Realism verses unbridled optimism is one way to evaluate our mining activities last year. The aggressive dewatering program in the Tightner Shaft, in light of our strained financial capabilities, was a stretch. We failed to access the lowest levels of the mine: the 2400 level (adjacent to the shaft), the intriguing 2700 level and the unknown 3000-foot level. The desire and collective will were there, but the money was not. I regret the failure. This worthwhile project remains for another day.
The single most troubling event of last year was the felony charges for murder brought against us. Private lawyers who worked for a non-profit corporation in Sacramento filed these accusations. Their actions to "criminalize" accidents in California effectively prohibited me from addressing a serious concern, under capitalization. No one was willing to talk with me with this cloud overhead. On February 13, 2003, a Sierra County Superior Court judge dismissed the devastating and bogus criminal charges against the company and two employees. You and I, as shareholders, suffered immensely because of the criminal indictment. What the company does remains to be seen. Bets anyone on whether I personally go after the perpetrators?
There are eleven people currently working towards locating and producing gold. We all realize the risk is worth the reward and understand the limitations due to our precarious financial constraints. The company has plans to rectify this and will be actively pursuing an infusion of capital. The primary use of proceeds will be directed towards sinking a new shaft in the central portion of the property. Other uses are: complete the manufacturing of a high-grade gold detector, upgrade the precious stone department, develop a public market for stock trading, broaden our human resources and complete three mining targets. There will be opportunities for both large and small investments. The following release is intended to spark an interest in our growth and development. Details will be provided to qualified parties. Our June 21,2003, Annual Meeting will be structured so all shareholders interested in discussing corporate goals, financial needs and participation will have a forum for these purposes.
Our company is not a quick study; therefore the task of offering details to interested individuals or even keeping you informed is time consuming and expensive. What better way to accomplish this than our web site: www.origsix.com. You will find new entries appearing under all headings. Focus is currently in the COMPANY and MINE sections. Our rich history and unique gold deposit are featured. Our mine is in the world-class category, having yielded over one million ounces of gold. You will find excerpts from published as well as heretofore-proprietary reports. The company is an American anomaly, having now operated in three centuries.
Alleghany, California, May 28, 2003. Michael M. Miller, Director and President of Original Sixteen to One Mine, Inc., announces the company’s intention to raise up to $10 million in order to develop the new Sixteen to One Mine and reposition the company into additional activities.
The new mine will be on company owned land north and along the strike of the present mine. The new mine will be accessed by a 375-foot shaft situated one mile north of the main portal to the old mine. “We have spent a lot of time and effort studying the area north of the existing mine and feel that this new area will have even greater production than the old mine”, Miller said.
The Sixteen to One vein system is a premiere pocket mine where very rich concentrations of gold formed millions of years ago. Assays are measured in ounces of gold per pound of quartz. The old mine, which still produces high grade today, has produced well over a million ounces of gold. The largest concentration of gold was in a pocket containing 83,000 ounces. The physical area was 20 by 40 feet. Much of the present mine production is sold at a premium over the gold spot metal price as specimens and for jewelry. Demand significantly outstrips supply.
For the past two years the company has been working on the preparation of this project. Old company and government maps and reports have been reviewed. New maps and cross sections have been prepared. Former mine geologists and engineers were consulted. All elevations have been reduced to one datum.
In the old mine, the largest concentrations of gold were found in the highest levels. In the new mine even higher levels concealed by ancient lava flows will be developed. By coincidence the shaft for the new mine will pass directly through one of the more productive portions of the Blue Lead tertiary gravel channel prior to encountering bedrock. The shaft is positioned between the famous Bald Mountain mine (purchased in 1940) and Smith’s Flat, where the auriferous channel broke into the Alleghany ravine. Some initial production of gold is expected from this area.
“All available evidence supports this new shaft”, Miller says. “As soon as we raise the money we will contract for its construction. The question is not if this will be a good mine, it is just how really great will it be.” The Original Sixteen to One, Inc. was incorporated in 1911 and is the oldest United States gold mining corporation.
I know many of you do not follow the day-to-day activities of the gold industry. During the course of last year a significant change of direction occurred. The gold bear died. Uncertainty kicked around for a while until the bull planted its feet firmly in the marketplace. This change is important to us not so much because our revenues will dramatically increase. It is important because many on the sideline of including gold assets in their portfolio will look for an opportunity to protect their net worth or increase their net worth via a gold investment. Only the smart brave ones will join us at this time. Nevertheless, just like finding Mister Pocket in the mine, the rewards can be high.
Well, fellow shareholders, I do not know how you feel about our prospects. Come to the meeting and let me know. Write me with suggestions or just hold on for the ride.
Michael M. Miller