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Clips from Alleghany

       

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 By SCOOP

05/11/2005  9:16PM

April 30, 2005

Dear Gary,

Hope this is okay. It was a fun project, especially since I do not know the likely readers. You can reject any part or send it back for clarification.
See you in Alleghany sometime. Thanks for thinking of me.

Michael


1. In late 1960’s, I knew that I no longer wanted to live in southern California (Santa Barbara). Born and raised in Sacramento (fifth generation Californian), rural northern California was my location of choice to explore for finding my family’s new home. We motored the Sierra Nevada up highway 49 to Quincy. Thanks to the good fortune of my father owning a small interest in a gold mining company in Sierra County, I found Alleghany in 1974. My early impression was that the area and the gold mining offered great opportunities for independent living, work satisfaction and adventure.

2. My job is that of a president. Presidents make both easy and tough decisions, especially in a corporation with a small staff. My activities include hands on tasks, including dump runs. Most of my time the past ten years and today is spent managing the flow of paper required to keep the various operations going. I also handle much of the gold sales, project analysis, legal activities and personnel issues.

3. Besides the universal inspirations most industrious businessmen feel, the “long gone” miners who worked the gold mines of the Alleghany Mining District inspire me to think a little more or work a little longer to overcome the problems of building and running a gold mine. There is an old saying that mines are not found they are built. Ours is over 100 years old with a good potential to produce for another 100 years.

4. My plans for the future are very ambitious. I want to find and mine the largest pocket of gold. The record is 83,000 ounces. I believe a good location is the junction of two primary gold veins in property we own called the Red Star. It requires a capital investment that we must obtain by gold production or perhaps some adventurous capitalists will join the effort. Other plans include winning an important social lawsuit against some evil lawyers, who have broken the laws in their misguided prosecution of innocent miners. I want to grow mushrooms in the abandoned workings of the mines. I want to build affordable natural Sierra Nevada mountain coffins. I want to make “moonshine”.

5. My favorite spot in the region is my home and surrounding property. I built my house in 1977 and continue to improve its hominess. My favorite spots are anywhere underground in the mines. It never ceases to humble me. Both the natural beauty and the human endeavors to challenge the earth’s forces we see each day underground are inspiring.

6. Our section of the Sierra Nevada is similar in beauty to most all other areas of the 200 plus mile long mountain range. Our area is called the Northern Mines. South of Auburn the area is called the Mother Lode. A great amount of gold likely remains buried in the California gold belt. Alleghany holds the record for the richest concentrations (pockets) ever mined in the state. Gold is unlike all other elements, and I think that many people both consciously or unconsciously feel and are affected by the powers of gold. I have witnessed the affects of Sixteen to One gold on men, women and children. It has always been positive.

7. Genuine.
 By SCOOP

05/09/2005  9:15AM

We have three active headings going. A little color showed a round ago in one of the headings, but some timber work needs to be done before we are off and running on the vien. Faris smelled arsenic in his heading after Friday's round went off, which is a good sign. On the 800 level (main travel way) steel sets are being put in.

Alleghany is soggy and green. Everybody is longing for some sunshine.

The first quarter 10-Q will be filed this week. The company shows a $200,000 loss for the quarter.

To answer Smithsgold about how a person becomes a hard-rock miner. Most miners become miners by getting an entry level job at a mine and sticking with it.
 By Crush

05/06/2005  8:47PM

Not much snow on my porch anymore, and im wondrin whats the lastest going on at the mine, sense thres no news. No news isnt good news or is it? Whats goin on up under the hill?
 By SCOOP

04/23/2005  3:22PM

For those living in California, can you remember more spectacular seasons? The high Sierra Nevada mountain range is the eastern rib of California. The desert flowers are bringing record crowds to the southern deserts, complimenting the eastern fling of nature’s push from the Pacific Ocean inland. I read that the restaurants and stores in the desert oasis are struggling with the crowds, and the crowds are threatening everyone and everything because they arrived unprepared. Alleghany has no outside threats of a tourist invasion. People drive up here but what they see is not what we are and drive out of town. The beauty of a driving adventure continuing north on highway 49 or north up US 99 or US 5 to Mount Shasta appears to remain unnoticed by the press. It is a blessing to many in the communities of Shasta City, Etna, Paradise, Weed and the wide reach of the Sierra Valley that most people are unaware of the beauty evolving each day. And it’s free for the looking. Due to the rain, snow and warm sun that continue to fall onto the land in no apparent or predictable pattern, the vegetation exudes a richness and depth of color rarely seen. Scoop sees it all and reports this because there is little news to report about gold mining.

Well, maybe there is something to report other than the miners relentless drive to find another pocket. Everyone is breaking rock or moving muck or fixing equipment. An important press is underway to find gold, nothing new here.

Ian proposed a new idea to Mike mid-week. It is intriguing because it opens up a block of ground that historically yielded gold and has never faced twentieth century metal detectors. It is an inexpensive project and relatively quick. To set it in motion requires less than $5,000 of supplies. Mike authorized the project. No one knows what the actual conditions of the old workings will be as they are exposed, so no one can estimate the time to open the hidden block of ground. An educated guess is two months from start to finish. An educated guess of gold potential is 2500 ounces (based on past production from similar areas detected between 1992 and 1995.) Once the project is underway, Scoop will infiltrate the operation to learn more about the project and give you a report. Like times before, the project may be a gold bust, but this one somehow slipped into the crack of obscurity, until now.
 By SCOOP

04/09/2005  12:25PM

The Sierra Nevada gold fields are having a hard time in many ways. Ill informed people immigrated onto its surface with an unrealistic attitude that underground hard rock mining is something to fear. It makes some sense since our Californian society has been running on fear for decades. Another example of hard times is that the adventurer/business types also fear investing in the California goldfields. Embarrassment for participating in a gold mine may be a leading reason. Why? Well, most propositions or proposals fail. There are readily available indicators to study revealing those most likely to succeed or fail, but who wants to take the time to study and learn? These two (many others exist) drawbacks can be mitigated by anyone who uses the Sixteen to One as a model. It has a 100-year history of failures to examine and avoid repeating. It also has 100 years of history supporting successes for its owners and other Californians. The current “hard time” causing great unrest in Alleghany cannot be solved by anyone. It is the weather. In the past month Alleghany has experienced spring, summer and winter. Right now, a few weeks after record breaking high temperatures, it has over a foot of snow covering everything. However, if weather is all people have to complain about, life is not too bad.

Rae announced yesterday that the company only has two more monthly payments for past electric bills. PG&E rode with the company during its bleakest hours as charges crept up to $94,500 in overdue bills. Those of you who followed the reports of PG&E driving to shut off the power only to turn around at the last minute know the reasons why the company defied all odds and kept power on and pumps running as it endured an onslaught of outside interferences in its operation. The next creditor to be eliminated has been identified. Scoop will tell you who as soon as the first payment is in the mail. Cash flow is still a problem for the company. Over 2/3 of the crew is working on underground maintenance, which interferes with mining for gold.

Mike began making contacts with people interested in developing the company’s properties. His general plan is to consider joint participation for the Brown Bear and Bald Mountain mines, equity participation for sinking the Red Star shaft, guaranteed debt for developing the corporation, and anything else that makes sense to build a 21st century metal detector, expand the market for the Sixteen to One gemstone and build a hydraulic power plant. None of these objectives are likely to be accomplished without the participation of others. “The trouble with too many people is they believe the realm of truth always lies within their vision.”-Abraham Lincoln.
 By Rae Bell

03/21/2005  8:36AM

Beer you guys, beer.
You take a shallow pie plate and put it in the ground so the edge is level with the soil surface and fill it with beer. The slugs crawl right in and die blissfuly.
It really works!
We don't have very many slugs in Alleghany, but when I lived at lower climes I resorted to the method above.
The weather report from Alleghany is slush slush. We woke up yesterday morning (first day of spring) to winter wonderland. It has been alternating between rain and snow since yesterday afternoon. Right now it is snow and my lilacs were just starting to bud :(
 By Rick

03/19/2005  6:46AM

gfxgold...yeah, I know, salt is a cruel and unusual punishment, meant only for six-year old boys who also like to use magnifying glasses to burn up ants. You know what works best on snails? A duck. But, I don't have a duck, so I've resorted to just yanking them off and tossing them on the other side of the driveway.
 By gfxgold

03/18/2005  7:36PM

Rick, I gotta tell ya, using salt is a big mistake. I find that butter and garlic works better on snails. Now, if you're trying to protect your plants, I would use the black, creamy, liquid slug and snail bait.
 By Rick

03/18/2005  5:32PM

Well, here's an update from my garden, down here in the valley. The snails are eating the Ranunculus and not responding to salt (Kosher, sea-salt) so I'm tired of watching half of them just bubble and then return to continue eating. Reminds me of politics.
 By SCOOP

03/12/2005  8:36AM

Bluejay stays up of this gold market stuff and has proven to be reliable (go check old postings). Scoop knows a bit about the history of the gold market since 1974 (December 31), when the U.S.A. lifted the restrictions placed on gold in 1934, but will mostly defer to others for their account.

Now, here is some hot news! California is in the midst of a winter heat wave. At 4500 feet elevation in Alleghany the thermometer hit 66 degrees at 8am. Down in Nevada City (2500 feet elevation) the radio reported 46 degrees. Nature has its ways with weather as it does with gold deposition. Attitudes around the mine remain very upbeat even though last week did not turn out as planned. The high of the week was the successful repair of the 200-horse power electric motor that runs the hoist. The hoisting system is over a million-dollar asset that is not reflected on company balance sheet. It is the only incline operating man hoist in California. Everyone gets nervous when it develops electrical problems. It was brought underground piece by piece and it would be a nightmare to haul it out for repairs.

No gold for the week.
 By SCOOP

03/05/2005  4:32PM

As if Mike does not have enough on his plate, he was out inspecting another gold mine to buy this morning. Price and terms must fit the budget. It should not be news to shareholders. He has stated the company’s intention to build its holdings with property that has a real chance of qualifying. Company geologist won’t be back from Australia until mid April. Mike feels comfortable discussing various sides of a gold property with Ray before making a recommendation to the directors.

A fake quartz and gold is being manufactured and offered to jewelers in thin slabs. While it is quick to tell the difference between natural quartz and the man made stuff, in a slab, a small piece cut for rings and other products is not so easy. People will be fooled and it just depends on the slant those involved take in marketing their lines.

Sometimes Scoop gets fresh info after the last entry that changes the view of the operation in Alleghany. The best, of course, is when the crew gets into a pocket. It usually is quiet for a week or so, then rumors and then an announcement. No such announcement today. It looks like next week will see the rock breakers out in the shop fixing their drills. It breaks the spirit and body when a drill quits in the middle of a round, up a 100-foot or more raise and a mile from the portal. The company bought about $10,000 in new drill parts in the fall and hired help for maintenance and repairs. Drills take a beating and problems have arisen. A year ago Reid and Joe fixed their drills during the days of no pay and had pretty good luck with the outcome. Well, Friday, after too many shifts with problems, they came out and announced to no one that they were going to fix drills. It makes sense to have reliable tools so far under the ground. No gold next week.
 By SCOOP

03/04/2005  8:20AM

ok scoop hears you. I just talked to Underground Miner "Ragweed" Reid Miller this morning and he reports that we still have the two headings going on the 1100 foot level near the ballroom. "Jumbo" Joe Witterman's heading is near the pocket and he continues to get dribbles of gold, but the general consensus is that this is the "aura" from around the pocket mined in July. The area where Jumbo is working is beginning to look like swiss cheese.
Reid's heading is a wing heading under the area where the pocket was found and this is a larger block of ground.
Another small crew is rehabing the 1,000 ft level from the Tightner shaft towards the ballroom, mucking, putting in stalls etc.
Bill Murray the onsite carpenter is still working on the new "dry and office" complex.
Kevin McCarthy "Repo" is the mechanic and all around surface hand.
Ian Haley "The Shark" has his hands full running the entire operation. Just the compliance alone is more than a handful. Roy Stai who is out with injuries (not related to work) was helping out with the compliance, now it is all back on Ian.
Speaking of Roy, he is back home and doing better. He is chomping at the bit to return to work but his doctors just laughed at him when he asked if he could go to work. He has a bit more recovering to do.
A crew of five men is working at the Empire Mine State Park. That project is going much more slowly than was expected. The State did finally approve the steel sets, at least for the section of ground they are in now.
Rae is hoping to have the 10-k filed today, if not today then Monday. The company shows a nearly $400,000 profit for last year.
Cabin Fever has definately set in and is quickly morphing into Spring Fever. A little "social chaos" seems to be the order of the day in Alleghany.
 By Hoop235

03/04/2005  5:24AM

Yes, there are others out here watching, reading and wishing only the best for Mr. Miller and his battle aganist the "Machine". Please Scoop, give us some underground info!!!We always like to here what is going on at the mine.
 By Rick

03/03/2005  5:25PM

Scoop, please somehow let Mike know how much I believe that those of us out here watching and reading and witnessing the battle are behind him on every level. I only speak for myself, but I sense this.

Here's the reason it might not be showing up on the Forum page:
when there is an entry from Mike Miller, or the President of OAu, or an entry updating the latest news from the GJI, I'm reluctant to trump it with an answer, wanting to keep his words directly on the first front, right there at the top. While I itch to answer and substantiate the latest entries, I don't want the gravity to be diverted.

So, Scoop, give us the latest news from underground, and then let Mike know to re-enter another correspondence letter or news-from-the-legal-battles so it'll go back on top. (We always want to know about stuffs underground and how things are going around town.)

Big storm brewing.
 By SCOOP

02/17/2005  8:35AM

Roy was released from the Hospital but is still not able to have visitors. He is at his mother's house. A huge weight seems to have lifted from over Alleghany as we are all relieved to know that a valuable member of the community will be coming home.

"Jumbo" Witterman brought up a bit of gold yesterday. He is optimistic as always that more is there. Let's hope he's right.

The new "dry" near the portal is taking shape.

In other Alleghany News, Jim Roos donated the Church building to the community for use as a Community Hall/Library. Rae is helping spearhead the effort to restore the building and build a seperate building to house bathroom facilities. As a fundraiser we are inviting people to buy bricks which can be engraved with any message you choose. The bricks will be used to make a patio in front of the steps. Some people have done bricks in memory of family members, others in their family name with a favorite saying or verse. Bricks are $50.00 each, if you would like to recieve an order form you can e-mail Rae Bell by using the "feedback" button on this web-site.

Other local news is that the new Community Service District which is being formed primarily to take over Fire Protection is taking shape. The District is called "Pliocene Ridge Community Service District" and will serve the communities of Pike, Forest and Alleghany. This had to be done to secure funding for the Fire Departments. Some immediate savings will result from the consolidation of insurance policies.

The sun is peeking out from behind the clouds. Amazingly the weather report given Monday has been accurate all week! Rain showers on and off all week. One of the plum trees in front of the mine office is pushing out buds.
 By SCOOP

02/14/2005  8:17AM

Good news! Roy is doing much better. Rumor is that he may be released from the hospital this week.

It has been raining on and off since early Sunday most of the snow is melted.
 By SCOOP

02/12/2005  10:27AM

Bad and Sad News from Alleghany

Two longtime residents, miners and friends tangled last weekend. One is fighting for his life at the Roseville hospital, and the other is charged with assault with a deadly weapon. The tragic event continues to affect everyone in the community. Unlike the cities where most Americans don’t even know or rarely interact with their neighbors, the high mountain village of Alleghany is a place where most everyone can name each person, know their trucks, know there friends and how their pets are doing. The fight, which took place last Saturday, has a deeply personal implication for all, including the operation at the mine.

Roy Stai has been an important part of the Sixteen to One team for years. He handles computer map work, metal detection, is a qualified hoist operator and skilled in the electrical trade. He and Davey Hill, a long time Sierra County resident, miner and jack-of-all-trades, had an encounter last November that never went away for Hill. Hill is a former professional boxer, which is why he is charged with assault with a deadly weapon, his fists. While the entire community is praying for Roy’s recovery, the majority of folks feel that Davey must leave the area. It is a tragedy that is touching everyone.
 By Rick

02/05/2005  11:55PM

Oh! to be a miner! As to the fork in the road, thank God you're taking it, whether up or down, otherwise it wouldn't be fun.

Now, isn't it possible for a comet to travel backwards as well as forward, once it's underground?
 By SCOOP

02/04/2005  9:40PM

The crew has been working in the Tightner shaft for weeks. Access from the 800-foot level downward is the new second exit as well as the best path to the current headings. The Ballroom trail, which many shareholders and others have traveled is closed. The fishpond is there but no longer safely accessible. Over two hundred new stairs are installed. This work helps the miners looking for gold and opens up new ground in the footwalls both north and south of the shaft.

Scoop is bummed! Reid’s heading broke into Joe’s heading exactly at the point of the last big pocket in July. It turned out that the trail he was following was related to the last pocket and not a new pocket. That tail –of-the-comet story that Ian tells is right on. Reid will move down where he encountered signals as he was driving the raise.
 By smithsgold

02/03/2005  5:02PM

Rick it worked!!!The Scoop has awakened.

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