October 14, 2019 

Clips from Alleghany


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 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.

11/07/2003  6:36PM

The volume was not great, but miners sacked gold every day this week, except Thursday. In one heading the gold showing has increased. This isn't the big one, but even a couple of hundred ounces will be appreciated.

11/05/2003  8:28AM

Cold weather continues in Alleghany.
The tour last Saturday went well. Joining the tour were Ken Rohrigh and his wife. The Rohrighs are one of the founding families of Alleghany although none of them reside here anymore. Ken is working on setting up a family history web-site. The museum was able to provide him with one photo he did not have.
Our sales tax return for the third quarter was filed timely last week. Rae has not completed the third quarter financials yet.
The Museum holds its annual membership meeting on Nov.13th at the Offices of Francis Scinto and Associates in Grass Valley.
PG&E called on Monday and said the power will be shut off this week.
The underground crew is down to three miners: Ian Haley, David Cates and Britt McDaniel.
A small amount of high-grade continues to come out daily.

10/31/2003  2:17PM

Alleghany awoke to the silence of snow, a drastic change from the record heat just three days ago. Sixty-eight fourth grade children, parents and teachers from the Forest Lake Christian school arrived at the museum for their seventh annual underground outing. Rae and Ian gave the tour to the Ballroom, where everyone admired the mine while eating their lunch. It is inspiring to see the interest, joy and excitement on everyone’s faces as they get set to head underground. True educational experiences at this mine are remembered forever.
MSHA inspectors arrived yesterday to inspect the newly installed steel ladders in the 49 winze. Everything is A-OKAY.
Miners drilled and blasted several signals yesterday…small chunks of high-grade are better than nothing. The pump on the 1500 level is working with its float switch working properly. This will make the system more efficient and cut power consumption. The old mill concentrates are all out of the mine. Next stop is the Barrick refinery in Nevada. No one knows for sure how much money they will bring into our bank.
Tomorrow a group from the Pertoleum Association is taking the underground tour. They have expressed support for the mine.

10/29/2003  9:40AM

Still no word from PG&E.
The fires in Southern Calif. make the one we had in Alleghany seem trivial. Our hearts go out to all who have lost homes, property and family members.
Yesterday a package arrived from Saturn Surplus. Nobody had ordered anything, Mike opened it to find safety glasses. "I wonder if somebody who read the Forum sent these" Mike pondered just as Melissa spotted an envelope containing the following message:
Dear Fellow Miners

Just finished reading the posts on your forum about the safety inspector and the recent fine for no safety glasses. Talk about somebody trying to justify their jobs. I check on your web site often. It is very well designed and formatted. I do mining as a hobby and own a patented hard rock mine in sawyers bar that I go to two times a year. Just thought I would send you guys some free safety glasses to keep you out of trouble. Keep up the good work.
Mark Wisniski

Thanks Mark! you made our day!
 By Michael Miller

10/22/2003  5:52PM

Power remains on at the mine. We continue to be grateful to those responsible.
Due to the uncertainties this morning, a short-handed crew met this morning to go over options. Mike and Ian remained at the mine. They reviewed maps and discussed alternatives for short-term gold production. They spent the rest of the day underground. The hoist and skip were positioned to limit problems or hazards anticipated without power. The water level was checked. A list of gold detection cites were examined and prioritized for gold expectations, time lines and safety. Three targets well above the water line jumped out from the many and will be systematically attacked. The Ballroom heading remains number one, but cannot be efficiently worked with a short crew.

Transporting the mill concentrates has become a chore, not impossible but not quick. The barrels break and cannot be lifted into the Peterbuilt without a lot of handwork. We only have one guy to work the project. It would be easy if we did not care about dirt and rock contamination, but we do.
 By TheFoolofFoolsDay

10/20/2003  8:41PM

Hey we can get Arnold as a board member now!

think of all the publicity. :)
 By Rick

10/17/2003  8:10PM

Well, at the risk of stirring up the wasp's nest again, I'll embrace Oak's comments and Scoop's commentary, especially the persistence you guys are exhibiting. The one comment about the overall cost to us, the tax-paying public, brings back to light the validity of the fight, since without one MSHA wins a default. (My gut tells me the expense will be warranted in an overturn of the citations!)

Perhaps MSHA's aggression will soon be relegated obsolete. I believe the initial directives had little to to do with safety (as Jonathon's immediate action reveals) but instead with political grandstanding.

Scoop....I love your input. I'll bet we all read it everyday. -RB
 By Oak

10/17/2003  9:05AM

Scoop - after reading your last about MSHA and the hearing, I started to get pissed off at what is happening at the mine and at society in general. First of all, the MSHA is just another bureacracy created by a bunch of politicians to justify their positions and create their legacy as the protectors of society - yea right! They - bureaucrats - also believe in the notion that if people/organizations/industries can't be responsible for themselves, then the government will step in and do it for them. What ever happened to personal responsibility? Granted there are aspects of the MSHA that are good in that they promote safe mining standards and practices - most of which any mining operation should do anyway. The problem is that once an inspector position is created, in order for him to justify his position, he has to find something wrong with whatever it is he is inspecting. The mind set of a bureaucrat is there has to be something wrong - no body can be that safe! So what struck me here is if the inspectors felt that Jonathan should have been wearing safety glasses - where were theirs? They must have been standing in close proximity to Jonathan when he fixed the sign. I bet there is no mention in the MSHA safety manual about the distance one must be from a supposed safety hazard before the need arises for wearing protective glasses. The other thing that really struck me was the expense incurred by all, to get all, to the hearing. This was not an expense paid by the Judge, the Inspector, or the prosecutor - but by you know who - you and me the tax payer -and for what - and it's not over yet!?
On the up beat - 500 ounces at today's Kitco price should really help with the bills - like PG&E. Hang in there guy's and Scoop - keep up the good work!

10/16/2003  2:44PM

On September 21,2001, mine manager Jonathan was showing two MSHA inspectors an area of the second exit. He found a sign that was pointing in the wrong direction. He immediately corrected the situation. Either inspector said nothing to him about the incident, until the next day, when they returned and issued a citation to Jonathan and the company. The citation said that Jonathan was driving nails into timbers and flying chips could easily cause permanent disabling eye injuries because he failed to wear safety glasses.

The standard cited was 57.15004: eye protection shall worn “where a hazard exists which could cause injury to unprotected eyes.” Jonathan repositioned the sign and turned the hex screw into the soft wood with his thumb. He then tapped it with a small tool called a rap wrench, which most miners carry with them in their belt. The sign was about chest high. Jonathan did the right thing: he saw a potential wrong in a safety situation and corrected it. It was a small act yet he recognized the problem and fixed it. While his eyes were unprotected, no hazard existed.

Does this standard say that at all times a miner must wear safety glasses when he hit or strikes an object? No. It says when a miner is in danger he must wear eye protection. Why did the two inspectors not say something at the time of the incident? This is most unusual. In over twenty years of interacting with MSHA inspectors, I cannot remember one time when an alleged situation could result into a written citation that the incident was not discussed immediately.

Well, the citation was appealed and a hearing was held yesterday. The judge flew to Sacramento from the East coast. The prosecutor drove up from San Francisco. One inspector flew in from Montana. Bruce Allard drove up from Vacaville to prove his allegation. The MSHA Program Policy Manual states that: “In determining whether a violation could significantly and substantially contribute to the cause and effect of a mine safety or health hazard, inspectors must first find that an injury would be reasonably likely to occur if the violation were not corrected.” Allard could not provide the evidence to meet this requirement. He also testified that a miner must be wearing safety glasses any time he strikes an object. Wrong! Both sides will file a brief , so a decision is months away.

About 120 fifty-five-galloon drums of gold concentrates have accumulated from past milling at the mine. We are moving them near the county road where a transport company will take them to a refiner in Nevada for processing. Gold recovery is expected in the range or 500 ounces. The project should be completed next month.

10/14/2003  9:27AM

On October 1st, Northern Sierra Air Quality Management District did an inspection of the mine surface workings. The written report arrived in last week's mail. The conclusion: "In Compliance"

Tomorrow we have a hearing with MSHA in Yuba City. (8:30 a.m. at the Courtroom Family Law Building, 430 Center Street.) This is regarding a citation that was contested two years ago.
Last night the Downieville Lions had their monthly meeting and dinner at Casey's Place.
The weather is beautiful in Alleghany.

10/10/2003  9:11AM

On Wednesday an OSHA inspector visited the mine. No citations were issued.

Phillip O'Donnell author of "A Hardrock Miner & Endangered Freedom" (see "News" on this site) collected mining drills from in and around Alleghany for 50 years. He restored many of them.
On Monday Oct.6th a friend of the museum aquired the O'Donnell drill collection to keep it from leaving Alleghany. The museum will be looking for business and individual sponsors to help it aquire a portion of the collection. Details still need to be worked out.

Last winter the window in Mike's office was blown out by a windy storm. The window was literally blown to bits. A new sheet of tempered glass has been installed just in time for the winter.
Speaking of which, temperatures were in the 40's last night.

10/09/2003  3:41PM

The 40HP pump is back in place and running. It is quite a task moving heavy pieces of equipment in and out of the mine.

The new ladders continue to go in on the 49 winze. The miners estimate this project will be done Monday or Tuesday of next week.

Rae finished the 2002 financials for the Museum today. Membership renewal letters and nomination requests went out for the Museum last week. Membership information is posted on this web-site under "Tours".

David has been trying to scrape up cut-rocks in Gold Sales.

No word from PG&E about shutting the power off.

It is dry and windy in Alleghany. A little rain would be good.

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