August 19, 2019 

Clips from Alleghany


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 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, 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


05/28/2005  4:01PM

The annual report took center stage last week. An office crew will gather Monday to finish stuffing the last printed document to be mailed to shareholders. The package will be mailed on Tuesday. Scoop was surprised and pleased to find a summary of Clips from Alleghany from last year’s meeting in June to May of this year in the Annual Report. The president hit his mark with the annual shareholders letter. He has written in the past how thought provoking yet enjoyable process it is for me to write this letter. This year the mood appears different. What do you think? It is printing right now as I type in Santa Rosa. If the Company gives its okay, Scoop will bag the file and get it to non-shareholders who follow the Forum.

Water problems impacted the miners’ productivity last week. Gold was found in a new spot about 100 feet below one of the active headings. It must wait its turn to blow up. A mid size slusher was brought to the shop for an overhaul. It was out of service for three days but miners hauled it back to the 1000-foot level Friday. The Company held a safety drill that succeeded in evacuating the “injured miner” with a minimum of difficulty.

05/20/2005  9:58AM

Have you been reading about the rains plummeting northern California? Thirty-six hours of pounding rain, a short break and then twenty-four hours more caused Kanaka Creek to roar down the canyon. It also impacted the mine. Water probably increased in the north end of the mine as well. Water rose as fast as anyone can remember, flooding the 2200 level. The miners worked under harsh conditions to install a different pump in order to regain the level and service the existing pumps and electrical connections. It has been a tough week!

05/13/2005  6:44PM

As you know the Company sought relief from the United States Court of Appeals for the Ninth circuit about a year ago. A brief was accepted and the Respondent (lawyer for MSHA) filed a motion to have it thrown out, which was denied. The lawyer (a very nice lady in Washington D.C.) filed a brief. Mike was hit with a scheduled OSHA hearing and then a MSHA hearing and asked for an extension of time to answer. Things were moving right along until a week or so ago. Rae call to check how the request for time was coming along and the clerk said an issue arose. The issue surfaced today. The office received an ORDER from the Ninth Circuit in today’s mail. It says:

“A review of the record indicates that Petitioner Original Sixteen to One Mine, Inc. is not represented by an attorney. Within fourteen days from the entry of this order, Petitioner shall show cause why this petition for review should not be dismissed. See Highley v. Highlander, Inc., 459F .2d 554, 555-56 (9th Cir. 1972) (A corporation can appear in a court proceeding only through an attorney at law.)
Petitioner’s failure to comply with this order will result in dismissal of the petition for review.”
For the Court:
Howard E. Goldberg, Deputy Clerk
Local Rule 27-7

Well, well, well. What have we here? Does not a corporation have all rights equal to a person? It says so in California law for California corporations. Original Sixteen to One Mine, Inc. was incorporated in California in 1911. Has another constitutional right gone atrophied? How long have the lawyers assumed this right from the rest of us? Is it an unbeatable situation or maybe it has never been tested under the circumstances that Original Sixteen found itself in because of the unlawful abuse of the entire MSHA rats. (Notice Scoop did not say the entire MSHA agency. There are plenty of good solid employees within the agency; however the agency has been taken over by a lying incompetent fringe.)

Ours is an issue that arose because of abuses in the executive branch, not the judicial. What happens to a small and financial beat up old corporation that finds itself in a fight for survival and when it finally gets its chance to bring its case to a real court, not the pretend court of administrative law the door closes shut?

05/11/2005  9:19PM

Mike finished a three day MSHA hearing today. It ran last Thursday and Friday. The judge returned to Washington D.C. Friday afternoon and resumed the hearing this morning at 8:30 am. While the six allegations of violations in mine regulations would only cost $1,300, more than money was his concern. The citations were full of untruths, which Mike tried to convey to the administrative law judge. Untruths cannot survive. He believes doing so threatens the mine, its owners, the miners, the community as well as the American people. Scoop will attempt an interview soon for details.

Missy, one of the office cats disappeared for a week. If you have ever been in the company office, she is the one that looks you straight in the eyes, lifts her paw and gently places it on your face. She has the personality to make everyone who comes through the door feel special. She also is a pest to Rae, Kyle and Mike as they work at their desks; however all of them were relieved when she returned.

Ray Wittkopp, the renowned company geologist returned from his annual travels in Australia. It is nice to have him back in the area. Ray, Mike and Ian planned to investigate the new area of the mine they are considering for gold production last Friday but had to cancel due to the MSHA hearing.

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.


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.

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?

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.

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.

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.

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.

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.

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© 2019 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

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(530) 287-3540

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