.S. It is just a matter of time until the EURO sinks lower with more money pouring into the US.
It is still possible that the big shake out in the gold market is waiting to happen? This could easily happen with a strong move in the stock market accompanied by a collapsing bond market as folks might not trust gold like they used to. People love to chase higher prices when the tide comes in but mainly will avoid depressed sectors.
Fundamentals would suggest gold will continue rising but the most sophisticated computer in the world, Socrates, says, the bottom is not yet in.
in reply to: Stock exchange listing #5976I believe that will only happen if they have a bad address/returned mail for you.
in reply to: Miscellaneous #5975Squeeze The People
Feinstein to pocket $1 Billion Personally
Posted on January 18, 2015 by Martin Armstrong
Feinstein Dianne
Martin ArmstrongSen. Dianne Feinstein is expected to pocket $1 billion from the Post Office for her family. These people are beyond greedy and they have the audacity to always blame the rich. Just amazing. Maybe the Greek cab drivers are right. Just where the hell do we start when corruption is everywhere?
in reply to: Gold Enters Major Bull Market #5974add to the end of the previous article:
keeps rising in cost.
in reply to: Gold Enters Major Bull Market #5973More Unsettled Times Ahead Likely To Benefit Gold
Martin Armstrong
The next crisis will be the currency pegs against the dollar. Here we have pegs from Hong Kong to the Middle East. We will have the same problem for as the dollar is driven higher, thanks to the implosion in the Euroland, these nations will import DEFLATION from a rising dollar. This will break their backs and force pegs to collapse around the world. Keep in mind that this will unfold probably after 2015.75 and help to spiral the world economy into the worst depression in centuries. Start preparing for a rainy day.
These idiots are raising taxes when they should be lowering them as even Keynes suggested. Unfortunately, we are in a major crisis because of their insane mismanagement of the economy. There is nothing they will not steal. They are the type of people who are pocketing soap on the cart of the maid as they leave the hotel room. This level of corruption is turning into a feeding frenzy, which is our doom.
The rise in the dollar, will be the key to breaking the post-war economy. It was the flight of capital from Euroland into the Swiss that broke that peg. We will see in the months ahead the same crisis unfold in the Middle East and in Asia. This will be accelerated by the emerging economies who have issued $6 trillion in dollar debt since 2007. As the dollar rises, they will be forced into the same position as Greece – unable to pay their debts because the debt
in reply to: Gold Enters Major Bull Market #5972Hi Mike and others.
The Swiss peg to the Euro was costing the Swiss central bank untold millions, so they broke free of it. Lagarde of the IMF acted surprised and was unhappy the Swiss didn’t inform her prior to the break. Why should they have done it? They were losing millions buying the Euro and she probably would have told them not to do it. Looking ahead, Brussels has no clue on holding the Euro together. Expect Greece to soon pull out of the Euro putting more pressure on their currency while bringing in more gold buyers looking for safety.
Accorded to a noted analyst, Martin Armstrong, when his predicted Big Bang takes place at the end of September 2015, it’s every man for himself.
We have just entered a period of upheaval that will only keep building in intensity accompanied with increased market volatility, be prepared for wide swinging markets, including the precious metals.
Gold closed Friday at $1280.30 breaking upwards through its 200 day moving average line which is positive, short term. While the intermediate trend remains trending lower, hopefully, this recent short term upward move can aid in turning the trend in force. The conservative approach would tend to command respect for the possibilities of new lower lows ahead during months ahead.
Gold stocks could be entering a short term bubble of strength, beware.
in reply to: Gold Enters Major Bull Market #5971Yesterday, I was driving in my truck and switched the radio on. A business discussion was taking place between the host and a guest speaker. The speaker told that a major financial situation just broke. The Swiss National Bank announced its decision to remove a cap on the Swiss franc.
The surprise move, which essentially decouples the currency from the euro, sent the euro and dollar dropping against the Swiss franc, and has boosted demand for gold as a safe haven.
The discussion and ramifications with global markets was very interesting but I had arrived at my destination so left the truck. I expected to hear much more on subsequent news programs and newspapers. There was nothing. I don’t know what to make of this lack of interest but apparently it spurred the gold market to move to $1,261.38 an ounce. I like any number over $1,000.
in reply to: Let’s back physical shares with physical gold #5970The thoughts expressed below are intriguing. Allow me to go back to some history before I comment.
From its inception in 1911, Sixteen to One owners conducted a generous dividend payment to owners. All agreed and the documentation of this is well established. Two events upset this rhythm: USA fixing the price of gold and the economic turmoil after WWII. Nevertheless dividends continued during and after the war. Gold production made these payments possible. Inflated costs of supplies and labor during the 1950’s undermined the few remaining gold producers in the United States until only two commercial operations remained: Homestake in Lead, South Dakota and Sixteen to One in Alleghany, California. The Alleghany mine continues its corporate payroll until 1965, when it ceased. Employees took over the operation until the federal government liberated the buy/selling of gold on December 31, 1974. The Lead operation closed about a dozen years ago. The global giant Barrick bought Homestake and melted it into its company. Financial consequences were the cause of America losing its gold production capability. It was not the depletion of its gold deposits.Jumping forward to August 7, 1995, when a dividend of $.05 per share was announced. It was paid September 10th on 3,362,491 shares. I had to convince our excellent directors to declare a dividend. Their reasoning was sound, rock solid. That money, put to use internally, would increase shareholders value more than the dividend. I also knew that this could be true; however my vision was long range. Returning the Company to its extraordinary record of dividends was my goal. I wanted to learn the dividend process. It would also defy all those phony exploration gold promoters. The Sixteen to One is something special. (All those companies are gone now and many small gold listed companies today don’t have a prayer to ever produce gold let alone pay a dividend.)
Before we can announce a dividend payment our company must be debt free. It was debt free for many years and I must say it is a joy to run a debt free gold mine. This is a goal. It will be achieved in one or all of three ways: production, gold detection improvements and an influx of working capital. A primary reason to regain an open share buy/sell market is to allow owners an exit and non-shareholders an entry. A secondary benefit is to allow the Company to consider its treasury stock to obtain working capital for exploration and development and acquisitions. Having said this, it is also my intentions to someday, when conditions warrant it, to resume dividends. My history affirms this. I want to do what Ranchers (a silver producer years ago run by a great visionary, Maxie Anderson) did. He gave his shareholders a dividend in silver. Ours will be in gold as it has additional good financial consequences for its recipients.
We can do what the entry below suggests, that is putting aside a specific amount of inventory that must be retained for distribution to shareholders. We just are not there yet.
in reply to: 16 to 1 Mine #410in reply to: Let’s back physical shares with physical gold #5969It has been a customary approach by economists in the past to look at the true value of a state’s GNP as a function of the true value of it’s fully transferable currency.
The same approach is customary if the true market-value of any publicly traded company is expressed as the CAP, the number of shares outstanding multiplied by the current share price.
As far as the pros and cons of a listing at an established stock exchange like NYSE are concerned it seems to me that the discussion about having OSTO stock listed, should be terminated for good. The reason being, as a veritable gold producer, OSTO stock could be backed by real gold.
It would be up to the Board to prepare an Amendment of the Articles of Association for the 2015 shareholder’s meeting. For instance by adding a clause, that 10% of all gold produced will be directly set aside for the “joint shareholder’s metal account”.
By establishing such a dividend policy, the bottom line of the Sixteen to One Balance sheet would be unique, because shareholder’s equity would not only be expressed in fiat terms, but also in onces of gold.
Such a change would achieve several important goals at very little cost:
The shares could always be sold at the actual gold value of a share certificate and we would not need a market place like a stock exchange
Shareholders would be attracted who are interested in a long term hard asset investment
We would get a lot of press coverage and additional interest in our company
The shareholder’s joint metal account would not be taxed until any metal is actually sold for cash.
Could the Board kindly check, whether such action could be legally pursued in the State of California?
in reply to: Stock exchange listing #5968Michael Miller & Group,
I’ve got a good one for you. I have learned that if you have an account with a stock transfer agent and there has been no “activity” on your account for three years, the state can regard your account as “abandoned” and seize your funds as “unclaimed property” AFTER THREE YEARS ! Can you believe this?
I was shocked to say the least. This was reported last month in “DRIP Investor”, a financial newsletter that I subscribe to. I sent an e-mail to the editor this morning about this (and I will copy and paste that below) but a big question I have is whether or not the state can still do this if you hold a physical certificate. I doubt it. This whole thing about getting away from certificates “for our own protection” is beginning to make sense now.
The broker at Penn Trade told me over the telephone that the big push to do away with certificates is coming from the GOVERNMENT *NOT* from the brokers!This whole thing is starting to look very, very suspicious to me. Does the government want to phase out certs to make it more expedient to seize people’s assets? Hey, I don’t want to go getting paranoid but you really have to wonder.
I wrote this to DRIP Investor:
Dear Chuck,
I read with horror in the January issue of DRIP Investor about the way that it is possible for the State to seize someone’s assets on the grounds that they are abandoned or unclaimed property.
I, too, received a letter like that from one of my transfer agents that manages my CSX Drip account. The contact on the phone told me that the state can consider them “unclaimed property” after as little as three years. Huh? Say what?
Here we have had it hammered into us for years that the safest way to invest in stocks is for the long term. “Put your money in there and forget it”. “Tune out the noise”. But now the state can seize your assets after as little as three years of “no activity”?
I strongly believe that the constitutionality of this is very shaky at best. Someone – anyone – who has their assets seized like that should file suit on the grounds of an unconstitutional “government taking” of private property.
I have a couple of very serious questions about this. Number one, how can the state consider an account to be “abandoned” when the owner has been dutifully paying taxes on the dividend distributions year after year after year? Than make no sense whatsoever.
A second question I have, what about a case where the owner actually physically holds the stock certificate? Can the state seize those assets too? Or, are certificates more difficult for them to seize? If so, maybe it’s high time to take a second look at certificates.
Somebody somewhere really needs to speak out about this issue. If the state can seize assets after three years, what the hell? Why not make it one year? Six months? Is anybody safe?
Sometimes I can’t help but wonder if we Americans are really so far behind Vladimir Putin’s Russia. This unclaimed property law is beyond belief.
What is happening to us?
His response:
Hi Fred . . . thanks for the note. You raise some interesting questions (especially the one about stock certificates) which I quite frankly don’t know the answer to. It seems if you have stock certificates, you have ownership that can’t be taken away, but I suppose I don’t know that for certain. Let me see if I can get some answers for you on this.
Chuck Carlson, CFAin reply to: How to Approach Thin Veins & Cost #5964Mike,
does the Sixteen to One still have a longer range horizontal drilling rig of say – 100 feet horizontal drill range?
If you still have it, could that rig be operated 360 degrees within the regular working spaces inside the workings?
I have made some progress on metal detectors with very small antennas and I plan to go to Australia this year to test my equipment on alluvial sands in a known fossicking area. It is much easier to rule out a true-false signal in an alluvial Australian sand rather than in a hard rock mine like the Sixteen to One.
If you could share your current plans for the furure development of the mine with me I would be most interested. A lot of many inside Germany is currently invested into overpriced real-estate. Some of that money might also become available for undervalued mining operations in California.
in reply to: How to Approach Thin Veins & Cost #5965Hans,
Believe it or not, ich kann auch etwas Deutsch aber nicht sehr gut!
I, too have wondered about what you seem to be asking here.
During the last couple of years, I have bought shares in the Original Sixteen To One Mine but I have wondered if that was the best use of those funds. After all, Michael doesn’t have the money I parted with – someone else has it who wanted to get out of the business completely or partially.
So, is there a better way to fund expansion? How? Any ideas anyone?
Regards,
Fred M. Cainin reply to: How to Approach Thin Veins & Cost #5967Mike,
would such exploration drilling inside the mine be feasible or would it create unacceptable safety hazards?
Hans Kummerow
in reply to: How to Approach Thin Veins & Cost #5966Fred,
schön von Dir zu hören! Und schön auch zu hören, dass Du Dich in die Sixteen to One eingekauft hast! I have never seen a more interesting orebody than the hydrothermal quartz veins above the Melones fault.
The questions I have asked Mike are related to an exploration strategy that we have discussed in this forum several years ago. My suggestion was to use a horizontal drill to create bore holes that are wide enough to run metal detection antennas through them.
If this can be achieved in a technically feasible and cost effective manner we could explore a much wider radius around the existing workings than that accesible from the workings themselves. And we avoid all the “true falses” that are associated with ground radar detection and ranging.
If we are able to create a convincing plan on how to explore und verify the targets and then point the headings toward them in the shortest way possible, we might either find a large high grade pocket with our limited budget or be able to raise money for a challenging production plan in the financial markets.
And I fully subscribe to Mike’s statement that he has never seen a better time to move ahead with a challenging development plan for the Sixteen to One.
in reply to: How to Approach Thin Veins & Cost #5960Thank you Mike for your comments.
I remember a statement from a very old geologist on the vein systems above the Malone fault. He once wrote to me:
Historically, production numbers have always corresponded to the footage of new workings that have been cleared.
So I wonder, Mike, whether you could dive into your archives and sort out the numbers of onces produced as a function of the footage of new workings that have been added in that year.
And in a second step, give me a number for the 2015 cost of adding 1000 feet of workings in the good old drill-blast-muck sequence and hauling the ores on the existing rail-system to the most convenient ore-mill.
Could you do that Mike?
To answer your question on the financial industry in Germany: Since we Germans had three major reorganisations of our national currency during the last three generations the public perception of fiat money is – coloured ink on small slips of paper. That attitude prevails throughout the German financial industry and explains our focus on hard assets, like production plants rather the financial services.
in reply to: Miscellaneous #5963It’s been a while since I’ve chimed in, but all’s well I trust! Survival rules…nice job! Yes, I’m above ground and the gold is underground, and someday we’ll meet in another setting, but not now. Time is tic-toc-tic-toc, but our spirit lives!
in reply to: How to Approach Thin Veins & Cost #5962Hans,
I will continue to search for a file prepared showing gold production for the mines in Alleghany. The Sixteen to One held the highest value. It was calculated in a manner that I consider today when evaluating a target for mining: ounces per foot of mining in dollars. Up to 1934 the price per ounce was $20.67. The Sixteen came to $208 per foot. This sounds like a wild number but it was prepared by USGS respectable geologists familiar with the Alleghany Mining District.So today this would be about $12,000 per foot. I can live with that as an historical perspective on working this mine. Following in a report written almost thirty years ago by a leading edge geologist on the subject. He was hired by our lessee in 1983 to evaluate the Sixteen to One. I just finished reading it and thought you would enjoy another professional opinion.
Exploration Proposal for the Sixteen to One Mine
Objectives and Philosophy
The object of exploration at the Sixteen to One Mine is to determine the quantity and location of gold within the vein system. In order to successfully conduct exploration in the vein system it is necessary to understand the ore controls.
Ore controls within a vein are the physical-chemical geological processes by which the vein and its ore minerals were formed. . Vein minerals are deposited in faults or other open spaces in the host rock from hydrothermal solutions that circulate though the fault zone and cracks in the surrounding country rock. Local heat sources, such as a cooling body of molten intrusive rock, are responsible for the circulations of the hydrothermal solutions.
Faults are usually relatively planar features with some irregularities in shape due to variations in the tectonic forces which create the fault and the variations in the host rock cut by the faults. Therefore, movement on the faults results in the development of open spaces where vein materials are deposited. Each episode of fault movement, of which there are usually many, results in new areas of open space and a new phase of vein mineralization.
The chemical conditions for the deposition of a particular mineral depend upon temperature, pressure, and chemical species concentration in the hydrothermal solutions. Quarts and pyrite, for example, are deposited over a wide range of physical-chemical conditions. Gold, on the other hand, is deposited in a relatively restricted range of physical-chemical conditions.
Therefore, the locations and quantity of gold within a vein are the result of geological controls, in turn reflected in observable characteristics of the vein and its wall rock, which may be measured by mapping and sampling a vein. Vein characteristics may be classified as either structural or mineralogical. The structural characteristics include strike, dip, thickness, and slickenslide orientation, which can be readily mapped along with the visible mineralogy. In additions, the elemental abundances can be determined by atomic absorption analysis and the sequence of mineralization can be determined by the electron microscope.
Analysis and Interpretation – Optimization of Explorations and Exploitation of the Sixteen to One Vein
A computer-resident model of the geological features and mineralization of the Sixteen to One vein should be initiated and continually refined to assist in defining exploration and mining strategy. Initially large amounts of old and new explorations and past productions data should be placed into a computer for storage, analysis and display. These data will then be used to build a model of the vein which can qualitatively and quantitatively predict area most deserving of early exploration, pointed towards locations of minable reserves. Use the computer model will bring discipline and a partial optimization of these ends.
A basic underlying assumption is that the economic gold mineralization is not randomly located within the veins. As in any mineral deposit, physical-chemical geological controls will have operated to determine the gold distribution; our problem is to recognize and measure these controls, and to then use these measurements to make predictions of areas in the vein with the greatest probability of further gold occurrences.
Truly random gold occurrence would be remarkable – but there are clearly observable preliminary indications that we are not dealing with in such a case. Visually, a map of the known gold occurrences shows several strong trends. Further, from measurements of these occurrences, both as to their size and spatial locations, a well-formed geostatistical variogram can be obtains, with a range from 400 to 600 feet. If further confirmation of non-randomness is desired, a test for a 2-dimensional Poisson distribution can be applied.Philosophy of Exploration for the Sixteen to One Mine
R.A. Bideaux
January, 1986
“The race may not always to be the swift, nor the battle to the strong; but that’s the way to bet.”
Damon Runyan, Guys and Dolls.
Historical exploration of the 16 to 1 mine quartz veins, searching for gold ore shoots, seemingly has been carried out largely on the assumption that gold occurrences are at random. Here the word random is used to mean “by chance” or “without method”. It represents one end of the spectrum, where the other end would be “systematic” or “entirely predictable”. All gradations might occur, so we could have statistical regularity or predictability of the gold occurrences only to some degree.
Obviously any degree of predictability should be considered helpful for exploitation of gold reserves, so as to keep exploration and mining costs relatively low compared to the value of gold recovered. This is true so long as the cost of obtaining the data on which such predictions are based is lower than the additional cost of simply going ahead and mining out the entire vein, which likely would not be economic.
Ferguson states that it is best if operations are confined to the profitable portions of the vein, a nice sentiment, but perhaps a bit difficult to do in practice. Cooke indicates that is possible to locate the gold ore shoots within the barren veins material, and offers as evidence that the miner has been operated profitably to that time. This of course has no bearing on whether the gold ore shoots have in facts been systematically located and mined out more efficiently than compared to random encounters.
Suppose that the gold ore shoots are in fact random in occurrences, both in size and locations. The best way in which to search for them would be by making a grid of workings, parallel to the strike and dip of the veins. The maximum spacing would be proportional to the maximum size of target expected to be found; then the grid squares would be filled in with more workings, finally spaces to a closeness control by economics, such that the value of the smallest target would exceed the cost of finding it, on average. The details of shape and construction of such an exploration grid of workings would be dependent also on whether the ore shoots, while random in size and locations, had any observable preferred orientation, as well as mining considerations, such as gravity flow or rock versus mucking.
For truly random occurrences, but with some parameters known, such exploration grids can be optimally constructed. Over the last 20 years, a considerable body of literature has been developed on this subject, mostly concerned with the finding of blind deposits. With all other considerations equal, every increment of vein should be explored or mined out to the same degree.
What objective evidence do we have that ore shoots at the 16 to 1 are perhaps no random in occurrence, and can in fact be found with a frequency greater than by chance encounter, or selectively mined? A subtle indication is that the ore grade after the Second World War is higher than before, while the tonnage is greater than before. This is the effect to be expected if selective mining is in fact taking place, lower tonnage but higher grade.
More exactly, shoots containing large amounts of gold tend to occur in the near vicinity of other pockets also containing large amounts of gold; and shoots with smaller amounts of gold tend to occur in the vicinity of shoots of likewise lesser amounts of gold, etc. From an ore reserve point of view, this variogram is taken to mean that reserves can be estimated to some degree of precision, with block of vein perhaps 100-200 feet on a side assigned estimates of number of ounces contained. These estimates may have a very large estimation variance, that is the estimate of ounces may have a very large uncertainty, but the existence of the variogram indicates that blocks with relatively larger amounts of gold so indicated should in fact have such larger amount, compared to blocks with estimated lesser amounts.
Note here that randomness is a function of scale, both the size of objects being observed, and the scale of observational resolution. The gold ore shoots can be thought of as being random in occurrence, if the observer is only aware of the scale of Cooke’s indicators, some tens of feet, but it seems that their occurrence is not entirely random when observed at a scale of around 500 feet.
It is likely that their occurrence is controlled by some geological process which has a scale of this same magnitude. Only structural features of the fault can be candidates, related to the amount and direction of displacement, and possibly the rock types which in turn partially controlled these. If a positive correlation can be established with the causes of gold occurrence shoots, and these causes can in turn be projected into unknown ground, or used to reassess areas already mined, it should be possible to bias mining operations to the most potentially profitable areas of the vein.You have asked me to think of several things concerning exploration of the 16 to 1 mine: as, what I think of the current staff’s ideas on the subject, what I think should be done, and what I might do myself.
For the mine to someday go into full-scale production, to produce 20,000+ oz./year, there must be some large areas of the vein which have a good chance of producing substantial amounts of gold. Defining the probably existence of such areas is a principle objective of the first two phases. My assumption here is that the occurrence of gold in the veins in not a random phenomenon, but has been controlled by observable maple variable which can be used to project favorable (and unfavorable) areas of the veins.
Current thinking of all the mine staff seems to tend toward the random occurrence theory: that ore controls are local at best, and that the amount of gold to be found will be a function of the amount of quartz broken in search of it, almost regardless of where the quartz is mined. It would seem that the mine has been operating in largely on this philosophy, pretty much successfully, too, but I would hope we could improve even on these results.
I have looked through the notes I made from the literature, almost a year ago now; revised copies of these are attached, better printed. They should replace the copies I formerly distributed, and are well worth reading at this time.
Every study on the 16 to 1 and related deposits indicates that the occurrence of gold is almost entirely controlled by mechanical and structural features, as distinct from chemical controls. Here we are talking of features to be observed at a fairly large scale, on the order of some hundreds of feet. As of this time such data simply has not been gathered nor adequately displayed for us to collectively judge to what degree such ore controls will be in fact useful.
I cannot predict what may come out of such displays. Usually I can make a formal proposal for data processing, since the techniques to be applied are well-known. In this case, I do not know of any really similar computer system, to assist underground exploration, so it is necessary (and I think desirable) to experiment a bit in building such a device.
The hardware is largely available to me right now, and most of the computer programs. Any additional programs will purposefully be kept quiet simple, to keep the overall cost low while allow enough experimentation with the 16 to 1 data to let us know is this approach will be useful.in reply to: From the Sixteen to One Archives #5961I’m researching historical gold production for another topic on the FORUM and the following file came up. For the 2015 mine plan, we will examine these early Tightner workings. Why? This productive area has never witnessed a modern gold detector. You know what happened to our production after 1992, when off-the-shelf hobby detectors entered the Sixteen to One. Our expectations are high.
FROM THE ARCHIVES
One of several hidden asserts of this mighty little gold company are its map collection. We don’t write about it much but the information contained therein is priceless. Here is what it means to me. The maps cover over one hundred years of development. One grouping is titled “Progress Maps”. They are usually depicting annual work and the months are colored individually. My mind turns to the appropriate dates of these progress maps. I transform into that miner, geologist, engineer or mining executive while studying the monthly (yearly also) progression of development and gold production. Why did they go here? Why did the go there? Why is this block of ground untouched?
The answers are speculative but, come on; all mining is speculative as are most investments. The ‘whys’ of the Sixteen to One are great topics for discussion. These maps affirm a fact: this deposit involves risk with hope of large profits. Also we have years of data beyond the times the maps were drafted.
Work to reorganize the map collection is underway. Years ago an old building was renovated to house the maps and have space to spread them out. Other needs preempted the reorganization…no longer so. The thirst for knowledge of the past now preempts other needs. I am thrilled to return to study of the work of yesterday’s miners. With each map comes the opportunity to learn.
I had an epiphany this morning after unrolling a 1915 map of the Tightner Mine Company. The map details the early workings which are near bedrock elevations above the 250 level. The gold values are recorded in dollars when gold sold for $20 an ounce. One stope is breath taking…$700,000. Not far away is a $350,000 stope and there are many values at five figures. Multiply these numbers by 60 to understand this historic gold production today. Breathe taking!
Back to the epiphany. Are there no risk takers today for investing in this gold deposit? Apparently the answer is yes. Why? No one has taken the time and effort to understand this gold deposit, how it became successful and whether our plans will reap large profits. It is as simple as this…we are on our own.
Mining legends like Fuller, Searles, Foote, Kallenberger, HR Cook, Alling, Ferguson, Bennett and Taylor left their imprint in Alleghany. I have my answer to understand the risk/reward of mining for gold here, which is strengthened with these maps and thoughts of these great men. Thank you.
Prepared from Company files
May 18, 2010
MMMin reply to: How to Approach Thin Veins & Cost #5958Michael wrote that “We will have a different look but what look remains unknown by 2016.”
Uh-oh. Whatever you do, I sure hope you decide to keep the rail system!
Regards,
Fred M. Cainin reply to: How to Approach Thin Veins & Cost #5959No worry about the Sixteen to One workings remaining as a rail driven haulage system. Diesel doesn’t work efficiently in our deposit.
I have developed a mine plan that will require much luck (uncovering another 10,000 ounce pocket) or the financial participation of a grand person or group. There is no doubt among the informed that this 100 year old operating gold mining company owns one special gold deposit. Management is uncomfortable risking time for production on luck alone. Sure, we will take it but those green old paper dollars will increase our odds of success and greatly reduce the time it takes for the eventuality to happen.
Those with an interest in hard assets will reach a conclusion that I reached forty years ago: California holds much gold in its Sierra Nevada Mountain deposit, and the Northern Mines of Alleghany top the most favorable location to extract it.
How all parties meet and unite is the mystery or unknown. My point is that the most favorable time I have seen in four decades since gold price shackles put on the industry in 1934 were lifted has begun.
in reply to: How to Approach Thin Veins & Cost #5957Yes, Hans, much has happened the last year and the last five years as well. This 2015 year has the likelihood of historical importance for our 103 year old company. We will have a different look but what look remains unknown by 2016. The international gold market is of no concern to me. How is the money industry holding out in Germany? I laugh no snarl when I read about the depressed price of gold and how it is predicted to change. Who are these writers and what id their background? I doubt many are gold mining producers. A twelve hundred dollar exchange for one ounce of gold makes me wonder. The wonderment is not that it isn’t higher or lower. My wonderment is why does California have only one commercially operating gold mine in one of the world’s most spectacular and proven gold deposit?
We all know that the international banker’s crash in 2008 set the character for the following years. Does anyone recognize the start of basic economic activities that will end this speculative boom and bust? I have some ideas and it isn’t the record number of the DOW.
One of my good friends and mutual shareholder of this great little undervalued company figured a process to mathematically find “key neutral” positions. Bets can be placed (either up or down, for or against or other quirky opposites) minimizing risk once the key neutral point is reckoned. I remember our discussions that took place many years ago on this process of contemplating a risk/reward endeavor. We may come to the same conclusions but the factors used to reach those conclusions can differ greatly. This becomes somewhat personal. This is a good thing for many. Finding your key neutral position is a start.
Well, Hans, I am so pleased to see your input back on our FORUM. I also cut back my participation last year but continue to check it daily. You will see more from me in 2015 than last year.
in reply to: How to Approach Thin Veins & Cost #5956Happy New Year from Germany to you all, dear California gold-seekers. Has anything of importance happened at good old Origsix during the last five years?
in reply to: Another U.S. precious metals miner goes foreign #5955While the following in not a clip about US going to other countries, it does provide information that all is not bliss when a natural resource decides to develop a natural resource outside the United States.
Barrick Gold reported that it will suspend operations at its Lumwana copper mine in Zambia. The move follows the Zambian government’s decision to jack up royalties on open-pit mining operations in the country from 6 percent to a whopping 20 percent. the new rules will also slap a 20-percent gross royalty on revenue “without any consideration of profitability.”
The company expects to record an impairment charge of $1 billion related to Lumwana with its fourth-quarter results for this year. It will implement major workforce reductions at the mine in March, and aims to transition the mine to care and maintenance by the second quarter of 2015. While this is a small amount for Barrick, the new royalty increase eliminates about 4,000 jobs in the region.
Another billion dollar resource company agreed to a $7.5 million environmental fine. How was this environmental loss to the public calculated? Does this encourage governments to exaggerate the actual damages caused by an accident or set of circumstances beyond a company’s control? I think so.
All I ask for in California is a level playing field. Judge the Sixteen to One factually, realistically and with competent administrative personnel. Natural resources are a necessary ingredient to return prosperity. California is moving in the right direction. I’m not sure Washington D.C. understands this yet. It will because it is one fundamental economic improvement that brings the poor, the comfortable and the rich financial gain. Oh, and yes, the environment must not lose for this to take place. The upcoming year will mark a recognition of the need to encourage or at least not discourage responsible natural-resource productions. I pray for America to get the message.
in reply to: Gold Enters Major Bull Market #5954Howdy Bluejay!
It seems that the Hedge Fund Managers agree with you. Here’s the title of a recent article in Mining.com.
Compared to December 2013, bullish bets by large speculators in gold futures are three times higher going into 2015. “This time around (compared to this time last year) the bearish exposure is currently only 3.8 million ounces and if we add the gross longs we find that the net position in the market is currently 10.5 million ounces long. So there’s a lot of money betting gold will go up in 2015. The entire article can be found at:
Aloha and Happy Holidays!! Ron
in reply to: Clips from Alleghany #5953Michael,
Yeah, I know it! Here in the Midwest, my fellow Midwesterners have this stereotyped image in their minds of the “Golden State” as being all sunshine, warm beaches and palm trees!
When I have tried to tell them that some of the heaviest snowfalls ever recorded on earth have been in California, I get incredulous looks like maybe I’m not quite “all there”. “Huh? Snow in California? What are you, nuts?”
Another really, really fun read that I can recommend is called “SNOWBOUND STREAMLINER” by Robert J. Church. Reading this book is even more fascinating if you’re a train buff (like me) but even if you’re not, it’s still a fun book. It was a close call, though. Almost ended in disaster but it had a happy ending.
Regards,
Fred M. Cainin reply to: Clips from Alleghany #5952California has been warned that the biggest storm in six years circulating in the Pacific Ocean will hit land around 6pm today: up to 12 inches of rain on the coast line and 7 inches at the elevation of Alleghany. Snow line projections vary from 5000 feet to 6000 feet. The highest ridge into Alleghany is 5200 feet elevation. Alleghany averages about 4200 feet. The mine portal is 3500 feet. Winter comes every year but no matter how much work goes towards lessening its hardships, few are every 100% ready.
But this is California. Yeah, it gets cold and rains and snows. Still in the mountains and foothills you will see people getting out of the car with sandals instead of boots. Californians will be out
in the rain without a hat, umbrella or even a coat. Winter??? Bah.Seven inches of rain in a couple of days will bring problems with roads and driving and of course water leaks in the old roofs. High winds up to 60 mph are also in the forecast. Get you candles out and get ready for no electric power.
in reply to: Clips from Alleghany #5951Ah, finally ! Rain! (Or snow depending on your elevation.)
Maybe your long drought is coming to and end.
This has happened before. Read “Storm” by George R. Stewart, a great Californian. It’s a great read set back in a day and age when everything still worked. I know. My Dear Mother, may the Good Lord rest her soul, grew up in the Central Valley.
Regards,
Fred M. Cain - AuthorPosts
