January 24, 2020 



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 By Sidetrack

01/22/2020  5:06AM

The government has been mapping power lines and geo sites for the last few years. I was part of the project using drones for close proximity scanning and imaging. Power lines are being imaged by homeland security and the interior department. White/Grey and yellow Bell Helicopters are used for this. If lucky you may spot the LiDAR scanner on one of them and a camera set on the other. Number 3 is what you have mentioned prior. Modified antennas for deep core scanning
.imaging and mapcoring.
 By David I

02/10/2019  6:18AM

There was funding for more extensive geologic survey in the Interior budget of the last authorization. The Chopper might be part of that survey and your mine is a known resource that other surveys would probably be compared with.
 By Michael Miller

01/30/2019  12:35PM

A very expensive white helicopter hovered low over the mine on November 12, 2018, around 3:30pm. Our shop man (Al) saw it, I did not. It had no numbers. His comment was that this is someone important. It had chocolate brown and yellowish gold marking but he could not read them.

Since then I learned that a program of electrical sensing deep underground was completed in Idaho and Montana. California and Oregon are following. Who operates this program? Why was it hovering low over the quartz ore located on the upper landing? A “chopper” like this costs over $1,100 an hour. This one has a long pointed rod, about 12 feet long attached to its nose. I was told the program is federally sponsored (maybe) for mapping and exploration. I was told it’s called pinging.

Ping is a program that sends a series of packets over a network to a specific computer in order to generate a response from that computer. The other computer responds with an acknowledgment that it received the packets

Some claim that the word "ping" is actually an acronym for "Packet Internet Network Groper", similar to what submariners do with sonar. Both the computer and the submarine's sonar send out a "ping", in the form of either a series of packets or a brief burst of sound. The ping "bounces" off the target and then returns to let you know the target is there. Ping is built into almost every network-capable operating system. The first step for mining is to find the ores and materials you want to extract. But first someone must figure out how each mineral pings or the acoustics of , say, gold.

Once you are near the rocks of interest hovering in front of the now-outlined rocks will analyze those rocks and provide the following information about it: Composition: The minerals contained within the rock: "filter out" inert rock, so higher percentages of minerals will provide ore. Resistance: The resistance of the rock to the mining laser. On a scale from 0 to 1, a larger number will take longer and more power to fracture. Instability: The instability of the rock will make it more challenging to profit. At this point the value of the rock can be determined, and the miner can decide to abandon or mine this particular node of minerals.

What could be gained from a helicoptered hovering over a pile of our gold ore? Dah!
Does America need on going production of minerals? Dah
 By Hans Kummerow

03/01/2018  6:12PM

Mike, keine Ursache. Gerne geschehen.

I am currently preparing a listing at ASX for German investors and will be down under during most of May. During June I plan to be in Canada.

If you want me to do that, I could advise you and your Board on how to structure an Origsix-MLP offer to US-Tax-Payers and how to get it listed.
 By Michael Miller

03/01/2018  12:42PM

Hans, ich danke ihnen, vielen dank.

Before your last entry, my knowledge of MLP was zero. How sad to have worked so many years looking for the key to interest investors to investigate this venerable gold producing company. I like this concept, really like it. Even the recent tax legislation benefits investors in a MLP.
Others may be ignorant, like I was. Below is a brief explanation about Master Limited Partnerships.

There are two types of partners in an MLP: general partners and limited partners. General partners oversee the daily operations of the MLP. All other investors in an MLP are limited partners, and their role is to provide capital to the MLP.
The limited partners, in turn, get to collect distributions from the MLP's cash flow. Limited partners do not get involved in an MLP's operations. Also, while limited partner units are publicly traded, general partner units usually are not.

General partners typically own a small general partnership stake of the MLP, though they can also own limited partner units to increase their ownership percentage. Those who invest in MLPs are referred to as unitholders because they buy units of the partnership. Investors are paid through quarterly required distributions as specified in their contracts.
Because MLPs are not required to pay corporate taxes, they have more cash available to distribute to investors. To receive these tax benefits, MLPs must generate at least 90% of their income from qualifying activities, such as those related to natural resources, commodities, or real estate.

Companies that take advantage of the MLP format are typically those that operate in steady, slow-growing industries. Because of this, cash distributions from MLPs tend to remain relatively steady over time. Furthermore, unlike corporations that issue stock, MLPs do not retain earnings for growth. Rather, they distribute them to investors as they become available.

Benefits of investing in MLPs

One major benefit of MLPs is that they tend to offer attractive yields, especially as compared to bonds. Furthermore, because MLPs typically emerge from stable, slow-growth industries, they tend to produce steady cash flows on a long-term basis.

There are also tax benefits to investing in MLPs. Limited partners in an MLP are only taxed when they receive distributions. Those cash distributions often exceed partnership income. When they do, it's considered a return of capital to the limited partners, which means that applicable capital gains taxes are deferred until the units of the MLP are sold.

There are two types of partners in an MLP: general partners and limited partners. General partners oversee the daily operations of the MLP. All other investors in an MLP are limited partners, and their role is to provide capital to the MLP.

The limited partners, in turn, get to collect distributions from the MLP's cash flow. Limited partners do not get involved in an MLP's operations. Also, while limited partner units are publicly traded, general partner units usually are not.

General partners typically own a small general partnership stake of the MLP, though they can also own limited partner units to increase their ownership percentage. Those who invest in MLPs are referred to as unitholders because they buy units of the partnership. Investors are paid through quarterly required distributions as specified in their contracts.

Because MLPs are not required to pay corporate taxes, they have more cash available to distribute to investors. To receive these tax benefits, MLPs must generate at least 90% of their income from qualifying activities, such as those related to natural resources, commodities, or real estate.

Companies that take advantage of the MLP format are typically those that operate in steady, slow-growing industries. Because of this, cash distributions from MLPs tend to remain relatively steady over time. Furthermore, unlike corporations that issue stock, MLPs do not retain earnings for growth. Rather, they distribute them to investors as they become available.

You gave me a key answer needed to put a golden package together. One or two items are missing: some financing talent with integrity. Ideas welcomed.
 By Hans Kummerow

02/28/2018  11:42PM

You are certainly right Mike, when you compare the tax deference effects of Canadian Mining Tax Credits to US Master Limited Partnerships. (MLP)

But practical obstacles are the ease of buying or selling shares in a listed Canadian Mining Company compared to the effort of entering or terminating a US MLP as a partner.

To make it worthwhile and practiical for the general public to invest into MLP's the Units in a US MLP should be listed at a Stock Exchange. P.e. in Toronto or Melbourne.
 By Michael Miller

02/27/2018  2:47PM

Agree with you, Hans. Yet there is more to the story regarding Canada’s lock on mining speculation/investment.
Another side is pure share price speculation and has little to do with anything but trading stock. It’s called PUMP and DUMP. The PUMP and Dump infrastructure is a well-established industry in Canada. Not every gold company places stock promotion as a primary goal. Most do and base potential on exploration.

Our great past director, Charles Brown, would say, “Instead of a gold mining company, I’d rather own a company that mines gold.” Me too.

History buffs or future investors may take interest in a brief response to Hans’s accurate entry below. We only need to go back to 1974, December 31, when the United States removed its restrictions on gold ownership and the price. Ah, gold could once again breathe in a free market. Manipulators are always tweaking spot. There are always admirers and detractors. These are not the bulls and bears, who trade but people and institutions where gold affects finances. You either own the stuff (in some form) or hold none. Gold is a commodity, but it certainly has underlying feature different from oil, corn, cotton, or lumber and pork bellies.

Stock Market places were many: Vancouver, Spokane, Alberta, San Francisco, Salt Lake, and of course Toronto. The Canadians took over. The financial groups were smart ant put in place tax benefits that US Stock Markets ignored. The United States retains an unusual and very appealing financial attraction equal to or beats the long standing (and evolving) Canadian scheme. It is the Limited Partnership. There is a major caveat, though. The investment must be focused on gold production for it to benefit the General Partner and Limited Partner more than stock appreciation. The biggest carrot goes to the Limited Partners. Can you guess why? Let us know.
 By Hans Kummerow

02/26/2018  1:02AM

Technological progress in the mining industry is traditionally slow. And if it occurs anywhere, it will most likely be happening in a place like Canada or Australia. Why?
I may happen in Canada, because 80% of worldwide venture capital for mining operations come out of Canada. This large amount of Canadian VC in mining is owed to a special Canadian mining tax credit, that high income Canadian tax-payers can carry forward against their personal income tax liability.And R+D cost need to be financed somehow.
And it may happen in Australia. Because Australia has the largest JORC-Reserves in the world and because the cost of mining those ample reserves is directly linked to progress in mining technologies.
But not matter where it will be happening - once it happens US-miners will be benefitting as well.

03/15/2017  9:21AM

The Vancouver Sun reports in its Friday edition that programmable bacteria, a gold-sniffing camera and a virtual reality tool for taking investors underground were among the innovations on display at the Prospectors & Developers Association of Canada (PDAC) convention in Toronto.

A Canadian Press dispatch to The Sun says that some mining veterans believe that such innovation is badly needed in an industry traditionally resistant to change. "There's a lot of inertia in our business," said George Salamis, chairman of Integra Gold. "There's this mindset that, 'We've been doing this for 100 years, why would we change?'

With new blood coming in, that is changing. But change is slow." The mining industry has been on the mend as commodity prices recover from a protracted slump. The downturn made many executives more focused on pruning budgets than investing in technology that might increase efficiency. But even a small implementation of such products can have a huge effect on margins and operating costs. Think Sixteen to One mine and other mines in the forgotten California gold belt. Hello out there!
 By David I

03/09/2017  4:05AM

My thoughts have been echoed in the past by the federal reserve as well as congress, when I was a strong supporter for TARP, as well as Q/E.
 By David I

03/09/2017  4:02AM

Hi again Mike, I have already sent a letter to the White house about this thought. If they think it is a worthy thought then we will see some future action.
 By Michael Miller

03/08/2017  10:51AM

What caught my eye in your last entry was the Federal Reserve role as a lender of working capital for the gold mining industry, thereby producing more American gold. This is exciting. Our Company welcomes a new source for adding miners, buying more supplies and equipment to attack the many realistic gold targets we know exist. The existing sources (investors, speculators, gamblers and money houses) are some of the biggest manipulators in the world. Real gold miners get their thrills from mining gold not making money. The distinction is large! Who runs the Fed reserve, what policies govern its behaviors and what are its member’s main business philosophy and practices are unknown concerns I have. To support expanding the power of the Fed, I need answers to these concerns.

Of all commodities that enjoy a public market (corn, lumber silver, etc.) gold is likely the most vulnerable to high flying manipulation. BUT, the players are few compared to the players in other commodities. Right now the March 2017 contract volume is 23; May volume is 158; April volume is 170,929 and climbing. Who is playing this money game and why?

The next concerns or reality regarding price are those mystical men who set the spot price for 400oz bars each morning for settlement in London. The market is truly global from the centuries of London based power (NY to a lesser degree). Futures exchanges, Over-the-Counter and bullion dealers add a factor of variables to the once stable gold market. Who will be influencing the Fed Reserve crowd?

I must mention one more group: the Pump & Dump crowd. They play mostly in the small cap stock market and will always be there looking for a quick buck. The concern with them and the Fed Reserve running its gold plan is: will the good intentions of capitalizing companies who actually will mine gold be recognized and separated from the companies that are mining bull shit!

Let’s examine what we want to accomplish and see if there are others ways as well. We want to strengthen our gold industry and our status with the dollar by producing more gold in the United States. I get it and am looking for a way to accomplish this with our small operation.

Our discussions are under the Technology heading, somewhat misplaced. Our industry awoke in the 1970’s with technological advancements still lasting today; however technological results for really high-grade gold mining have been stagnant. If we can take samples from the moon, if we can see photographs from distant galaxies, we can see gold in quartz beyond the current four feet distance. David and others, let’s keep this discussion alive and include technology as a component of fixing the gold mining issue, inflation and free market rules in pricing an ounce of gold.
 By David I

03/08/2017  5:03AM

Hello Mike,

To add to my message below: there would not be any requirement to sell gold to the federal reserve, except only where financing was provided by federal reserve banks designated for that purpose, and only until the principle is paid off. The gold would be sold at market value with a dedicated buyer to buy the gold.
 By David I

03/08/2017  4:23AM

Dear Mike, if I represented any thing that George Soros proclaimed, My message was not clear enough as to its intent. The book I was talking about was an advocate for returning to the gold standard, with the decline of the dollar as the victim and down turn in the economic welfare of our nation. So we need an activity such as mining in the United States to become an economic engine to help grow our nation. My plan I tried to bring to your attention was for The Federal reserve to create the federal reserve Gold Trust for the purpose to increase backing for the dollar held as part of a reserve in trust. This would also use this reserve to sell parts of reserves as a hedge against inflation, with out touching our gold at Fort Knox. The federal reserve would by gold with printed money, increasing the money supply, with asset gold held in trust. A certificate would be also awarded to the seller of gold with the price paid, noted on the certificate. The federal reserve would be ready made buyer for gold mined in America to stay in America. That when it comes time to sell gold for lowering inflation, the person holding these certificates would have first crack to buy the gold as long as they are US Citizens.
The reason the federal reserve would want ot buy gold is to create the inflation necessary for growth, Case in point was how our nation got out of the great depression, when the price of gold was increased from $20/ounce to $35/ ounce. Now the Federal reserve would purchase the gold by weight at the spot price on the London exchange on the sell and buy action of the purchase.
The federal reserve and our nation need to increase our gold reserve as that is what China and Russia are doing to become a threat to the dollar as the most secure currency in the world. So this would be an economic defense policy. Higher federal gold reserves would give competition for this continued duty of the dollar, as well as being a competing buyer for gold, driving the price up for both China and Russia. This would not restrict sellers of gold to sell to the federal reserve, except where the federal reserve backed loans to miners and mining companies to help with the mining industry to produce the gold, that a provision could be allowed that the mining companies could hold back a 10 or 20 percent of the gold mined, from required sales to the federal reserve until the principle of the loan is paid off. After the loan is paid off the the requirement to sell gold to the federal reserve would be eliminated. This would be a strong incentive to increase gold mining, with development of financing for the mining activity and creating new wealth for economy of our nation.
 By Michael Miller

03/07/2017  3:40PM


Rethink this idea you considered in your entry below. It has an unpleasant history going back to the 1960's through 1974, when gold (its ownership and production) were governmental/politically controlled. Gold ownership is a very personal free choice. It should be.

Last month I learned of a financial writer from a shareholder. I wrote her and we have exchanged emails. Following is may last one to her. You may ponder my message to her.

February 27, 2017
Dear Kimberly,

It was a delight to open emails this afternoon and find a response from you. I wrote you on a whim and because of who you are or what you are doing with your life. I read the seven articles you sent and learned nothing new; however, I was disappointed that there was little to know how you think and write about gold mining. I am a proponent of gold mining, especially now and in the future.

Articles like the one quoting Mr. Soros, proclaim a falsehood. I’ve read this (not so correct statement) in numerous books and articles about gold. They write that gold has no intrinsic value in order to debase its value. If gold has no intrinsic value, why not write, “Gold’s value is only extrinsic, not essential”? The difference is subtle but, the why I am writing you now is not looking for subtleness.

None of the articles present the side of gold I want you to know about. I’m a gold producer. I can do nothing to influence the spot price of this commodity. I can increase its value with products and marketing but as far as promoting gold ownership or its avoidance is not a choice or possible. (Unlike most gold bugs or promoters I do want to return to the gold standard. Let the free market prevail.) I put no effort in speculating about gold’s spot prices.

Gold has intrinsic value. For some reason the opposite belief is a constant cry by anti-hard asset (money) value people. Why do you think this is so? Gold’s use in technologically driven products (electrical sensitive) is up. Jewelry (think India more that western cultures) is established and increasing as populations increase. But, again, this is not why I write you.

Speculations in investments or gambling can be made on any subjects. I have a well-known friend in Chicago who speculated on hurricanes years ago. I quit golf years ago but still go to his annual golfing, fishing and hiking get together in Idaho. I take my cameras. This group likes to bet on golf scores but one year I wagered a bet that one of the eight players would hit a house and got favorable odds. I won that bet. But, again, this is not why I write you.

Mining gold or producing any commodity has become most challenging. The trend is an actual numerical decline in ounces but more importantly in a larger percentage drop of the factors sensitive to a prospective mine operator (capital investment, speculation and safe or fair regulation enforcement). The uninformed have not grasped this economic phenomenon. Miners, the labor forces, are skilled workers and in California and the west declining in numbers. Mining, like logging, another fundamental industry under attack has a culture vital to the well-being of greater America. Why did Japan infiltrate China, the Philippines and attack the United States? The country is losing the mining culture, the infrastructure vital to be competitive in natural resources and the ability to fund our demands of manufacturing domestically.

Forty four years ago I was pondering where our social life was heading. I was a combined social science major, graduating from UCSB in 1965 with economics (major). I concluded that our leaders were smart to continue using up foreign natural resources because it protected ours for the future when other countries were depleted. It was about freedom and security. I no longer believe this is correct unless you advocate for large multinational conglomerates to grab these tools of freedom and security for themselves. This is why I write you.

I want you to become familiar with our industries in the BIG picture. I want you to see domestic natural resource production as an opportunity for others to aid America. Why? I believe that you write for the right reasons. America needs more miners working in America.
 By David I

03/05/2017  12:10AM

Hello Mike,I have been reading a book by James Rickards, "THE NEW CASE FOR GOLD". I suspect that you may have seen it. It is about our need for inflation to raise the price of gold and combat our present recession.
I would like to present an idea about how to do this. I think the federal reserve needs to have a gold trust reserve where dollars are printed and traded for gold based on weight at the high daily rate of the purchase by the gold trust reserve, along with the dollars a certificate would be included with the purchase price for the gold. This would be away to increase the gold reserve. This gold reserve trust also would the capacity to loan to banks specifically for financing the mining of gold in the united states. With the requirement that all gold mined would be sold to the federal gold trust reserve until the principle of the financing was paid off.
 By Michael Miller

02/25/2017  4:42PM


Natural resources are materials from the Earth that people use to meet their needs.
Commodities are hard assets. Since there are so many, they are grouped in three major categories: agriculture, energy, and metals. Non-renewable resources are those that are used faster than Nature can create more.

The United States was blessed with an unusual abundance of seven natural resources. First, it has a large land mass that early on became governed by one political system. Second, it was bordered by two large coastlines that provided food and later ports for commerce. Third, it had thousands of acres of fertile land. Fourth, it had abundant fresh water. Fifth, it was once under a great sea which created the oil and coal. Sixth the climate gives it grand forests. Seventh the formation of the earth gave it gold. The geography and geology of the United States provided a tremendous comparative advantage in building our economy.

America had a huge head start thanks to its abundance of natural resources. In addition, it's governed by one political system, monetary system and language. America has two peaceful neighbors, Canada and Mexico. It doesn't have to defend its borders.

Where is the flim-flam ABOUT GOLD propagated? Answer: exploitation of terms and time. Proven gold reserves are where analysis of geological and engineering data demonstrates with reasonable certainty to be recoverable from known reservoirs. Only the gold that is commercially viable under current economic conditions is counted. Reasonable certainty means that either actual production or conclusive testing has occurred. Gold is not counted as proven if engineers are uncertain whether it can be recovered under current economic conditions or it's in completely untested areas.

Exploration and development must take place before production. Exploration has most risk. Most companies never get beyond exploration. Some make it to development and few actually get into production. This time frame is important because supply changes more slowly than demand For example, demand can rise quickly, but companies can't ramp up production as fast. When demand drops, it can take companies months to reduce supply. Unlike most industries, people outside the production side publish words. This has become the flim-flam of gold
A big difference occurs between supply in the short-run versus the long-run. Short-run supply depends on price. As demand rises, customers pay a higher price. Businesses will increase supply to gain the sales from higher prices until they reach their current capacity.

In the long-run, if the price and demand remain high, companies can boost supply. They have the time to add the workers, machinery, and factories required. The following factors determine long-run supply: Labor, Capital Goods, Natural Resources, Entrepreneurship.

Financial capital such as money and credit is used to buy the factors of production. But the ease of obtaining financial capital, whether through stocks bonds, or loans, plays a critical role in supply. Warning: In the professed bull market for hard assets ahead, challenge the flim-flam man.

Here are some examples of how U.S. innovations in capital goods created economic advantages.
• In 1789, Samuel Slater improved textile manufacturing. Eli Whitney invented the cotton gin in 1793. These made the U.S. a leader in clothing manufacturing.
• The invention of the Morse code and the telegraph in 1849, and Graham Bell's telephone in 1877, made communication faster.
• Thomas Edison invented a safe incandescent lamp in 1880. That allowed people to work longer and made urban living more attractive.
• Steamboats led to steam locomotives. They allowed private railroad networks to facilitate coast-to-coast commerce and development of the West.
• In 1902, air conditioning allowed migration to formerly hot areas and the ability to work effectively through the summer.
• In 1903, the Wright Brothers' invented the airplane, leading to faster air travel.
• In 1908, Ford's assembly line allowed mass production of affordable cars. That increased demand for expanded travel and led to the 1956 Interstate Highway Act. That improved shipping and a created a higher suburban standard of living.
• In 1926, Robert Goddard invented the liquid propulsion rocket. That gave the United States an advantage in defense.
• In 1992, metal detectors were tried and succeeded in finding gold in the Sixteen to One mine.
• When will the innovative capitalists/ entrepreneurs move the technology into the 21st Century?
 By Michael Miller

09/06/2014  5:25PM

Our crew received a spanking new pneumatic drill, one that is first in size for its exploration program. This drill looks like equipment the leading pioneers would take on any exploratory trip. Lewis and Clark had the best rifles at the time when they set out to find a waterway to the Pacific Ocean. The federal government, led by Thomas Jefferson knew the importance of uniting both of North America oceans. He gave Meriwether Lewis and open credit card and it paid off. That was 210 years ago.

Our new drill and necessary accoutrements were provided by other technology pioneers, not the federal government. For reasons that are partly unclear today, the federal governmental agency most active within the business affairs of California’s underground gold mines is funded in the Executive Branch administered by the Secretary of Labor. Not only is it unsupported of domestic mining, it continues an unwarrantable attack on the underground California gold miners, men just trying to eke out an honest living while adding to the national gross product…wealth.

How shall we reach those responsible and make them accountable? How do we tell and convince the Secretary of Labor's network that its failures hurt those whom it is lawfully required to protect? More on this will be forth coming.
 By Kit Carson

09/15/2011  4:55PM

Kit Carson rode over to his Nevada Lode claim, and took a very low tech look around. Amazing, in that I found myself in a canyon of Quartz. There were quartz veins at the surface everywhere. Brown, yellow, and orange quartz were observed. There were pieces of black granite streaked with white quartz. Quite amazing, beautiful, and a long way from the California mother lode. The veins even went over the mountain to the dry stream on the other side.
 By Kit Carson

09/06/2011  5:26PM

My horse was exhausted after the 19 miles ride up Ridge Road from hiway 49. Fortunately, my Falcon MD20 metal detector (with 300KHz) was a lightweight tool so we had the energy to ride out of Alleghany after the tailings were tested. Mike Miller said I needed a positive attitude, so when it started to wane, I turned up the sensitivity. I handed Mike a bag of false positives, hoping one or two might prove to have a bit of pay. It was a good experience, but I realized gold is expensive because it is quite rare. Let's hope my Nevada Lode is El Dorado, and Mike hooks up with an honest sheriff and also some cowboys with guts. Kit Carson is on his side.

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