April 24, 2018 
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Clips from Alleghany

       

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 By RyanBaum

06/03/2015  2:07PM

I finally had a chance to read the OAU annual report today. While Mike Miller references his three written commitments from last year’s annual report, he didn’t report on the verbal commitment he made at last year’s annual meeting—this was going to be the make or break year. He made a commitment that either gold would be found to increase the cash position or he would begin discussion with investment bankers on funding options.

Although I won’t be able to attend this year’s annual meeting in person, I hope a shareholder raises this question and Mike provides specific plans on raising cash even if this requires equity dilution. To paraphrase a friend of mine, I’d rather have a smaller percent of something than a larger percent of nothing.
 By SCOOP

05/22/2015  3:52PM

About 1250 Annual Reports left the Alleghany post office this Tuesday. Shareholders should have received it by now, so Scoop wants all of us who don’t own shares to read the latest from the President and mine. Following is the opening message.


Dear Shareholders,

Once again the time arrives for news from your gold mine. A year ago I wrote of three goals for the 2014-15 year: lower the present water level; remove blockages to access gold targets; work with a non-affiliated “high-tech” group to find a 21st Century detection system for our mines. The water level is about 400 feet lower than it was last year; the crew is preparing a detailed exploration operation in a previously blocked vein; the detection company has the hardware to see into the quartz greater than at any other time. Understanding what we are seeing remains unclear; now software interpretation is the focus. Step-by-step the obstacles are disappearing.

On June 20, 2015, our annual shareholders’ meeting takes place in Alleghany. There are no good or bad surprises to announce. The Underground Gold Miners museum is holding its annual gold specimen display that weekend.

One noteworthy event is our acquisition of a new gold detector from Australia. Promotional material claims a 40% increase in depth from prior models. In February the crew incorporated this tool into our detailed exploration program. Early results prove that the depth has increased. Where to explore is decided by historical production, geology and detection. This new Mine Lab detector gives us a fresh look at the vein throughout the mine. I am cautiously optimistic. Most every person familiar with this mine knows that more gold remains unmined, but where is it?

That nasty overhanging California water agency lawsuit settled on February 11, 2015. The government sought over $2 million for not filing thirteen test reports. The issue was never about pollutions or environmental damages. We settled for $234,000. I was not a happy miner. The agency ignored notifications that milling ceased in 1998. The time and expense for 1,460 annual tests became unmanageable. The agency denied repeated requests to change our requirements. Our attorney said to take the offer: lack of funds to continue the lawsuit.


The Alleghany district has long been famous for the high-grade gold ore of its quartz veins. Nearly all the production is obtained from small shoots. Owing to the particular type of ore prevalent, production is irregular. Due to a scaled back crew, the odds of mining those gold pockets have grown against us. Something must turn this around. Half our crew is attending the detection program. The other half is working on projects to open new areas for exploration. No one is mining for gold. This must change. The cure is to increase efficiency and in a miner’s words “break more rock.” How shall we do this? We must expand the crew, purchase supplies in volume and hire a couple of top maintenance men. Outside capital makes this happen.

The price of gold remains reasonably high for profitable mining. I’ve considered the likelihood of mining our way back to profitability. It is possible, but other options exist: sell stock through a private placement, offer gold futures below spot price or joint ventures creatively designed to meet all party’s needs. Money equals a shorter time to find that magical pocket of gold. We will, therefore, “break more rock.”

Our industry (as many others) is experiencing a lack of skilled employees. Reasons vary. While our crew is small in numbers it is large in background, experience and training. One other important factor stands out. This crew is highly motivated to succeed. We accomplished much last year; however, we define success as producing gold. You should expect it in the coming year.

The four following pages are worth reading, which is why they are printed in the Annual Report. It is background material for others to evaluate our Company. A financial lift does wonders to achieve our success. Suggestions are welcomed. Frequently people ask, “Why do you stick with this gold mining business?” I reply that my confidence in the richness of our mines has never wavered over forty years. I sometimes mutter to myself this quote: “You may be deceived if you trust too much, but you will live in torment if you do not trust enough.”

Sincerely,

Michael M. Miller, President
April 30, 2015
When asked to prepare a vision for the Sixteen to One years ago, I did. The original analysis was written in the Fall 2007. Investors from Silicon Valley figured it was a good thought to look into gold and called me. They called ours a ‘trailing edge’ business. They considered theirs ‘leading edge’ ventures. The point man wanted a SWOT paper (strength-weakness-opportunity-threat), a new concept to me. Everything came to a halt when the events of 2008 dropped on America. He asked me, “What is your vision for this old company and mine?” I searched my soul and wrote the following. It still rings relevant.


WHAT’S IN ITS FUTURE
A VISION

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 has survived 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 role 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. It will celebrate a 100-year, centennial birthday in October 2011. Happy Birthday America. On July 4, 2011, the land that we appreciate and love is 235 years old.


More years have passed. Time for testing this vision is overdue. Those external events beyond control have raised no new weaknesses or threats to our Gold Mining Company. The opportunities are greater for our company to prosper. In addition to our exploration program and maintenance underground work, our lack of adequate working capital must be solved. This is my main focus for 2015.



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.

STRENGTHS
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 501(c)3

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

OPPORTUNITIES
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

THREATS
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
 By fredmcain

04/08/2015  4:23AM

Scoop,

Sounds to me like if I lived there I'd want to have a good wood stove. Or is burning wood no longer considered "politically correct" in California?

We met a girl on the train last year who was a German Baptist from somewhere in the Modesto area. The German Baptists are a little bit like the Amish except they're not quite that old fashioned. But they do burn wood. She told us that they have "no burn days" when the smog is bad and that they can be fined if the burn wood on a "no burn day". Seems strange to me 'cause I think most of the pollution is coming from people's cars - not from the German Baptists heating with wood.

Years ago, I had an uncle in the Porterville area and I remember he had a wood stove. But that was back in the 1960s.

Good to hear about the new metal detector. I hope they find something. But I still think it would be a good idea to try it out on some of the deepest areas of the mine that still need to be dewatered.

Regards,
Fred M. Cain
 By SCOOP

04/07/2015  4:28PM

Something strange happened today. Residents were confused. It brought back a distant memory. White wet stuff kept falling from the sky. Finally the County big trucks came clunking through Alleghany and everyone remembered: it’s called snow; yes, it has snowed all day.
The Sixteen to One office had its own problems. The propane tank emptied over the week end and wasn’t discovered until yesterday…no heat. A call to the gas company promised a delivery today. No delivery. The truck couldn’t pull the grade with snow on the road, so the company canceled delivery. That’s how it goes in the back country sometimes. Deal with it!

The mine got the new Australian Mine Lab detector, which claims a 40% increase or greater depth potential. It picks up spent blasting caps real well says Britt. Do you think all the gold is gone from the old workings? Scoop doesn’t. Good luck, boys. You all deserve some breaks.

Not much news to report. Shareholder meeting coming up end of June. Price of gold holding well in the face of stronger dollar.
 By cw3343

02/18/2015  5:00PM

re the post below:

All y'all are doing fine with the website. It is as good, or better than most of the other junior miner sites, of the dozen or so that I have looked at. Keep up the great work.

(one item that could be added, and/or improved upon would be a good map of the mine. An interactive map would be pretty cool - Although that is probably one of the more difficult things to lay out and display decently on a website)
 By SCOOP

02/18/2015  9:46AM

HERE’S THE WEBSITE SITUATION

Sixteen to One was an early company to put its website on the Internet. A mining engineer named Johan Raadsma pushed the then novel idea in 1995. A couple of locals worked on it with so so results. In 1998, a very smart Hungarian redesigned it and has tweaked it as technology improved. Well, technology apparently has moved past the ability to tweak it further. It is old, a vintage website with outdated functions.

It must be brought into the 21st century, but its format will resemble what you see right now. It takes some time and money so bear with this old Company as it continues to move forward.
 By fredmcain

02/10/2015  4:40AM

Scoop,

If they're really so worried about a water shortage, I know where they could find some more water! All they would need is a good pump and a big pipe and Kanaka Creek will be raging!

Uh, well, I guess "that" water wouldn't be "politically correct", huh? What if it had minute traces of arsenic in it?

Regards,
Fred M. Cain
 By SCOOP

02/09/2015  4:46PM

Western Sierra County lost electrical power last Friday. Our neighbor to the west, Pike, got power back Saturday. Alleghany got it back Sunday morning. The remote line going to the Washington community remains out of power. This storm was wind damage not snow (there isn't any).

The rain fall was less than projected but every drop helps. Expect the water shortage to continue this summer.

Sierra County officials held a community meeting at the Pike firehouse Sunday afternoon. Sunday and rain but about 50 people arrived to here the supervisor, assessor, sheriff and public department chief. Topics were roads, dumpy properties, and marijuana. Sierra County passed an ordinance which goes into affect now. People are not opposing grower use of pot but definitely object to non property owners and residents from growing. Another objection was seeing or smelling someones pot. The bush must be shielded from view.
 By fredmcain

12/11/2014  9:34AM

Michael,

Yeah, I know it! Here in the Midwest, my fellow Midwesterners have this stereotyped image in their minds of the "Golden State" as being all sunshine, warm beaches and palm trees!

When I have tried to tell them that some of the heaviest snowfalls ever recorded on earth have been in California, I get incredulous looks like maybe I'm not quite "all there". "Huh? Snow in California? What are you, nuts?"

Another really, really fun read that I can recommend is called "SNOWBOUND STREAMLINER" by Robert J. Church. Reading this book is even more fascinating if you're a train buff (like me) but even if you're not, it's still a fun book. It was a close call, though. Almost ended in disaster but it had a happy ending.

Regards,
Fred M. Cain
 By Michael Miller

12/10/2014  11:11AM

California has been warned that the biggest storm in six years circulating in the Pacific Ocean will hit land around 6pm today: up to 12 inches of rain on the coast line and 7 inches at the elevation of Alleghany. Snow line projections vary from 5000 feet to 6000 feet. The highest ridge into Alleghany is 5200 feet elevation. Alleghany averages about 4200 feet. The mine portal is 3500 feet. Winter comes every year but no matter how much work goes towards lessening its hardships, few are every 100% ready.

But this is California. Yeah, it gets cold and rains and snows. Still in the mountains and foothills you will see people getting out of the car with sandals instead of boots. Californians will be out
in the rain without a hat, umbrella or even a coat. Winter??? Bah.

Seven inches of rain in a couple of days will bring problems with roads and driving and of course water leaks in the old roofs. High winds up to 60 mph are also in the forecast. Get you candles out and get ready for no electric power.
 By fredmcain

12/02/2014  11:21AM

Ah, finally ! Rain! (Or snow depending on your elevation.)

Maybe your long drought is coming to and end.

This has happened before. Read "Storm" by George R. Stewart, a great Californian. It's a great read set back in a day and age when everything still worked. I know. My Dear Mother, may the Good Lord rest her soul, grew up in the Central Valley.

Regards,
Fred M. Cain
 By SCOOP

11/17/2014  4:13PM

Here is an important SCOOP - following is correspondence back and forth on the security of this website.

Office: “Several people have told us that when they do a Google search and our site comes up Google gives a warning that our site may be hacked.
Do you know how to make this go away? It does seem to prevent some people from looking at our site.”

Webmaster: “True, I see the label. I'm going to look after it.”

Office: “Thanks”

Webmaster: “After some actions, Google has removed the label. (They were pretty quick, far quicker than they promised.)” Regards


Now for an update: Yes, news from the Sixteen has been hard to get lately. Much is going on but true to Mike’s pattern of behavior, until activities are assured or he believes it required, advantageous or necessary, the Company’s business is not open for discussion. Just like those gold explorers, Scoop can dig around looking for a nugget or better yet a pocket of gold.

A MSHA brief of the hearing held in Nevada City in August is due early January. A settlement for the lawsuit filed by the water regulators for $2.3 million is under consideration. Exploration at the Sixteen to One mine and rehabilitation of the adit at the Plumbago mine continues. Thirteen feral kittens are captured and held in the mine’s office waiting to get a little older before a trip to the nonprofit shelter for a fixing. Six took the trip already. (This is not the first time feral cats were a problem in Alleghany.) This is a no kill shelter. History likes to proclaim that mining and prostitution are two of the oldest professions. Well this 103 year old mining company is now also a cat house.
 By fredmcain

09/25/2014  7:15PM

And yet the rains WILL come! They *WILL*. They always have and as long as the earth stands they will continue to do so.

I would like to recommend the book "STORM" by George R. Stewart. This book is just plain fun reading. I'm quite sure it's out of print but most libraries have it or you can find a copy like I did on Abe's Books.

Not only is it fun reading, but it gives you a very good insight into the workings and way of life of a California that is now gone. The California that my mother grew up in.

Another goodie is his book "FIRE" which also makes for fun reading.

Regards,
Fred M. Cain
 By cw3343

09/25/2014  7:53AM

The Boles Fire in Weed mentioned below burned 150+ homes, and two churches. The mill, which employs 170, was saved except for some outbuildings. They should be back up and running at some point, hopefully soon. This all happened in one afternoon/early evening, as the wind was crazy that day. Shout-out to the firefighters, and especially the air tankers & helicopters, for saving as much as they did.

You are correct in stating that better forest management would definitely help reduce the fire danger.

I am glad that all y'all in Allegheny have, so far, not had to deal with any close wildland fires.

(It is a good thing that I am not in charge of punishing the guy that started the King Fire, as I would be tempted to set a new high bar for the various types of punishments that he deserves...)
 By SCOOP

09/25/2014  2:58AM

For those readers outside California our State has been smoking for three plus weeks. Yes, the forests are burning. North of Alleghany the community of Weed was devastated when wind blew a path of flames through a major residential area. Nothing survived in its path. Over forty homes disappeared into ash. Weed has a logging history. Some residents’ say the town will never survive this blow. The cause of this fire has not been determined.

To the South of Alleghany some idiot purposely started a fire. We watched it grow form the hundreds of acres to over 95,000 acres this morning. Alleghany as most of the Sierra Nevada communities and upper Sacramento Valley have been covered in smoke. Eyes are burning, throats are raw, schools were closed and most outside events were canceled. The talk today is gratitude for morning rain. More than 7,000 fire fighters are attacking the flames. With this rain, the threat of greater loss may be gone.

What will the judicial system do with a man who brought so much suffering to people he did not know? No punishment seems adequate. Fires are burning in southern California as well. California is classified as a Mediterranean climate zone. That means dry summers. Fire potential is to be expected. The build-up of fuel (understory and pint sized worthless trees) is a problem that must be addressed. The idea that mankind shall not manage the federal forests is insane. It has been the mantra for many here in California. It is a kooky idea. Knowledge about how a healthy forest looks is the first step towards gaining the power to make it happen: cut weak trees, spot harvest or thin commercial trees, clear shrubs.
 By SCOOP

08/06/2014  8:03AM

Does Scoop hear the sound of snoring throughout this web site? Must be the summer doldrums! If you were in Alleghany yesterday, you would not think it was summer. It poured, not rained. It poured. California’s Sierra Nevada mountain Range is noted by whether, yes, Scoop knows, they call themselves weathermen. Really, as far as the Sierra Nevada goes the weather report say something like this: sunny; partly cloudy; scattered chances of rain; possible lightning and thunder clouds. How can they go wrong with these predictions?

The rain was a welcomed sight. Our biggest concern is fire. The concern remains but at least for a week or so, Alleghany area seems safe. There is more talk than action by our leaders with regard to forest restoration. The proper management of our National Forests in the West is the best fire repression tactic.

The Sierra County Public Works office prepared the best description of the problem we face. The Sierra County Board of Supervisors reviewed the situation and passed resolutions as fine and proper as any previously written…..better than most as well. All trees are not equal. Many are weeds disguised as trees. The under growth is sucking water when the lack of water is universally accepted as a concern. (Of course Southern California does not see this concern. Its water usage has increased lately as reported in the Sacramento Bee.

How about that Sixteen to One mine! Hey Mike, let’s have an update .
 By fredmcain

07/08/2014  11:27AM

Looks to me like Alleghany is on track to get some rare summer rain! Rain in July? In California?

I hope that keeps your fire danger down for a little while!

-Fred M. Cain
 By cw3343

07/03/2014  10:35AM

Thank you for going out of your way for the benefit of the shareholders. Always great to spend a day up there at meeting/mine/Rosies (and hard to leave)
 By SCOOP

06/18/2014  3:23PM

From all comments Saturday’s annual shareholder meeting was a success. The weather cooperated, sunny but not too hot. The Alleghany Volunteer Fire department Auxiliary prepared a delicious taco lunch. Shareholders and guests toured the shops, map room, and underground mine. Many bought gold jewelry, gold specimens and the popular Sixteen to One tee shirts. Everything worked. Nothing broke down. The grounds were attractive. Total people count was 130.

Besides all the mine talk shareholders or guests approached Mike with the question, “Where can I buy shares?” His answer was that the company does not sell stock to the public. The only places are the great unknown gray market, something discussed for years or through our web site. The web site brings existing shareholders and people offering to buy shares together. We all know this but Mike discovered a new source of information: a daily tabulation of OSTO (stock symbol) of dates, prices and volume of transactions. Upon a careful review of the data from January 2, 2014 through May 12, 2014, a planned semblance of “trades” is underway in order to establish a low and false market cap value. There were twenty trades;. 195,328 shares exchanged ownership. Or did it?
 By fredmcain

03/27/2014  7:49AM

SCOOP,

Thanks for the update. I found some of your remarks most encouraging. Sounds to me like real progress is taking place at the mine.

As for the water issues I am praying that a light will go on at the State Of California and they will see how stupid and short sighted that is.

As for logging in the National Forest, environmental groups that would end all logging are the same groups who believe there should be no mining, either. Ironically, the kind of mining done at the Original Sixteen To One is very environmentally "friendly". Like you say, if we leave it to the Asians to mine for gold, there will be much more environmental damage done to the globe not to mention the loss of American jobs.

Regards,
Fred M. Cain

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© 2018 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910
 

Phone:   
Fax:
E-mail:
 
(530) 287-3223      
(530) 287-3455
corp@origsix.com
 

      Gold Sales:  


(530) 287-3540

goldsales@origsix.com
 



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