December 11, 2018 

Ideal Time for Facts


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 By Michael Miller

11/12/2005  10:56PM

Just returned from a long drive from Elko and before I get side tracked, here is your request regarding my talk to WUMA. This is the outline I prepared the afternoon before speaking. I changed direction in areas that I thought would interest those in attendance. It was a fun talk and appears the group enjoyed. The association plans to design and build a monument in Elko commemorating miners killed in duty in the area. It also plans to start miners’ competition next summer. Before the meeting was called to order and as the members and guests arrived, our three hour video was shown on a large screen. It was a huge success.

INTRODUCTION: cite local paper about pictures. While all here have the bond of mining, our underground high-grade mine in Alleghany is nothing like the underground mines you work in Nevada. Our workings are deliberately as small as conditions warrant. We don’t use diesel (more traditional track miners). We fight similar foes but in a different manner.

Method of Mining: Drift on vein—raise—winze—stope. Miners make daily decisions and adjustments in how to proceed.

Chasing Gold: Great histories of Alleghany mines. Indices. Gold is best. Comet.

Processing Gold: Sacking. Reporting. Recording. Jewelry. Crush. New tech. in advancement. Detection stories: Man with Longhorns of front bumper, Cosmic ray guy, Rim Tech (radio imagine method).

Revenue History: Impact of spot price. Break down typical 1000-ounce pocket into slab sales, specimens and crush. 1000 oz= potential $2.7 million.

Dinosaur or Cutting Edge of New Gold Rush

Fate of dinosaur: extinction according to MSHA. Cal/OSHA hoist story.
Define traditional operation rail-decline shaft-no diesel; California’s 200 mile gold belt.

PASS Specimens. Hold Drawing
Reasons for inactivity: population spread, environmental concerns v operating costs in third world or other countries; competition from real estate, gambles, past bear market.
Overwhelming Reason for us: Lack of Speculators. Abandonment of gold investors in market. Too small a mine. Perception of “unknowns”.

A very advanced student of high-grade gold mines and our district offered me his opinion to share with you, “The bottom line is that when well financed and thereby able to invest in current and new technology, high grade gold mines can be obscenely profitable.” (Thanks Johnny Yuma)

Another fellow very intimate with Sixteen offered, no demanded I relate his view. “The Sixteen to One offers a dream to those who choose to follow their dreams.” No touchy feeling but what he means is to acknowledge the miners and merry band of supporters. (I went into several areas of the importance of the human side of our operation)

The Company has continued a 100-year-old pattern: Consolidate the district. It owns outright much of this high-grade deposit. Those familiar estimate that 80% of the productive vein remains unmined. Will extinction come from no gold left to mine? No.

Is a 21st century gold rush for high-grade possible? Gemstones market is a virgin. Beta site (after seven years of serious scientific research $200,000 should clear us to 10 to 15 feet of penetration with at least 40% accuracy. Explain Red Star project.

 By Michael Miller

11/10/2005  8:39AM

Thanks Johnny Yuma. I think I will quote your last opinion for I believe it is obscenely valid. I'm on the road soon.
 By John Yuma

11/10/2005  8:05AM

The Barcus - McClung report dated October 1959 is a good report, but I do not see how it relates to the title of your talk. The bottom line is that when well financed and therefore able to invest in new technology, highgrade gold mines can be obscenely profitable.
 By Michael Miller

11/09/2005  10:04PM

I plan to mention the Mountain Copper report on the mine by Barcus and McClung. If interested see report summary under Correspondence from President dated 10/21/2005.

The report states, “rather than taking 16 years to produce $8 million, it should take eight years.” The $8 million amount represents about 220,000 ounces of gold at 1959 prices. By calculating actual figures today, from our sales, those ounces would yield about $216, 600,000. Conclusion: high-grade gold mining in the Sixteen to One vein has high risks and obscenely high rewards. The risk/reward analysis that most people conduct before speculating or investing is a foreign process or not as common as the evaluation of the low grade gold producers.
 By John Yuma

11/09/2005  9:07PM

Highgrade gold mining today is like most other industries. In order to be successful you must invest in modern technology. A good example is the Beaconsfield gold mine in Tasmania. They raised money and invested in pumping equipment that pumps hundreds of gallons per second at low cost, a tripod hoisting system and a good exploration program. They now pay a 5% dividend. (
 By Rick

11/09/2005  6:27PM

Hi Mike.

Besides technology and gambling, (not to dwell on the challenge of all the obstacles of the past five years) there's the one reason you're still there, and the mine is alive.

Talk about the dream. It's why you're there, and why our hearts are.
 By Michael Miller

11/09/2005  12:54PM

Thanks for your interest and support regarding the talk to Western Underground Miners Association (WUMA). I’m also interested in hearing the speech, which means it is still in the preparation stage. It’s a provocative topic: a future as a dinosaur v. the cutting edge for a high-grade operation. If any of you have suggestions as to which we will become or why we will become either, type it here for me to consider. Maybe, your thought will be of interest to the Elko gathering this Friday and eliminate the dinosaur scenario.

Here are some thoughts: Extinction is a prime distinguishing mark between the dinosaur comparison. What will drive the last known high-grade mine to die? If the Sixteen were to die, it would likely have done so by now, but it could happen. Mining history relates how many times the goldfields blossomed and withered in California and western United States.

Liquidity, money, working capital for development and gold are basic factors to hold back extinction. It seems that some technological discovery or break through in exploration or beneficiation as well as social/economic conditions have fueled or throttled activities in pursuing gold. Sources for the fuels are diverse: investors, speculators, adventurers or gamblers. Maybe a high-grade mine will not suit an investor. The gamblers do not provide the stability necessary to allow the profitable exploitation of the mineral deposit. The speculators or the adventurers have the best track record of beating the odds that naturally play against all high-grade gold mining. SPECULATORS ARE INDIVIDUALS WHO OBSERVE AND ACT UPON MARKET SIGNALS.

Technology: the metal detection in a high-grade mine is successful. Let’s go deeper.
Processing: high-grade gold is a sought after gem stone, demanding a high value over spot price.

So Johnny Yuma help me out with some pearls of wisdom to pass on to the Elko audience.
 By smithsgold

11/06/2005  11:02AM

I also would love to see some slides and be able to read your speech.
Good Luck,
 By John Yuma

11/05/2005  7:18AM

Good luck with your talk in Elko,Nevada next Friday night. Hope you will post a copy with slides etc. on the web site for all of us to read and enjoy.
 By Rick

09/24/2005  7:33PM

It won't be "This weeks hearing" as I last wrote, but it will be on October 19th, unless some other ungodly misfortune takes place.

Perhaps you've read my letter to Mike, the one in which I acknowledged why I discovered how George's and my passions were one and the same. I was delighted to see it, knowing it beforehand that it would be just the same face to face.

George, give me some guidance here.....

Okay. The clock it ticking away, and I have no idea what to do, except write. Write about how telling the truth works every time its tried.

Do any of you out there have any suggestions?
 By Rick

09/12/2005  8:59PM

This week's hearing will bring many truths to light. It remains to be seen how well truth is received and interpreted.

Yet I believe that truth works, evey time its tried. There is every reason to believe that it will.

We never know what spin will emerge from the ones who have the most to lose; in this case the criminals, our select group of elite public sector, non-representative, lost, CDAA.

Yet, given a fair ear, truth should prevail, and a bunch of worthless red-tape obstructionists will be shut down to their socks, allowing the pie to expand once again.

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