August 19, 2019 

Clips from Alleghany


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04/17/2006  8:30AM

Easter Snow in Alleghany. It snowed a foot yesterday. The sun is breaking through the clouds this morning.

The fire department pagers went off at 6:45 am for a tree down on a garage with live electric wires. The tree is blocking main street above the Post Office. Mondo our PG&E guy in Downieville drove over and shut the power off. He already has the line repaired. The county road crew is getting the 3 foot diameter tree out of the road as I type. It appears the tree landed in the middle of a two car garage and the two vehicles may be OK. Amazingly nobody heard it fall. The tree is completely uprooted.

We now have six men working at the mine.

The miners have not been bringing up gold as they are working around it. No production totals yet. Because the gold is sparse in the quartz the number of ounces is not high. However this is the material that makes good cut rock bringing a much higher return per ounce.

The gold market is above $600 again today. No London Fix since Thursday due to the Easter Holiday.

Rae hasn't even started on the first quarter financial statements. Better get to it! She spent all day Friday organizing legal papers for Mike and on compliance paperwork.

Mike made the trip to Orocal on Friday to sell slab.

The Empire Mine job got another time extension and should be done by the end of May.

Maybe by then spring will have sprung!

04/03/2006  9:01AM

Heavy rain is falling in Alleghany rapidly melting the snow that is on the ground. Lowlands look out.

The mine inspectors were here on Tuesday of last week. Only minor citations were issued and all of them have been abated. The crew was sidetracked from blasting to deal with the inspection but did manage to get a round in Friday. They intentionally blasted to the side of the area where gold is showing in an attempt to break out the jewelry rock without fracturing it. Perhaps today they will bring some up.

Gold Sales has two nice rocks to cut but the big saw is broken. David sent the motor for new bushings two weeks ago and it was sent back via FED EX a week ago. Kyle traced the package Thursday only to find out that Fed Ex subcontracted it out and there is no way to track it. Fed Ex is not the greatest carrier for rural areas. We have had trouble with them time and time again. SO if you are sending us a package we do not recommend using them. UPS or the good old postal service is best.
 By The fool on the hill

03/30/2006  7:09PM

To the fools planning on coming to Alleghany Saturday the weatherman is predicting snow to 4,000 Friday night and Saturday morning with clearing Saturday.
This fool knows they sometimes get the elevation wrong.
The plows run even on Saturday. If you want to reach me Sat. morning for road conditions try 287-3333 or 287-3540 or my home number.

03/23/2006  11:12AM

NCTV, channel 11 in the grass valley area, will play a live/taped show about the Sixteen to One mine gold collection on Friday, March 24, at 7pm and Sunday, March 26, at 3pm. The show was recorded in the stations studio last Tuesday evening. It is the first time the 100 piece collection has ever been assembled and filmed.

Gold in the high-grade sacks for David to weigh and cut and gold in the face. Like most pockets in a high-grade gold mine, we won’t know its size until after it is mined. All Ian will say is that it looks good.

03/10/2006  8:51AM

What a hot week for Scoop. Heard that Mike was invited to hear Bruce McPherson, California Secretary of State, speak at a noon meeting in Nevada City on Thursday. Bruce and Mike are lifelong friends. There fathers were best friends before the boys were born. This could be Scoop’s big break to move off this web site for a new career with the big boys, so Scoop snuck into the lunch meeting undetected to scoop up a story.
Bruce thanked a few people in the crowd, saving his comment about Mike for last. He warmly praised Mike and Original Sixteen to One in his opening remarks, while Mike turned beet red in embarrassment.

Now to the meat of the speech. Seems that California slipped to the bottom of voter issues during the former Secretary’s term. (That guy resigned under a black cloud of fraud. McPherson was appointed by Governor Arnold and as McPherson quipped, “After 200 people turned the appointment down, my cell phone rang.) McPherson had been termed out after two successful trips to both the Assembly and Senate and was involved in personal matters when his phone rang and he heard the distinctive voice of the Governor on the other end of the phone. The audience seemed to really enjoy the stories McPherson told about Governor Schwarzenegger. Maybe Scoop will get an interview, when Arnold checks out the gold mine.

McPherson told the audience about the new electronic voting system and the ten safe guards that has made California the new leader in governments’ efforts to reduce and eliminate voter fraud. His agency is improving the system for the 60,000 military personnel from California to vote. He is working to have the voters who move to a new district not only register easily but their former registration will be automatically canceled within 24 hours. He is sending high school graduates and others in California who turn 18 a positive invitation or solicitation to sign up to vote. He gave examples how each vote truly counts. (George Dukmajian beat Tom Bradley by less than 93,000 votes for governor or just three votes per each district).

McPherson was confirmed by a unanimous vote of the legislature, a rare political event. He is a republican from the liberal and socialist state of Santa Cruz. When the talk was over and McPherson asked for questions, Mike jumped up first and Bruce said, “Oh no, I’m in trouble.” He wasn’t because Mike noticed that his friend never once said he was running for election or gave any indication that his talk was political. McPherson rightly takes pride in his record of political non-biases. So, Mike says, “It is good news to learn that you will be running for Secretary of State. Would you tell us some of the reasons you decided to run and some of the reasons you contemplated for not seeking another term in office?” Isn’t this what friends are for? McPherson had no choice but to do a little campaigning.

03/08/2006  9:54PM

Mike went to the local television studio yesterday to do a live discussion that was recorded for a later play date. He was invited to be a guest after the producer and others heard the effects of implementing his drug policy. It turned out with unexpected results but Scoop has the skinny on what Mike planed to tell the business community. The moderator was the president of the United Way. It would be the last of five shows on one specific drug. The prior discussions were not about alcohol, marijuana, or caffeine. The topic was the drug known as “meth”.

He got Rae to find Original Sixteen to One Mine’s historical records of drug testing so he could evaluate it verses his Morning Glory Gold Mine’s current drug policy. Scoop remembers the concerns of the corporate business industry in initiating and implementing drug testing for employees in the early 90’s. Original Sixteen To One pioneered the issue in the hard rock mining industry. It had become a significant concern with American mines in the growing open pit mines in Nevada.

What the producer saw was a business leader who took a path worth repeating for others to hear. What Mike did was accept the invitation for two reasons only and would be willing to relate one about his drug policy evolution on the TV. Scoop wasn’t at the television studio yesterday but found Mikes crumpled notes and papers he wrote for the interview:
A. Began program 1992 or 3…revised 1997; concern about privacy issues; cautioned by directors; never comfortable, therefore never tested.
B. Why delay: (1) unclear if we employed users; trouble if a test was positive. (Early days employer responsible for rehabilitation. (2) Comfort zone with work force…tight group with personal. (3) Competent program to evaluate production, assumed that a user would show up less productive. (4) Number of employees expanded to 60…shrank to 6. (5) First instance of a meth user, his behavior and turmoil. (6) Considered consequences if accident at work; risks of implementation less than rewards or consequences of no enforcement.


There are other words scattered written on both the 1997 revised policy and the 2006 revision in effect, which he brought to Nevada City, but Scoop will wait with anticipation to see if Mike followed his plan when the show airs. If this web site had audio and video, you could see it too.

03/07/2006  4:02PM

Four feet of snow on the ground in Alleghany. We had a power outage yesterday and over the weekend.
The sun is peeking out as I type but more snow is expected Thursday and Friday!

03/03/2006  9:02AM

Snow down to the 2,000 foot elevation today. Chain controls are up South of Grass Valley. That doesn't happen too often. About two and a half feet on the ground in Alleghany with heavy snow falling.

We hired two men, one experienced miner, one not, they started Monday. We are breaking rock again!

Rae hasn't comleted the ten-K yet but is getting close. The company shows a loss of $400,000 for 2005 OUCH! The loss translates mostly to a decrease in our gold inventory but also an increase in liabilities. The deadline for the 10-K is March 15th.

The museum is "going for it" this season and will be offering mine tours at 1:00 pm Saturday and Sunday - Memorial Day through Labor Day. Advertising is being stepped up and a shop in Downieville will be promoting the tours.
The shop (Sierra Gold) will also carry 16 to 1 Gold and Jewelry.

A dog has joined the ranks of stray animals enjoying 16 to 1 hospitality. Evidently abandoned he lived alone in an empty house scavenging about Alleghany for two years. The office staff recently started putting food out for him regularly and the dog who used to slink away when called now greets people tail wagging. Maybe he's come out of his shell too far, as he has been chasing cars lately. Bad dog no biscuit!

02/08/2006  7:59AM

You got it Dick! (see below)The jewelers actually prefer the slab with less gold and it is sold at a higher price than the $500 per ounce mentioned. The heavy material is a harder sell but it still beats going through the expense of crushing the material, pouring bars, shipping the bars and paying a refinery to refine the gold and sell it for us.
 By Dick Davis

02/07/2006  8:57PM

Thanks Scoop. Now, thinking of the latest $500 per ounce gross slab sale, if I've got it right, and the quartz is "worthless," a sale with 20% gold content means 16:1 is selling gold at $2500 spot, and 75% would be $666.

02/07/2006  11:35AM

Slab is sold by its gross weight. The percentage of gold varies between 20% and 75% according to weight. Only a fool sells gold below spot. David and Mike are not fools. All sales records are kept for accounting purposes. Qualified people interested in joining the bull market for gold are invited to review the sales over the past decade to satisfy themselves that the marketing of Sixteen to One gold is a tremendous bonus.
 By Rick

02/06/2006  8:33PM

I'll chance an answer, as a casual observer with a small bit of knowledge.

I have a good friend who found an over-the-top crystalline gold-quartz specimen, that if it were ever sliced (never will be because it's the cat's meow)would bring many 10-fold-times spot price for spot-gold-price.

When you see the rare Original 16 to 1 gold-in-quartz slab, the value speaks for itself. It is as if gold were deposited into snow.

We've seen many varying degrees of Original 16 to One gold-in-quartz specimens, recently a batch that was discovered a few years ago amid the contoversial condemnation of the natural existance of arsenic. While our mine gave it the distinction of Imerial Quartz, its natural derivative was condemned by the un-informed as being the source of pollution in the very location it was deposited.

I digress.

Gold in the original quartz matrix is more valuable than the gold itself, by weight, and when combined with the host rock, defines gold-quartz jewelrey when the aesthetic intrinsic beauty is discovered.

Check out the mine's extended web-site links, particularly the jewelrey.
 By Dick Davis

02/05/2006  8:17PM

I would imagine that most slab is quartz not gold. But that does raise a question, how much gold is in a slab, and what is the price per ounce of the gold in the slab?
 By bluejay

02/05/2006  9:21AM

I have just read that the Company sold gold slab for $500 an ounce. It seems that it would be educational to the shareholders to understand the reason for selling gold slab at this price as opposed to gold's last sale of $567.10.

02/04/2006  11:20AM

The crew spent most of last week with regular maintenance duties. No gold to sack but gold remains showing in one of the headings. David and Mike went through the quartz and gold slab boxes and sent eighty ounces off to the big mineral show in Tucson. The first customer gobbled forty-eight ounces for $500.00 per ounce. The quality was not up to the $1200.00 per ounce material but is spectacular nevertheless. The only other quartz with gold at the show seems to be the man made stuff.

The appraisal for the museum building came in at $250,000. Rae mailed the application for the grant and said that the museum would have twenty percent matching donations, which she hopes will give her application a more favorable chance of success. Mike has pledged a $25,000 donation towards the purchase price. Maybe the Sixteen to One will donate a gold specimen for a raffle. The museum received a gift of approximately $25,000 worth of Original Sixteen to One Mine shares from a shareholder. The shares are to be held as a reserve for a specific period of time. Underground Gold Miners of California museum has the potential to become one of the most unique museums in the West. Years ago retired director Sandor Holly raised the idea to run fiber optics to various heading underground, which would be sent to the museum as well as other subscribers throughout the country. People could witness the miners drilling and mucking and sacking the high-grade gold in real time. It remains a great concept and is only about $30,000 away from reality. This crowd up in this mountain range is tireless dreamers and advocates of gold mining and history. The museum is also looking for volunteers. One project is to get the old sixteen to One Ingersoll compressors in the upper shop running again. They last ran in late 1970’s and make an unforgettable sound as they pump out the air. Scoop bets that enough people would gladly support the museum if they only knew what it was doing to protect and enhance the world of gold mining and its miners.
 By Dick Davis

02/04/2006  1:00AM

Did Rae get a Real Estate Appraisal for the property, and if so what value did the appraiser place on the building?

Also, are the miners finding any gold? Would be nice to know monthly what the monthy take is.

Best regards,

Dick Davis

01/31/2006  2:24PM

It was a cool 20 degrees and clear this morning. High cloud cover rolled in mid-morning and remains.
We are looking for a couple men. An experienced miner and a strong person without experience who wants to learn to mine.
Not much new to report from the mine. A little gold still showing.
Rae submitted an application to the California Cultural Historic Endowment for Underground Gold Miners Museum today.(Today was the postmark deadline) The proposal is for funds for the museum to purchase the building it occupies. Rae put in 45 hours of volunteer time on the application and is asking for $200,000 with a match of $50,000. The applicants that make the final cut will begin getting requests for more documentation in May with announcements of awards in July. Here's hoping....

01/24/2006  9:36AM

Question of the day: Should weather announcers be paid for results? By 8am it was 55 degrees outside in Alleghany. Snow is melting, sun is shining and the Sixteen to One crew has sacked jewelry rock the last three days. Ian explained the production sight is in a block about 100 feet across. They have dropped down the south side about forty feet, setting up a slusher and plan to drive a narrow raise obliquely up-dip towards the gold.

Mike’s truck broke down last week. The steering tube broke when he put it from park to drive and he was stuck in the snow in four-wheel drive and park. Well, $640 fixed the Ford. Ian’s truck is in the shop with an estimate of $1,250 to replace its steering tube, linkage and bearings. The mine roads are a tough drive, but maybe Ford should get a better idea.

If you are in the Grass Valley area around noon, turn your radio to KNCO. The station asked Mike to come to the studio for an hour interview. Don’t know the topic. Could be comments on the recent mine tragedies, Empire Mine progress, Sixteen to One activities or the weather in the Sierra Nevada Mountains.

The company’s slab inventory is off to the giant mineral show in Tucson.

01/19/2006  8:26AM

About a foot of snow on the ground in Alleghany. 21 degrees F. and clear this morning. The snow covered trees against the blue sky are a beautiful site.
Our mine crew of three continues to bring in small amounts of gold almost everytime they muck out. The quartz is as beautiful as the snow.

01/12/2006  1:22PM

Overheard phone calls in the company’s office today. Mike is talking with Norman Lamb, company’s long time transfer agent. Mike and Norman go back thirty years as gold entrepreneurs. Mike asks about Lamb’s conclusions about today’s environment. Lamb’s comments include the following.

“I am getting increasing “fringe” calls from prospectors or promoters about gold properties. This is the early stage of the scam game, long played out in every industry of speculation. Future looks better than it has for many years (should be no disagreement on this). So much new money generated that it is finding its way into gold. Just the beginning. Hardly any US companies left to choose from. Canada still has the culture of mining. America has lost it.”

The next phone call came from an old friend of Mike’s who had some unique thoughts. The price increase of gold and the news stories must be stimulating old acquaintances to think about the mine in Alleghany. He said the following.

“There must be a death wish in this country. Idiots are shutting this country down. Mining was a legitimate industry, not a rape-the-earth scene. Mining created much of our wealth. I feel to a great extent it is already gone. I have watched Mutiny on the Bounty too many times, beginning to sympathize with Captain Bligh more than Christian. What about those robber barons! They were creators of our nation. What happened to our free market? A free market will not let a robber baron last for long. Free market doesn’t cut anybody any slack. You survive or you die.”

He said more but Mike had to go. Mike encouraged him to present his views on the FORUM. Maybe he will.

The next call came from someone in Southern California. He said that the Sixteen to One didn’t fit the regular mold for investment but there could be an interest in LA.

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Alleghany, California 95910

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