August 25, 2019 

Clips from Alleghany


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 By martin newkom

11/10/2007  11:04AM

Remember what I said previous,
Armand Hammer's head driller
at Occidental Pet. told Dr.
Hammer: Keep drilling, keep
drilling!! Same holds true at
 By Rick

11/09/2007  9:43PM

[Please read the below entry before this!!!]

Ah, to be in the crew....

The contract crew wouldn't still be willing to look unless they knew it could be in there, close by the elusive previous tries.

Hello, out there, investor!

11/09/2007  5:09PM

Hey, your on-site reporter must respond to the down-in-the-dump tone of recent entries.

More unsolicited people called the mine’s office this week with interest and questions about investment than any time during the past ten years. More phone calls and e-mails arrived at the mine’s office this week from people already familiar with the Sixteen to One than anytime in the past month. More people have indicated they are planning a trip to the mine to talk about the gold future of the Sixteen to One than Scoop can remember.

Facts, truth and honest reports about the on-going performance in gold mining or any other venture cannot be a negative, if they are understood by the reader. There are no hangdog faces in Alleghany. Scoop tries to tell it, as it is, not as anything else.

These present operators at the Sixteen to One mine have been mining gold and paying the bills from selling the gold since 1989. Right through a long and documented bear market and other upheavals underground work continued. There are plenty of assets, just no available cash. There are bills to pay and some must wait; but a miner must receive his paycheck every two weeks to survive. It is hard to have most of the tools a miner needs plus a billion dollars of gold targets mapped out and no money to drill the holes but no one is moping around this little village high up in the Sierra Nevada.

The business media is full of the notion of ill liquidity these days. Well, on a smaller scale with certainly less threatening consequences than the financial mortgage situation, the company has a temporary liquidity problem. It’s happened before and none are happy about it.

However, there is a well-conceived plan to eradicate the problem, a plan that has been in development over several years. Too few people know that an extraordinary risk free opportunity to get into gold and be a player exists in Alleghany, California, as gold continues to wow the market place with its upward strength.

Have you read the last Security and Exchange filing for the Company? It can be found on this web site. The company recorded a $32,000 net profit in the 3rd quartet. Black ink beats red ink any time. Most junior companies struggling to get financed or tout their stock have no revenue at all let alone a profit. Most junior companies only offer an exploration dream to entice eager investors. Most are betting that the Gold Sector will repeat the past when small companies with no production or operation were bought out with an offer from a “major” to develop its prospects. Times have changed!

Well, a crew of these elite miners will be back underground on Monday, working to make their dream of riches a reality. It has happened before, about four times since 1992 where contract miners have succeeded to drill into a rich pocket. It may just happen again very soon.
 By Rick

11/09/2007  9:26AM

Bluejay, your point is well taken and true, though. It's just frustrating, yes?

The web-page has endured so much negativity in the last number of years, mostly because the mine hasn't shied away from putting the truth out there. If I were newly aware of the mine and a new visitor to the web-site, I'd scroll down through many headlines and topics that carry with them a curious question: where's the positive news?

The frustrating part is that there is so much positive potential, if only resources were found to mine the richest ore-body in the west.

In the mean time, since whatever legal stuff is "pending" out there, the fact remains that the mine has gold inside, and it sure would be sweet to see it in action.
 By Rick

11/08/2007  8:33PM

Bluejay, I've got to disagree with the part about being unable to draw investors at this point.

If the last perspective on the Forum page has a negative perspective, then they probably turn away. I'm not a billboard for the mine, nor am I a salesman, but Jezz....I'm writing a positive perspective,
"Hey investors, check it out!"

And, along the way, don't get swayed by the negative.

 By bluejay

11/05/2007  4:43PM

It's a sad day for all with gold making 28 year old highs. Unfortunately, we are unable to prove to prospective investors that we "have the goods" and can "deliver."

Maybe, the day for the mine and our plans will have to wait until gold starts moving considerably faster than the inflation rate.
 By martin newkom

11/05/2007  3:24PM

I suggest going to bulletin
board. Mike doesn't like it
but at least the stock gets
out into a "main stream" type
of circulation. The First
Northern Bank (FNRN:BB) originally the Bank of Dixon,CA is there and it seems to be doing very well for itself.
 By Rick

11/05/2007  9:37AM

Mike, and everyone one else, hasn't this happened before, and yet the mine survives just like the potential?

Yes. Given the mounting value of gold and the fact that the Original Sixteen to One Mine has gold within, untapped and yet ellusive, the time is ripe for the ideal investors to recognize the potential. How can it be ignored?

Ironic, you bet. Ian's last 12 month push is not in vain...consider the work done, not the lack of result (I know I'm preaching to the choir) because as I've stated before, the larger the pull of the rubber-band, the bigger the snap. Unfortunately the limited resources within the company have tied our hands. Yet this most valuable allure to venture capitalists goes un-noticed for some reason; I predict it won't be long before operating capital is back in the hands of the extremely experienced crew.

There is a reason there is always a twinkle in Ian's eyes: the gold is in there, and the longer he and the miners look, the closer they are to finding it. This is just a temporary situation.

The most optimistic of all, Mike, you mustn't sway from the positive.

11/02/2007  12:57PM

IRONY: a condition of affairs or events exactly the reverse of what is expected. What’s that old expression, the irony of fate?

Bluejay keeps us informed about how many dollars is takes to buy an ounce of gold. So, as the cost keeps rising, gold producers are feeling their oats. Today gold passes the $800 an ounce price and the company and owner of the richest concentrations of gold mined on record lays off its crew. Irony? Yes, but also a sad twist of fate.

It is not the first time this has happened at the Sixteen to One mine. It is not because of any reason except Mike did not have the money to pay the crew past today. It is not for lack of trying. Everyone knew for over a year that cash flow was serious. All the crew kept going and working to solve the issue. Just reread Scoop to see the disappointment in gold production. Ian and Mike, with the input of others, followed the geologic clues, the electric gold detectors and their intuition and experiences over the past thirty years of mining. They played the hand they were dealt even though everyone knew odds were not the best.

Why were odds not the best and why did they keep mining? The cash flow problem goes way back but that's another story. The company requiring regular monthly payments plus a payroll every two weeks. Inventories were shrinking. There were few mining targets available because of the need for short-term cash, therefore short-term targets.

A calculated long target was the rehabilitation of the 1000-foot level. The slippery serpentine wall above the level was a troublesome thorn as each foot advanced. The completion date extended until cash flow forced the crew to go find some gold, which they did.

The crew was not completely surprised by the announcement Mike made to them after shift on Tuesday. They knew the cash flow situation and the lack of production; but Mike can usually pull a rabbit out of his hard hat to rescue the moment. Not this time. His efforts to find working capital have not been rewarded, so there is no money to pay the miners, who also have monthly financial needs.

“It isn’t over yet. The miners will be back”, says one.
“We’ve seen the gold come out of this mine. We haven’t gotten a quarter of it yet”, says all.
“It’s just a simple twist of fate” says Jerry Garcia.

10/26/2007  1:19PM

No decision is expected regarding the claim for damages filed by CDAA and its law breaking lawyers for ninety days, while the judge reviews the extensive file. The judge may ask for clarification of some of the line items.

Judge Smith conducted an open meeting, encouraging questions and rebuttals. He also asked many questions and said how difficult it is for a new judge to enter a case like this at the end. Most of the audience told Scoop after the two plus hour hearing that they wished they could speak and ask Mr. Knox (defense lawyer) questions. A contingent from Alleghany was present to support the mine. The success or failure of the Sixteen to One affects this small village immensely.

Scoop powered up the old computer, checked the FORUM and was shocked to see Bluejay’s posting on the gold bullion price ($783.50). Some regional gold buyers bought a dore bar on Wednesday at $744.19, a difference of $39.31. That was a nice short-term profit. Wonder how the commodity players are doing with gold? Who is playing the market on the short side today?

Mike just returned from the company’s major high-grade slab buyer. The rising spot prices do not affect the slab price so nothing has changed; however the left over cuttings are increasing in value. No other business likely has more valuable sawdust in its workshop than the Sixteen to One. If you forgot or did not know, SLAB is the name for the sliced quartz and gold ore. It is this rare natural gemstone found in the United States. It appeals to both men and women, rich and poor and can be worn as a casual adornment or to the most formal social functions known to man. None in the room will top someone wearing a well-designed and constructed piece of this fine jewelry.
 By Rick

10/25/2007  9:29PM

When the fabric of attempt gets stretched thin the perseverence of the outcome brings the toast-glass high!
 By martin newkom

10/25/2007  5:35PM

The company that made the big
gas discovery the started them
on the way to being a big co.
was Occidental Petroleum.
 By bluejay

10/25/2007  11:45AM

Agnico Eagle Mines will spend over $40 million just on drilling alone this year.
 By martin newkom

10/24/2007  8:13PM

As the head driller told the
lease owner years ago when at
approx. 6800 feet at a site in
Lathrop, Calif. "Keep Drilling"
"Keep Drilling"! Well, they
did and hit the second largest strike of natural gas in the
history of exploration in Calif. Source: Armand Hammer's

10/24/2007  9:25AM

Scoop quits evaluating the quartz vein in the headings. See last posting. The indicators for gold are fooling everyone. Each miner who has seen the high-grade concentrate into a nice “pocket” can’t believe the lack of production over the past year.

The underhand decline and sublevel drift produced nary an ounce of gold.

Work towards the Sixteen to One shaft is continuing, one round per day.

The raise between the 800-foot level and 600-footlevel is well underway. Spirits are low in Alleghany, but confidence is high, whatever that means. These miners need to catch a break.

10/01/2007  3:34PM

Good look at the underground headings this morning. The sinking/ underhand drift work place floods each day after shift. It is in a wet part of the mine. The pump is air driven, so the compressor must be running to keep it dry (compressor only runs during the shift). As the heading advances, it takes a little longer to pump out. Under consideration is switching to an electric pump with a float valve. It seems to be a toss up because if no gold is found in about ten more feet, the heading will be abandoned.

One crew began a low degree raise towards the old Sixteen to One shaft about sixty feet below the 800 foot level. Boy, the quartz has all the look of a home for gold. The vein is about four feet thick with other features that are favorable to gold deposition. There is a good spot to dump the shot-rock, but Ian must decide whether to continue hand mucking, using water, or set up a slusher. Time is always a factor.

The 800 hanging wall drift crew is getting a round per shift. This looks more like a long shot for success. The strike of the vein is changing, which can be a positive geological occurrence but the quartz looks somewhat splayed. It is carrying sulfides, which is an encouraging sign.

MSHA finally came for an inspection last week. There were four citations. None were serious or substantial. One: a ground plug was missing on a cement mixer that was used a month ago in the construction of a change room for the miners. Two: a light bulb was out on one of the trammers. Most of the time the trammer drivers leave the lights off. Their headlamps provide enough light and they hate to interrupt their vision, which becomes accustomed to the low light after a short time underground. The inspector wrote that the hazard he saw was the potential of running into miners on foot. Humm. Three: a report (retrieved on the internet) for certifying annual refresher training was filed on the wrong form. Four: an allegation that the mine does not have alternative mine rescue capabilities arranged. This should be cleared up- in a conference and the citation vacated. The total money is $240, another blow to the boys.

An ongoing concern of the company is the proven fact that the media will use the number of citations to show how reckless mine operators are about the safety of the miners. That’s how the system works in a society that spends about thirty seconds analyzing a serious topic.

Heavy bursts of rain the past weekend. Alleghany is not ready for winter after the first week of fall.

10/01/2007  9:13AM

The initial hydropower feasibility report for generating electricity for the mine is completed. The current water flow used to calculate (September), the elevation change (head) and the friction loss indicates that the company will make about $35,000 of electrical power a year. Since the water flow was at seasonal lows, the kilowatt production is likely to increase during the wet months.

The two big expenses for this power plant are the Pelton wheel system of generation and the 2500 feet of high-pressure pipe from the source to the power plant near the portal. The system cost is estimated to be $65,000 to $75,000 installed. In two years the power plant will pay for itself.

09/11/2007  5:28PM

Ian and Mike returned from the MSHA hearing in Nevada City seemingly content about the proceedings. The administration judge is based in Denver not Washington DC as reported earlier. At issue are two citations. Both citations dealt with allegations that openings next to regular travel ways could be fatal to a miner. The openings were not contested; however the section cited and a potential for injury or death were. There is nothing wrong with openings in a mine. There are a series of facts that must be present for the situation deserves a citation.

Mike practically apologized to the judge for requiring a formal hearing for the citations. He complemented the MSHA district office negotiator, John Pereza, for his effort to mitigate the charges in a compromise. He stressed the need that today a miner must challenge false allegations because both the press and lawyers are using citations as evidence that mine owners or management are criminals. He should know. He also thinks it is wrong for the government to post citations on its web cite before they are adjudicated.

Our guys seemed concerned that all parties must use words, such as a travel way according to their definition when writing a citation. Through the cross examination of the mine inspector responsible for writing the citation, Ian and his own testimony, Mike presented a step by step analysis of the actual circumstances at the two separate inspections. Troy, one of the inspectors, was newly trained. This was his first Sixteen to One mine inspection. Both Ian and Mike testified that Troy’s facts and observations were not correct (neither were present during the inspection). These two, however, have sixty-three years of experience in the Alleghany mines, mostly at the Sixteen to One. They clearly know the lay of the land and over the years are knowledgeable about the safety standards regulating the operation.

The other inspector did not come to the hearing. He took a job in the private sector and quit MSHA. Scoop learned that this is a growing trend in the industry due to the need for more experienced miners in Nevada.

Ian says they won the arguments and logic but won’t win the hearing because they never do. Mike just says, hum. The judge said he would make his decision in a month or so. He probably wants to review the transcript, which was recorded by a private stenographer.
 By martin newkom

09/06/2007  11:58AM

Have no fear, they will find

09/05/2007  6:41PM

PG&E turned the power off in western Sierra County this morning at 8am. One of the main transformer stations is in Alleghany. Power feeds to Downieville, Sierra City, Goodyears Bar and Pike. If you called the mine office, no one answered because no one was there. The power is back on (6pm).

The miners were able to work because the backup diesel air compressor was hooked to the air intake next to the electrical compressor. The psi dipped to 90 during the day with two drills running, a slusher and the mucking machine. All in all the Ingersoll Rand 400 cfm compressor did a great job. The electrical compressor is about 1000 cfm.

Looks like management has challenged a couple of MSHA citations and were unable to get the issues solved with the inspectors. A hearing is scheduled for Tuesday, September 11, 2007 in Nevada City. The amount of proposed fines is about $220. Scoop asked Mike why didn’t he just pay the fines and avoid the time spent before a judge. He had this to say.

“ The press as well as lawyers are using citations as evidence that mines are either unsafe or the miners or management are operating in a knowing unsafe manner. You know what this leads to!!! Well, it can be a piece of probable cause to indict a mine officer or a mine supervisor for manslaughter, which would send him or her to prison. These citations are not warranted, and I cannot take the easy way out for convenience. Sure it’s the money, but much more is at stake as perhaps well meaning people, ignorant about the realities of operating the Sixteen to One mine, make claims that are not correct. I hate these hearings. After all, it is our tax dollars at work: a judge flies in from Washington DC, a reporter makes a transcript, a lawyer drives up from San Francisco, a couple of MSHA employees come to testify and Ian and I go to Nevada City for a couple of hours. I sure hope we prevail. The mine inspector who wrote the citations probably believed he was right; however, the actual circumstances say otherwise. ”

Miner Mark and his 18 year old son are sinking south of the gold found in the footwall vein. They have blasted quartz everywhere else. Where is that pesky gold?

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