EXCERPTS FOR HISTORIC ANNUAL REPORTS
1986: It is crucial for our company to attract money to expand our exploration and development programs. This need is significantly different from companies who seek money to retire debt or just carry on operations. Our company is under no threat due to inadequate resources to maintain the present level of operations indefinitely.
1993 was a pivotal one for us. By the end of September, I understood that the battle for operational survival could no longer dominate our behavior. Survival management, so familiar since 1983, must be replaced by expansive and development management.
1999: I am pleased with our small and efficient crew. I am also pleased with the condition of our underground workings (the mine failed to fill-up with water and is in better shape than one year ago). I am pleased with the solid targets for gold production available for exploration. I regret the continued sorry condition of the spot price of gold and the low value of our stock shares. We have overcome the low price by increasing the interest in and price of our quartz laced with gold.
2005: 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.
Last year I wrote: we will be walking on the 1500 level by June, the 1700 level station will be renovated by August and the 2200 level will be dry by December 2017. Two out of three is nothing to brag. The crew renovated our main decline, the 49 Winze to the 1700 station. The water level is perched above the 2200 level on hold.
Looking for gold was not our goal. Accessing the known targets for gold production on the 2400 level is. Our inventory, therefore, was depleted. The financials show a small loss for the year. Our wager for 2017, was water removal and major infrastructure repair. How did we pay for this work? Inventory generated in the profitable 2016, year provided the means. The water level is below the 1900 foot level. The 49 Winze is beautiful and has cleared all safety requirements to the 1700 foot level. This is good. The next underground affront assaulting our miners is opening the 1700 level from the station north to the Tightner Shaft. The task is not difficult but takes time.
You read past concerns about our treatment by MSHA, the federal regulating agency. Much has improved. Mine Safety Health Administration held two hearings since my last letter. One docket of nine citations was completely vacated. Disgruntles with this agency have significantly lessened. You also know about mistreatment by a Californian regulator from a natural and insignificant discharge of water. An appeal stating misconduct (violation of the law) was timely filed with the State Water Board seeking a public hearing. The Central Valley office is undergoing major changes. It approved improvements in our discharge permit at its April 6, 2018, meeting. I look forward to our mutual commitment to realign specific conditions in our permit according to the law. The Sixteen to One mine has been environmentally GREEN years before it became a popular slogan in California.
Join our crew and like-minded shareholders on June 16, 2018, in Alleghany. A BIG CHANGE this year: BRING YOUR OWN LUNCH. Beverages will be available.
If this is your first trip to the mine and you want to see the underground, bring the following: clothes for 50 degree temperature (likely a delight during the summer), walking shoes to handle three inches of water, a very good flashlight, gloves and a hard hat if you have one. (We have about forty available.) And of course, bring your camera. Arriving early helps everyone. Arriving late may prohibit entry. Preregistering really helps everyone. There will be some new twists to the day as well. Please return the proxy as soon as possible.
A FINAL NOTE
Sophisticated investment or speculation orientated people with a will to investigate our mine increased since last year. The interest is welcomed. Alleghany is ready to show a serious investor various ways he or she can make money and develop a solid gold position by joining our crew. The Sixteen to One must be included in any five-star, global group of gold mining opportunities. Significantly, it will be the only one in California.
Michael M. Miller,
President and Director
May 10, 2018