August 18, 2022 

Clips from Alleghany


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09/20/2003  11:11AM

The Board of Directors met in Alleghany yesterday for its fall meeting, from noon to 4:30 pm. The financial and mine status were reviewed. We have about 100 tons of gold concentrates stored in 55 gallon drums. Assays are not exact because just like the mine, the mill produces gold cons according to the grade of the head ore. In mining this can be referred to as the nuggeting affect. Occasionally unscrupulous companies will announce assay figures ignoring to mention potential uncertainties of projecting the amount of gold based on assay results. We see it all the time in publications announcing drill results. Any real high-grade gold mine knows that its ore or concentrates are difficult to place dollar amounts with confidence. Having said this, we estimate the cons may contain $150,000. Barrack’s operation in Nevada will process the material, so the cost of transportation plus refining will reduce the net amount to the company. Mike plans to arrange shipping once the concentrates have been moved from the mill site to the county road.

The board accepted Steve Wilson’s resignation. Scott, Dan and Mike discussed what experience and skills would best serve the company in the future. Steve brought solid stock market talent to the company and helped us design the OAU X mart.

Years ago one of the houses in town was built over the boundary on company property. Also the mining family had expanded its yard beyond its property line. The heirs are selling the house and asked for a way to solve the problem. They and their agent presented a proposal, which we agree will solve the problem and create a very nice parcel. The amount of compensation will depend on the square footage but is not significant.

Mike will pursue funding for the following use of proceeds outlined in our private placement memorandum:
1. Open an heretofore-inaccessible area for exploration.
2. Re-establish compliance with the SEC
3. Place Company on one or more Public Markets.
4. Build a new Gold Detector.
5. Working capital including preparation of a Public Offering.
Before further stock offering are approved, the results of mining in the inaccessible area must be evaluated. We are cautiously optimistic that these veins contain scattered high-grade pockets, which will be detected by modern technology currently utilized at the mine.

The directors held a lengthy discussion about the damages the Company suffered because of the reckless activities of the California District Attorney Association. Several attorneys have reviewed the issues and presented a convincing argument both legal and factual as to the process. No decision was made to proceed with a suit for damages or to abandon this heading. The contemplated lawsuit is similar to the mining of high-grade pockets at the Sixteen To One mine.

The gold collection is back in Grass Valley. The Ketchum display was limited to about half of the pieces in the collection. We have yet to put the entire collection on display. It will be a fun project to show all 116 pieces in one location. Any ideas on a good site?

09/18/2003  8:33AM

So far no action from PG&E. Rather than repair the electric compressor we are putting our old diesel compressor back online.
We also have a diesel generator that will be adequate for running the pumps. One of our main objectives is to keep the lower levels of the mine dry.
David and Larry Cates (father and son) continue to break rock. We all know that one good pocket (doesn't have to be big by this mine's standards) of grade A quartz and gold slab material will go a long ways towards reducing our debt. The demand (for slab) is much higher than the supply. The tenacity of those who work here is what has kept this operation going. It is always easy for bystanders to judge other's decisions, but we all do the best we can under the circumstances. Our hats go off to the men who have labored hard looking for that elusive pocket! None of them doubt that it is there.
Roy will be busy building new ladders for the 49 winze for the next couple weeks. The new ladders will be metal, which lasts much longer than wood.
A meeting of the Board of Directors is scheduled for tomorrow.
 By bluejay

09/17/2003  5:25PM

It sounds to me that we are sinking deeper into the abyss with the passing of time.

It is becoming clearer every day that the Company's choices will utimately be assigned to its creditors thus relieving the indecision by the Board from making their painful but responsible decisions.

09/16/2003  6:06PM

Our electricity provider, P.G.&E, notified us today it would turn off our power due to the outstanding bill. This has been its option for some time. We got behind for several reasons: the increase in kilowatt hour charges, the high cost for use between noon and late afternoon, our inefficient pumping system, and the decline in production of gold.

We hope P.G.&E. will realize that mining created the revenue and usage for its initial foundation, and the Sixteen To One mine has used its power for almost a century without reneging on any amount of money owed to the electrical provider. We hope someone in the company extends a little more time for us to work ourselves free from the financial hard times we have endured. The bill is $79,000. During P.G.& E’s bankruptcy, a lawyer who provided three months of advice sent the bankruptcy court a $300,000 bill.

The Sierra County Historical Society has an event at the mine site this Sunday. Rae and Mike will volunteer their time to show them around.

09/15/2003  10:42AM

Friday the motor on the air compressor burned up. Roy and Ian are figuring out our best option for fixing it.

A good time was had in Alleghany yesterday into the night. Approx. 400 people showed up for Old Alleghany Days. Mark your calendar for Sat. Aug. 14th for next year's event. (We are going to try and stick to the second Saturday in August for this annual event) If you want to be added to the mailing list send an e-mail using the feed-back form on this site stating that you want to be added with your name and address.

Following are the results of the contests:

Drilling Professional Class:
1st Place: Larry Cates
2nd Place: Mark Loving

Drilling Novice:
1st Place: Jenny Berry
2nd Place: Larry Wells

1st Place: Mark Suden & Mark Loving

09/12/2003  9:41AM

We were sad to hear of Johnny Cash's death this morning.

The steam cleaner at the mine-site has been broken for some time. Joe managed to get it fixed yesterday, turned out to be the wiring.

Following are the introduction and conclusion of the post hearing brief. (77 pages of explanation in-between not included).


On November 6, 2000, a miner died. As a result of this tragedy both State and Federal agencies ran amuck by casting blame on his friends and fellow workers. This company and its miners reflect the true intent of the United States Congress, when it ratified The Act of 1977, which requires the responsibility of the operator and its miners to create and maintain a safe work environment. The corporation is merely the means to unite the components of labor, property and capital. A dear friend was lost, a son, a brother and a good soul. Let’s put this in perspective. What is this all about? Is it fixing problems at the Sixteen to One mine or is it work for MSHA and other agencies of the Federal government? Perhaps it is about money or individual growth and promotion by individuals working in a bankrupt system of bureaucracy.
I apologize for the length of this brief. It is necessarily long because of the serious misstatements by the prosecutor in charge of the case. There are also serious misrepresentations of the law and the facts in this painful subject. In order for the Court to reach an equitable resolution to the allegations of illegal behavior by Original Sixteen To One Mine, Inc., I felt the Court would appreciate the testimony and supporting references rather than merely a conclusion of the testimony. I have taken exact excerpts from the transcript. .
My anguish over the dismal misstatements by the Secretary have affected my confidence that her emissaries in the field are actually looking after the health and safety of America’s most precious resource, its miners. Have the participants in this investigation followed the laws, regulations, customs and mores of health and safety in the mining industry? It has become a possibility that other forces drove this investigation and subsequent administrative hearing. Therefore, I also reviewed the Secretary’s brief, checking statements with the cited transcript reference. Time and time again the reference had nothing to do with the opinions of the statements. This has been a new experience for me to address. Is it sloppy or is it intentionally misleading?
Mining is inherently a dangerous business, much like automobile racing is inherently dangerous or professional football or space travel. Miners at the Sixteen To One mine are keenly aware of this. They are provided all the tools to minimize the dangers. It is a small mine with a very connected crew. Everyone interviewed by the investigators was properly trained. Written procedures and policies are in place. Safety meetings are regularly held weekly. Equipment is kept in proper working order. Spare parts and supplies for performing mining were on the mine site. Management has stressed the need to stay focused on mining once the crew enters the property. After work it was not uncommon for the miners to get together where the topics of conversation would expand. It usually came back to mining because these miners love their work. At the work place it is all business.
So, the day Mark drove his locomotive into a stationary chute and died was special. It had never happened before to anyone associated with the company. For people who never met Mark to refer to him as a victim is inaccurate. For Steven Cain to concoct a story as he did from no evidence and continue propagating its veracity is an injustice to Mark and all the miners at the Sixteen To One mine and elsewhere throughout America. It may even be a crime.
There is no legitimacy to the two violations alleged by the Secretary. All of us who knew Mark Fussell, know the mine and are associated with the mining industry want this record to accurately reflect the events of November 6, 2000. For Mark, we have pursued the truth. We hope his death will help make the mines of America a safer place to work. A momentary loss of attention caused this accident. There was no defective equipment and the company and its partners in safety, its miners, are not negligent and guilty of violating any federal regulations. This was a tragic accident that must be recognized, if all of us at the Sixteen To One mine and throughout the industry wish to avoid a repeat in the future. It was an error in human judgment. Only until we recognize it for what it was can we take the educational steps necessary to reduce the potential for it happening again. This will be Mark Fussell’s legacy.


In introducing this brief, I pondered, “What is this all about?” After preparing it, I now ask, “Is there such a thing as an accident anymore?” Mark Fussell would be the first one to testify, “I messed up. My death was my responsibility, and no one is to blame. It was caused by my momentary lapse in attention.”
Federal law requires a mining company to conduct an investigation of a fatal accident. My investigation was very thorough and very lengthy. It included hugging Mark’s father. We both shared an unwanted bond, the accidental death of our sons. My investigation included attending Mark’s funeral, where so many of his friends gave testimony about his free spirit of life. Charles Schultz briefly addressed this during the hearing.
Mark Fussell died in a tragic accident, underground at the Sixteen To One mine. The two citations later issued by the Secretary of Labor, Mine Safety and Health Administration attempt to lay blame where none exists. They deserve to be dismissed.

Respectfully submitted,

By: Michael Meister Miller, president
Original Sixteen To One Mine Inc.

On: September 9, 2003
 By TheFoolofFoolsDay

09/10/2003  8:40PM

This is nice to read..

I love the news SCOOP.

yes somethin is better then nothing

09/10/2003  9:02AM

Mike has been swamped working on the Respondent's post hearing brief for the Administrative Hearing which is due. The finished document is 80 pages long.

Rae is very involved in the Community of Alleghany and has been busy getting ready for "Old Alleghany Days".

The hoist rope inspection is due and the person who x-rays it for us will be up next week.

The pumps are going. Production is not.

Cool weather in Alleghany.

Something is better than nothing right?
 By Rick

09/09/2003  10:08PM

Gol'dang, miss those daily updates! (But, hey Scoop, be sure to enjoy life up there...if I'm like the rest of us, we can't wait for another clip!)

09/05/2003  9:38AM

Yesterday the Sierra Economic Development District Board met at Casey's Place for the second time within two months. Two members of the Board of Supervisors of Sierra County sit on this Board. President Betty Riley said the reason they were back was "because of the energy she saw at the previous meeting in Alleghany." Hopefully some positive projects will manifest as a result of these interactions.

Joe got the loader fixed and is busy screening rock again.

Two small gold bars were shipped to the refinery on Wednesday. It takes up to three weeks from the time the refinery recieves the bullion for it be refined.

We are all impressed with the Gold Price these days. The P.M. London fix today is $375.80(You can check the daily gold market at Will it make it to $400 per oz this year?

Previous employee Steve Shappert came by the office yesterday. Steve was our hoistman and safety officer for many years. He is a volunteer for the Camptonville Fire Department. It's always good to see Steve.

A customer from Nevada is in Gold Sales bright and early this morning looking to buy a specimen.
 By miner

09/04/2003  6:05PM

Love to hear about the everyday activities at the mine. Lets keep those Clips from Allegany coming.

09/03/2003  5:13PM

Over a year ago a French television crew came to Alleghany to make a short documentary about California gold mining. Everyone cooperated with them, including a gathering of musicians at the Red Star Café. In return the French crew promised to send us a copy. We gave up on them but were surprised when a video arrived at the post office. If anyone wants one, send the company $15 or $20 and we’ll get one to you.

One of the transmission mounts on the loader broke Monday. It was taken out of service and a new one arrived today. It should be back in good working order tomorrow.

A brief rain and lightning storm hit today. Joe found a tiny quartz and gold rock in the screened the waste rock. You can never get it all, but even though we hope for a nice chunk, the miners’ confidence is reinforced when little gold is found in the waste rock. Decades ago the Company used to mill all the quartz. The mill was the equivalent of a giant assay system that helped the supervisors selecting where to look for high grade. Good gold detectors and skilled miners make this old practice unnecessary today.

09/01/2003  4:08PM

August was the last month for one of the contract miners. Money is scarce and he had to take a regular paying job to get by. The price of gold for calculating production distribution is the last day of the month, which was $375.60 per ounce.

Today is a regular work day for all at the mine: a round was mucked, drilled and blasted underground, some high-grade was cut for jewelry sales, mike completed the first draft of our MSHA brief, and Melissa continued typing.

The Private Placement Memorandum is ready to circulate to qualified and interested parties. The Company offers one million shares of its treasury stock for working capital to perform specific projects.

08/30/2003  3:19PM

Many of the pieces in the Company’s gold collection are on display in Ketchum Idaho at Barry Peterson’s Jewelry store. Ketchum holds an annual Wagon Day event on Labor Day weekend. The town is packed. A shareholder whose grandfather was a director of the company in the 1920’s telephoned our office this morning from the store. She lives part time in Ketchum and was thrilled to see the gold specimens. She was very impressed saying, “It is a spectacular display.” This is the first time the collection has left California. The display goes to September 14, 2003. Stop by, if you are in the area.

08/29/2003  10:20AM

Our ATF # finally came in yesterday's mail.

Mike is making a trip to Orocal today to sell slab.

Our PG& E usage for the mine was down this month from 63,200 KWH for July to 22,400 KWH for August. Part of this has to do with the pumps being out for a few days. It is also a reflection of conservation efforts being made including a unit that was recently installed on the electric compressor to help it idle more efficiently.

We've been screening our piles of waste rock for sales of road rock and landcape rock. The large piles of ore near the mine-site office will be screened and metal detected last.

Hope everybody has a safe,relaxing holiday weekend.
 By Grog

08/28/2003  11:54AM

Thanks for these posts Scoop! I really enjoy reading the details of what is going on up there.

08/28/2003  9:08AM

The miners are sacking high-grade out of the footwall on the 1075 level. Hopefully it continues. This is Larry Cates heading. He is putting in 5 foot slab rounds and 6 foot bench rounds.

Today Melissa Cates is weighing the self-rescuers for their three month inspection.

The pump situation has improved with the repaired pump in-place.

The following citations have been terminated from our last inspection by MSHA:

The portal and Substation on the 1500 have both been painted with fire proof paint. (2 citations)

Cover plate on the 110 water heater has been replaced.
(1 citation)

Records of hoist exams have been updated.
(1 citation)

Hoist operators Ian Haley and Roy Stai have been trained on the BG-174 Draeger Unit.
(1 citation)

With such a small crew the miners wear many hats. Ian is the leader of the Accredited Miners Association (the group leasing the mine). Roy is versatile as an electrician, computer technician and metal detector operator among other things.

The water-usage reports were filed timely.

David was busy in Gold Sales yesterday with six walk-in customers (from Texas) who made several purchases. (Thanks for the p-nut brittle Rod)

08/26/2003  12:29PM

We have been having e-mail troubles due to the "sobigworm" virus. Hopefully it will be resolved soon.

Here is a summary of our income statement for the six months ended June 30, 2003. These are unaudited financials.

Total Revenues: $96, 099

Operating Expenses:
Salaries and Wages: 23,205
Contract Labor: 8,645
Telephone & Utilities 40,643
Taxes-property&payroll 9,081
Insurance 1,655
Supplies 4,388
Small equip.& repairs 2,775
Drayage 4,970
Corporate Expenses 5,679
Legal and Accounting 1,464
Depreciation 7,941
Other expenses 2,807

Total Operating expenses $113,253

Profit (loss) from Operations: (17,154)

Other Income & (Expense) (14,913)

Loss before taxes (32,067)

Income tax expense $(800.00)

Net Loss $(32, 867)

It rained again this morning. The firefighters in Alleghany were up in the middle of the night responding to a false alarm at a remote Pacific Bell relay station.

Two of the 16 to 1 miners, Bob Hale and Roy Stai are volunteer fire fighters. Bob Hale is the Fire Chief.

We had a little flury of activity on the OAU x-mart today.

08/25/2003  3:58PM

Today we had a visit from two Grandchildren of W.I. Smart one of the original partners who incorporated the 16 to 1 in 1911.

They said they have some photos that they will donate to the museum. We will include them in the photo album on this page as well.

The usage reports for our Water Rights are due this week as are the annual assesment work notices on all the mining claims.

Our General Liability Insurance comes up for renewal in October. Rae is filling out the application.

The financials for March and June are completed (with the exception of the managements discussion and analysis). Rae tried posting them to the forum but the formatting did not stay intact.

Our web-master will be adding a new link to the "Company" page for current financials soon. More on the results of the financials next time.....

08/23/2003  9:41AM

We finally had to bite the bullet and purchase two new computers. One is for the Corporate Office and is used primarily for accounting, the other replaces the five year-old computer at the mine-site office which contains all the Auto Cad data on the mine.
Luckily one of our miners, Roy Stai is multi-talented and built the computers for us, greatly reducing our cost. Thank you Roy!

This August has been very unusual for Alleghany in that it has rained twice. We had an all-day rain storm at the beginning of the month and a two-day rain storm Thursday and Friday of this week. Our power was out for five hours on Friday.

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© 2022 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910

(530) 287-3223      
(530) 287-3455

      Gold Sales:  

(530) 287-3540

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