August 18, 2022 

Ideal Time for Facts


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12/07/2005  9:18AM

Hey Mr. Yuma,

You are right about Ian. He was seated when I stopped by the mine shop. He was upstairs in the new office working on some maps. Think it had to do with a second exit map to go to MSHA. Later his small crew decided on their best shot for high grade, which is where they are working right now. Can you think of any place except the Sixteen to One mine where a small crew have the potential to mine $500,000 to $1 million in a single shift? What an opportunity for someone who is not in the gold game to hit the jackpot.
 By John Yuma

12/06/2005  12:54PM

I can tell you, since I was there yesterday. Nothing is going on. Ian, who we all know and respect, is sitting on his ass waiting for someone to show up for work so he can chase a target on the 800 level south of the Tightner shaft.
 By Michael Miller

12/04/2005  12:52PM

You are correct. The time for serious gold mining programs is at hand. The rapid rise in the commodity price or the price of storing ones wealth surprised me. Lee Erdahl, a retired director, used to respond to the question of gold’s price situation was, “ It could go up some more or it could go down.” His fundamental position (he was a director of Freeport Gold and a past President of a great small gold corporation) was to leave the market speculation to others. The possibilities to make money or lose money in gold should be with us for more than a couple of years.

You are correct. The operation has little cash to expand its operation into the area it has determined is the most lucrative. Obtaining the working capital with an eye to the long range interests of the Company is my focus. We have assets to liquidate for no short term downside; however they will have far greater value to our Company in the long run than they would sell for now. During our managements recent discussions about the financial dilemma we face, a proposal floated to the top. It will please current shareholders and it provides significant gold returns to newcomers. If you are a shareholder and want a copy of the proposal e-mailed or regular mailed to you, e-mail corp
 By Rick

12/03/2005  9:29PM

This recent surge in mining interests deserves a topic heading!

(I realize right now there is a small crew...and that money's super tight...)

We're starved for even a hint of news, such as how walking in the 1621 adit makes the heart skip because of prospect, not necessarily results!
 By John Yuma

12/01/2005  9:33PM

The S.F. Gold Conference on Sunday and Monday was a mob scene of people wanting to invest in gold exploration and mining companies, all with a wish and a hope. With gold over $500/oz it is time to cash up
 By Michael Miller

12/01/2005  8:48PM

Looking for some gold on 800 level south of Tightner Shaft and rain. How was the gold show in San Francisco? Are the exploration guys spinning their tales?
 By John Yuma

11/30/2005  7:01PM

What is going on at the mine?
 By smithsgold

11/14/2005  5:57PM

Thanks Mike for taking the time to write out your speech for us.
I enjoyed reading it sense I could not see it in person this was the next best thing.

Good Luck,

 By Michael Miller

11/13/2005  11:29AM

Reflections on ELKO Trip

My purposes for accepting an invitation to address WUMA were mixed and many, clear and uncertain, business and curiosity. Having completed the journey and now home safely, the choice to go was a good one. Not only did the miners and miner supporters walk away with new knowledge, but also some expressed a renewed sense of purpose. I left with a more refined idea of how to present the tangential points of my life’s work that continue to drive me in a public setting.

I had never conducted a discussion with a room full of miners with the background and experience as those working the Nevada type deposits of gold. It is as foreign to me as speaking to a room full of coal miners in eastern United States. However, my senses said that we are more alike than our differences. If I relate honest facts, opinions and feelings, the listeners can screen them and reject or accept my words. Each one will leave with something to remember. I had no other purpose but to tell them what we are up to and what we are experiencing and how I saw our future.

I only brought the Drill Rock from the July pocket, (when Joe’s drill plugged up in solid gold) to show what we define as a high-grade. Even though David and I picked out 50 unique quartz and gold specimens to offer the group as a souvenir, selling specimens was not my goal. Neither was selling stock. Neither was raising money for the Red Star. Neither was selling my Underground Gold Miners of California photo essay published in 1991. (Just for fun I lugged an unopened box to the meeting along with a nifty full sized fold out poster I put together. I decided not to open the box or even tell them copies were available to buy.)

I sort of followed the outline I had hand written, but as I spoke and searched each pair of eyes for clues as to the points that interested them, I developed some different ideas. I liked everyone I saw, was honored they came out on a Friday night and learned of their frustrations during the association’s meeting, which preceded my talk. So, I improvised: “miners’ contribution to the West and America is under appreciated. Just looking around this city, I see the cowboys all over the place. Pictures are in the halls of my hotel, my room. Signs of cowboys are everywhere. Where are the miners? Why has the cowboy risen to reverence? Our work and the works of our mining ancestors equal or surpass the extraordinary achievements of the cowboy. Now I am not trying to take away the value of cowboys. No. But for the future of our country, at least how I see the future I want for my children and grand children, America needs its miners mining domestic minerals.

We live on an island. North America is an island viewed from a global perspective. Today much of our manufactured goods are imported. A lot is shipped across the Pacific Ocean. This takes fuel, usually foreign owned ships and labor. If our basic raw materials are no longer available domestically, we are dependent of the economic goodwill of foreigners and the ability of our military to protect the flow of shipping for our basic needs.

Mining has the same rugged appeal as herding cows. It has its romantic side. Its ‘waste’ is no more of a poison than cow shit. It is getting a very unfair and bad rap by its critics. Those of us, and there are not many working the mines of California, associated with the Sixteen to One have developed a sense of value beyond just showing up and getting a pay check. Maybe we are lucky. You probably do not have the same opportunity to make a significant difference in the success of your company as the miners have in a high-grade mine. But from now on, in order to survive domestic extinction and for our beliefs that the country benefits by keeping a mining culture, please consider taking what big or small steps you can to tell the miners’ stories. Ignorance is the current enemy (along with the absence of financial support). It is possible to inform the public and in the process gain the understanding and respect miners deserve.”

Aside: Friday afternoon I read a newspaper story about local mines, which pointed out that finding workers was a problem. There is a shortage of miners. When we were forced to cut back our operation, some of the guys went to Nevada for work. The pay is very good but all complained about the working conditions. We are spoiled. We have excellent working conditions underground in Alleghany. After awhile some left the Nevada mines, mainly because of the affect of diesel inhalation underground.. I learned that the particulate density of diesel emissions were to be lowered next year. It is shocking if true. This is a delicate issue. If companies must lower the threshold to stay competitive, the miners cannot complain because they may lose their employment if the mines close down. I told this group of miners to check our web site for job openings. Once we raise $3.5 million, we will be hiring in ten to fifteen positions. I related my only experience underground in a diesel-fueled mine was Homestake in Lead South Dakota. When I got off the skip at the 7000-foot level and passed through the air doors into the active headings, I felt the loss of air or its pollution. I also felt a moment of panic. No amout of money could make me show up daily to work in a diesel heading. Perhaps the principle benefit to our company from this talk will become the benefit to the Elko underground miners: a new opportunity to mine in a healthy environment.
 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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