January 16, 2021 

Clips from Alleghany


Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 ]


04/30/2008  11:04AM

For you out-of-the-area gold-hounds, here what Scoop sees and feels outside. It's a no burn day but there is no wind. Temperatures dropped the past two days from the high 70's. Blue sky with a couple of helicopters crusing the ridges of the Middle Yuba River. If your wood styove was cold last night, you hated to get out of bed this morning.
END of weather report.

The April 28, 2008 issue of COIN WORLD hit is subscribers with a story. “California gold mine struggles in ‘famine’ see page 18. Editor Beth Deisher wrote a terrific story complimented by nine impressive photos of the Sixteen to One gold collection. It might be available at newsstands or coin dealers. It is a very worthy prize to find and keep.

The company of Hollabird, Kagin Americana is marketing the sale of the gold collection. It has a catalog ready for printing, which will be circulated to its list of customers. Fred Hollabird said copies are available for $25. The address is 3555 Airport Drive, Suite 308, Reno NV 89511. Phone number (775) 843-0229.


Last year’s gold production at the Sixteen to One mine was a bust says Michael Miller, the company’s president. Facing famine he pragmatically concluded that in order to keep operating and searching for gold, the company must sell its museum quality specimen collection. “For me it’s personal,” Miller said. “Its almost an indication of defeat. I’m intimately involved with each piece.”

The collection comprises 100 items, many crystalline gold specimens existing in their natural state. Some of the pieces were commissioned. These artistic gems were created by lapidary artists carving the prized high-grade, gold in quartz from the mine. The creations include a bear, an eagle, a trout, a complete jug band and other miniatures depicting miners and life from California’s Gold Rush era.

The mining company valued the collection at $3.5 million shortly before the recent rapid increases in the price of gold. Many of the pieces will be on display today (May 1) in downtown Downieville at Sierra Gold store from 4pm to 6pm. This will be the first major public display and regrettably, perhaps, the last. The store will be open to the public and there is no charge to view the collection.
 By blackjack

04/21/2008  10:49AM

Hey Scoop, It would be nice to get a weekly weather report from Alleghany for us Sierra County property owners in the Islands, Mahalo
 By martin newkom

04/12/2008  9:58AM

Mike did a fine interview with
Bob Sims on the KFBK outdoor
show aired this morning. Need more of that. Mike is an excellent communicator as we
all know.
 By bluejay

04/11/2008  6:12PM

Large gold nugget sold at auction

Published: Jan. 21, 2008 at 10:39 PM
Print story Email to a friend Font size:DALLAS, Jan. 21 (UPI) -- A gold nugget weighing more than 26 pounds has been sold for $1,553,500 in a public auction in Dallas.

The fabled "Boot of Cortez," a nearly 12-inch-long gold nugget weighing 389.4 ounces, was purchased in Sunday's auction conducted by Heritage Auction Galleries.

"It's the largest surviving gold nugget ever discovered in the Western hemisphere," said David Herskowitz, director of natural history for the auction house. "It was found in the Sonora Desert near Caborca, Mexico, in 1989 by a local man using a metal detector he'd just bought at RadioShack."

The more than 24-pound nugget was displayed last year in the American Museum of Natural History in New York City. The buyer is an American philanthropist who wishes to see it return to public display "in the very near future," Heritage said in a news release.

A total of 418 lots of fossils, gems and other items sold for a combined total of $4,187,227 at the auction, Heritage said.

04/11/2008  12:45PM

For those of you who have called the office over the years, you know that a real person usually picks up the phone. Starting next week you will most likely get an answer machine asking you to leave a message. Scoop has always had easy and liberal access to the office gang but it will be less spontaneous for the next couple of months. Why?

David (gold sales) and Rae are striking out for Montana tomorrow morning for a month. Mike will be spending time out of the office with mostly surface chores. He and Ray (geologist) always escape underground, which is time well spent. The biggest task is marketing the gold collection. It is 100 pieces and valued by the Company at $3.5 million before the run up in gold prices and the sale of the Boot of Cortez (over a million bucks). Mike cannot get over something that happened at the Numismatic and Money Show in Phoenix last month. An exhibitor had a one-ounce gold coin and a one-ounce silver coin for sale. Price for two these two ounces was $4,735,000. Yowie! Seems the Sixteen to One collection would be more valuable than these two coins. Trouble will be getting the word about its availability spread around to those fortunate to have the dollars to own it.

Those photographs under NEWS on the forum are worth a look.
 By Rae Bell

03/31/2008  8:38AM

Another set of collection photos was posted under "news" this morning.
 By Rae Bell

03/27/2008  12:31PM

Look under "news" for something entertaining!

03/27/2008  9:14AM

President Miller and Company Geologist Wittkopp spent yesterday underground at the main Sixteen to One mine workings. They studied six areas for future mining once the Company has the money to pursue gold targets. In mining, each area (target) has different costs based upon access, set up time, rehabilitation needs and finally actual mining costs. It may not be commonly known but handling the muck is usually the primary concern (cost). Fortunately, at this mine millions of cubic feet of abandoned stopes exist throughout the mines that are capable of becoming a home for muck. These stopes are carefully reviewed for any future mining when the Company has built its 21st century gold detector. Increasing the current depth of detection will expose any remaining pockets of gold in the vein that surrounds the old stopes.

Each of these six targets are studied not only for the costs and time for development but also the potential amount of gold that may be expected from the area. All six were rated for gold potential. Additional planning will refine the targets. Don’t expect much production until the gold collection is sold or some adventuresome and smart gold investors give Mike a call and check out the Sixteen to One. It’s a winner.
 By Rae Bell

03/20/2008  1:10PM

For recent photos of the gold collection look under "news".

Will be updated as time allows. Need a clone!
 By Rae Bell

03/07/2008  9:21AM

No word from Scoop means he’s been too busy to write. It has been very busy here at the Corporate Office. A board of Directors meeting was held on Friday the 29th. The date of record for proxies was set at May 4th. The annual meeting is scheduled for June 28th. Packets will be mailed no later than May 28th.

The 2007 10-K ( year-end financial statement) was filed with the SEC this morning. To receive a formatted copy e-mail corp@origsix.com and I will send you one.

With gold getting close to $1,000 an ounce the “gold bugs” are getting restless and crawling out of the woodwork. I imagine it will be a busy dredging season this summer. The phone has been ringing more than usual with individuals wanting prospecting advice, an opportunity to get involved or whatnot.

The snow is still thick in places and completely gone in others. Mike’s driveway is still a challenge. Just yesterday morning somebody got stuck in his driveway and had to be pulled out.

Thanks for the suggestions Gerard. The U-tube idea is good, just need to make time to do it. As you can imagine Mike has not made much progress moving his vehicles off your property. If we make it a FORUM topic maybe something will give!

Alleghany Days has been cancelled this year. I organized it since its inception in 2001 but decided I need a break this summer. Nobody else stepped up to the plate to take it on so it won’t be happening.

Mike is at a nuministic convention in Phoenix AZ with Fred Holobird. The are trying to peddle the gold collection. Minimum bid 3M.

The museum had a board meeting on Feb. 23rd. The annual membership meeting was set for May 17th. A special note of thanks to all who donated money for specimens! We actually have to file a tax return this year! I also am taking a break from mine tours this summer. So far nobody has stepped up to the plate for that either. I will continue to do the bookkeeping, secretarial duties etc.

Not much to report from the mine. The water level rose quite a bit while the power was out. The pumps were run continuously since the power came back on and finally early this week the water level was down to where it should be and the pumps were shut off. Under normal conditions the pumps are run three days on, two days off, four days on, five days off etc.

The severe windstorms we had this winter took their toll on many tin roofs in Alleghany including those at the upper shop. Most of the repairs have been done. A couple large pine trees fell in Alleghany. One crushed a shed and the other severely damaged a house. Luckily nobody was in the house. This is one of the reasons it is NOT a good idea to let trees grow tall near houses! I’m really razzing Mike today. You see we argue about cutting trees down. There are three cedar trees almost touching the corporate office building that I think should be removed. They are getting to the point where they don’t allow the snow to slide off the roof. Also they can be a fire hazard. Same is true of the museum building. We compromised a few years ago and he let me cut two out of five trees down that are next to the museum building. (Mike owns the building) The remaining three are also keeping the snow from sliding off that roof now. I love trees, don’t get me wrong. I just know what they can do to buildings.

The caretaker at the Plumbago has been snowed in for 11 weeks now. I grew up at the Ruby Mine and the heavy snow this year has been bringing back many memories from my childhood. My dad snowmobiled three kids (I was the oldest with two younger brothers) to school five days a week for several years. It was 14 miles round trip and he would drop us off, go home, then come back and get us. He loved it! My brothers and I felt so safe with him driving and we went FAST up on top of the hill! (Henness Pass Road)

One time he let our only neighbor “Gary” come pick us up from school. Gary had been snowed in for months and wanted to go out. This was not planned in advance so my brothers and I were surprised when we walked up Hell’s Half Acre after school to find Gary instead of our dad waiting for us. Rather than putting us all on the snowmobile like my dad did he made me ride in the “sled” being towed behind. It was a warm day and snow (slush) started flying in my face. I was yelling at him to stop but he wouldn’t until he got stuck. I got pissed and threw a fit and tried to make him let me walk. He violently threw me back on the sled and told me I would be sorry if I jumped off. He got stuck again and again where my dad wouldn’t have. I was able to turn around so the snow hit my back instead of my face but I cried all the way home. My dad heard all about it when we got home and Gary NEVER was allowed to drive the snowmobile with us kids again!

After months of riding the snowmobile to school when we would ride in an automobile we would all lean into the curves on the road by reflex. We also would “duck” for branches. Then we would all crack-up when we realized what we were doing.

02/25/2008  9:55AM

Ouch! There wasn’t as much snow this last storm, which ended in rain and slush last night. For those of you who live or lived in snow country, need Scoop say any more?

Everyone is or was stuck in this morning. Layers of ice, snow and slush make for tough driving. But the sky is deep blue and the sun is shining like high-grader gold on a backing of snow white quartz.

02/21/2008  5:07PM

Some interesting numbers jumped out of the year-end SEC 10-K financial comparisons of 2006 and 2007. Accountants are reviewing the papers before they are electronically filed with the SEC. No significant revisions are expected. The losses were greater: 2006= $111,500; 2007= $291,000. Operating expenses stayed about the same for each year (increased about 6% in '07). The revenue side, however, decreased by 18%. Gold production is historically the great unknown. When a company can find and sack over 3 Million dollars in one shift or can quadruple that in one week, it can also go a whole year with practically nothing. The expenses will be about the same either way. That can be the life of a miner.

At last year’s annual meeting director Scott Robertson, a CPA, brought up the fact that the company has cut expenses down to the basics. It is revenue or gold production that makes for a profitable or losing year. The Sixteen to One mine operation is a difficult one to project a realistic budget. It has always been that way going back to the beginning of the twentieth century. What set this company apart from the other companies in the Alleghany Mining District (or other areas in the Sierra Nevada) was the Sixteen’s ability to buy (or bank) its labor, utilities and supplies well in advance of their depletion. It has always been the revenue side that makes for exciting gold mining. Nothing has changed over the years.

This wily group uses previously discovered gold locations in the mine and inventory as the bank. Some were identified with metal detectors and some by the geology of the deposit. Some of those underground “bank accounts” remain, but for operational reasons the miners cannot get to them. A multi million-dollar inventory remains, but it has shrunk. If no wild, adventuresome and smart people appear at the Sixteen’s door with their checkbook and plans for investment, the inventory must be marketed to develop the mine. What a mine it is! What an opportunity lies ahead. What an opportunity to miss and not see!
 By Dick Davis

02/18/2008  9:59PM

Dear Mike,

Maybe you could suggest to the purchaser-philanthropist, via Heritage Auction Galleries, that the UGMC Museum would be glad to exhibit, on loan, the Boot of Cortez along with the Whopper. And perhaps the Whopper could likewise be exhibited elsewhere.

Best regards,

 By Michael Miller

02/18/2008  12:24PM

An article last week in the Sacramento Bee relates a recent purchase of a 26-pound nugget found in the Sonora Desert in 1989 for $1,553,500 or roughly $4,000 per ounce. (Nuggets do not bring the same multiple over spot price as other specimens.) All of the Sixteen to One mine inventory has a book value based on the spot price of bullion at the close of the accounting period. The entire inventory has a market value greater than the spot price. The entire inventory is available for purchase.

The 100 piece company collection is dynamic, which means that some pieces are replaced if a specimen is sold and some pieces are replaced when a new gold find will add a unique perspective or a better example of an existing perspective. In other words the specimens in the collection change over time.

Private parties hold the Whopper and others as security for their cash advances to the company. These individuals are strong supporters of the mine and its plans for future development, which means their collateral will not be sold to cover their cash loans.

Underground Gold Miners of California museum owns outright five specimens, which were formally included in the Company’s collection. These purchases were made at different times and made possible by the farsighted and gracious donations of Sixteen to One shareholders and museum members. The sale price for all of these remarkable specimens was $36,355.

One specimen from the collection recently sold at the Tucson show for $21,000. It was named “the Tower”. Another specimen in the collection is very similar, so nothing was lost with the sale of “the Tower”. A specimen that does add a new, one-of-a-kind improvement that heretofore was in the non-collection inventory replaced it. Year-end gold inventory was 739.287 fine ounces (fau). The gold collection accounts for about 400 fau.

One of my favorite specimens has about twenty dollars of gold. It is incredible and more than likely we will never see another one like it. It is very small and will take the breath away from the most devoted collectors. It is by far the most difficult to price; therefore, it will only be sold to whomever buys the entire collection. It is priceless.

A shareholder came to Alleghany last Friday and took some pictures. He plans to create a slide show and put it on the Internet. When this happens, I’ll tell you how to find it.
 By bluejay

02/16/2008  11:01PM

GATA took out a full page add in the Wall Street Journal on page C5 January 31, 2008 entitled, Anybody Seen Our Gold?

GATA basically states, the gold ain't there no more.

Having the Treasury guard the country's gold has apparently been a big mistake.

If we put our collection in Fort Knox, it would probably go to "deep storage" and that would be the end of that.

Does anyone know what is still in the collection? Where's the Whopper these days? Has any of our collection gone to the saw?
 By martin newkom

02/16/2008  10:30AM

Sounds like the collection
should be stored someplace like

02/15/2008  5:16PM

A small chunk of gold was found during the clean up around the pump. The water level is held above the 1500 level but Mike wants to lower it below the 1500 level in case the power goes off again. The mine will have a larger sump by doing so. Maintenance continues with both the surface equipment and the travel ways along the 800 level. The heavy snowfall remains along the sides of the roads. It has been cold…in the twenties at night.

Interest in the gold collection is growing. Don’t expect a running account of how the offering is going because it will not happen. Once a deal is executed, Scoop will break the news. With gold prices today and the industry standard appreciation for rare gold collectables, the collection at base value exceeds $3 million. Mike has been taking photos and came in a few days ago with the attitude that the collection is actually “priceless”. Does $10 million sound better? Well, all the beautiful carvings and the other pieces, which make for a hundred-piece collection, will be sold to some wise and fortunate buyer. Scoop wants the old miner taking a bath in the ore call, which was carved by Buddy Miller (no relation to the prez).

02/07/2008  5:01PM

It has been a week of snow removal, loader repairs and messing with the tire chains on the Cat 966 loader. It’s not over yet. Tomorrow will be another day of digging out from the recent storms that left four feet of snow on a base of ice. It’s winter and it comes every year in these mountains. With a short crew the effort just to get underground consumes the days. Maintenance is an ongoing activity.

For those of you familiar with the physical layout of the roads and buildings, visualize the long roof on the mill building. The road to the mine portal is about ten feet wide in front of the mill. Snow piles up on the metal roof and comes sliding down, covering the road. On your right is a two hundred foot drop with no place to dump the twenty-foot pile of snow. Therefore, the loader driver must back up about sixty feet to reach a spot where he can dump the snow. Back and forth he goes. There is no room for error. The road should be cleared by tomorrow so Monday the miners can shovel the snow off the train tracks from the shop to the portal. Once inside the mine this lusty winter snow over the Sierra Nevada Mountains will disturb no one.

01/24/2008  12:18PM

Yesterday, a crazed man who consumed too much alcohol, went over the gate and walked through the snow to vent his rage and vandalized the lower shop. He was later cornered into a house in Alleghany, where he locked himself inside. Sierra County sheriff cars and a CHP officer responded to the call for help. Due to a threat of a lawsuit against the county deputies, they refused to enter the house to arrest the suspect. If he were on the streets or anywhere in the county, they would arrest him. Mike wanted him to stay put so he wouldn’t damage any other property or worse yet start a fire. He shouted loudly that the suspect had better stay inside the house til morning. It would be safe and he would help him get out of the county. A sheriff car was parked by the back door and by the front door. The CHP parked on the road leading out of town in case he made a run for freedom.

The guy had no money and since no one actually saw him vandalize the shop, he probably would be released in Downieville. Therefore, punishment was not the solution. Getting him permanently out of Sierra County was.

Mission accomplished by 11 am this morning. He was driven to North San Juan and Nevada County. The biggest loss was broken glass and a $400 electrical tester, which is a regular tool important to the mine. Mike called the sheriff office in Downieville to notify them that he was gone from Sierra County. The dispatcher said, “Nice job. We knew you could handle the problem and we count on you doing so.” Mountain justice.

01/21/2008  3:22PM

Snow is falling and accumulating. A series of snowstorms are forecasted for the Sierra Nevada throughout the week. The last storm did a lot of damage in and around the mining village. It was mostly due to high winds. Today the snow is dropping like a rock. The road to the mine portal appears to be passable but no one has traveled down today.

Geologist Ray Wittkopp and President Miller spent most of last week underground. They were looking at gold targets previously identified that could be activated on a shoestring budget. Even a shoestring budget requires somewhere near $200,000 to give it a realistic chance of finding gold.

Two important budgetary facts support a temporary, underground shoe string program: the spot price looks like it will stay above $800 an ounce and the demand for quartz/gold gemstones is very strong. The Company does not nor should spend any money marketing its quartz/gold because the current needs of its established users will gobble all production that the mine can produce.

Original Sixteen To One Mine is a very unique and misunderstood situation that potential investors, considering whether to supply the much-needed working capital to go after targets, fail to grasp or plug into a risk/ reward, due diligence analysis. Scoop hears Mike’s discussions and sees his frustrations when otherwise bright people get mushy when it comes to figuring out the Sixteen to One mine and its envious prospects for success. It has no comparisons (always a difficulty); however it’s a no-brainer, which may explain why smart and intelligent men are not knocking down the door to get a chance to join this gold adventure. They apply their brains “inside the box”. Problem is, it’s not a meaningful box.

So, on this cold snowy afternoon, Scoop will take a stab at solving Mike’s problems in communication. He spent time developing a thoughtful Strength/Weakness/Opportunity/Threat analysis far superior to this analysis, but here goes anyway:

1. The mines produced over $1.3 billion from deposits never close to depletion (1.6 million ounces of gold). Calculations at $800 spot. A small pocket of 1,000 ounces brings over $3 million in the jewelry market.

2. The confluence of these mines and technology was never available until now. This is not science fiction. Detection works! It is a twenty-first century fact. So, all you with technology backgrounds get into this action. “Snooze you lose””, no guts no glory” or “he could paper his coffin with worthless stock certificates” will be a lot of guy’s epitaph when it comes to gold!

3 A great plan and the people to execute it are in place. So is a perfect business vehicle. (How many of the start-up and unproven junior gold company operators and promoters drool gallons of hot, wet saliva over the prospects of having the oldest, longest active gold producer in the United States to develop? Every one.)

4. Financial risk is nil. Upside potential for GOLD dividends or stock appreciation is huge. Proceed and check it out.

Still snowing but got a call to check out a rare sighting of a ring-tailed cat. The company’s detailed analysis follows for your convenience.


The ultimate end of all mining is profit. Metal in the earth can always be recovered, but the work of recovery will not be undertaken unless it is expected to yield a profit and will not be continued if profits are not realized. Finance dominates the technical process of recovery. Thus, the miner is restrained by financial considerations. All his operations are governed by the anticipated financial results. This is the domain where finance and technique meet.

Mining is not wholly a question of engineering and metallurgy; it is intimately concerned with finance. A mining engineer cannot conduct operations as he would but as the funds available or that can be counted upon will permit. Metal mining requires prolonged study and experience for its successful exploration.

Honest opportunities for mining and finance are rare. One side or the other knows of horror stories that poison a just union of the two. I am looking to break the reluctance of proven financiers to join miners in the common goal of profit. In my thirty-three years of gold mining, I cannot point to a more favorable time for successful financial institutions to participate in the Gold Sector of our economy.

Original Sixteen to One Mine, Inc. is an anomaly in the world. Even though it is not a mainstream gold producer, its existence since 1896 deserves your serious look. With this in mind I prepared an abbreviated picture of its operation. Please consider a further review and becoming its financier.

Sincerely yours,
Michael M. Miller

Original Sixteen to One Mine, Inc.Executive Summary

Company Name Original Sixteen to One Mine, Inc. (http://www.origsix.com)
Main Contact & Position Michael M. Miller, Director and President
Phone Contact (530) 287-3223
Industry Major Industry: Metal Producers & Products ManufacturersSub Industry: Gold Producers
Company Overview The oldest US gold mining company will benefit from an infusion of capital at a time when gold shows strong price stability. Professional pundits believe that additional increases in demand and price are probable.
Market Gold (bullion) is sold at will into various markets at the current “spot” price per ounce for cash. The Company is known as the standard barer for another product, quartz and gold gemstones that bring a considerable price above the “spot” price. Demand for these gemstones exceeds supply. Gold companies have historically increased in market capitalization (share price) in diverse bull markets. The financial markets are in such a bull market today. It is important to recognize that the number of true gold companies significantly decreased as a result of the past ten plus year bear market in the Gold Sector. The Company will bode well as the current gold bull market develops over the next four years as investors look for quality gold positions.
The Opportunity Secure an equity position in a well-established gold mining company with undervalued natural resource assets including land, timber, water rights, and minerals. Participate in a well-proven gold mining district in California. Participate in the next gold rush for gold by investors at a bargain price ahead of the pack.
Financial Summary A balance sheet rich in unrecognized natural resource assets, poor in working capital with modest debt. Uneven gold production creates budgeting problems.
Capitalization Requirement/Use of Proceeds Five million dollars ($5 million) towards the following uses: Reestablish public stock market, complete and test new gold detector, upgrade equipment, special target development, reduce liabilities and increase working capital.
Corporate Management Michael M. Miller, director and president, has thirty-three years of underground mining and management experience. He has been a director for thirty years and president for twenty-four years. He has broad experiences in conducting the affairs of a SEC reporting company. Ian Haley, mine manager, has twenty-eight years of underground mining and experience.
Corporate Advisors Charles I. Brown (retired mine executive), Leland Erdhal (retired mine executive), Willard P. Fuller (geologist), Sandor Holly (retired director and physicist) Klaus Kolb (attorney), Scott Robertson (CPA), Raymond Wittkopp (geologist), Charles Schultz (mine safety consultant), Jason Burke (mining and civil engineer),


The following analysis combines internal and external aspects of the Company. Strengths and weaknesses capture internal examples. Opportunities and threats reflect external considerations. This analysis was conducted with outside professionals and is presented to assist potential participants in our growth in their due diligence of the opportunity.

Natural Resources (Timber Water, Gold, Crushed Rock Minerals)
Monopoly of natural product (quartz and gold gemstone)
Toxic material handling
Environment acceptance
Historical gold production and profit
Strong geology supporting future gold production
Mining historical and cultural value
Positive local government and public support
Museum (501c3)

Insufficient working capital
Lack of workforce
Unpredictable revenue stream
Restricted trading market for stock
Lack of general investor interest in Gold Sector


Participation in ‘Gold Bull Market’
Natural resource exploitation
Participation in new outlook towards forest management
Media and entertainment venue and products
Natural and organic cosmetics for men and women
Hydropower and bottled drinking water
Vision uniqueness
Cultural and social impact
Baby boomer interest in related areas
Recreation and tourism

Increasing government regulations
Reduction in market demand
Size of market
Extreme increases in utility and supplies costs
Unknown government regulations
Inability to secure sustainable financial backing
Fire exposure

The Company and Proposal

Original Sixteen to One Mine, Inc (the Company) is a California corporation with thirty million shares authorized and 12,867,250 outstanding. There are 1,642 shareholders. The Company has a history of trading on the Pacific Stock Exchange (now defunct). It files unaudited reports to the Securities Exchange Commission and maintains a public market on its web site. Management consists of a board of directors and officers elected annually. Its president, Michael Meister Miller (1983 to present), has been a director since 1977, and is responsible for the day-to-day operation. He has thirty-one years of gold mining and corporate management experience. The current mine manager, Ian Haley, has twenty-five years of mining experience. Former Directors and seasoned professionals maintain an active interest in the affairs of the operation and are called upon for specific situations.

The primary operation is the Sixteen to One mine from which more that 1,200,000 troy ounces of gold have been retrieved since the mine began operation in 1896. The Company began doing business in its present form in 1911 and has operated continuously. It employees fifteen people and operates year round. The Company has a long history of acquiring significant gold properties. Consequently, its assets are recorded well below market price. (See Addendum A for a market analysis.) Its real estate is offered as collateral for the requested money. Recent purchases are the Brown Bear Mine (1994), Plumbago Mine (1999), and Gold Crown Mine (2005). Total gold production from all the Company’s mines exceeds two million ounces (over one billion dollars). As important as this statistic is, the professional opinion that less than twenty percent of the gold bearing vein systems have been utilized is most relevant.

For accounting purposes gold revenues are accrued when the metal has been recovered. For tax purposes revenues are not recognized until the gold is sold. Rare high-grade gold and quartz is sold at a significant premium above the daily “spot” price for bullion. Gold inventory is recorded at the bullion price without an allowance for its proven added value as a precious gemstone or prized specimen. Over the last decade the Company established and retains a world-class gold specimen collection valued at $3.5 million.

On May 28, 2003, the Company issued a press release announcing its intention to develop a new shaft and reposition the Company into additional activities; however it did not seriously pursue the funding until this year. It prefers to fund its development program in two phases. The first phase ($5 million) may include an equity secured loan, a secured line of credit or a private placement. The time period for execution of this program, once funded, is one year to eighteen months. The second phase may include the above methods or a public offering. The primary use of proceeds in the second phase is sinking a new shaft and developing the vein from the shaft. The amount of money sought depends on the success of the work conducted in the first phase.

Use of Proceeds for Phase One

1. Consolidate and pay off all liabilities = $1,000,000

2. Reestablish public stock market position = $250,000

3. Complete and test new gold detector = $250,000

4. Upgrade current mining and milling equipment = $320,000

5. Working capital = $2,580,000

6. Special target development = $600,000

Total = $5,000,000

Upon the completion of the above six projects, the Company will realize immediate gains exceeding the costs in time and money. Special targets ($600,000) with the criteria of short time duration, quick start-up time and exceedingly high gold potential are planned and ready to initiate immediately. A working capital budget ($2,580,000) allows the operation to undertake known gold targets that require six months to one year to develop without the need to find gold during that time. The success of any mining operation absolutely depends on the operator’s ability to lead its mine plan with long-term development. For most of its ninety – five years of mining, the Company was financed to do just this type of development, which is one reason for its longevity.

The Company is one of the world’s pioneers in electronic gold detection technology. Beginning in 1992 and continuing to the present, it has worked with numerous companies and individuals to improve the sensitivity and depth of detection equipment. With each improvement it has retraced prior areas in the vein system previously mined and found additional gold. The historical results prove that with better technology more gold will be mined. The budget ($250,000) allows for finalizing the detector, conducting programs where signals are identified and massaging a software program for the miners to use on a regular basis. Currently, detection has not exceeded seeing four feet into the quartz. The Company has a realistic expectation that reliable detection from ten to fifteen feet is possible. The Company is a leader in underground gold detection. This new tool will change the face of gold mining in California’s Sierra Nevada goldfields as well as other areas with quartz and gold deposits. The Company will own the equipment.

Much of the mining equipment in use today has been a standby in the small vein underground mines for many years. The drill-blast-muck sequence continues to be the most cost efficient method of mining; however improvement in these areas will increase efficiency for the Company. Because of its use of and knowledge of metal detectors, the Company developed improved ways to process its high-grade gold and mill its low-grade ore. The budget ($320,000) buys new equipment, thereby increasing productivity, efficiency and reducing utility and labor costs.

There have been many changes in the gold industry over the last two decades. The Company plans to rejoin the public marketplace at this time by listing its stock on two or three foreign exchanges. Those under consideration are: Germany, Ireland, Iceland and Hong Kong. The budget ($250,000) will accomplish this and provide money to put forth a selective public relations program. The share price has been stable at $1 per share; there is no liquidity. The effects of this decision benefit the owners (shareholders) and the Company. Management believes its shares are undervalued due to its total absence of exposure to the market place. Its market capitalization is far lower that many small non-producing companies with inferior assets and no history of operation. In fact most “gold” companies rely on stock promotion and a healthy promotion budget for their revenue. Another relevant fact that has changed over the past decades is the reduction in real gold producing companies. The major companies have been growing through acquisitions and mergers. The choice for investors that are seeking some type of gold position has shrunk, leaving Original Sixteen to One Mine, Inc as an honest choice for joining the current interest in gold.

The Company is confident in its ability to repay its loan or line of credit from gold production and sales. Gold production will increase, footage production will increase and costs will decrease. Also by consolidating its debt into one master loan, interest charges will be less. The Company is confident that the marketplace will respond favorably towards its improved promotional plans for broadening its share base. Participants in the initial private placement ($5 million equals ten (10) percent ownership in Original Sixteen to One Mine, Inc) should significantly benefit from an increase in interest in the public availability of stock. With a more established market capitalization, the Company will be inclined to offer treasury stock to fund additional projects.

Corporate Advisors: Charles I Brown (retired mine executive), Leland Erdahl (retired mine executive), Willard P. Fuller (geologist), Sandor Holly (retired director and physicist) Klaus Kolb (attorney), Scott Robertson (CPA), Raymond Wittkopp (geologist), Charles Schultz (mine safety consultant), Jason Burke (mining and civil engineer).

Financial Summary: The Company files quarterly and annual financial statement with the Securities and Exchange Commission (SEC).



The vision for Original Sixteen to One Mine, Inc. (the Company) includes America’s natural resources but focuses on the plentiful natural resources of California. While the vision may appear to be rather explicit or narrow, it includes gold and other mineral products, timber and water. It encompasses their utilization, management, development and marketing for maximum yield. No other public reporting company incorporated in the United States shares this focus.

This vision includes the social aspects of natural resources and the desperate need to protect the cultural as well as the physical environment of our precious natural resources. The Company combines all social sciences as well as most physical sciences into an operational program. It is an enlightened business plan of operation. The Sixteen to One’s past reveals a necessary approach of maintaining long-term assets with the short term needs of producing revenue. Its present status is demonstrative proof that a small natural resource company can address the demands of natural resource utilization in today’s overly aggressive pro environmental outlook.

The Company will become known as the model for future natural resource development in California and the United States. Its operations will challenge the erroneous myths and prejudices of well meaning activists who hinder the sensible extraction of our natural wealth. These beliefs have turned the omnipresent demands for raw materials to natural resource production in other parts of the world, a dangerous reality.

A primary ingredient for our vision and subsequent model to expand is an infusion of working capital. There has been a noticeable lack of interest from Wall Street or private investors in forest and mineral production. The modest attention of the stock market towards America’s natural resource companies hurts future generations both in the United States and the world. Some patterns of investment are predictable. Investors’ interest in specific industries continues to move from one sector to another. The Gold Sector is abstruse, removed from the usual way of thinking and difficult to comprehend. The forest industry follows closely in its mystic.

A movement into natural resource ownership or participation is overdue. Unlike banking, savings and loan institutions, automobiles, real estate, airlines, pharmaceuticals, computers, utilities and practically every part of the complex mixture of America’s democratic capitalism, the natural resource companies are ignored. Perhaps one simple answer is that resource companies believe they must stay under the radar to function in today’s hostile anti-mining/anti-logging mentality. Perhaps a more likely reason is the pure misunderstanding that potential investment capital has about these small but vital industries.

The Company’s dream foresees an awakening of Americans to the realization that we need and will benefit from a return to domestic natural resource productivity. For almost fifty years America has been bombarded with media blame for past degradation to the environment. Some of the blame is justified. Many extraction and harvesting methods, however, are no longer practiced and cannot be assumed as what to expect from future operators.

American industries have learned from the past and clearly are the most environmentally sensitive operators in the world. This is one reason to bridge the ignorance gap of the population and our leaders. The “not-in-my-back-yard” position is a short-sided myth! Vital and necessary minerals and other resource products come from countries without the sensible regulations that have evolved in the United States over the past hundred years. The consequences of this are global.

Even though population growth and physical development exploded during the twentieth century, the world-changing roll of the United States has taken a more dramatic turn. A counter cultural shift emerged. America was considered the can-do country. Democratic and capitalistic social ideologies opened the doors for an expanding middle class, especially from workers identified as “blue collar”. Our natural resources were developed and accessible. What changed?

Somewhat reluctantly America became a world power and responsible leader. The blue-collar worker of today is losing economic ground as our society turns more and more to the service industries. But the need for manufacturing contemporary products in America remains; and in order to produce, industry requires raw materials. America has them in abundance. America also needs the backbone of its labor resources to insure our freedoms.

The time has come to broadcast how to treat our inherited resources in the 21st century. Original Sixteen to One Mine, Inc., a US corporation, has all the pieces to lead this renaissance except one. That missing ingredient is explained in its Executive Summary. The oldest American mining corporation operating needs a grubstake to turn its dream into a reality.


Date: June 30, 2005
Subject: Northern New Mine Project

The Sixteen to One Mine which contains over 26 miles of workings over a strike length of one and a half miles has produced over a million ounces of gold and paid more than $5,750,000. in dividends at a time when the dollar was worth more than it is today. At the present time, much of the gold production is sold as specimens and jewelry at a premium over the spot metal price.
A compilation of both new and old data indicates that a new and richer portion of the 16:1 mine exists north of the presently developed mine. This new portion of the mine starts at the very south of the 16:1 owned, patented, Red Star claim and exceeds north for another mile toward the town of Forest. The 16:1 vein in this area lies below Tertiary volcanics and Tertiary auriferous channel gravel known as the Blue Lead. In this northern area the vein has not been as extensively eroded, so higher more productive portions of the vein are present. Historically, the upper portions of the vein have been most productive. As pointed out by W. P. Fuller, former mine geologist and later a director of the company, the last big pocket removed from the mine was above the 250 level, very near the south end line of the Red Star claim. This was during December 1957 and early 1958. Cross sections constructed by Fuller for this area show at least 460 feet of back above the 250 level.
The only logical way to develop this northern area is to sink a vertical shaft one mile north of the present 800 level portal, just south of Wet Ravine on the Red Star claim. A detailed study has been made of all company maps and cross sections that cover this portion of the mine. Additional elevations have been protracted from Geological Survey maps.
The two most important aspects of this project are geology and elevations. According to my notes, the collar of the shaft will be at 4,655 feet, the base of the Tertiary, bottom of the Blue Lead, will be 4,480 feet and the 250 level of the mine will be at 4,120 feet. This will make the shaft 535 feet deep. (The exact elevations will be confirmed soon using GPS). It is necessary to connect with the 250 level as a secondary exit and for drainage.
The cost of the shaft and engineering details are not known at this time. Whatever the cost will be, it will be justified by the rewards of developing this area.
R. W. Wittkopp
Registered Geologist #3321
State of California

Addendum A


Property and Property Rights, Equipment, Buildings and Inventory:

1. Unpatented mining claims (110) based on Company’s arms length purchase in June 2005 at $5,000 per claim. Market Value = $550,000.

2. Patented acreage (472) in Alleghany (includes mineral rights, timber rights and water rights).
No comparable sales; however the Ireland Mine (nearby) is for sale, asking the equivalent of $30,760 per acre for similar rights. Its actual gold production and potential are significantly less than the Sixteen to One. Alleghany acreage Market Value = $10,163,104.

3. Brown Bear Mine (540 patented acres) in Trinity County includes mineral rights, independent drilling records, timber rights and water rights. It also has strong recreational potential. At $15,000 per acre the Market Value = $8,100,000.

4. Residences (3), other buildings and equipment = $985,000.

5. Gold and other inventory = $ 2,500,000.

6. Goodwill. Being an old school economics major at UCSB in 1960-65, my accounting teacher taught us the value of “goodwill” on a balance sheet. Original Sixteen to One Mine is a California corporation in good standing since 1911, and is America’s oldest and longest producing gold mining company. Today goodwill is not found on a balance sheet; however, in this particular review should be considered.

Reasonable but speculative Market Value of Company is $22,298,104.

Revenue History
1995 = $2,655,575
1996 = 1,442,459
1997 = 2,177,150
1998 = 1,466,702
1999 = 841,818
2000 = 1,729,659
2001 = 716,151
2002 = 588,030
2003 = 401,094
2004 = 1,377,458
2005 = 514,104
2006 = 794,086

Addendum B

Factual production:
Historical production from Plumbago veins is four (4) ounces of gold per foot.
Historical production from Sixteen to One veins is eleven (11) ounces of gold per foot.
Historical production (Recent) from Sixteen to One mine between 1992 and 1997:
Total production is 32,924 ounces of gold, which average 5,487 ounces per year.

Assumptions consistent with Use of Proceeds:
Spot price of bullion gold: $650.00 per ounce.
Footage mined: Four hundred (400) feet per month.
Development mining = Two hundred (200) feet per month.
Production mining = Two hundred (200) feet per month.
Ounces of gold from development are zero (0).
Ounces of gold from production are eleven (11) per foot.

Production and revenue based on actual mining between 1992 and 1997:
Annual production: 5,487 @ $650 per ounce = $3,566,550.00
Production and revenue based on actual early historic figures:
Total production: 26,400@ $650 per ounce= $17,160,000

Proforma statement for Special target #1

Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is eighteen (18) weeks long or thirty-five percent (35%) of a year.
Total production: 1,920 @ $650 per ounce = $1,248,000
Proforma statement for Special target #2

Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is twenty (20) weeks long or thirty-eight percent (38%) of a year.
Total production: 2,085 @ $650 per ounce = $1,355,250

Total first year production and revenue for Special Targets:

Recent Assumptions:
Total Production 9,492 @ $650 per ounce = $6,169,800
Historical and Actual recent Assumptions:
Total production 30,405 @ $650 per ounce - $19,763,250

Notes: The Company sells gemstone quartz/gold that exceeds the spot price.

The use of proceeds includes a long term mining plan without projections of gold production and is classified ad “development”; however a study of the history of the Sixteen to One suggests that it is highly unlikely to develop the vein to the extent planned without encountering an ore shoot.

Production per foot: In high-grade ore deposits any attempt to express the average grade of the ore in dollars to the ton is meaningless. To obtain a rough measure of the production of the different veins, geologists compare the amount of work done (footage or per foot) with the production.

Addendum C


Shares outstanding ….. 12,890,204

Options outstanding…. 765,000

Total…………………. 13,655,204

New Shares issued….. 1,502,072

Total outstanding…… 15,157,276

New share ownership is ten percent (10%) equity in Original Sixteen to One Mine, Inc.

Guarantee: $6 million market value two years from date of funding.

Additional consideration: $5 million secured by deed on Brown Bear Mine real property.
: First right of refusal on purchase of dore or bullion.

Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 ]


© 2021 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