August 18, 2022 

Clips from Alleghany


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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.
 By bluejay

12/11/2003  8:20PM


The high today on the world gold spot market was approximately $406. The current market at 22:56 NYT on gold is $405.40 bid and it's offered at $405.90.

12/11/2003  2:48PM

Discharge water line at 1500 level split apart yesterday. No damage to pumps. Britt repaired it today and pumps are back running. Mike and Joe checked water level in Tightner shaft this morning. Here is how they got there: 800 level to hoist station, ride skip to 1700 level and walk south 1/3 mile, climb down 450 feet of metal ladders to 2100 station where the big sump is located in a footwall drift, transfer to single compartment and climb down 200 feet to water level, which is holding at 2300 level or about 100 feet above the 2400 target. The north and south workings of the mine are in balance (water level), which is a good thing. Once pumping resumed today level will drop. The electrical box at the 2300 level is under water and must be replaced when the miners get the money to resume the project. The ground, utilities, ladders and construction looked good. Joe spent two years in the Tightner shaft on rehabilitation. It remains “turn-key”.

The Cat 910 loader needs a new cutting blade, which Joe is installing. Should be back on the job tomorrow. Dave and Jay drilled and shot their heading. Ian running hoist for Britt. Small amounts of gold almost daily. David continues to cut, producing slab for our manufactures.

Mike has made deal with Barrick for the gold concentrates and Robinson Timber to haul loads to Carlin, Nevada. Snow on Donner Pass delayed the trucking. Gold hit $414.10 today. Rae managing accounts payable with more bills than cash. She looks forward to the payment from Barrick.

Mike writing a brief for what should be the last of the harassment by MSHA during the 1996 to 2001 period. The facts paint a picture of a federal agency that strayed from its Congressional mandate to protect the American miner. The conduct of these federal agents represents the evils of unrestrained or unchecked power. Better days are with us now. Mike gets upset with people who call the miners liars or incompetent. He expects the standards of federal agents to meet or exceed non-government employees, which is lacking. These two contested citations are Jonathan lightly tapping a hex screw into wood without wearing safety glasses and allegations that two miners were not given basic training before going underground. The paper work was improperly filed and that should have been the violation.

Snow on the ground. Alleghany is a beautiful place, especially when the residents valuable junk is covered.

11/26/2003  5:23PM

Perfect weather in Alleghany. Ian Haley, past mine superintendent has a crew of four and sometimes five. They broke a round a day north of the ballroom the past week and sacked those little teasers of high-grade. If you listen to Ian, a pocket could happen any round. Scoop has seen each sack and concurrs. Water remains stable. PG&E is still connected. Joe has the Cat 910 front end loader purring and will begin screening the richest ore pile on the landing. We hope to truck the old mill concentrates to Nevada next week, weather pending. The concentrates are near the paved road and covered to prevent moisture accumulation. Mike sold slab today. The buyer has $500,000 to fill his inventory. Where is Mister Pocket when you need him!

11/15/2003  1:59PM

Interested people may contact the Company about the private placement outlined in Newsletter #50. Write us and include your telephone number and mailing address. It may be possible to e-mail the document and suitability questionnaire and subscription agreement. Alternative types of financing by those whose duties require them to make decisions about investments in capital goods are also under consideration. Normally, such decisions should be made on grounds of long-term economy. Herein is a prospective difference between investors. A shareholder sent us an interview by a self proclaimed stock and trend analyst, who wrote, “I like high risk with high rewards. I look for the probability of making money verses losing it. The first thing I look for is value, tangible assets and their relative value. These are high quality assets that can be purchased for a reasonable price.”
 By bluejay

11/14/2003  3:03PM


What Private Placement Program are you referring to that excludes potential non-accredited investors from participating?

Stephen Wilson
 By bluejay

11/14/2003  2:57PM

What Private Placement Program is the company using? Is it the 504 Program, the 506 Program or is it the SCOR Program?

11/13/2003  8:01PM

A few recent phone calls prompt additional information about Newsletter #50. The price per share of the Private Placement is $1.00. The offering is for accredited investors meeting levels of sophistication or wealth. Similar questions about how can the small shareholders have the same opportunity as the large ones were raised at the annual meeting. Security laws apply; however, people interested who do not meet the government requirements have an opportunity to buy shares for less than the private placement on the OAU X-mart at the Sixteen to One web site.

11/08/2003  7:25PM

A long time gold collector from Nevada purchased a $4,950 specimen this morning. Dave and the buyer worked to find a specimen to mirror his specific desires and budget. He had $10,000 to spend. Rae will send 25% of the purchase price to PG&E It marks a positive step in the direction of solving the crisis of running the mine without their electricity.

Director Dan O’Neill is spending the weekend in Alleghany. He needed another underground ‘fix’ to move him to the completion of our first joint venture. It is words and drawings of the mine and gold. The final six pages have been difficult for Dan to create.

Mike hired a trial lawyer to answer a collection service’s lawsuit filed in Sacramento against the company. There will be an affirmative defense as well as a motion to dismiss. The attorney will also prepare a hasty list of causes of action against the old gang of Sacramento carpetbaggers called, “The Men and Woman of the CDAA.”

Mike escorted a movie producer to a spot in the mine this morning that fit his script. The small company will return in November to shoot the segment just off the 800 level, travel way. The main character is a gypsy who will read some scrolls from King Solomon and somehow give guidance to the rest of the cast of actors.

Yesterday, Mike was on the phone with our long time PG&E representative. He was still talking when everyone else left the office. It sounds like the two of them were bouncing options.

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PO Box 909
Alleghany, California 95910

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