March 6, 2021 

Ideal Time for Facts


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 By Hans Kummerow

11/17/2016  5:05AM

Found this at the bottom:

"Mariposite formed when serpentine was altered under pressure by mineral-laden hot (650oF) water. The water, containing potassium, silica, carbon, oxygen, and other elements, flowed upward from sources deep in the earth’s crust along fractures, faults and fissures in the rocks. When these hydrothermal fluids reacted with the serpentine, they formed deposits of quartz, chromium-rich mica, sulfides, and occasionally gold. At that time these rocks were completely hidden under the surface of the earth. The ancestral Sierra Nevada began to began to rise 100 million years ago (Hill 1975) and the rock above the mariposite slowly eroded. The rich veins were exposed about 45 million years ago. Continued erosion released the gold from the rock and streams carried it down the slopes.

Mariposite rock and the varied quartz and gold veins are found along the mother lode’s Melones fault which separates the Paleozoic Calaveras Complex phyllite from the late Jurassic Mariposa Formation greywacke and volcanic rock."
 By Hans Kummerow

11/16/2016  4:54AM

Dear geologists on this forum:

"The appearance of Mariposite all over the Northern Sierra Nevada was caused by the same hydrothermal processes that caused the gold precipitation inside the quartz veins."

Is that true?
 By Michael Miller

11/15/2016  12:26AM

When I take people into the mine, I stop on the 800 level where there are magical open stopes, pillars and thick quartz. Included in the quartz is a "horse", a miners term for some irregularity dragged into the vein.

Most of the time a horse is a mass of country rock lying within the vein. This horse is mostly bluejay. I asked what makes this rock green? Copper is the favorite guess, which is not true. The answer is chrome.

For those geologists out there mariposite is a chromian variety of phengite, a siliceous variety of muscovite.

The real old timers believed that the appearance of bluejay held promise of gold nearby.
 By Hans Kummerow

11/14/2016  10:30AM

Thank you Big Al. I understand now what the miners mean when they speak of BlueJay.
 By Big Al

11/14/2016  9:11AM

Hi again Hans, I misspelled it, it is spelled Mariposite. Here is a link to more information and pictures. Big Al
 By Big Al

11/14/2016  8:54AM

Hi Hans, BlueJay is another name for Maraposite, it is quartz based with white and green to blue green characteristics, there is quite a bit of it in the Allegheny mining district. I have personally saw a lens at a mine I worked at that was over 50 feet long, it is a very hard rock. BigAl
 By Hans Kummerow

11/13/2016  8:25AM

Could readers of the Forum please give me some information on the chemical nature of the mineral that the miners call "Bluejay"?

In addition it would be interesting for me to learn more about the appearance of Bluejay in the neighbourhood of of gold-bearing quartz veins.
 By Michael Miller

08/19/2016  1:59PM

Consumer demand within two countries have acted as sponges for surplus gold in recent years – China and India - marked time during much of 2015. There was a noticeable upturn in interest later in the year. China increased the value of gold reserves to 1,762 mt by the end of December, worth $56.7 billion. The addition was 104 mt during the second half of the year. Indian imports totaled more than 900 mt of gold worth some $35 billion in 2015. 105 mt of imports in December alone.

For producer the main focus worldwide continues on cutting costs. Much of the industry benefitted from favorable exchange-rate movements, while the fall in the price of oil helped producers across the world as diesel costs came down

The Russian gold sector has been subject to some unwelcome influences over the past year or so, as the devaluation of the rubble against the dollar and the effects of economic sanctions imposed by the rest of the world over Russia’s annexation of Crimea from Ukraine have taken hold.

Chinese money may soon appear in Russian gold mining. Chinese gold miners have skimmed off the cream at home so today they’re looking at Russia with interest. They recognize that the ruble devaluation has made mining in Russia more attractive.

Although China’s gold output has achieved spectacular growth over the past 10 or 12 years, (World Gold Council (WGC), its reserve base cannot support current output levels. The bulk of the country’s production comes from relatively small mines. The “low-hanging fruit” in China’s gold deposits may already have been picked.

Three main factors contribute toSouth Africa’s decline from world leader to the current No. 7: cost of labor, cost of electricity, and the depth of the mines. The resources are there in the ground, but the economics of turning these resources into reserves are uncertain. OPINION: If South Africa largest gold miners are going to survive beyond the next few decades, a radical reshaping of the industry is necessary.
 By Michael Miller

07/07/2016  7:47PM

Very quickly, here is a news flash (July 7, 2016) that crossed my office from Calico Resource Corp. The officers and directors are pleased to announce that they sold out to Paramount Gold Nevada Corp via a court approved plan of “arrangement”. Love it! It used to be called reorganization under bankruptcy laws.

Look at how the insiders financed this raw land proposal to the public.

Common shares outstanding 2011: 15,275,127
Common shares outstanding 2012 29,923,504
Common shares outstanding 2013 = 38,669,547
Common shares outstanding 2014 = 51,557,212
Common shares outstanding 2015 = 75,785,794
Common shares outstanding 2016 = 102,445,845

The Canadians have another sweet accounting gimmick, all legal, I presume. It is called “Exploration and Evaluation Asserts”. While this remarkable asset basically stayed physically the same, its exploration and evaluation numbers explode from $140,795 in 2010, to $1,168,286 in 2011, $8,777,390 in 2014, $12,433,509 in 2015 and at the time of the “arrangement” is listed at $14,381,982. How does this happen when the cheap nike free expenses mostly listed are: investor relations, management and professional fees. They exploded and are most of the annual corporate expenses.

Keep your eyes wide open air jordan to what may be heading into the financial news as gold gains more attention. This game is as old as gold, when those crafty people centuries ago filed a little gold from the currency.
 By cw3343

04/11/2016  9:50PM

You are correct, kind of. The Washington Mine is in a community called French Gulch, NW of Redding, CA. They are one and the same mine. I believe the company used the names interchangeably - or referred to it as French Gulch, being the town that it is near.
 By Hans Kummerow

04/08/2016  6:16AM

The name "French Gulch" seems to be a part of several different underground operations in the Redding area.

On Shasta Gold Corp's website a company by the name of "French Gulch (Nevada) Mining" is mentioned as a whollly owned subsidiary of Shasta. But they are working the "Washington Mine" near Redding, not the "French Gulch Mine".

This habit of using small companies as subsidiaries for single mine operations is confusing to foreign observers.
 By cw3343

04/07/2016  8:55PM

Bullion River Gold Corp., parent company of French Gulch Mine, has filed for Chapter 11 bankruptcy protection.

The Reno company, which started mining in western Shasta County in 2006, said in court papers the bankruptcy was necessary because creditors were threatening to shut down its operations.

Bullion River Gold also claims it intends to reorganize. The company, which declared bankruptcy Feb. 27, lists $30.1 million in assets and $10.56 million in liabilities.

French Gulch is one of six subsidiaries owned by Bullion River Gold, a company started by a group of investors in 2003 under the name Dynasty International Corp. It changed its name to Bullion River Gold in January 2004.

Story here, but may be behind paywall (hit stop on your browser before the page fully loads and you may be able to read it):
 By Hans Kummerow

04/05/2016  10:38PM

French Gulch used to be a wholly owned subsidiary of Shasta Gold Corp.
And Shasta got several million Euros from Germany a few years ago. Among other purposes, to clean up a waste-water mess at French Gulch if I am not mistaken.
They had been operating a mill there and were using chemicals to extract the dore. The waste water was released in an inappropriate way and the person who was responsible for the operation of the mine got a six month jail term last year.
It all surfaced after a pipe broke and waste water found its way into a stream and a lake.

After a waste water treatment plant had been built operations were resumed. Until very recently, it seems. Could you check on that Mike? I do not want to do anybody wrong in case I should be mistaken.

When I talk to experienced German Investors about Gold Mining in California today everybody tells me that California has outlawed all leaching operations and that there is just no way to earn money in that industry in California any more.

Of course they do not know about "boutique gold mining" yet.
 By Michael Miller

04/05/2016  6:02PM

The story at French Gulch (west of Redding) says the investors stopped support. The crew came to work and was laid off that morning. I made a call to verify if the investors were from Germany. My recollection is the German investors were at the Ruby mine, which also closed down last year. When I confirm the mine that the Germans were financing, I’ll let you know.

Failures in mining outpace successes. It’s true going back decades, centuries. For success three ingredients are vital: a strong gold deposit, wise and dedicated people and working capital. Other factors include commodity price, location of operation and goals of management.

Over my forty years involvement in a small part of the industry (underground gold mining in California) the many failures of actually mining gold have similarities. During the wild days of the late 1970’s and early 1980’s some investors did well pushing stock. Many were left holding worthless shares. The game was easy to spot and took place in other fields than gold mining. Paper promotions date back hundreds of years and will always be around.

The Sixteen to One is different from most others. The company has a history to match its fine gold properties in California. Money issues have surfaced over our 150 year history of mining in Alleghany. When I took an interest in the mine in 1974, I found great prospects but a tired management. The owners must get good “at-a-boys” because the directors kept the property and corporation intact during difficult times for mining.

Three men who were not directors played a significant role during the 1960’s. Gold mining suffered almost to extinction due to the control of price slapped on America in 1934. Could any industry continue under the same restrictions? No. Up steps Fred Searls (founder of Newmont), Bernard Baruch (worldly financier) and Lucius Clay (retired General). Fred worked at the Sixteen as a young man and remembered the northern Red Star history. He told the others and they ponied up some capital to work the northern deposit. Gold was found but not enough to pay the operation (gold was set at $35 an ounce in 1934 and held that price up to 1975). We have the records and maps of this failed endeavor.

It is an interesting story. Why do I relate this to you in Germany this morning? Last night I continued reading Dwight Eisenhower’s account of the war in his book written in 1948. General Eisenhower handled the Berlin situation during the closing years and after the war in Europe ended. He complements one of his top advisors, General Lucius Clay. It is a small world when it comes to significant events and bringing peace to Germany had complications. General Eisenhower describes the complex issues of making peace in Berlin, which interest me.

Did I tell you that I was in Berlin in the fall of1962? I saw the wall under construction. I also passed through Check Point Charlie three times into East Berlin, an experience I will never forget. As chance had it, I returned to Berlin with my family in 1989, when the wall was penetrated and East Berliners were passing through. I will never forget this either. So now, I work in Alleghany, planning an operation to continue what Baruch, Searls and Clay undertook fifty years ago. What a long slow trip it’s been.
 By Hans Kummerow

04/05/2016  12:32PM

the underground operation just west of Redding that closed down was that the operation, that was reorganized with money from Germany a few years ago?
 By Michael Miller

03/30/2016  3:05AM

Our miners know that underground mining is a dangerous occupation. Our legislative direction (the mine act of 1977) towards safety is the responsibility of operators and miners. It rules every moment of our work... underground and on the surface.

Hazards lurk everywhere. This is a universal truth in most occupations. For us the first step in safety is recognizing hazards. The next step is to evaluate the hazard. The third step is to eliminate or mitigate the danger. The hazard still exists, yet it poses no danger to the miners.

MSHA is our legislated safety agency. It plays an important role for miners and our country. The best way for MSHA to assist an operator/miners with safety is for both sides to act responsibly.

MSHA recently began helping our industry with email alerts. One arrived today and follows:

Dear Metal and Nonmetal Mine Operators,

April is the second deadliest month in the Metal and Non-Metal mining industry. Only October has recorded more mining deaths than April, and not by many. Since 2000, a total of 50 metal and nonmetal miners have lost their lives in April, and many more have suffered serious and disabling injuries.

As warmer weather returns, so do many of the metal and nonmetal mines that were idled during the winter months. Equipment and plants that have not run for several months are pulled out of storage and set up again, ready to get back to work.

This time also sees an increase in new miners, but they are not the only ones at risk. Even experienced men and women need retraining. Mine management and miners alike must recognize the hazards and commit to a vigilant and safe mine health and safety program. Training new employees and refreshing experienced personnel, examining workplaces and correcting safety defects, analyzing tasks and planning jobs before beginning work, and being your brother’s or sister’s keeper are the hallmarks of a safe and successful operation.

In mining and milling, there is no room for warming or ramping up on safety or easing into risk control the first few days or weeks. Safety must be full-on and in the forefront of everyone’s mind from day one. END

The mining industry is shrinking in California and America. It receives bad press and little good press. All of us benefit from well run mining operations. With the closing of the underground gold mine just west of Redding, the Sixteen to One is the last commercial underground operation in California. This is sad.

01/21/2016  3:51PM

Eight silver producing companies listed on New York Stock Exchange or NASDAQ reported combined silver production for 2015. The total silver production is 85.5 million ounces.
 By Michael Miller

12/22/2015  1:52PM

Ah, voices from the past. How refreshing!!

Public Paw 91-173 called “FEDERAL MINE SAFETY AND HEALTH ACT OF 1977”. Most historic publications call it “An Act”. It should come up on any search. Before MSHA came into existence, a different agency handled regulation. Congress’ intent is clear in An Act. It is also clear that the intent of An Act today does not follow its original and amended purposes.

So no one miss characterizes my position, I want regulations. They are needed; however this is not what is coming to Alleghany. I speak with people in the mining industry often and throughout the country. Poor regulation is a national epidemic and it hurts every person in the United States. I know this to be true from North Carolina to Idaho to Arizona and of course in California.

“Truth, like gold, lies at the bottom.”
 By Rick

12/19/2015  11:08AM

Wow, has it been that long ???? I originally started the topic when we were neck deep fighting the falsehoods and propaganda spewing from the illegal behavior of the CDAA. It is epic that this mining operation survived, and is on the brink of proving once again that the truth works every time its tried...eventually. Keep it up Mike!
 By Big Al

12/11/2015  10:40PM

Hi Mike, I have looked for the ACT you mentioned, there are several in 1977, is it the mine saftey act? or one of the others?

I am in the Summary Judgement phase of Gene's and my suit. For the value we could use your help if you can, for instance, how much 2300 feet of drift is worth. Thanks, Big Al

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