August 18, 2022 

2005 - The Global Gold Market

Dear Shareholders,


The biggest story from a year ago took place in the global gold market. What is happening to the price of gold and why? Gold students and scholars are expressing varied theories about the “spot” price of gold or they are silent. The strength of gold and the rapid rise in price was not foreseen or predicted. Last year it was a very safe bet that the gold price would increase. It had to. Brave souls predicted gold reaching a high of $600 or even a $700 price by the end of 2006. Gold broke $700 today.


The major gold producers (remember that there are many gold companies but few true gold producers) cut back on exploration during the extended bear market years back. Supply has not kept pace with demand, therefore the classic economic reason for price increases. This, however, will not explain the rapid move from $500 an ounce to $700. I will defer any opinions to explain what is happening to gold and why to the FORUM on our web site.


You may wonder what this rapid rise means for our company beyond the obvious. A high price means more income for the gold we sell that is not used in the jewelry trades. Also our gold inventory has increased $ 204,600 from the year-end price of $513. What should happen, though, is occurring: an interest in investing in Original Sixteen to One Mine, Inc. I remain disappointed with the lack of sophisticated people with money to invest in gold seeking information about our development plans. Alleghany is ready to show a serious investor how he or she can make a lot of money by joining our dream. The Sixteen to One has one of the best potentials for a ten-fold increase in share price as any. The downside is negligible.


Each year a company offers its shareholders a status report. Our annual report always includes financial statements, an important accounting of the current situation plus a comparison to the past. You will find the unaudited reports in the following pages. If this were all that I used to evaluate my ownership, which began in 1975, I never would have campaigned for a seat on the board. I never would have worked to become President. I never would have stayed on the ride that Original Sixteen to One Mine, Inc. has taken me. I did and I am glad. Another opportunity in the gold business with the excitement for significant financial gain has arrived. Here is another way our company should be evaluated.




1. A gold mining operation that has maintained gold production during twentieth century difficulties: increased regulation, excessive expense for California based corporations, rapidly increasing utility expenses, worker’s compensation, competition for employees and a long bear market.


2. Outright ownership (no lessee positions) in proven gold mines with excellent histories and valuable future gold targets.


3. A cadre of well-seasoned people knowledgeable in our type of mining and dedicated towards corporate success.


4. Hidden assets (those without a dollar sign and not shown on a balance sheet): timber, water, extensive database, premier, proven and operating gold marketing program.


5. Solid shareholders, owners who understand this American survivor.


6. Poised to participate in cutting edge detection technology.




1. Our gold story is not the story told today by commercial advocates. Proven reserves, no matter how unrealistic or inflated, prevail as the mantra of those promoting small mining stocks. Promoters also tout exploration companies rather than the few true gold producers.


2. No hidden liabilities. Small mining companies usually have important non-monetary issues that remain hidden. Examples are: serious, hard to solve environmental conflicts, poor and unfavorable leases, huge number of shares outstanding, no operating history.


3. Management’s stubborn commitment to profitable gold production instead of stock promotion may inhibit its pursuit of working capital. Dividends (our historic record is a goal worth repeating) and share appreciation by the acquisition of solid gold properties are alternative ways to make money.


4. Modest liquidity. The only market for buying or selling our shares is the OAU- X Mart on our web site:


Recently a long journey of accusations against the company and its management came to an end on March 30, 2006. Step by step I pursued the truth about the tragic accident that took the life of one of our miners in 2000. The road ended when the United States Ninth Circuit Court of Appeals tossed the only remaining citations issued by the Secretary of Labor, MSHA agency. The decision is five pages, which we scanned to our web site. It concludes, “We therefore grant the petition …and vacate the penalties imposed in connection therewith. In view of our holding and the factors cited…the imposition of further penalties for the conduct described in Citations Nos. 7995404 and 7995405 would be arbitrary and capricious. Accordingly, no further penalties shall be imposed with respect to those two alleged violations.” It also canceled $19,650 in proposed penalties.

Hope you can join me in Alleghany for the ninety-fifth annual shareholders meeting.


Sincerely yours,

Michael M. Miller

May 12, 2006


© 2022 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

      Gold Sales:  

(530) 287-3540

Design & development by
L. Kenez