May 29, 2020 

Ideal Time for Facts


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 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:

Pride in ownership,
Vision unobscured by crap,
Constitutional perspective,
Success despite the effers,
No worrries about truck dents,
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!
 By Michael Miller

03/14/2013  1:50PM

A new report by the World Gold Council examines the growing trend of central banks’ actively looking to diversify their reserve portfolios. While the dollar is still the primary global currency, its long-term dominance is less certain. In response, central banks are reducing allocations to US dollars and euros while increasing purchases of traditional assets such as gold and Japanese yen and new alternatives including Chinese renminbi.

The official reserves of global central banks have grown from $2 trillion in 2000 to more than $12 trillion in 2012. During this same twelve-year period the data shows significant shifts away from the US dollar while the share of “other” currencies in reserve composition has tripled in absolute terms since 2008.

Gold has a long history as a reserve asset for central banks, and as such is considered a traditional one. Gold is statistically uncorrelated with other traditional reserves and new alternatives, making it one of the most important assets for diversifying out of the US dollar and euro. In line with this trend, central bank gold buying in the fourth quarter of 2012 marked the eighth consecutive quarter of net purchases by the official sector and the highest level since 1964.

Gold’s deep liquidity is attributed to its global nature and its role as both a currency and an asset with multiple uses. While some treat gold as a item to trade, a minority think of gold as an asset to hold. Therein rests a key difference when gold investing is a topic of conservation.

Personally, I have no euros or yuans (the division of legal tender in China). I do have dollars and gold but my greatest asset is ownership in Original Sixteen to One Mine, Inc. It is my reserve asset: real estate, timber, gold and valuable subtleties not included on a balance sheet. So, if global central banks are accumulating gold as part of their reserve portfolios, it means more to the economy than the hype one reads or hears. Gold just won’t go away no matter how or who blasts its worth.
 By Michael Miller

02/26/2013  4:18PM

Two articles published in California’s oldest weekly newspaper were placed in the NEWS

heading on the left side of the website today. The “Sixteen to One Optimistic” article
hit the front page. “Losing Sight of the Goals” was prominently placed on the back page.

Comments or questions are appreciated on the FORUM.
 By cw3343

01/08/2013  4:22PM

Good points below. Seems that a lot of people must have not ever heard of Bre-X, or, most likely, were greedy. Greed is the cause of many bad decisions.
 By Rick

01/06/2013  6:13PM

I just read Mike's recent post pointing out the meager $50K fine for the fraud-master of stealing millions from dummies who invested their $$$s in scheme rather than reality....the oldest gold-trick in the book. WAKE UP!

Three HUGE questions emerge:

1) Why do people fall for this crap, lose their money, watch slap-hand judication and watch the fraudsters laugh their way back to their bank-accounts while true high-grade gold-mining assets with true potential and historic record production languish with no bites?

2) Why are not the fraudsters adjudicating previous (and this one cited in the previous topic post) frauds not themselves exposed for raping private enterprise attempts with true objectives? (HINT: courts themselves don't look in the mirror...otherwise they'd have a major problem with appointments, who would have a major problem with.....etc, etc, etc....)

3) Where are the investors with deep knowledge, those of us with backbones worthy to challenge and see through the public-sector fraud, willing to watch this amazing potential explode?
 By Michael Miller

01/05/2013  2:40PM


SEC files fraud charges against California-based gold miner (January 3, 2013): The Securities and Exchange Commission today filed fraud charges against a California-based mining company and its CEO who induced hundreds of investors to pour $16 million into a fruitless gold mining venture. The SEC alleges that Nekekim Corporation and Kenneth Carlton defrauded investors with representations that a special "complex ore" found at Nekekim's mine site in Nevada contained gold deposits worth at least $1.7 billion. Carlton highlighted test results produced by two small labs that used unconventional methods to test the ore for gold, but he withheld from investors other tests conducted by different firms that suggested the Nekekim mine site held little if any gold.

Carlton falsely represented to investors that a "physicist" who in reality had no scientific training helped develop a confidential gold extraction technique licensed by Nekekim. In one newsletter, he touted: "A NEW GOLD RECOVERY PROCESS IS SUCCESSFUL." As each of these methods actually failed, Carlton's reports grossly overstated Nekekim's progress toward profitability while prompting shareholders to invest more money in the company.

Carlton, who lives in Clovis, Calif., agreed to a judgment requiring him to pay a $50,000 penalty and prohibiting him from selling securities for Nekekim or managing the company.

Hundreds of protesters gathered in Doima, a small town in central Colombia to oppose a proposed AngloGold Ashanti (NYSE:AU) (JSE:ANG), gold processing plant for its 100% owned La Colosa project. Protesters were concerned that gold ore processing, which uses large amounts of water and requires chemicals, often including cyanide, would diminish and pollute local water supplies.

Australians are heavily opposed to foreign ownership of the country's resource interests. Foreign ownership of Australia's mining concerns is higher than they would prefer, and almost half of those surveyed were opposed to the recruitment of foreign labor by miners. The China-backed mining boom has had a disparate impact on Australia's states.

ALLEGHANY OBSERVATIONS: $50,000 is a small price to pay for screwing investors out of $16
million. Were these investors stupid or greedy? It happens in Colombia,Indonesia,Africa,Australia and Asia where billions of start-up dollars go into the natural resources only to be confiscated by the governments or challenged by third parties. Does it happen in the USA? You bet it does: California’s water regulators, federal BLM in Nevada, frivolous environmental lawsuits. What does this mean to the economics of gold or other natural resources? Restricted supply in a rising demand business cycle.
 By bluejay

09/29/2012  12:01PM

What an excellent reach back in history. The smart bankers have their stable of media puppets telling you same old story: don't buy gold while they continue to manufacture paper crap for you as they secretly accumulate gold in their own private accounts. The bankers have robbed international treasuries through the past auctions along with their latest trick being the "we buy gold" stores at deep discounts from the public while they economically suffer. One of their biggest paid off parrots and destroyers of sovereign wealth is Gordon Brown when he sold most of England's gold at about $275 an ounce in the early 2000's and made the case for buying foreign currencies.

Don't let these baffoons meddle with you mind. Your net worth will always be defined by how many ounces of gold it relates to or better yet, by how many ounces of gold you physically have in your possession.
 By Michael Miller

09/28/2012  2:54PM

I subscribed to the Economist to gain a global awareness. Like the joke I heard years ago about how the miners felt like a mushroom…kept in the dark and fed manure. Over the past decade a noticeable lack of articles about gold are published. The July 10th 2010 issue cover excited me with this: “Why gold has probably peaked.” Here are some excerpts I highlighted.

“Low returns on other investment and fears about the world economy have caused the price of gold to soar. Don’t count on its continued rise. Willem Buiter, a former professor at the London School of Economics who is now the chief economist of Citigroup has called gold the subject of ‘the longest lasting bubble in human history.’ He says that he would not invest more than a sliver of his wealth into something without intrinsic value, something whose positive value is based on nothing more than a set of self-confirming beliefs.” Gold was selling at a little below $1200 an ounce at the time of this article.

The concluding paragraphs of this three page article say: “All this suggests that the traditional markets for gold cannot be expected to pick up the slack if rich world investors’ appetite should fail. As long as the world economy remains uncertain and investors fear inflation and sovereign default, gold will keep its allure. Eventually, however, the price will weaken; it is even possible that the recent slide below $1200 marks the turn. And investors may look back on the bull run of 2009-10-or 2009-2011-with the sort of wonder that humanity has too often reserved for the yellow metal itself.”

The article yaks about three question vital to understanding the future prices of gold.: how long investors keep piling into gold; will jewelry demand pick up the slack; and how will supply respond if the price stays high. The writer(s) reflect on the first two but ignore production. If the World Gold Council’s numbers are correct, gold production is in decline. If aware geologists’ observations are correct, the troubles in South Africa, Peru, Indonesia and the high costs of getting a mine into production and keeping up with regulators’ opposition to mining continue, gold production may significantly decrease in the future.

I found the article interesting when read in July 2010, and find it as interesting to read today. Spot price of gold today was S1776 an ounce.
 By bluejay

07/15/2012  10:27AM

The article below was written by Jim Willie.
 By bluejay

07/15/2012  10:26AM


The attorneys and aggrieved victims are lined up, as perhaps over 900 thousand lawsuits will come. That is how many adjustable rate mortgages were arranged from 2005 to 2009, with underwriting banks serving the complaints. The army of US legal beagles is on the job. The lost income to the victims is obvious. The lawsuits will eventually target the central banks. The fraud reaches into the $trillions easily, when all the derivatives are factored in. Think many $trillions in volume times small percentages skimmed illegally. The mainstream press carefully avoids such topics. Do a GOOGLE search of "municipal lawsuits LIBOR" to produce 21.1 million hits. This story will be gathering momentum for several months, and be in the headlines a year from now.
 By bluejay

07/15/2012  9:10AM

If we were to walk into a bank with intentions of stealing money and walked away with it the punishment would be jail time. Now the bankers can steal money by manipulating the Libor rate and just pay fines for their crimes and walk away?

In this morning's NY Times article, "U.S. builds criminal cases over price fixing," it states that civil and criminal actions "COULD" cost the banking industry tens of billions of dollars. Is anyone going to figure out how much all this stealing by the banks amounted to?

Since this is probably the biggest heist the banks have collectively pulled off in history one would think jail time for the individuals involved is fitting.

It seems the Justice Department has had an on-going investigation into Global rate fixing, looking closely into the dealings of more than 10 big banks in the U.S. and abroad. All will be forgotten soon as this type of drama repeats itself with the banksters, basically, always receiving the get out of jail card while the other law abiding players seem to always get nailed for their illegal reckless behavior.

The day will come when, as a result of a crisis, you will not be able to get your money on deposit with them. This is why they don't control my destiny.
 By bluejay

07/14/2012  6:52PM

Check out the most current story at concerning no real collateral in the banking system but just debt and more debt. The interview with Maxx Keiser is quite enlightening.
 By bluejay

07/14/2012  2:10PM

The big banks are scum-bags.
 By Rick

07/13/2012  8:21PM

YES!! It will happen!
 By bluejay

07/13/2012  9:26AM

Here's something positive: If Reed and the boys come up with 5000 ounces of gold it will mean at least $6 million plus the gem quality factor which would multiply that number.

It's absolutely amazing how little acknowledgement the uninformed public places on our Company's prospects with all of our proven gold properties. Our fortunes are just around the corner and may come any day now, when least expected. It's just a matter of time and WE ARE DUE!

The largest high grade pocket ever found in California was pulled out of the 16-1 and was worth about $134 million at today's price.

 By Rick

07/10/2012  7:44PM

Everyone! (Big Al, Bluejay and of course Scoop)

It's time to turn our heads, our focus, from negative to Positive, REGARDLESS of our adversity!

We do this in our personal lives, every day. We wake up knowing that we are in command of our own destiny. Right?!!!

We KNOW that success isn't defined by what others suggest....nor by what others throw down in front of us.

IT IS TIME to direct our energy to the positive, inevitable, right-in-front-of us success.

Can you see it, RIGHT THERE?? It is.
 By bluejay

07/10/2012  8:48AM

Increasing unproductive government hiring, more controlling rules and regulations, courts not protecting the Constitution, increased taxation in proping up a degrading power base and no more Rule of Law, it's all in the linked article below by Martin Armstrong:
 By Big Al

06/17/2012  9:21PM

To Rick, As I was telling a friend of mine, Ed Smith, the brother of Smoky Smith that owned Black Barts welding, that I would be moving to a mine up on Kanaka Creek over upper Tyler Foote, he replyed, oh, thats the one the Swiss Engineers bolted to the side of the mountain to stabilize it when they built it. When you look at the side of the wall from a curve you can still see the bolts and plates they used. Sadly, Ed, and his brother Clarence (Smoky) Smith have died, I miss them, but when I drive upper Tyler to Foote's crossing I remember those words. Big Al

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