November 24, 2020 

Clips from Alleghany


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 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.

01/04/2006  4:24PM

Hau'oli Makahiki Hou! (That's how you say Happy New Year in Hawaiian)
A torrential rain storm hit Northern California on the last day of 2005. Mudslides closed Hwy. 49 at the South Fork Canyon and on Depot Hill between Camptonville and Downieville. Many other roads were closed due to slides and flooding.
With the exception of a couple pieces of tin that blew off of the ambulance shed and crud in the streets Alleghany seems to have weathered the storm ok.
The power was out for almost exaclty 24 hours (we had to reset our clocks by only a couple minutes).
One of the miners is out this week leaving only two men at the mine. They have been working on the road to the mine which developed some very deep ruts from all the run off.
Our hearts go out to the families, friends and co-workers impacted by the tragic mine accident in West Virginia.
Mines in the Alleghany District are classified as "non-gassy". We also don't have the fine coal dust that provides the fuel for such an explosion.
Physical inventory for year end is almost complete.
Several parties have expressed interest in the sinking of the Red Star Shaft. Perhaps this is due to the increase and strength in the price of gold.

12/23/2005  3:17PM

Heat wave in Alleghany after a week of record rains. It looks like a Mele Kalikimaka instead of a white Christmas this year thanks to the "Pineapple Express".

Gold sales has been busy with Christmas shoppers.

The last sale on the OAU x-mart was at $1.00. The small volume stock sales that you see since November were people buying shares as Christmas presents for their loved ones.

Gold sales inventory will be frozen next week for the year-end count. Oh boy.

A Merry Christmas to all, especially you, Mr. Pocket.

12/19/2005  4:28PM

The federal mine inspectors (two) arrived for the quarterly visit. Three citations were issued. One was a paper violation. One was their opinion that the new change room construction area did not have a guardrail. One was due to wood rot, whereby the wine that was aging underground could be accessed (the lock was on the door but the clasp became insecure due to moisture). There may have been a fourth, but Ian could not remember when interviewed in town.

Crumbs of gold from the new heading…nothing to write about, but that is how it goes in a high-grade mine. As long as the vein looks good and the quartz has gold, it is hard for the miners to move on to a new heading. Faces seem a little long because of the lack of production.

Gold sales have been above last year as far as specimens and cabochons. Sales are coming from the web site and some from the ad in the California Mining Journal.

12/09/2005  9:02AM

The new heading on the 800 level is spitting out a little gold and the geological indicators are promising. The crew at the mine is down to three men with one active heading.

The rapid rise in the gold price is surprising even those who predicted it would hit 500 by the end of this year.

For those questioning the separation of the finances of Morning Glory Gold Mines and Original Sixteen to One Mine, Inc. Rae Bell would like to clarify that each has seperate books and files its own tax return. While the relationship is symbiotic (Morning Glory is providing contract labor to Sixteen to One) detailed records are kept to track who owes who what and required adjustments to the books are done quarterly. It is still a goal of Sixteen to One to get caught up on its independent audits. By having the physical inventory audited each year the auditing firm will be able to certify an audit of the books for the last few years once we have the funds to pay them.

11/24/2005  11:45AM

The operation closed for the holiday traditional thanks and recognition of our good fortunes. The search for gold will continue on Monday. Hey, what about the price of gold? Common sense says it must fall back to $450 area, but when have speculative markets behaved logically? The interesting variance with the recent moves is the absence of the public. Do you have a gold position?

11/22/2005  7:15AM

Rae and Kyle are caught up with the paperwork that relentlessly flows through the mining operation. A recent report commissioned by the Small Business Administration found that small businesses are most severely impacted by environmental and tax compliance regulations. Environmental regulation compliance costs 364% more for small firms than large companies. Regulatory compliance and paperwork for costs for firms with fewer than 20 employees have soared to an estimated $7,647 per employee, the study said. One conclusion said that, "the regulatory burden we impose on our businesses has severely handicapped our ablity to be competitive in the domestic and international markets."

The gold sales department continues to receive orders for the grubstake pendants and other jewelry from the website and referrals. The company has an ad in the California/International Mining Journal that has been in each monthly edition this year. Time to order for the holidays.

Ian’s crew is staying the course with the headings. Mostly mucking until the vein is fully exposed and a spot is selected for drilling. The 910 front-end loader is acting tired and needs some maintenance before the snow sets down. It has been a great piece of equipment over the years.

Mike is off to sell some slab. The inventory of uncut quartz and gold is not looking too good. Production for 2005 may be the annual lowest in over two decades, but then again, the year isn’t over yet.

11/21/2005  3:18PM

Mining at the Sixteen to One fascinates most people. It is such a foreign operation to most people, even miners in the large open pit or high volume underground mines. Scoop has problems writing about the operation when most of the time the work is routine. Government snoops show up often because this blue-collar occupation attracts more inspectors than other more dangerous blue-collar jobs. Why? That is a question that has never been answered. It is probably a control thing. Gold is a world wide special product yet very few companies throughout the world actually produce it. Governments understand its economic significance. Politicians do not. There are more paper chasers than hard currency followers, so judging by the numbers of “financial players” paper is king.

The operation in Alleghany has scaled down its monthly outlay, thereby also cutting down its gold potential. One of the best improvements was the installation of an electricity device that shuts off the air compressor when there is no demand for air. The PG&E savings is significant with no downside in production ability. With a full crew in five or six active headings, the machine would run all the time, but with only one heading, the time of operation has been reduced about sixty to seventy percent.
 By Rick

11/19/2005  7:47AM

I've been re-reading much of the Forum this morning, and found Johnny Yuma's single-line question more than once, "What's going on at the mine?" One time I answered him and he responded, "What could be more important to the mine than the mine? Think about it mate."

Since then, I have been thinking more about it, and must thoroughly agree with him. Thanks Johnny. It made me remember that whenever I talk with Mike on the phone or in person, when it's usually about some upcoming court appearance or stategy, I always ask, "What's going on underground? How are the guys doing?" I ask because it is really the whole point. When I bring up the web-site and scroll down to the Forum, what I always anticipate and wish for is the news of a fantastic pocket.

Sure, it'd get me excited to read about a court victory, but then what? Those of you who've read some of my entries know how passionate I am about the legal stuff; challenging the illegal actions of the CDAA comes from my core, as I detest mis-representation, especially from an organization impersonating a public sector police force. Yet, isn't a court victory, whether it happens or not, to simply restore the value base that should already be recognized? While a fight in court over unconstitutional authority trying to shut the mine down is huge, when I reflect on how it should never have happened to begin with, we'd be back where we were some four years ago, mining for gold. An unfortunate accident presented some sharks a chance to score political points, and it didn't necessarily derail the focus, it broadened it.

It is impossible to say what would have happened if the CDAA had not been challenged. Would they continue to try their assault? They threw the first stone, and the mine took issue. It defines perseverence, much the way the guys break rock.

If the accident never happened, the mine goes mining. If the lawsuit is successful, the mine goes mining. If the lawsuit isn't successful, the mine goes mining. The accident did happen, and still, the mine goes mining.

Johnny Yuma, you must be a miner and have a gold-vein system as the core of your heart; you've been able to cut through all the crap and ask the most important question, (one I'm ill-equiped to answer since I'm not a miner), "What's going on at the mine?"
 By hapbird

11/03/2005  6:51AM

Glad to hear the safe explosives act inspection went so well !!
 By Crush

10/28/2005  7:02PM

Hows come that Goldmister dont right anymore? Shur seems like theres a bunch to right about, all, this stuffs bin goin on that were alway in his craw.

Guys, keep diggin cause its in there

10/28/2005  4:17PM

Department of the Treasury…Bureau of Alcohol, Tobacco and Firearms Sends Agent to Sixteen to One Mine. President spends over three hours answering questions. Makes good headlines, huh? Now for the real story:

A federal agent made an appointment yesterday to inspect the two powder magazines at the mine. The authority is the Safe Explosives Act, enacted on November 25, 2002. Everyone who uses explosives in the United States must have an ATF permit. Once a permit is issued, the agency can make inspections, write up violations and regulate the storage and handling of explosives. Seems like a good idea as long as the rules are fair and reasonable. Explosives in California are already regulated by three governmental agencies: local sheriff permits, State OSHA and federal MSHA.

The Department of Justice entered 27CFR Part 555 into the Federal Register on March 20, 2003. It requires that all persons receiving explosives on and after May 24, 2003 obtain a license or permit. The worksheet used during the inspection has forty separate sections or definitions for review and is signed by the applicant and ATF officer. Mike had budget an hour for the inspection. It lasted over three. Scoop heard the final thirty minutes in the corporate office.

It is a felony to not report a theft. ATF estimates that the requirement to obtain a limited permit will impact 20,000 persons. One interesting and almost relevant condition of the new law covers possession by prohibited persons. Paragraph 555.26(c) excludes anyone who: “is under indictment or information for, or who has been convicted in any court of, a crime punishable by imprisonment for a term exceeding one year.” The CDAA sponsored grand jury indictment would have eliminated President Miller from doing his job of corporate oversight of explosives. So, merely an indictment has the chilling effect of guilty until proven innocent under this law.

The inspection seemed to go pretty well. The magazines passed except for two of the four locks had a shank that was not thick enough. One of the protective covers of the locks was 1/16 too thin and must be replaced. The inventory records were perfect as well as everything else except a little loose gravel on the floor. This new law is good for the security of our country in the 21st century.

10/28/2005  8:21AM

Our first real soaking rains have hit Alleghany. In the early a.m. Wednseday it started raining and continued through early a.m. yesterday. The clouds broke up during the day for a starry twilight then it clouded up again last night and it is raining as I type. It was 34 degrees Fahrenheit this morning. We haven't had our first hard frost yet. Rae's tomato plants are still putting out a few fruits.

Not much new at the mine to report. The mine phone line up to the corporate office has been repaired and is working again. No gold this week.

Re-hab work continues.

The Empire Mine Tunnel is moving foward again after a stop order that was caused by the unexpected break-through to old workings was lifted late last week.

10/20/2005  5:39PM

Courtrooms are mysterious places. They can be intimidating at times for even a seasoned pro. One side will win. One side will lose. Interested spectators usually walk away wondering, “What just happened?” Courtrooms also are America’s last bastions of justice for the average American citizen. Courtrooms have a sacred quality, or at least they should.

The case of Miller and Original Sixteen to One Mine (Plaintiffs) v the California District Attorneys Association and four of its employees (Defendants) convened yesterday. Three motions were at issue: a motion to set aside a default Miller served on Defendants, a motion by Defendants to change the venue and a motion to throw out the case by Defendants. The motion to set aside Miller’s default was granted. Nothing else was decided. There was a shared agreement supporting Judge Young’s statement that the case will likely continue towards a jury trial in Downieville. While Superior Court Judge Stanley Young did not rule on defendants’ motion to move the venue from Downieville to Sacramento, they did not present a legal or otherwise compelling oral argument for moving from Sierra County. The Anti SLAPP motion by Defendants is rescheduled for November 16, 2005.

Judge Young acknowledged the tragic death of George Gilmour. His words were sincere and moving. Judge Young got to know George not only from his appearances in court but also from his clear, crisp and ethical portrayal of his pleadings. The arguments George made were sometimes flawed, but they were always scholarly and lawful. Even though George was not physically in the courtroom yesterday, his presence was felt.

Judge Young made it clear to everyone in the courtroom, but pointedly to the Defendants’ lawyer, Tom Knox, both with words and his hands that he wanted the paper bombardment to cease. He raised his hand two feet above his desk and inferred, no more! Mr. Knox’s filings stack about that high. With all the paper work filed, Knox has yet to answer the complaint. What a novel tactic these arrogant lawyers are showing: let’s paper them into insolvency. Since Lloyds of London is paying the bill, let’s make paper and make some billable hours. What will he and his clients, the most powerful corporation of lawyers operating in California, think of next in order to evade the inevitable justice? Unless Tom Knox is an idiot, he will consider modifying these tactics of bombing the court with paper and specious motions.

The next order of business was Klaus Kolb introducing himself as Original Sixteen to One Mine’s attorney. Klaus lives in Grass Valley and works in Sacramento. He is a Michigan graduate and his law degree is from Harvard Law School. He appeared comfortable and prepared to take over from George. The case intrigued him and he was one of the behind-the-scene attorneys working with Plaintiffs. The record was made clear that Klaus represented the mine only. Let the game begin.

Although Miller lost his default position, the day belonged to the Plaintiffs. Miller was prepared and badly wanted to confront Knox’s tactic of calling both him and George frauds. Instead he used good judgment and let the issue lay. Miller had made a promise to Knox that was conditioned that Knox treats him independently from George and that George could not speak for Miller. George could not speak for Mike on any issue. Knox broke his promise within 24 hours.

The remaining order of business was oral argument on Defendants’ motion to move away from Sierra County to Sacramento. Mr. Knox offered no new points to support his motion. Instead he argued that Dan O’Neill’s cartoons the Mountain Messenger articles (posted on this web site) and the web site itself poisoned the county against Defendants. His most absurd statement was that Miller intentionally used the web site to poison the jury pool in Sierra County. Plaintiffs filed a declaration that excluding employees, there were only three shareholders in Sierra County. The web site was established years ago to serve the 1300 shareholders living all over the world. Well, now to think about it, that was not Knox’s most absurd testimony. He told the judge that his clients were intimidated by these actions. Scoop unsuccessfully controlled his laughter and chuckled out loud. Here is a powerful lawyer from Sacramento standing in this courtroom, telling the Judge that his lawyer clients and CDAA are intimidated and afraid to return to Sierra County by a weekly newspaper, a cartoonist and a web site.

It was curious to watch the players from the visitor section. The judge was decisive and considerate. It was Judge Young, who extended the Anti SLAPP motion to November. It was amazing that the mine was prepared to go forward with oral argument even though Klaus could easily have asked for more time. It is a credit to George and Mike that the painful transition passed so smoothly. Klaus pointedly informed the court that he was prepared that day to proceed. It is in the record. Mr. Knox seemed surly. He never spoke to Miller and grunted once to Klaus. He left the courtroom ignoring a question presented to both lawyers from the local journalist.

Prediction: deny motion to change venue by November 16, 2005; deny Anti SLAPP motion after pleadings are put in crisper order by both sides and Klaus presents the law and the facts in oral argument. Bad guys will pull another paper jam that will fail. Loser will appeal decision. There are many tangential issues present in the events leading up to Plaintiffs filing their claims for damages. How did CDAA receive a fat State contract without the contract going to bid? Has the State of California suffered damages because CDAA broke terms of the contract? Grand juries are currently in the national news. Here in little Sierra County is proof (the transcript) that prosecutors, real ones or phony ones break or manipulate laws in order to get an indictment. In Texas it is speculation. In California it is fact.

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