October 14, 2019 

Clips from Alleghany


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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.

02/13/2004  10:25PM

There has been a lot of activity at the company office lately. Cars and trucks are coming and going, but Scoop is in the dark regarding the activity. It’s something other than gold. Miners were seen each day this week depositing high- grade sacks, but that’s not the source of the activity. It is something else. Not a big gold strike. Maybe the newspaper will dig up the story next week. I failed to find it from my sources.

02/10/2004  8:54PM

Miners sacked one bag of high-grade ore from the 1500-foot level in the most southern part of the mine. Strong signals remain in three places in the raise. The water supply for the drills quit. Installing a new pump to provide water in this remote location solved the problem. Two miners are working the heading and should get a round in each day the rest of this week.
The company received a new head for its most proven metal detector, thanks to the generosity of a shareholder and active supporter of the mine. C. Johnson, who runs the detector each day, found three signals in areas that were examined previously with the device. The new head has a greater depth penetration than any of the other heads. An even small advance in technology means an increase in gold and money. This is the main reason the company has not back filled waste rock into the old workings. With about 29 miles of tunnels and millions of cubic feet of quartz exposure, a gold mine of prospects awaits each improvement in the gold detection technology.
A 58-horse power pump failed last week, which completely stopped the removal of water from the mine. Rae got on the phone and ordered a replacement. It arrived yesterday and was installed today. No damage was done to the electrical transformers and the system is back on line. It was a $10,000 loss.
Mike returned safely from the North American Prospector Expo in Houston, along with the Whopper. He promises to share his experiences on the Forum as soon as possible.

02/02/2004  11:41AM

Our server is having trouble with the "my doom" virus and as a result we are having trouble recieving e-mails. Hopefully this will be resolved soon. If you send an e-mail and don't hear back you may want to try later.

Nasty weather in Alleghany. It has been alternating between rain and snow for two days now. The school bus had to chain up this morning to make it into town.

To answer "wild wests" question about links. Yes it is ok to post links on the forum. Thing is they don't work. That is something our site administrator will have to look at.

Good point about GFX, his site will be added to our "links" page!

A small amount of gold continues to trickle in from the mine.

The Alleghany Volunteer Fire Department is working with the Sierra County Fire Safe council to get funding for a defensible fuel break around the town. We all know that could mean the difference between saving or losing the town in the event of a Forest Fire.

01/24/2004  10:56AM

Of the eleven people working at the mine, seven live in the mining village named Alleghany. The historic explanation of how the camp got its name is that a prospector from Allegheny, Pennsylvania suggested the name and chose to change the spelling (Alleghany). The village housed surface prospectors, early underground drift miners working the buried “dead rivers” and the underground hard rock miners. It grew, burned, was rebuild, burned down, rebuilt and during several slumps in gold mining was home to social outcasts and, according to a professional geologist’s report, old men hiding out from the law. It may be the only community left in California with a gold mining based economy. Early California publications state there were over 20,000 mines in the State. Many and maybe most have been paved over as the population expanded, unchecked into the Sierra Nevada Mountains. ORIGSIX ‘s existence and its operation have protected the untapped mineral wealth from the developers’ exploitation, something that cannot be said in most of the Californian gold belt. The Company owns adequate land for the development of housing and the support infrastructure to grow. Surprisingly, the main road to Alleghany was not paved until the mid 1960’s. Much of the old waste dump from the mine was sold as road base. Hmmm, before metal detectors!

The miners look forward to next week. Nothing around Alleghany creates more positive excitement than sacking gold. Caution, however, because it is not on any time schedule. What did Will Rogers say, “It is much harder prospecting for gold than it is for spinach.”
 By smithsgold

01/21/2004  7:31PM


01/21/2004  6:03PM

The news release sent to regional newspapers is available under NEWS. The Union is sending its business reporter to the mine on Friday for details.
Scoop overheard Mike’s side of the phone conversation with PGE. He mentioned the Company’s long and successful relationship and said that gold mining in California could create new customers for electricity over the coming years. This may not have been a selling point because of the power shortage in the State. After hanging up the phone, little tears of joy appeared in the corners of Mike’s eyes. One of several burdens hindering gold production melted away.

The Company ordered 2000 gallons of diesel to be delivered Friday. The weather remains warm and sunny during the day but a storm front is predicted Friday night. One reason the Sixteen to One mine continued operated as the longest gold producer west of the Missouri River and prospered was its ability to stock up on supplies before the heavy snows.

The crew is advancing three headings. Miners got four rounds in today, one in the Ballroom area , two in the Ray-rock raise and one splitting a pillar off the 1500 level-south.
 By Rick

01/17/2004  6:53PM


01/17/2004  5:06PM

Gold production for the week is estimated at 150 ounces or $63,000 at the spot bullion price. The exact amount is difficult to determine because the quartz is heavily veined with auriferous arsenopyrite. Similar looking ore has yielded .75 to 1 ounces of gold per pound. David continues to cut any rocks that may produce our jewelry slab. The heading is the one up dip from the Ballroom and the miners will continue to drill and blast next week.

The Sacramento valley and the foothills to an elevation of 3,000 feet had low clouds or fog all day today. Alleghany had full sunshine from 7am with temperatures hitting 60 degrees. Joe and Mike used the day for completing some surface work at the mine portal. The diesel air compressor was moved from the distant upper landing to the portal. This will allow the miners to shut the machine off before the end of the shift, turn it on only when actually needed and save the Company $$$$$. They also moved a portable trailer closer to the portal. It will be used for many of the things the old offices were used for and will also save the miners down time. Being hard up for money has its advantages. Even when you think you have squeezed the operation to the max, a good team will find some minutes to shave or a couple of bucks of waste.

The picture on the home page was taken yesterday.

01/14/2004  6:27PM

Happy miners from the Sixteen to One mine were seen at the local pub yesterday. Even though they were talking among themselves, it was apparent they were on the trail of gold in two headings. Times have been lean, so maybe it will be chunks not crumbs. Expect a rough tally and report on Friday

01/08/2004  4:45PM

The Board of Directors met today at Grass Valley, California. The Board ratified the conversion of $65,000 of accounts payable into shares at $.72 per share and $1.00 per share. Revenue from processing mill concentrates was fixed at London pm closing ($421.00) per ounce and will be booked when received on January 16, 2004. Money will be spread among accounts payable on a pro rata basis. Management has prepared two short-term mining plans, focusing on gold production.

Yesterday, the crew fought tough surface conditions due to snow build up and later rain, not as bad as the Pacific North West, however. A State licensed inspector tested all of the air pressure tanks in use at the mine. He and Ian were stuck and dug their way out. On Tuesday the independent SEC licensed auditors tested the accuracy of the gold inventory and the company’s record keeping. All was in order. Pumps are working and the water level is mid point between the 2400 level and 2200 level in the 49 winze. A high priority is replacing the two and four inch discharge line with six-inch diameter pipe. This will substantially increase the amount of water discharged and lower the electrical usage.

01/05/2004  3:05PM

New Year's Eve in Alleghany was a blast. Casey's Place had a band and Ernie Locatelli brought his $40 box of fireworks that he bought in July and we lined them up down main street and lit them at midnight. The snow was coming down hard. We got a good three feet.
Rae and David are ready for the auditor's observation of inventory tomorrow. Everything has been counted and yes, a few things re-counted. The majority of the material is quartz and gold so in order to get the gold content it has to be weighed both wet and dry and then the gold content calculated. We use the London fix gold price on the last day of the quarter to value the inventory. On December 31st it was $417.25 up from $388 at the end of the third quarter. Today the London fix is $420.60.
Rae was notified by telephone on Friday that she recieved a small scholarship which she applied for to attend an all-day workshop at Chico State on maintaining paper archives (including photographs) for museums. A museum newsletter will be going out this month. Use the "feedback" form to send us your mailing address if you would like to be added to the museum mailing list.
The new museum web-page can be viewed by clicking on the "museum" link just below "mine tours" on this page.
 By Rick

12/31/2003  7:36PM


I post an entry just when Scoop's got big news....


12/31/2003  6:04PM


Two truckloads transported from Alleghany to Barrick in Carlin Nevada.
First load: Gross weight = 45,360 pounds; dry weight = 20.9 tons; moisture content = 7.9%.
Second load: Gross weight = 52,000 pounds; dry weight = 23.5 tons; moisture content = 9.8%.
Total Gross weight = 48.7 tons; total dry weight = 44.3 tons.

Triple screen assay at 150 mesh: first load 64.479 ounces fine au per ton; second load 74.363 ounces fine au per ton. This procedure screens out course free gold in order to smooth the “nuggeting” effect.

Gold content first load averaged at 6.585 ounces per ton. Gold content second load averaged at 5.694 ounces per ton. Total recovered gold = 271.085 ounces fine. Overall assay was 6.114 ounces per ton of concentrates.

Scoop appreciates your interest and comments. Mike and four of the miners holed up for four hours today making plans for next week. It looks like the underground crew will increase with two more contract miners, both with solid experience. It isn't time to abandond the Ballroom heading, so rock will fly there another ten days. The new heading will be in the vicinity of the old second exit in the southern part of the mine. There will be about six to eight days of dead work before the crew can expect to recover any gold. Some good backs exist just above a 5,000 ounce stope. For some reason this group will not quit. Maybe they believe in what they are doing.

12/29/2003  9:41PM

As I drove into the corporate office this afternoon, I saw both company trucks wedged into the snow build-up in the parking lot. County snowplows were held back, hoping to save money and it was beautifully messy as snow can be. Ridge Road from Pike to Alleghany was covered with snow and tricky yet passable. It was before noon; so, what were Mike and Ian doing together in the office?
While Ian was able to drive to the portal, he had problems driving out without Joe’s help on the loader. A decision was made to not go underground for safety reasons. For anyone unfamiliar with the underground workings of the Sixteen to One, the weather outside makes little difference to the safety of the miners or their efficiency. Forgoing mining that day was in case of injury and unable to get off the mine property quickly.
I stood and listened to a conversation between Ian and Mike, who were studying and updating a detailed map of the mine. They were identifying gold targets and development options. Plenty exist within a three to six month expectation of reaching gold. How much gold, at what costs and probability of success seemed to be the key considerations. The Sixteen to One vein is really a complex system of quartz intrusions. Even after 100 years of mining gold, these guys can discuss options for 100 ounce to 100,000 ounce pockets. It looks to this writer like following a trail of breadcrumbs.
Rae had the 18 karat white gold and quartz and diamond inlayed jewelry spread out for inventory, a beautiful sight. The Sixteen to One white gold is a special cast created to compliment the "Imperial Gold" which was mined two years ago.
Missee and Dore, the two office cats, hung out by the coats. Missee spent the weekend shut in Rae’s office behind a closed door (no food no water no heat and no litter box). This posting is submitted as a thank you to YOU who gave Scoop feed back, especially the e-mail saying even daily trivial topics were appreciated.

12/26/2003  3:21PM

No miners working yesterday or today. The Company is finalizing the gold specimen inventory for its year end physical audit and executing any other financial matters to close out 2003. Alleghany is covered with a blanket of fresh snow and all is well.

12/16/2003  7:39PM

The miners processed 100 pounds of high-grade remainders today in order to clean up the gold inventory for the year-end accounting. While seven ounces of Dore won’t reduce much debt, it verifies something long known by people familiar with the mine. The grade of ore is something that few if any mines in the world duplicate. Most gold miners today never even see any gold. Since gold is measured in ounces per ton, the crush represents 110 ounce of gold (.9999 fine au) per ton ore. Few professional geologists, engineers or others with careers in the gold business can relate to the richness of gold deposition found in the Alleghany Mining District. Scoop has talked with many analysts during his reporting days. None has ever understood the explosive nature of a mine like the Sixteen to One and that is unlikely to change with the latest group of gold gurus. With values such as the crush today, it is no wonder that the crew and owners of this mine keep the air compressor running and the pumps pumping. Hope is based upon faith. Faith is based upon knowledge and experience. Their belief is that more gold remains underground than has been recovered, and they have the collective desire and ability to find it.

Because the pour yield was so small, the company decided to offer it to anyone looking for some gold to own at the bullion spot price. For details call the office and speak to Rae. (530) 287-3223.

12/13/2003  9:43PM

Alleghany Volunteer Fire Department hosted an AWARDS potluck dinner this evening beginning at 6pm. All the trucks were parked outside to make room for the packed event. Chief Bob Hale, miner at the Sixteen to One, complimented many in attendance for their support. He was presented with a quartz and gold money clip that was made for the company by a North San Juan goldsmith, who recently died unexpectedly two months ago. Bob and the goldsmith, Rick Boone were long time friends.
The Alleghany rolling stock ranges from trucks built in 1970, 1975, and the newest rig built in 1978. The all-volunteer fire department received a special recognition award presented at the Downieville fireman’s dinner last Wednesday for effort, preparedness and eventual success in stopping the fire last September from burning the town and unknown acres of the Tahoe National Forest.
At the end of the ceremony what held everyone’s interest all evening were the raffle drawings. There were two raffles: one for a husky chain saw and one for jewelry donated by the Company. Surprise, surprise. The lucky winner of the chain saw was none other than the FORUM’s own contributor, Oak. Your ticket broke the hearts of all the guys in the room. Congratulations, Oak and thank you for supporting the community. Alleghany is the last operating hard rock mining villages in the Sierra Nevada gold belt and welcomes those who contribute to its future.
After filing this report, Scoop read the always-inspiring remarks of Rick in Gold Enters Major Bull Market and adds this about gold and money. Mike sold quartz slab yesterday afternoon to the largest jewelry manufacturer. The owner committed to buying $1 million of jewelry quality slab for 2004. Of the 13 ounces available yesterday, he bought 10 for a price of $1600 per ounce of gold. Nature created something very special under the village of Alleghany.

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PO Box 909
Alleghany, California 95910

(530) 287-3223      
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