June 16, 2019 

Clips from Alleghany


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08/31/2005  9:06PM

Oops, Scoop hit the wrong key and failed to log this report written on August 29. Better late than never.

The 4100-volt electrical power to the pump transformer is kicking out 500 volts on one leg, 150 volts on another and fluctuates on the third. This condition was discovered about 10am today (Monday) when the pumps were turned on. The crew turned them off after work on Thursday because of a scheduled black out that night. PG&E was notified. Probably related to the power shut down.

Reid still reporting that his heading looks similar to the ground when the last pocket was found last July. The gold showing in the other headings does not have the potential ounces to drill now.

Unpatented claim fees due this week. Looks like about $14,000 with all the combined claims from Gold Crown, Plumbago, Brown Bear and Forest.

08/13/2005  10:13PM

It’s Saturday in Alleghany and this has to be a first. There are four lawyers in town. Cars and trucks were noticed going into the president’s house. Scoop can only wonder, “What is going on?” Four lawyers is four too many in a little gold mining village, or is it! Scoop will snoop, but whatever the story, this one may take a little time to sniff out.

08/09/2005  5:38PM

The mine will shut down for a three day mid summer break. The crew will have an opportunity to take on some personal chores. Even though the temperatures are in the 90”s plus, winter knocks at the door. Miners will be up on leaky roofs, cutting firewood, fixing broken glass or maybe fixing the old truck. Everyone is back to work on Monday.

New cameras have been installed at the 1500-foot station and the 2200-foot station to monitor the pumps and water level without physically walking to those locations. New cameras are also placed around the property and security gizmos have been placed in strategic locations. Maybe the crew anticipates a new pocket. Scoop thinks it unlikely the crew will move enough ground with the small number of miners currently employed to hit a pocket. Word is the gold and quartz from the last pocket (July 2004) is gone.

Ian decided to take care of some old business. The miners have been hauling good but unnecessary equipment fro underground to the lower shop. This effort will not ”break rock”, but is definitely in the best interest of the company. It does not show up on the balance sheet, but the company owns three million dollars or more of equipment at replacement costs. It makes no sense to let it depreciate underground due to moisture.

Years ago the cost of powder (explosives) was not a significant expense compared to labor, equipment other supplies and utilities. Times have changed. Scoop saw a recent purchase order to Alpha Explosives. Prell (ammonia nitrate) is $.32 per pound; dyno plus (dynamite) is $150.00 per 50 pound box; and non ells are $4.28 each no matter what number; boosters come 800 to a box and cost $.74 each. It was not long ago that non ells were $1.40. Thank you Homeland Security.

08/08/2005  9:52PM

Michael got back to Alleghany last night from a trip to the Brown Bear mine in Trinity County. He told few people he was leaving Thursday, He had a morning stop over in Sacramento for a meeting with the State of California lawyer for Cal/OSHA, division of mining and tunneling, and its administrative supervisors. This alone was a significant meeting dealing with the citations Original Sixteen to One Mine, Inc. received after Mark Fussell’s tragic accident in 2000. He is mum regarding the contents of the meeting, but Scoop got the low down on why he drove up north to the Brown Bear. Scoop tells all!

Mike got a call from one of his “Scoops” who lives in Lewiston, the small rural town about five miles from the Brown Bear. “There is activity at the mine, and it may be the cranksters cooking up meth.” Michael put down the phone and immediately called the Trinity County Sheriff department and asked for the deputies who accompanied him last year on a similar mission. Last year some gloves and other stuff were discovered when two deputies and Mike searched the property. The sheriff deputies said that this year would be different. The department was so short handed that no one could go to the property with him when he came up to check out the situation. Scoop does not think that this news made Mike very comfortable, but he had to go and he was going to be by himself. Scoop verified this information and furthermore the Trinity County Sheriff department said that the rural area was peppered with cranksters and Mexican nationals, and it was very dangerous to go into the area. There was a murder last year (we knew this because the caretaker at the Brown Bear was considered a suspect in killing the crankster). Furthermore the drug people all carry guns and will kill any intruder without hesitation. This info is from the deputy.

Scoop had to ask questions, such as, “What are you doing for the meth problem?” The answer was very little because they were going after pot growers, especially on federal land. Over 50,000 pot plants were dug up just the other day and over 75,000 were spotted and removed a week ago. Meth?? We do not have the manpower to go after them. Also the federal funds are designated to get pot growers on federal lands. Scoop bit his tongue and said nothing to this inane approach to solving the rural Californian drug problem.

So, Scoop asked Michael how he proceeded without the law enforcement’s participation. “I left word at the Lewiston Hotel that if I was not back by 7pm to call the sheriff and get help. I carried a shotgun and a pistol and I recorded my approach with my film quality video camera.”

So here is the situation: Cranksters have moved onto the Brown Bear mine site, there is no law enforcement to check it out, the care taker has not been seen for awhile. Thursday around dusk, Mike drove to the mine and parked on the county road above the buildings with binoculars and a beer to check out any movement. There was none. On Friday he drove to Weaverville. After again trying to roust out a deputy in Weaverville (Trinity County seat) to go to the mine with him, he was told that everyone was busy and anyway it was Friday. He stopped back at the hotel before driving the five-mile Deadwood dirt road to the mine. That was his back up.

Scoop asked to see the video. His video was worth seeing. He ran the camera as he approached the Brown Bear compound…old cars …and to his delight no dogs barked as he walked into view of the buildings. Just as the camera recorded his talking about no dogs, three big dogs come roaring from one building towards him. Scoop thinks he heard, “Oh, shit!” Shortly a man appeared and to Michael’s relief and delight it was Jack, the caretaker. All is well at the Brown Bear.

07/28/2005  9:13AM

Not much to report from Alleghany. Hot days, cool nights. Missy the cat is eating and drinking but hasn't put on any weight yet.

A little color showed in Chico's heading day before yesterday, on the same lense (footwall) as the big pocket. The miners sacked a most unusual specimen that David and Mike cleaned in the ultrasonic cleaning machine. It is half the size of a football and in addition to gold has many quartz crystal vugs. Scoop wonders why there's been so little talk of the recent purchase of the Gold Crown (formerly the Wonder Mine) by the Sixteen to One. Maybe we'll hear more because Scoop saw Ian, Reid and Mike trudging out of the property about 7:00 p.m. last night covered with mud.

The new minesite office is almost completed. Rae is suppposed to be spending one day a week at that office, although her track record isn't very good so far...

Rae is trying to get quarter-end wrapped up so she can file the 10-q due on Aug. 15th. Unfortunately the company will be showing a loss for the quarter and year-to-date.

The Empire Mine project is progressing, but not as fast as we would like to see. The tunnel is 462 feet in with approximately 261 feet to go on the straight drift and another 125 feet to go after the "y" which is to meet up with an existing drift. The "y" will be about 648 feet in and once it is made the miners will be able to do both headings at once.

George and Mike were seen around town burning the midnight oil. They filed a big stack of papers at the Downieville Courthouse in response to the Bad Guy's attorney's huge stack of papers filed previously. They looked pretty satisfied when they left.

Be sure to look at the "Photo Album" on our homepage.

07/24/2005  8:55AM

Thank you Blue Jay! That is very sweet of you. We will take a look.
 By bluejay

07/22/2005  12:57PM

In regards to Missy, I wouldn't hesitate to contact Newton Laboratories for a recommendation on what could stimulate her recovery the natural way.

They sell a broad range of homeopathic formulas for pets and people. I have personally used their pet products for years with great success.

You can get a toll free number from their website at www.newtonlabs.net. After you order what she nees send me the bill.

Stephen Wilson

07/22/2005  8:32AM

Hot days in Alleghany, although compared to the Valley it is cool.
Monday morning the power went out for about an hour. We never did hear what the cause was, but it was out in Downieville as well. Later that evening there was a fire in Goodyear's Bar due to a downed power line so maybe there was a connection. The fire was under control within an hour and burned a couple acres. There is still a bit of moisture in the foilage thanks to the late spring rains we had.

The vet thinks that Missy the Cat has Chronic Irritable Bowel Disease. Getting a positive diagnosis would require a visit to an internist and a biopsy, but a special diet usually works as a cure. We have decided to try the diet and see if it helps her.

The miners are finishing up the block of ground they are in and then have two new blocks one to the North and one to the South of the area they in. Ian estimates about two more weeks to finish where they are.
 By Hoop235

07/21/2005  11:51AM

Scoop, What happened to Ian's idea about opening up a new block of ground? Also, how is Missy the cat???

07/15/2005  7:30PM

Today is one year from mining the most recent pocket. A year apart complicates the cash flow. The ground looks just as favorable today as it did a year ago when Ian, Joe, Reid and others strung themselves out because of their belief in the mine and each other. The mine faces less severe cash flow management than it did last year prior to the pocket. The company and crew were badly beaten up!

A strong lack of working capital hurts most businesses but especially the Sixteen to One. Why? Well, with no idea when the bank will be replenished, capital expenditures needed to increase production or merely maintain an efficient operation cannot be given. Right now finding Mister Pocket is required to complete the shop, change room, mine office and other surface work that is either planned or begun. Winter is not that far away.

07/08/2005  4:48PM

Two clues about the ransom note. (see photo) The fine print reads "Empire Mine State Historic Park" and there is a 966 loader which lives between the Empire Mine and the 16 to 1. Most recently it was at the 16 to 1 for a month or so, which is when the note arrived.

The miners are breaking rock again.

Missy the office cat still seems sick. Rae took her to the vet again today and they drew blood to run some tests. We will know the results on Monday.

07/02/2005  9:02AM

The rebuilt 58-horse power pump is back on-line. It was overhauled to the tune of $4500. This pump provided four years of service and should do it again. It is placed at the lowest water level and should be left unattended unless the company decides to pump down to the 2400-foot level. The chief downside has been the inability of the crew to go mining for Mr. Pocket. The are a few long faces around town because of the long drought of finding Mr. Pocket. No one is whining and no one should. The past six weeks or so have been mostly maintenance. Word on the street is, “Go for the gold”.

06/27/2005  10:43PM

193 people came to the annual meeting on June 25, 2005. The meeting went from 10:30am to noon. It was a huge success from this reporter’s perspective. A film operator was busy all day. The rumor is a video will be offered in the near future. Miller is personally making a documentary on mountain rural culture, which he intends to enter in the fall film festival. Here are some of President Michael Miller’s remarks.

“Wonderful people gathered here over the years. The first mine meeting was in 1991, the year the company took back its mine from lessees. Last year we were beaten down and only three miners remained on the gold participation contract. One shareholder stood up and addressed the group. He encouraged everyone to bring the mine into their thoughts, provided energy and spirit to find a pocket of gold. Twenty days later the tired and worn miners knew they were into something. It turned into a fourteen hundred ounce pocket, which we used to pay down debt and manage to keep mining. Maybe there is power in positive thinking, I believe it is so. We are running low on the gold and quartz from that pocket. He called to say he could not attend the meeting this year. I said that his interest may have been the difference. So, if you were here last year and remember the conversation, do it again. We need a pocket again. If you were not here, give it a try. I believe in the power of positive thinking.

“By the way, how many of you are here for the first time? Raise your hands. Whoa, that was too quick. Keep them up, please……about ninety of you. There are some rules that you need to know or be reminded of again. No litter, please. Pockets or trashcans are where the stuff you don’t want must go. Drink water and watch the sun. It is cooler today but we are at almost 4000 feet elevation. The air is very clear today and that old sun is pumping down. Sign in at the portal and remember to sign out. This is a working mine. The lines are carrying 4100 volts. It’s the real thing, not an amusement park. There are well-practiced emergency procedures in place. All the miners know what to do, so listen to them. Be patient. We will stay here so everyone can go underground. One year a shareholder was exiting the mine. He dropped to the ground right at the portal. Either the heat or something got him. It is fifty degrees in the mine so dress appropriately. That should not be a problem today. If you feel claustrophobic, turn back. Have a good time. It is a rare opportunity to see the Sierra Nevada Mountains from the inside out and this is a special sight to see.

“There is bad news and there is good news. Rot and decay have taken their toll on looking for gold. Over the past month the crew has been busy in non-mining activities. The good news is that the mine is maintained and the water has not risen above the expensive electrical equipment on the 2050 level nor has the super hoist at the 2483 raise been compromised. The other issue just comes with mining. We are running low on inventory.

In light of this I have an exciting announcement to make public. The company closed escrow on a mine known as the Gold Crown in Alleghany. It is contiguous to the Sixteen to One. It has a practical high-grade mill, twenty-four patented acres, fourteen unpatented claims and mineral rights to three other parcels. Other assets were packaged under one negotiated sale. There were three other buyers, all connected with the company in some way. The sellers chose to take cash and a note instead of any stock. The company exercised a five-year note for $144,000 and paid no money down payment. The others put up $156,000 in cash. The sellers owed the mine for almost thirty years. They worked the mine and had various lessees over the years. At one time a group of investors, speculators and gamblers prepared and offered a $5 million plan to develop the mine. It was circulate in New York. The owners are very supportive of gold mining and are gathering maps and documents about the mine for us. When I receive the data, it will be summarized and entered on the web site under MINES.”

Scoops notes of conversations with shareholders and miners will follow later, perhaps.
 By Dick Davis

06/26/2005  12:58AM

Funny that the topic of pasty would come up.

In May I rode the miners' elevator 1300 feet straight to the bottom of the shaft of La Mina Rica in Real del Monte, Mexico. There we hiked and rode the miners' railroad to the face of the silver vein, over a mile in. We were told that many miners had come from Cornwall and their lunch buckets carried "pasties." When we exited La Mina Rica, about 3 hours later, we were greeted with a light meal, a pasty, a turnover, filled with seasoned meat. You don't have to take a tour of the mine. In the plaza, under the arches, in Real del Monte, it's on the menu.

Real del Monte and other historic mining towns are just north of Pachuca, Mexico, a couple hours from Mexico City.

Best regards and strike gold!

Dick Davis
 By Crush

06/25/2005  10:26PM

Hey Scoop. Is it a pastey or a pasty? Beleve it or not I bought a dictionery. I herd that ones something you can eat. I no what the other on is.

06/25/2005  12:05AM

For those who cannot be here tomorrow in body, you are here in the spirit. Much will be revealed tomorrow. The site looks great but Scoop found out something confidential. Oops, some lawyer may allege that general talk somehow compromises professional ethics. Much like an ignorant lawyer, an inexperienced lawyer or a Knowing and Willful lawyer who misleads the court or abuses the judicial process with malice must be challenged and stopped. “Insider trading” sound possible? No. There must be evidence that the public or shareholders were misled for a case to proceed and that damages or a crime have occurred. Monetary, like moves in the buying and selling of shares, must have occurred. Scooped the following from MMM’s trash:

“I decided to draft a paragraph of my shareholder presentation and see if the statements trigger rapid increases, decreases or volume in OAU shares. Only then will |Scoop know his power.

For those others reading tonight’s late entry, there are other ways to mislead the court, whereby monetary and punitive punishment is warranted. One is to file papers that present general talk that is known and accepted in judicial circles as polite and socially appreciated and accepted by all to have occurred. This would mislead the Court, a crime in California, as well as a violation of a plaintiff’s justice. This behavior is what the Company is facing with the defense of CDAA and its defense team led by Tom Knox.

Detail his “specious’ verdict.

Explain the sale of Brown Bear and show photo board. Upside: needed liquid capital. Downside: Discount in future market place ten times if sold.

Acquisition of the Gold Crown.

The upper landing, the lower landing and the gathering or the company’s proven iron reserves were of primary focus for the small crew. Unfortunately the 58 hp pump gave way. The propeller wore down (it pumped from the lowest level where we are holding the water line for four years) taking precious time and money. It is in Auburn and will return next week.
We are small but mighty and we are ready. Chance of showers and for sure sun.”

06/17/2005  8:40AM

The miners have been busy upgrading the pumping system in the lower levels of the mine. The combination of that project and getting ready for the shareholder's meeting has been consuming all of thier time. No rock is being broken.

Wednesday the weather was perfect. Highs in the upper 70's with blue blue skies. Yesterday clouds rolled in, the wind picked up, the temperature dropped and by afternoon it started raining and yes even a little snow was mixed in. It is still cool and cloudy today but so far no rain.

The clampers were supposed to have a campout in Forest City this weekend...not good weather for that. FART (Forest Alleghany Rapid Transit i.e. The museum van) has been commisioned to shuttle the clampers from Forest City to Casey's Place so no drinking and driving takes place.

Mike and George put in two very long days ealier this week getting a filing ready for the ninth circuit court of appeals. Somehow they always end up jammed against a deadline. There is always a sigh of relief when they head out the door documents in hand.

Kyle has been busy counting proxies and pre-registration forms. So far 83 shareholder's and guests have RSVP'd.

Rae and Kyle recently upgraded the acconting program in order prevent the data from becoming un-upgradable. This is something Rae always puts off as long as she can. Upgrades can be frustrating. So far everything seems to be running smoothly.

06/11/2005  3:57PM

Proxies are coming into the post office. Too soon to predict a turn out. The crew has not spent time preparing for the June 25 annual meeting. The surface is a mess! They have a plan but there were more pumping problems the past week. It rained hard and steady last Tuesday and Wednesday. Ian had the whole crew underground working on the pumps. It would be a great project to drive a tunnel from the 1500 foot level south to the Yuba River. Another worthwhile project is to use the tremendous hydro potential for making electricity. Either of these realistic propositions will significantly reduce overhead and be a huge long-term improvement forever.

Missy, the most affectionate office cat was looking a little skinny. Rae took her to the vet, who prescribed worm medicine. Missy steals everyone’s heart when they visit the office, even cat haters.

The gemstone federation has its annual meeting this weekend in Roseville. Mike promised to display the Sixteen to One gold. He and David selected the six-piece Jug band, some slabs, cabs jewelry and a special rock from the July pocket. Mike drove it down Thursday after work. The show lasts through Sunday. The Underground Gold Miners Museum offered a special tour for the show. Ten people came up today and a bunch more are expected tomorrow. Mark Loving and Ray Witkkopp are conducting the tours. The museum has an important drill collection on display at the museum in Alleghany. It could sure use some supporters, either financial or volunteers.
 By smithsgold

06/06/2005  12:39PM

Thanks for putting the shareholder letter up for us non shareholders to read.

Jeff Smith

06/05/2005  12:33PM

Now that shareholders have received this year's annual report, Scoop has permission to get it to all non-shareholders. It will be posted under the Company topic with all the others right after Scoop harrasses the office to post last year.

Dear Shareholders,

Does our company have the tools to excel as a gold producer? Will our company profit and if so, what can its owners expect? Where are its strengths and its weaknesses? Can it overcome the weak areas? How?

Our crew, including officers, directors and a growing number of professional supporters, are discussing these questions and many others. The “growing number” is significant and is a key to our successes. There are so many options or paths to travel towards achieving success. What is “success” anyway? To understand our choices it is necessary to understand our corporate goals for the company. If you understand these goals, you should know the role you want in our future.

I am not content or satisfied that all my decisions the past year have been the right ones; however they were the best choices when factoring the likelihood of success, the potential loss and the all important rewards. Our supporters remind me to focus on the goal, be patient, know what you want from each situation and be ruthless when necessary. This is what I remind the miners: Safety First, Quality of Work, Accountability, Responsibility and Efficiency follow. The miners are the ones whose work turns potential into reality. By adhering to my reminder, they will achieve our common goals.

Our corporation owns a number of gold mines, whose total gold production has approached 2,000,000 ounces. Are these mines depleted? We think not. Can our gold deposits be profitably exploited? We think yes. A goal is to increase production. Production last year was 1, 725 fine ounces. We netted a profit of $399,863.00 and reduced debt. We invested the remainder of the money in the Sixteen to One mine. The Sixteen to One is our primary target; however, the goal is more than preserving the asset or maintaining its existence. The Sixteen to One is a unique operation. According to federal sources it is the only single product underground mine still operating in the West. We know that it is unique for additional reasons: the deposit contains very rich concentrations of gold; the existence of gold cannot be “proven” as in other gold mines but the location of “pockets” within the well defined vein system is predictable.

The largest “pocket” found in the Sixteen to One was 83,000 ounces. It rested just below the 800-foot level between the 49 Winze and the Tightner Shaft. A careful study of the trends of “pockets” suggests a high probably that a larger “pocket” exists up dip and to the north of the Tightner Shaft. Our goal is simple: find and mine this “pocket”. This is our plan and this is what we work for: sink a new shaft in the Red Star and drift on the vein. It requires an infusion of major capital. The risks of mining in Alleghany are always present, but in this specific proposal the rewards are obscenely worth the effort. At today’s spot price of gold an 84,000 ounce pocket yields $35,275,000 (much more as gemstones). The estimated cost of the project is $3,500,000, which includes sinking the shaft, driving 1,000 feet of drift and opening the lengthy 250 foot level for drainage, ventilation and secondary escape way.

The Red Star is a legitimate target and one that has been written about by many mining men. Our goal is the execution of this plan. Raising the capital to complete the shaft project is challenging because of the many choices. But choices must be made and made now. Therefore, the board of directors approved the sale of our Brown Bear mine in Trinity County. I am not happy to sell the Brown Bear mine. It was my hope that our mining would produce the capital to sink the Red Star Shaft; however, mines are not built on hope.

On a much different yet related subject, the Company is aggressively pursuing its claims for damages against the four lawyers and their employer, California District Attorney Association (a non profit California corporation) who prosecuted the heart of our company. Not only did they prosecute to put our two main employees in prison, but also prosecuted to put our company out of business. The consequences of their actions made it impossible to attract investors to supply the working capital proposed to sink the Red Star Shaft. Their illegal, false and negligent behaviors have significantly tainted our reputation. If you were able to follow the case on our web site or in the newspapers, you will remember that I estimate the loss to you and me as shareholders is $2.00 per share. This reasonable estimate adds up to $25,734,500. None of the defendants have this much money, but Lloyds of London does.

Another relevant subject is finding a suitable market place for you to increase or sell your ownership in the company. The OAU X-Mart (web site) has provided sellers and buyers a fair market. We do not pretend it is liquid, nor are we suggesting it is satisfactory. A goal is to find a mainstream market place. A summary of transactions is included in this report.

The last goal to mention today is our desire to see you at the annual shareholder meeting this year. Unless you read the entries at www.origsix.com, you know very little of past events. Last year was the poorest year for direct communications from the company. I apologize without excuses and pledge it will not be repeated again. I recently found a new way to reach you and am anxious to put it in place to see what you think and evaluate your reactions. Join your crew this June in Alleghany and learn why we anticipate a profitable and rewarding future. We have planned a new walking tour of the active headings. You will be thrilled to be a part of America’s oldest gold company and see its underground operation.

Best wishes,

May 23,2005 Michael M. Miller, president

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PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

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