December 11, 2018 
 Tuesday 
 
 

Forum
Topic:
Ideal Time for Facts

       

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 By Michael Miller

08/24/2015  1:18PM

See entry on 8/18/2015.

Then please use your common sense and imagination to add descriptions for me to present at a conference with federal regulators regarding Sixteen to One mine. Even if you have never been underground go ahead with adjectives and nouns. Use your imagination. Others do. I want your views.

The crew just finished a week long inspection where our normal was seen as creating unsafe work environment (something that regularly happens with MSHA regulators employed to help miners with safety and health. I was handed four citations marked serious and substantial, the worst kind of evaluation. None of the miners could believe the citations represented the Sixteen to One. All these must be vacated.


How to explain to MSHA? What I will send MSHA district office:

"Sixteen to One mine topography is not discrete or separate in its underground surfaces. The mine workings are in a hazardous environment underground and will always be treated as such. All people entering the underground are given instructions about the conditions they will encounter. It is a hazardous and dangerous place, especially for person with infrequent experience.

The hazards include but not limited to: irregularities in shape, size, composition, slipperiness, height, duration of awkwardness, unfamiliarity, low light, headroom, loose rock, ( please add some more things to beware of when underground in a mine). A person may slip, fall, scrape the body, trip, bump one’s head, (please add some more things). This is for real and not a joke."

Thanks. Comment here or to my email mmeistermiller@gmail.com
 By David I

08/20/2015  6:47AM

Hello Mike, sorry to here about the poor qualifications of the mine inspectors. you say you have had poor results with contact to your Congressman. The way you can handle this is to write the speaker of the house about your lack of support from your representative. I do it all the time, My representative is a democrat, and he and I do not liike each other very much. So to get around his inconsideration I write the Speaker John Boehner. He will help you.
 By Michael Miller

08/18/2015  4:36PM

Right now our mine has two Authorized Representatives of the US Secretary of Labor (AR) underground. They are commonly called “mine inspectors”. The Federal Mine Safety and Health Act of 1977 was passed by Congress for the benefit of miners as well as to benefit the general welfare of American citizens. Mineral production is not a luxury. It is an essential to our lives.


Section 505, entitled Inspectors, Qualifications; Training says: persons appointed as authorized representatives of the Secretary shall be qualified by practical experience in mining or by experience as a practical mining engineer or by education: Provided, however, That to the maximum extent feasible, no person shall be so selected unless he has the basic qualification of at least five years practical mining experience…


I was disappointed that this would be the first underground mine experience of one AR. I was shocked to be told that this AR has never worked anywhere as a miner or in a mine. She is here to get some training and experience. In the pre-inspection conference I related how costly this has been for us in the past. Time wise the inspections are uncomfortably slow and tedious as the lead AR wants to explain every little crack to the newbie. Well, this was also the experienced first time underground at the Sixteen to One for the lead AR.


I thought we had a meeting of the minds until the lead miner and also miners’ representative assigned to show the ARs the mine called me around noon. He was frustrated because they had only traveled a short distance from the portal and a lot of teaching was taking place between the two ARs.


I got my hat and boots drove to the portal and headed underground, hoping to to advance the situation or find out why they were so slow. What I found was they had traveled no further and were still looking at cracks and ground support. Oh, I forgot, when I left the mine in the morning, I called the MSHA District office in Vacaville to register my complaints about the ongoing use of Sixteen to One as a training ground for inexperienced ARs. This AR has zero experience which is a first!


What can be done about a federal agency breaking the law and passing the expense of lost time on a small operator? This is my question to you. How can this governmental treatment be addressed? The district and field offices know this. It really isn’t their fault nor is it the fault of the ARs. Our industry cannot survive with continual enforcement by an unlawful regulatory agency. Writing my Congressional representatives gets no results.


The Act of 1977 clearly spells Congresses’ intent in Section 103c, which protects small businesses from an “unreasonable burden upon operators and unnecessary duplication of effort in obtaining information”. It is an epidemic! MSHA has killed the small mining operation and who knows but it may be hurting the big multinational operations as well.


This behavior does not benefit our miners or our country. Maybe if others got involved, we can turn this abusive and unlawful behavior around. Parallel with those who grow our food, farmers and ranchers, those who extract the vital minerals we must have to enjoy life, miners are under attack by an overt act of aggression. If you like to eat and like your car, bike computer or clothing, I would like your help. Ideas are good but if others can make more people aware of this lawlessness happening right now at the Sixteen to One, we can stop a growing epidemic.
 By Michael Miller

11/21/2014  11:26AM

With inquires about my post below, a follow up seems prudent.

The formal demands at the highest level of federal policy are out of touch with day to day operations of miners. The inspectors/investigators are encouraged to aggressively pursue hearsay evidence by this recent MSHA directive. Maybe it is required in the coal industry. Coal is vital to all Americans. Growing congestion on US railroads due to crude oil shipments is side-lining coal and worrying power producers nationwide. The fear is a reduction in power generators. I’m not familiar with the coal miners and their working situations. They most likely are not familiar with the underground gold miners, especially those few in California. Even though, my desire is to let them know that others in the mining world are not comfortable with MSHA going after hearsay opinions that will determine the outcome of an investigation.

When MSHA directs its inspectors to go after a particular area in the mining industry, the small operator and miners receive little or no benefit. Our mines do not resemble coal mines, yet the rules MSHA enforces (and how inspectors go about it) are best described as, “one shoe fits all feet).
America must correct this behavior or we will become extinct.
 By Michael Miller

11/20/2014  12:09PM

Six weeks ago MSHA reissued its Procedure Instruction Letter “PIL” regarding inspectors investigating fatal accidents. The policy letter notes two changes. Both create more opportunities for inspectors to gather hearsay or secondary information from persons not at the accident scene. MSHA now encourages inspectors to “aggressively pursue interviews with witnesses (?) not on the mine site at the time of the accident”. This is a requirement placed on inspectors.

While this whole change of enforcement is somewhat troubling, this revision emphasizes the investigator approach family members to specifically seek potential hearsay evidence of “statements the victim gave to family members about safety issues at the workplace”. It also requires the accident team to create a Public Notice to encourage any person to contact MSHA with hearsay information related to the accident. MSHA will also consider this information as privileged, which prevents operators from learning the information until 48 hours before the MSHA hearing. The MSHA review commission now interprets Section 103(a) of the Mine Act of 1977 to require operators to turn over the home addresses and telephone number of miners to MSHA investigators.
 By Michael Miller

09/30/2014  9:14AM

Mining is a global industry. Mankind recognized the value of natural resources from the caveman to the astronaut. Those who fail to recognize this are fools. Ignorance of this necessary industry is the enemy of behavior. Following are some short clips about news you most likely will never hear or read.


Polish miners block Russian coal imports at border

More than 200 Polish miners blocked trains carrying Russian coal at a border passage in northern Poland to protest against the cheaper Russian coal being brought in at a time when local mines are struggling, mining union leaders said recently. Poland, which uses coal to generate about 90 percent of its electricity, produced 76.5 million tons in 2013. It exported 10.6 million tons but at the same time imported 10.8 million, mainly from Russia and the Czech Republic. Comment: USA coal use is the cleanest in the world. Coal industry is under attack in America.


Indonesia probe into deadly Freeport mining accident to take a week

Indonesia's mining ministry expects an investigation into a deadly accident at Freeport-McMoRan Inc.'s copper mine to take a week, and open-pit mining will not resume until its conclusion, a government official said. Freeport recently halted open-pit mining at its Grasberg copper mine, one of the world's biggest, after a truck collision killed four. Comment: The open pit produces around 140,000 tons of copper ore per day and the underground puts out about 80,000 tons. Copper is necessary for communications, a very active pastime today. Few ever think about where or how this vital element appears for our benefit.

Gold price seen near tipping point for mine cuts, closures

The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations. Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces. Comment: I have trouble with this analysis. Gold traders pushed the prices beyond all reason near the $1900/ounce. Gold “analysts” participated in creating a false value, creating semi panic for those without gold, which created an ideal short play. Ignorance cost some nice people to lose value. The spot price quickly dropped. At the $1220/ounce range, spot price remains 50% greater than the 1980’s massacre (high of $800/ounce).

Gold demand outlook promising on lower prices, seasonality

The gold price is expected to languish for the rest of the year and test $1,200. For the year as a whole, the price is expected to average $1,270, which compares with the year-to-date average of $1,289. However, this decline may not benefit Indian consumers, as the rupee is forecast to average 61.4 against the dollar this year. This requires the rupee to average 62.3 over the next quarter. Comment: If you have Indian friends, ask them to explain their culture and the role of gold.
 By Michael Miller

09/02/2014  6:04PM

September 2, 2014
Dear Mr. Rice,

The article you wrote regarding miners/ executives and price issues has merit; it tells one story but not the one I know. I entered the gold mining industry in October 1974, a couple of months before spot price controls were extinguished. I bought a mine in the Alleghany Mining District, the last active gold camp in California’s productive gold belt. I began mining in 1975. I also began a proxy fight to take over the second oldest gold mining company in the United States. Original Sixteen to One Mine, Inc. (incorporated 1911 in San Francisco) was second behind another California corporation Homestake Mining. I got enough shareholders to win a director seat in 1977 and enough proxies to vote in a new board in 1983. I became president.

I am a professional miner/executive with forty years of full time experiences in this unusual industry. There are topics that people like me rarely discuss publicly. My primary reasons for not being too concerned about the spot price vary; however what you did not mention is perhaps the most important. Spot prices are not driven by normal supply/demand economic standards. The market is a game played by the powerful. My understanding has resulted in the three really price runs since 1975, a date when the beginning of the modern gold rush began.

The prices were played beyond sustainability. We all knew it. Some took advantage by short selling or selling naked contracts. Some call it forward selling. Others never did this but sold gold when cash was required to operate as the directors saw fit. It will happen again. It always has. So, real miners/executives cannot fret about price swings. Go back and research how many public gold mining companies there were in the 1980’s, 1090’s, 2000 and today. Take a look how few remain over the past thirty or forty years. You may find more food for your thoughts. And for the heck of it, check out how many shares are outstanding.

Miners/executives (not all of them and not enough) do fight back. Yes, a “travesty of justice is being committed.” Gold mining could stand some closer looks by independent journalists/analysts. Most are afraid of what they will see in their reflection. Please write or check out our informational web site at origsix.com. Sadly, Original Sixteen to One Mine, Inc. is now the oldest company and the longest gold mine operator in the United States.

Bill Rice JR. article is found at : www.silverdoctors.com/why-wont-the-miners-fight-back/
 By Michael Miller

07/18/2014  10:25AM

Most people cannot understand the compounding effect that has befallen on California due to the enforcement of its political leader’s actions or inaction. Most people cannot comprehend that those elected public servants have place a bureaucracy to enforce their laws incapable of applying common sense. Common sense!

Californians let their government fall to special interest rhetoric. This rhetoric feeds on fear, fear instilled by untruths and self-preservation by public servants paid to carry forth the public’s work “for the public benefit”. California received an “F-“ grade , not an “F” for poor treatment of small business. Yes, that is an F minus. Can it get any worse? Of course it can. Can this pessimistic, non-economic and scientific exercise in public service management be turned around? Of course it can.

Are you interested? Will you help?
 By Michael Miller

07/15/2014  2:12PM

My friend [see entry below] thought Californians and Americans should keep getting facts like this. His letter to me follows mine. The subject is another costly and unneeded regulation. Read it before you read this July 15, 2014 email from Sierra County. What do you think? Good old Thomas Henry Huxley wrote it best:

Every great advance in natural knowledge has involved the rejection of authority. Peter, Paul and Mary sang, “when will we ever learn, when will we ever learn”.

July 15, 2014
Mike Miller,
As a follow-up to our conversation at the Sierra Fund lunch in Downieville, I mentioned that when CalEPA did an audit of our CUPA program here in Sierra County, they said that we were not regulating all of our facilities. They specifically identified the Sixteen to One Mine as not being included as a CUPA Facility and also the Agricultural Handlers (Farmers, Ranchers). I need to submit another CUPA evaluation follow-up report at the end of this month indicating progress on compliance with regulating our facilities in Sierra County. Therefore, I need to make arrangements meet with you & include the Sixteen to One Mine on our CUPA inventory and make sure that your hazardous materials inventory is updated in the new statewide electronic database (California Environmental Reporting System, or CERS).

The Business Plan program was established in 1986. Its purpose is to prevent or minimize the damage to public health and safety and the environment, from a release or threatened release of hazardous materials. It also satisfies community right-to-know laws. This is accomplished by requiring businesses that handle hazardous materials in quantities equal to or greater than: 55 gallons of a liquid,  500 pounds of a solid,  200 cubic feet of compressed gas,  or extremely hazardous substances above the threshold planning quantity (40 CFR, Part 355, Appendix A) to:
 Inventory their hazardous materials
 Develop site map
 Develop an emergency plan
 Implement a training program for employees

Businesses Must Report Electronically to CERS (California Environmental Reporting System, or CERS) instead of on paper forms.
Website link: http://cers.calepa.ca.gov/
What is CERS?
The California Environmental Reporting System (CERS) is a statewide web-based system to support California Unified Program Agencies (CUPAs) and Participating Agencies (PAs) in electronically collecting and reporting various hazardous materials-related data as mandated by the California Health and Safety Code and new 2008 legislation (AB 2286). Under oversight by Cal/EPA, CUPAs implement Unified Program mandates that streamline and provide consistent regulatory activities. Could you be available to meet with me on Tuesday, July 22, 2014 in the afternoon? Thanks.
Elizabeth Morgan, MPH, REHS Director of Environmental Health
Sierra County Environmental Health P.O. Box 7 Loyalton, CA 96118
(530) 993-6716 emorgan@sierracounty.ca.gov (New E-mail Address 4-25-2014)
 By Michael Miller

07/15/2014  1:46PM

ALERT
Last Sunday the Sacramento Bee published an article about the best and worse states for small business in America. Five states received an F grade: Illinois, Hawaii, Vermont, Rhode Island and California (F-). Excessive governmental regulations were the primary reason. It seemed correct to me, based on what I (Mike and I are old friends)read about agencies headquartered in Sacramento. Is it a malaise of blanket over rules? Or could it be specifically directed at producers? Or is it focused on gold mines? Or is it designed to control or conduct the affairs of Original Sixteen to One Mine?

It would take some self-narcissistic wacko to think some small gold mining company would draw the attention of governments’ well paid authoritative public servants to order, instruct and command a lowly Sierra County Director of Environmental Health to drive another spike into the heart of such inconsequential business. Why would California pick on the Sixteen to One business? But think again.

I just hung up the phone after calling Michael Miller, president of this inconsequential gold mining company. He is not a wacko yet his intensity about a call he received shortly before my call shook me to write him this letter. He can put it on his website or not. Mike, you must.

Mike told about a call from Elizabeth Morgan, Sierra County environmental Health. She said that 5 guys drove up to Quincy and ordered her to drive up to meet them. They specifically asked why the Sixteen to One mine was not in her California Environment Reporting System. One told her to get the Sixteen to One. No other mines were targeted or mentioned. She called to “get us regulated”. She wanted to drive to Alleghany to do an inspection. Mike said mines are heavily inspected and he didn’t have spare time. She faces demands from State regulators to get it done. She said the fed EPA was demanding this. Mike questioned was this driven by California or federal regulators. She didn’t know. After a lively conversation, she said she would send him an email explaining. (Mike, copy the email you read me for the internet). This appears to be California driven.
Lynwood West
 By SCOOP

04/29/2014  5:19PM

You must check this out. One of the Sixteen’s biggest shareholders is being honored this week in Austin Texas. You will read about this event at the following web site.

http://optionsconference.com/agenda/sullivan-award/

Blair and Mike were class mates at UCSB, Sigma Alpha Epsilon fraternity brothers and longtime friends. Blair deserves this award, so go read about his accomplishments.

Do you remember that dark day in 1987, when the stock markets were free falling? Panic is not the word for those witnessing that day. Something happened that changed the course of history and saved the markets and the country from collapse. As the sell-off continued unabated, desperation would be how to describe it. Someone began buying. Someone stopped the collapse and serious despair that hung over the money market. Someone stepped forward in the midst of the crisis. It was Blair Hull, who began placing buy orders. This fact is not widely known but Blair deserves much more than the facts stated to the Sullivan award he receives this week. Check it out.
 By fredmcain

03/27/2014  10:04AM

Thanks, Michael! You won't believe my stupidity. I was searching for a "News index" on KNCO's website! No wonder I was having trouble!

Great interview, though! Like I said earlier today on the "Clips" thread, I think we have reason to be encouraged. Your interview only reinforced that encouragement. Things are looking up both in the mining industry in general and at the Original Sixteen To One as well!

Regards,
Fred M. Cain
 By Michael Miller

03/27/2014  9:05AM

Under the original sixteen to one mine logo and date (to your left)is the index for the website. Second down is "News". It takes you to the shortcut for KNCO interview.
 By fredmcain

03/27/2014  4:29AM

Mike,

What "New index" would that be? I'm having a terrible time trying to find this. Nor can I find an e-mail contact for KNCO.

If you can find the interview, could you post the URL on the forum? I really would like to listen to it.

Regards,
Fred M. Cain
 By Michael Miller

03/26/2014  2:27PM

There is a short cut for you to listen to the radio interview on KNCO. The station called with an invitation to talk about the closed forever position announced this month of the Empire Mine Adit Project. It raised objections among many familiar with the idea to offer underground tours of this iconic gold mine. The stated reasons given by State Park Director Anthony Jackson made no sense (I was the project contractor and our miners excavated the adit.

I refused a request to come on the radio eight months ago but now was an “Ideal Time for Facts”. The commercials have been erased. If you can find the time for some radio, go to the News index and click on the address.
 By Michael Miller

11/14/2013  12:52PM

Regarding Fred's thoughts on the article below: Angela Kean's article seems marked by sophomoric assumptions or assertions of learning. I don't believe that serious producing gold miners manage that way. Ones product price certainly is a factor, but this reporting is reoccurring financial adviser talk. Most gold producers are long term players. The short term "gold companies" are mostly stock promotion orientated.


The World Gold Council offers reliable data for mulling when it comes to forecasting the future of gold. I learned a lesson from one of our great directors. Years ago Lee Erdahl answered my question of how to reply when someone asks me about spot price of gold. "Mike", he said, "A truthful reply is to say, one thing I know for sure is it will either go up or go down." I have followed his sage advise.

The five statement below by the World Gold Council suggest stability. The demand from the technology sector support a spike up (demand). The contraction in recycling due to lower average prices (supply) supports up ticks as well. Of course we are happy with ever increasing prices; however we have managed to stay operating during the lowest lows and the highest highs since 1974. When the Sixteen to One mine slowed to a crawl between 1966 and 1974, the fixed price was the determining factor. The mine did not exhaust its gold production possibility.


From the World Gold
Counsel

Q3 Jewelry demand up 5% as lower prices encourage shift to higher caratage

Demand for higher carat jewelry was seen across most regions, blurring the line between jewelry and investment. This contributed to global jewelry demand of 487t up 5% year-on-year.




Demand for gold bars and coins grows 6% in Q3 2013; ETF redemptions slow

Q3 was another mixed quarter for gold investment. Bars and coin demand increased to 304t in Q3, up 6% year-on-year. ETF outflows slowed to 119t, as most tactical redemptions took place in Q2.



Robust technology demand, supported by lower prices, up 1% in Q3 2013

Demand for gold from the technology sector saw a modest gain in the third quarter, reaching 103t. This was driven by lower prices and improved economic conditions.



Central banks bought 93t of gold in Q3 2013, reserves up almost 300t year-to-date

Official reserves grew by 93t in Q3, the eleventh consecutive quarter of net purchases. This demand continued to be dominated by central banks from the emerging markets.



The supply of gold in Q3 totaled 1,145t, 3% lower than the same period in 2012

Modest 4% growth in mine production during the quarter was outweighing by an 11% contraction in recycling, as lower average prices failed to attract sellers.
 By fredmcain

11/01/2013  12:54PM

Michael,

Please correct me if I'm wrong, but aren't the "low-grade" mines usually open pit that involve processing thousand and thousands of tons of material at a time with chemicals while the "high-grade" mines tend to be deeper, underground mines that often use tracks? Is that right? I'm not sure that the "high-grading" discussed in this article is necessarily a bad thing but I don't know. Can you shed some more light on this?

-Fred M. Cain
 By Michael Miller

10/30/2013  10:56AM

I want you to read the article below that I received today. It is full of speculative opinions, which many interpret as facts. This troubles me since I am a gold producer and deal with every issue of management responsibilities. See if any of my concerns about ‘word play’ and credibility also strike you. The article is written by Angela Kean in the October 30,2013 issue of SNL Metals Economic Group West Edition of Metals & Mining.


“Gold miners tempted to ‘high-grade’ to weather downturn
By Angela Kean

The seemingly never-ending volatility in the gold price has forced miners to do whatever they can to weather the slump, from cutting workers to shelving or selling projects, but some gold miners are turning to a solution known as high-grading,” which could do more harm than good in the long term. The high-grading method involves mining only the highest-grade ore and leaving low-grade ore in the ground. Sprott Private Wealth LP investment adviser Michael Kosowan likens it to the phrase “take the best and leave the rest.”

This becomes somewhat appealing to struggling gold miners as it can give them a quick cash boost in times of low gold prices and high costs. One analyst told SNL financial that a company may have no choice but to resort to high-grading during a downturn, especially if low-grade ore is uneconomic. “Usually the longer the gold price remains depressed, the more likely that more miners will abandon lower grade ore and revisit their mine plan/reserves to mine higher-grade material,” he said. “Losing, or not making sufficient, cash flow as each month passes just becomes too painful to investors.” In his address to the Toronto Resource Investment Conference in mid-September, Kosowan said the industry’s response to recent challenges has led to an even “graver” future. “When a miner deviates from the original mine plan, which was intended for mining the entire deposit, it becomes much more expensive to later change the mine plan in order to capture the rest of the deposit,” he said “
 By Michael Miller

08/15/2013  10:13AM

Second Quarter 2013 in summary from World Gold Council


Gold jewelry demand rises 37% in Q2 2013, led by Indian and Chinese consumers

Lower gold prices generated a surge in global jewelry demand to 575.5t, the highest volume for five years. In value terms demand was 20% higher than Q2 2012.


Sizeable ETF outflows countered by record bar and coin demand of 508t in Q2 2013

The fall in gold prices led to record demand for gold bars and coins of 507.6t, up 56% in value terms to US$23bn. However, this was mitigated by well-documented outflows from ETFs.



Technology gold demand saw a marginal increase, up 1% in Q2 2013

Demand for gold in the technology sector in Q2 2013 increased by 1% to 104.3t. Price declines and improvements in economic conditions provided a boost to demand from the electronics segment.


Central bank gold purchases slowed in Q2 2013, remain within 70-160 ton range

Central banks added 71.1t of gold to official reserves in Q2 2013, marking the tenth consecutive quarter of net purchases but 57% down on the previous year.


Total supply shrank 62 tons in Q2 2013, driven by 21% decrease in recycling

While Q2 2013 mine production saw a 4% increase year-on-year, the significant reduction in recycling by consumers during the quarter led to the 6% decrease in total supply.
 By Rick

03/15/2013  5:45PM

Michael and all...a short comment in view of the post below...I'm adding a few additional assets to your list:

Optimism,
Potential,
Pride in ownership,
Vision unobscured by crap,
Constitutional perspective,
Success despite the effers,
No worrries about truck dents,
Smiles,
Endurance,
Underground and above vision,
A good stack of firewood,
Faith in wisdom we know,
And the optimism to share,
Wisdom to call "deep",
Wisdom to seek,
Wisdom to challenge adversity,
Wisdom to see it!!!

Now that, my friends, is true!

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