August 18, 2022 

Clips from Alleghany


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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.

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?

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Alleghany, California 95910

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