August 25, 2019 

Clips from Alleghany


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06/11/2004  12:11PM

The past week of mining was 80% maintenance, up from about 20% for the past month. Gold production remained spotty from the “kitchen” area. The slusher cable is creatively rigged to drag the broken rock down the raise. In the process a great deal of tension is placed on the cable, causing it to break. Mike was in Oroville selling slab yesterday and bought 500 feet of 3/8” airplane cable to replace the smaller diameter. The strength increases from about 7000 pounds to about 14,000 pounds. Should eliminate the problem.

The CAT 910 wheel loader has been tagged out for emergency brakes. New pads were installed yesterday. Looks like the old machine needs new U joints, which will arrive tomorrow. The Company is looking for a Cat 966 C loader. It does not have to be pretty, just pass all safety standards.

With all the action in the office Rae and Amber took turns with a 24-hour sickness. A lot of work got done with the annual report, shareholder data, Superior Court hearing, and preparation for the appeal to the US Court of Appeals, Ninth Circuit. The two office cats continue to do their job without complaints. No mice have been spotted in the building for some time.

Had off and on rain this week. This is typical springtime in Alleghany. Rain this time of year is our friend even though it feeds the underbrush. The community is abuzz with fire prevention activities all over town. Last year’s fire is a reminder of the towns vulnerability. All in all it was a good week and next week looks even brighter.

06/03/2004  9:07AM

Expecting ninety-degree weather today. MSHA inspectors (2) arrived yesterday for the quarterly examination of the mine. Should finish today. An untested fire extinguisher was picked up inadvertently and placed in service, so the mine can expect a citation. The crew is doing maintenance that occurs each year when winter turns into spring. MSHA comes unannounced (the element of surprise) and gets to see a mine operation at work. There will always be some project or some situation that will appear to violate a regulation; however MSHA management has placed a zero tolerance approach to safety on its field inspectors. They have been intimated to make sound judgment decisions for fear of criticism even though four findings must exist in order to write a ticket. Oh, well, it likely will not improve until their insanity is day-lighted.

The print shop left out two pages of the annual report and may not have it ready for mailing until tomorrow. The office crew has the proxy forms ready to go and the envelopes are all addressed.

Air compressor moved up the hill away from the lower shop and near the fuel tank. A great improvement. The 800 level maintenance on the trail to the ballroom should be finished this week.

05/26/2004  9:29AM

Yesterday’s broad signal in the face of the raise remains a mystery. Gold mining mysteries occur more often in a high-grade gold mine than in the large open pit disseminated gold deposits. Maybe the reflective signal bounced off a Tommy knocker. The Sixteen has always been a roller coaster ride for everyone…owners and miners especially. Reminds Scoop of a song, “Dark as a dungeon
Damp as the dew.
Danger is plentiful.
Pleasures are few.
Where the rain never falls…and the sun never shines….it’s dark as a Dungeon way down in the mine.”

Scoop unlatched the lock at the portal after the crew left and personally examined the heading. Every indicator identified by geologists Ferguson, Gannett, Cooke and Wittkopp as favorable for gold are visible in the vein, muck and wall rock. Reid and Jay will put in another round today and tomorrow and after that until the mining phrase ‘deep enough’ is invoked and they move on the greener pastures. So it goes in the pursuit of Mister Pocket at the Sixteen to One mine.

The annual report is off to the printers today. Mailing was set back because of a delay in getting the NOBO (non objecting beneficial owner) list from the proxy company in New York. NOBO’s receive a report, as do those shareholders who hold title in their own name. Another type of shareholder is the OBO (objecting beneficial owner). These shareholders remain anonymous and do not receive a report from the company. The proxy company votes their shares. SOR’s (shareholders of record) have the most direct link to the Company.
 By Oak

05/26/2004  7:38AM

YES!!!!!!!!!!!! Go for it guys----Could be one hell of a celebratory annual meeting! Everyone keep your fingers crossed and say your prayers!

05/25/2004  11:02AM

The kitchen crew identified a two-foot wide signal at the face with no visible gold showing yesterday. These are very positive indicators of a significant concentration of gold. Whether this is an isolated cluster or the beginning of an encounter with Mr. Pocket remains to be seen. This signal excites the crew and is one reason everyone shows up for work. You followers of the mine deserve to share the anticipation with the crew in Alleghany. We will know the answer late today or tomorrow. Maybe , just maybe ……

05/21/2004  6:44PM

Reid’s heading continues to kick out pieces of quartz with gold. He will break through his second raise in one more round into the 1100-foot level. He plans to fall back and wing to the left below the pay shoot next week. Mark Loving, the former mine foreman when Ian Haley was superintendent, returned. He has installed some steel sets on the 800- foot level near the Ballroom trail. Mark set a Company record for footage , when he advanced a raise 22 feet during one shift. He is March in the 1992 photo essay, if any of you have one.

Ian and Joe are in the middle of relocating the air compressor and fuel tanks near the portal. Trucking diesel everyday got to be a chore. Andy and Charlie are doing maintenance but got a couple of slab rounds in on MD signals. These guys really could use a pocket about now. They deserve it. Are you helping with the miners prayer?

The office crew seems to be especially busy. It is always demanding during the days before the annual shareholder meeting (June 26 in Alleghany). Mike went to the Brown Bear the beginning of the week. He relieved the caretaker for “indiscretions” and authorized Jack to assume caretaker duties. Real estate prices have sharply risen from two years ago.

Did you see the newspaper article about the CDAA lawyer looking for an out? It’s on the web site. Scoop thinks that CDAA lawyers will pay the price for breaking the law. Scoop will be at the hearing on May 28, 2004, in Downieville. Maybe the LA Times will cover the lawsuit since they gave front-page space to the criminal proceedings.

It is raining in Alleghany. That is good news, so let’s end on that note.

05/06/2004  11:04PM

There is some really strong glue that holds the Sixteen To One together. It must have also been true years ago, say after WWII, when political decisions destroyed the gold mining industry in the United States, maybe even in the world. Why? Anyone who has seen felt and pondered about the gold veins running through this rich high-grade district are affected in some way. It could be the excitement of day lighting the gold, displaying it to humanity or it could be from knowing how important an asset it is during extreme periods. The glue can be ones recognition of just how great these groups of owners past and present reflect the American virtues. There are many and today this band perseveres, for reasons as personal as in the past. They are also growing in number.

As a reporter, Scoop is expected to dig into the subject and report what is found no matter with out opinions. Beliefs belong in reporting but place an extra intellectual demand upon those listening. Scoop likes this simple arrangement but occasionally editorializes. The strong glue of OAU includes those of you who stick with this venue of communication, the Internet. But you are on the edge, unless you mine or own share of OAU.

The shareholder meeting this year will again place the future before the owners (June 26). Scoop only offers a chronology of events in Alleghany not futuristic predictions or directions. So much goes on every shift with the company that a forward analysis is best presented to the owners before they appear on the Internet.

The gold of the Sixteen to One qualifies as one of the glues. The mineral deposit will not likely change. Gold binds this company like no other. The gold alone may not be adequate to hold the corporation together. Another glue is all the people who associate with the company. Without the ones I see and interview regularly and you other guys and gals, this California gold epic would come to a close, again.

In 1965, Original Sixteen To One Mine, Inc was the last underground operator in the West. The Sixteen to One mine, which it owned was left to flood. It was the end of 100 years of hard rock mining. These owners held out for politics to leave gold to free itself from uneconomical control. It was the glue of the owners to protect their asset. It worked and rewards again flowed into their hands.

Today water continues to threaten the mine. It always will and then becomes no longer a threat but a necessity to address. Today the political climate also threatens the mine. It ebbs and flows. It always has and always will. Physically the Alleghany Mining District mines are set. People are the greatest current influence in just what the area will look like in the future.

Rick and Jeremy attacked the ore piles on the landing today. They recovered 35 pieces of gold and quartz and 65 blasting caps. They work again tomorrow. Ian spread the piles. It is a two-day operation whose objective is to get quality slab material for the jewelry manufactures. Reid holed through the “kitchen raise’ yesterday and dropped down to follow the gold signals. Charlie explored with the company’s new gold detector, which arrived yesterday. Joe has been covering the surface demands as well as donating his time along with Jay and Mike to remove iron from the streets of Alleghany. They plan a car auction with the proceeds going to a summer feast and musical program. David has sawed up some remarkable stones and completed a record April gold sales. Rae opened the museum with a May 5 visit from a Grass Valley high school class. She and some volunteers performed wonders the past ten days with the museum and the drill collection.

The unexpected sight today was Dan O’Neill on top of the ore pile with a pick and metal detector in his hands. He scored two pieces of high-grade on his first effort.

04/30/2004  3:33PM

Rehabilitation of the 49 winze continued this week. Production was minimal, but the targets still look promising.
Mike is busy getting things lined up for the Empire Mine Adit Project.
Rae is still trying to make time to get the museum presentable for the season.
Cool nights and warm days in Alleghany. A burn pile near Downieville got out of control on Monday, if we don't get more rain it could be an early fire season.

04/24/2004  2:56PM

The Board of Directors met on Friday. After an underground inspection of the mine, the members moved to the Rainbow mine to conclude the meeting. The shareholders list will be closed on May 1, 2004, for qualification to vote at the upcoming shareholder meeting on June 26.

Both headings produced gold towards the end of the week. The signal above the Ballroom production was about $10,000. Unfortunately it is not the type of gold suitable for slabbing and will be crushed and poured into bars. The “Kitchen” heading is another story. After just two rounds the lead miner, Reid Miller, found high-grade in the muck. The crew became very excited because this is a large area within a favorable history of gold concentration. Who knows, that is the Sixteen To One! Who knows?

The office is compiling a master list of companies, which should have an interest in the doings of the California’s last hard rock mining operation. The consensus is that not enough people are aware of the opportunity for making money via the corporation, its assets and its associates. Too few people and even fewer understand how to interpret the solid facts surrounding the Alleghany Mining District and the die-hards who continue to believe in its future.

Life looks pretty good around the Company. Everyone is more upbeat than Scoop can remember. Round in…round out. The gold is not gone. You just have to find it and you will not find it by wishing.

04/20/2004  6:07PM

Dead work or maintenance, whatever you call it, there comes a time when it preempts looking for gold. The ‘49’ winze is the main artery of the mine. It was an old raise that was extended and improved in 1984-85-86 by our lessee, Kanaka Creek Joint Venture. It provides the miners with a primary exit, hoisting capabilities to the lower levels and utility services for air, electricity and water. While it is regularly checked and repaired, it became necessary to hit it harder with some new timber, rock bolts and steel sets. Part of the crew will dedicate two weeks towards this effort.

The kitchen raise crew is drilling six-foot rounds. If rock does not break, do not expect to find gold. The other production crew is slushing what they thought was a drift above the fishpond. It turns out to be an old timer’s raise. Confidence remains high that both crews are working in an area with great prospects.

04/15/2004  1:57PM

Much needed rain fell last night. No snow on the ground. Temperature is about 42 degrees. One more day of preparation in the “kitchen raise”. Utilities are completed and a powerful slusher is installed. Crew will drill first round today or tomorrow. The “no-dog-raise” is set to go. Its crew moved to and drilled a signal above the fish pond on the trail to the ballroom yesterday. They will drill again today but not on Friday (we do not leave shot rock with gold over a week end). We do not expect much here but the jewelers need slab, and we aim to please them.

Mike is working out a new agreement with PG&E. March bill was over $7,000, mostly from pumping. It is costing us to keep the lower levels from flooding; however the rational supports the decision. Besides the equipment that would be damaged, there are some very good areas of known ore. It is too costly to go after them now.

Rae has taken time this week to whip the museum into shape for its opening in May.

04/09/2004  5:07PM

The week ended on a positive note for all the Sixteen to One crew. Andy and Charlie slushed recently shot- rock and some rock probably mined fifty years ago as they set up their heading for next week: raising. Andy found a soft ball size chunk of quartz and gold that weighed 38 ounces (15 oz fine au. Estimate). The rest of the crew installed two slushers. Joe and Reid will also begin a raise next week. Two raises running in a hot large block of quartz makes everyone‘s outlook positive.

The Paradise Gem and Mineral Society is having its 50th annual event this weekend at the Veterans Memorial Hall. David and Rae are taking some of the company’s specimens to display. They also will have a booth, selling jewelry, slab and small specimens. Oh, they also have T-shirts and hats. David hopes to net enough to buy a new four-wheel polisher (about $2,000). Stop by. Paradise is east of Chico. There are many enthusiasts living in the area, so the show should have a wide selection of minerals.

Director Emeritus Dick Sorlien stopped by for a visit. Dick lives in Philadelphia and has the Alaska Mine a few miles down the ridge from Alleghany. He will be 82 in June, still plays tennis and recently had eye treatment to eliminate the need for glasses, which he has worn since childhood. Dick played a key role in the growth of the company while he served as a director and was awarded a gold plated hard hat when he retired. In Australia a gold plated hard hat represents a very high honor of service in the mining industry.

Bill Walker (water guru) and Rae installed a new facet to the unit that cuts the arsenic out of the drainage water. It is another “secret” process the company has perfected over the years to handle its water discharge for 2005.

Mike and Rae reviewed the cash flow and bills. They wrote over $5,000for property taxes due April 12, $8,750 to PG&E as well as maintained the beginning of the month regular payments. The money is mostly from slab sales, but David has been busy filling requests for specimens and cabochons. Still mining after 108 years!


04/02/2004  4:18PM

The week ended with gold production from the Ballroom heading yesterday and today. It was the heavy sulfide gold. All the miners will be working several headings in this location for several months. Mike bought new slusher cable in Oroville for the crew. Moving the shot rock requires two slushes. About half a mile of phone wire was laid from the office in Alleghany to connect with the internal mine communication system. This will allow direct contact, which makes us all feel safer. Tomorrow is a volunteer day at the museum. The drive from highway 49 to Alleghany is spectacular with all the evidences of spring. Join us if you need a reason to have an adventure.

03/27/2004  12:24PM

CORRECTION from Last Entry.

The lawyer representing the CDAA group of rascals is Calvin Clement or Clements from the firm of Knox, Lemmon and Anapolski in Sacramento.

03/27/2004  11:29AM

Last week of mining was mostly one of maintenance. Timber support was replaced on the 800 level, the 1300 level and the 1500 level going south towards the pump sump. This work required four miners all week and two miners for two shifts. A small amount of gold was found in the ballroom area. The crew slushed for two days and drilled and shot three rounds. The vein has some good-looking characteristics: evidence of an old watercourse, mineralized footwall, multiple quartz lenses, mariposite and crystal pockets. For those reasons and the recent production of gold above, below and to the south side of the heading, the crew will continue to break rock there next week.

Proof of service was returned in the offensive suit the Company has launched against four lawyers and their employer (California District Attorney Association). Their lawyer, Mister Kirk Clements in Sacramento asked for a week extra time to respond, which was graciously given. Damages to the shareholders are estimated at $24 million or $2.00 per share or 60,000 ounces of gold.

David in gold sales is considering filleting the golden trout carving, turning it into jewelry slab. The trout is valued at $75,000 but will not yield that much money in slab. No one is particularly happy about sawing into the fish. Mike has considered a compromise, sawing the base and keeping as much of the sculpture as possible. He said the golden eagle and bear are not to be cut up no matter what. Time will tell as short cash flows threaten the operation. Anyone want to buy a one-of-a-kind fish?

03/23/2004  2:37PM

The company has set aside the funds to install a passive water filtration system to eliminate or reduce the low levels of arsenic in surface water. The new requirement is proposed to become effective in year 2005. The company has monitored stream and other water flows almost twenty years. The ranges of temperature, conductivity, acidity, flow and mineral content are well documented. Arsenic, a naturally occurring element in the regional waterways is now measured in parts per billion.
“While there is no evidence of biological harm, in Kanaka Creek above or below the mine property, the company elected to install the plant,” reported Michael M. Miler, president. “Our crew works well with the physical sciences and natural laws of the environment,” he said. “For several years the social sciences have preempted the bureaucratic thought process. It has become necessary to abandon sound reasoning to effectively function in the current Californian regulatory climate. We have asked the bureaucrats to work with us to develop solutions to real or perceived issues. Their cooperation has been slow in coming.”
Miller said now that gold is an attractive investment; savvy investors are looking for ways to participate. “Even though we are unsure whether the proposed standards will be finalized in 2005, by installing the filtration system now, it should eliminate any concerns serious investors in our new shaft sinking plans may have about water issues and compliance.”

03/16/2004  8:16AM

The weather has been unseasonably warm in Alleghany. The plum tree in front of the office is in full bloom. We all know more snow will fall before spring really sets in. In the meantime we are enjoying the break from snow.
Locally the big news is the threatened closure of Pliocene Ridge School our local k-12 school located in Pike. It serves the communities of Alleghany and Pike primarily, with kids from other outlying communities attending as well. In 1983 when the school was relocated from Alleghany to Pike nobody in their wildest dreams thought the population would shrink. When the school was in Alleghany there were about 60 kids in grades K-12 now there are 48 including the kids from out of the area. Because the school district needs to cut expenses they are seriously considering closing our school. It would only take about 15 more students to make the school viable.
Casey's Place is having a Mexican Dinner on Saturday March 20th with music from Spain. (a Flamenco guitarist)Happy Hour starts at 5pm dinner at 6pm. Call to make reservations 530-287-9809.

03/04/2004  4:37PM

An OSHA inspector visited the mine today. He will be back to finish his inspection next week.
Two crew members undertook the task of "drill doctor" and repaired five drills. Still have some legs to repair in anticipation of more activity in the ballroom headings.
Several metal detectors were shipped to both White's Electronics and Fisher Research Laboratory for repairs. They take quite a beating underground.
Nice weather in Alleghany. The snow is melting fast.

03/01/2004  4:55PM

Heavy snow throughout the day in Alleghany. Miners are processing February's high-grade ore. Total weight was about 400 pounds of sacked gold bearing quartz not suited for jewelry application. Bars will be poured and shipped to the refinery for separation into pure gold and pure silver.

Crew slushed two rounds in Ballroom heading. The 1500 level is still active because of visible gold showing in each round. Maybe gold won't wire up. Then again, maybe it will.

Ordered three rebuilt gold detectors from the manufacturer today. Mike talked to them about improvements and a possible joint promotion campaign. Hundreds of detectors were sold in 1992, when the first campaign took place.
Company received its second serious inquiry about the Private Placement investment offer in Houston. Scoop can't figure out why seekers of wealth and security are so bashfull when it comes to gold and real hard assets like the Sixteen to One. Mel Gibson hit a good pocket last week, so did the Lord of the Rings participants. Gold is the foundation of it all.

02/20/2004  4:29PM

A large order of explosives, blasting caps and det-cord was delivered to the mine this week. The miners were happy, as they inventoried the supplies, which should last for four months. Years ago explosives were an insignificant cost of mining compared with labor and other supplies. This is not true today. People involved with the manufacturing, storage and delivering of explosives credit paper work as a significant factor in the cost increases.
The 1500-foot level in the most southern part of the mine yielded about three hundred pounds of high- grade ore (using industry standards for high-grade). Gold sales, however was unable to cut any of the material into jewelry products.
Check the NEWS for the story about calling out the evil CDAA lawyers’ behavior. The Company has stated in the past that shareholders suffered $24,000,000 in damages. Scoop will get a copy of the complaint for your reading. Four CDAA employees (lawyers) were personally named along with the non-profit corporation.

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PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

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