October 16, 2018 
 Tuesday 
 
 

Forum
Topic:
How to Approach Thin Veins & Cost

       

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 By Michael Miller

08/04/2012  2:26PM

In regards to cw3343 and Bluejay (see Clips from Alleghany 07/31/2012): the most likely way to permit a project in California is to present truthful, accountable facts or honest opinions about your mining project to all parties, including the public. Rarely have I seen this approach over my thirty-seven years in this industry. Distortions begin with the owners or promoters who must find sources of working capital to fund the operation. Why? Real, potential or want-to-be investors are pretty ignorant about mining, although they may be very skilled about money or business, speculation and investment. The permitting pattern has been to offer a huge carrot and shorten the time line for production when the money source will see a payback. This is how it begins and once the story is told, it is difficult to retell the story to the regulators as one seeks approval. Idaho Maryland mine in Grass Valley is a classic case.

Understating the amount of time to bring a property into production has too many examples to mention. This optimism is sometimes really believed by the speaker. Most times and it is unfortunate, the deception is willful. It casts a sour reflection on the people who profess themselves as mining competent as well as our industry. Projections are deceitful or purposely a lie. Miners talk of production as the taking of ore. Ore may or may not be profitable but it must have value.


Since 1975 in America when its citizens were once again allowed to own gold, those interested in gold mining have had ample opportunity to embrace truth and scorn error in the presentation of professed opportunities. Mining knowledge acts in complex ways; but it is nevertheless a tragic fact that truth has not triumphed over distortion. Either not enough people recognized the truth, those who did recognize it did not exerted themselves sufficiently in its behalf or many people saw the truth but were indifferent to it. These people comprise professionals in the mining industry, the investment/banking industry financial media types and more.

In the absence of demonstrable truth, the best we can do is to exercise the greatest diligence, humility, insight, intelligence and industry in trying to arrive at the nearest values to truth about the specifics of the mine status and projections. If, after having done this, we have an inescapable duty to impress others with the particularities that comprise our truths about mining for gold. These beliefs extend to anyone entering a mine’s business. “Truth, like gold, lies at the bottom.”

I worry little about permitting. Permitting has not been a problem for Original Sixteen to One Mine. I object to unlawful, unnecessary (ethically or morally) corrupt behaviors of anyone whose business is or is not related to the Sixteen to One mine. (California’s water regulatory personnel qualify, as have some federal people over the years.) My behavior towards regulations/permitting is grounded in the belief that most individuals are righteous and well-intended and I take opposition as impersonal.

Best wishes to Sutter Gold Mining Inc. Its money is coming from South Africa to Australia to California not by accident. It will not be producing gold by the fourth quarter unless it is actually an insignificant amount. Its debt is worth studying as well as its capitalization.

“Let truth and error do battle in the arena of ideas. Truth will vanquish. Let the student and the citizen witness the struggle; let the struggle take place in their minds, and they will ally themselves with truth.”
 By Michael Miller

05/02/2012  8:47AM

WE have identified a site underground worthy of spending time and money to produce gold. Its initial prospects were known from the mine’s historical production records as a significant home for a significant pocket or concentration. The area above yielded 19,000 ounces. The vein below yielded 83,000 and was the largest pocket recorded in all of California. Over the years large slabs of the hanging wall fell and has covered the quartz. The area is a short distance from the portal. Track and utilities are nearby and will require modest time and material to set up for exploration.

Of the three factors for profitable gold mining (men…mineral…money) only money is lacking. If you or people you know have ever had a twitch to join a legitimate treasure hunt, step forward. A limited partnership is the vehicle to get involved. Your investment should qualify for an expense. Your in-kind share of the gold should not become a taxable event until it is sold. The budget for this target is $250,000. The minimum share investment is $25,000. The maximum share investment is $250,000. No widows or orphans, please unless you have the net worth to take the risk.

What about the risk? All mining ventures have risk, some more than others. During the past two weeks, we have explored the area with metal detectors (it is larger than a football field). Gold was found in five different places, which is an important discovery. This target is in the heart of the mine.

The time to complete the project is estimated at three months. Interested? Write me or call (530) 287-3223. MMM
 By Michael Miller

03/28/2012  12:16PM

EXPLORATION

The definitions of a word used in the general population and the same word used with miners sometimes differ. Exploration seems to work for both efforts to describe an activity…to explore. In miners talk, exploration aims at locating the presence of economic deposits and establishes their nature, shape and grade. Preliminary exploratory work in our mine takes place along the strike and dip. This is done by making drives, raises and inclines. These openings follow the deposit both in strike and dip. They are designed in such a way so as to make it possible to use them for mining purposes should the exploration turn out favorably.

In picking a spot to begin exploration we use good old fashion geology. Our reports and maps plus history and experiences are invaluable. So is a metal detector; however the range of detection for detectors is just a couple of feet. The current detectors used underground are off-the-shelf varieties. They have dramatically changed our methods and sometimes a gold discovery leads to a target. An increase in depth will aid exploration with results similar to those during 1992-96. We found a lot of gold overlooked by our mining ancestors. In no manner do I criticize their tremendous underground abilities. Both the engineers and geologists and the grunt rock breakers, muckers and other supporters did an amazing job in exploration, development and production. Few, if any gold mines in California maintained a more favorable dividend payment record to its shareholders than the Sixteen to One. I talked with shareholders years ago who counted on their dividend payment throughout the 1930’s depression. Their heirs still own the stock.

New technology has not come to Alleghany since the efforts during 1995 -97 by third parties plus some work we also instigated.. Much has changed since then and I look ahead to the day when the depth of detection increases from the current level. Exploration will identify those favorable spots and off go the drillers, muckers and other supporting crew. This deposit has over 35 miles of exposed vein to explore. It also has more than three times of undeveloped quartz that has never seen the light of a miners cap or felt the power of a miners drill.

With this background I am excited to tell all of our internet friends that we started an exploration program today. It is designed to explore the strike and dip of the vein as well as be useful should we find a gold target. It is refreshing to have this small opportunity to explore rather than maintain the mine for a future exploration program.
 By Michael Miller

12/22/2011  2:41PM

Non mining conversations on our FORUM should and will continue. I find much of it fascinating. All the opinions are worthwhile; however, they will diminish as new events take the spotlight. For long time mine advocates, recent readers of the FORUM and friends or foes of this old operation in California, never forget our purpose: to protect, preserve enhance and exploit our assets.

Deep in our files are extraordinary data about the when, where and how to accomplish gold mining here in Alleghany. Some are published while some will always be kept secretively on a “need-to-know basis”. I continue to draw important relevance from the data even after being exposed to them for decades. Sometimes a familiar word or sentence or thought takes on new meanings.

The following is posted for that reason…new meanings for you. It is directed to all of you who have an equity ownership in the Original Sixteen to One Mine assets and all of you who have thought about it but failed to make a move (investment).

The authors related a quote at the beginning of a series of papers written over 25 years ago. Offering quotes about the vagaries of mining a high-grade vein like the Sixteen to One must be some nutty professional whim of geologists, mining engineers and other professional miners. It happens often. The quote in this case is from Damon Runyan, Guys and Dolls.

“The race may not always to be the swift, nor the battle to the strong; but that’s the way to bet.”

Following are parts of this valuable historical file with the title of “Exploration Objectives and Philosophy for the Sixteen to One Mine”.

The object of exploration at the Sixteen to One Mine is to determine the quantity and location of gold within the vein system. In order to successfully conduct exploration in the vein system it is necessary to understand the ore controls.

Ore controls within a vein are the physical-chemical geological processes by which the vein and its ore minerals were formed. . Vein minerals are deposited in faults or other open spaces in the host rock from hydrothermal solutions that circulate though the fault zone and cracks in the surrounding country rock. Local heat sources, such as a cooling body of molten intrusive rock, are responsible for the circulations of the hydrothermal solutions.

Faults are usually relatively planar features with some irregularities in shape due to variations in the tectonic forces which create the fault and the variations in the host rock cut by the faults. Therefore, movement on the faults results in the development of open spaces where vein materials are deposited. Each episode of fault movement, of which there are usually many, results in new areas of open space and a new phase of vein mineralization.

The chemical conditions for the deposition of a particular mineral depend upon temperature, pressure, and chemical species concentration in the hydrothermal solutions. Quarts and pyrite, for example, are deposited over a wide range of physical-chemical conditions. Gold, on the other hand, is deposited in a relatively restricted range of physical-chemical conditions.

Therefore, the locations and quantity of gold within a vein are the result of geological controls, in turn reflected in observable characteristics of the vein and its wall rock, which may be measured by mapping and sampling a vein. Vein characteristics may be classified as either structural or mineralogical. The structural characteristics include strike, dip, thickness, and slickenslide orientation, which can be readily mapped along with the visible mineralogy. In additions, the elemental abundances can be determined by atomic absorption analysis and the sequence of mineralization can be determined by the electron microscope.

Analysis and Interpretation – Optimization of Explorations and Exploitation of the Sixteen to One Vein

A computer-resident model of the geological features and mineralization of the Sixteen to One vein should be initiated and continually refined to assist in defining exploration and mining strategy. Initially large amounts of old and new explorations and past productions data should be placed into a computer for storage, analysis and display. These data will then be used to build a model of the vein which can qualitatively and quantitatively predict area most deserving of early exploration, pointed towards locations of minable reserves. Use the computer model will bring discipline and a partial optimization of these ends.

A basic underlying assumption is that the economic gold mineralization is not randomly located within the veins. As in any mineral deposit, physical-chemical geological controls will have operated to determine the gold distribution; our problem is to recognize and measure these controls, and to then use these measurements to make predictions of areas in the vein with the greatest probability of further gold occurrences.

Truly random gold occurrence would be remarkable – but there are clearly observable preliminary indications that we are not dealing with in such a case. Visually, a map of the known gold occurrences shows several strong trends. Further, from measurements of these occurrences, both as to their size and spatial locations, a well-formed geostatistical variogram can be obtains, with a range from 400 to 600 feet. If further confirmation of non-randomness is desired, a test for a 2-dimensional Poisson distribution can be applied.
 By Michael Miller

10/19/2011  9:58AM

People ask me, “Are men working in the mine? Are they finding gold?” The answers to both questions are, “Yes”. A limited crew has continuously been working. Work never stopped. It just slowed down to a crawl. This is important to remember during this period of doubt due to a lawsuit filed against the compay by the staff of the central regional water department in Sacramento.

Any earnest review of gold mining the Sixteen to One deposit arrives at the same conclusions: the ore is either rich, exceedingly rich and most of the host quartz is barren; gold follows an ill defined pattern referred to as ‘pay-shoots’; success or failure (risk/reward) defined as profit depends on a formula. After thirty-six years of continued investigation, which in the investment industry is called ‘due diligence’ I know the formula, as do our geologist, present and former directors. My frustration stems from knowing that the formula for success is not in effect right now.

One last comment seems appropriate. A close friend commented that reading the FORUM suggests that either the company, Mike Miller or the mine are presenting themselves as victims. If you read the above as victims, it is your call; however, none of the three feel defrauded, swindled, duped, or cheated. None believe the legal assault constitutes a misfortune. It is an abuse by government people with a punitive and personal agenda. It is a function contrary to the purposes of government and it is definitely not in the best interest of the stated plaintiff, the People of California. Sadly, this behavior has spread over the past four decades as the forces of rebellion against the government took hold in the late 1960’s.

Those responsible for conducting the public’s best interest in carrying out the protections and beneficial use of water in the Kanaka Creek watershed have succeeded in bringing one of the world’s great gold mines and an operation that brought financial success and personal satisfaction to many in Sierra, Nevada and Yuba counties have only succeeded in hurting our region, our state and our country. None of us are victims but we all should really be against the purpose and conduct exhibited by the leaders in Sacramento.

The small vein gold mining in California is a spark that will turn around the direction of jobs by producing something more valuable that the cost of production. Small vein mining at the Sixteen to One is a profitable venture when the formula for operations is in place
 By Michael Miller

08/02/2011  9:19AM

Original Sixteen to One Mine, Inc is 100-years old this fall. Remember, though, the Sixteen to One mine and other mines in Alleghany owned by the California Corporation have histories going back to the 1850’s. An especially active and challenging (and profitable) period took place from 1903 to 1914. It was a time of discovery for the venture capitalists that found the Alleghany Mining District a place of interest. I say “discovery” because little was known about the geology and nature of this world-class high-grade gold deposit. We have learned from their successes and failures.

Factors determining applicability of mining methods: shape, size, dip and regularity of orebody, physical and mineral character and value of ore, distribution of pay ore, character of wall rocks and overlying surface, relation of deposit to surface and to other orebodies on same property, kind of labor, availability, character, and cost of timber and material for filling.

Technological improvements in drilling, blasting and mucking have continued since the early discoveries of high-grade gold. In 1992 the successes of bringing simple metal detectors underground have significantly changed some of our mining and processing methods; however the true miner knows that the nature of the deposit dictates the means and methods of mining. The following are terms used to define ore handling that remains as practical today as they did 100 years ago.

Chutes must remain open during the life of stope. Types: (a) A cheap chute for filled stopes is made by lagging the outside of a row of sets, but lagging is apt to be broken by falling ore, by swinging of sets or by pressure of the filling, admitting waste and possibly destroying the chute; (b) The inside of a row of sets (usually the outside also) is lined with vertical planks. This is common is both open and filled chutes. Thickness of lining (2 to 4 in) is proportioned to wear during the life of the chute. A double 2 or 3-inch lining may be used to secure tight joints; (c) Cribs of round or square timber, built independently or just inside of the sets, which may or may not be lagged outside. Independent chutes are useful for carrying through stopes at an angle to the sets. Chutes inside of sets act as reinforcement and offer strong resistance to wear and pressure of filling; (d) A vertical row of sets is “bricked” with timber blocks.

Grizzlies or logs or square timbers set 8 to 10 in apart, are often placed over tops of shuts to keep out large lumps which might block chute or gate. They are especially important for single-compartment chutes in filled stopes.

Gophering is a name applied to mining in irregular drifts or other openings which “follow or seek ore without any regard to maintenance of a regular grade or section”. The method is also called “Coyoting” in western U.S. In general, the term designates any small-size, irregular, unsystematic workings.
Gophering is a poor man’s method used in small excavations where walls require little or no support. Obviously, it may be employed in portions of veins, beds, or masses, but has no place in systematic mining. If used to mine rich seams in a large orebody, gophering often results in a temporary profit but eventual loss, as the irregular openings increase cost of, or prohibit, mining the remaining low grade portions. On the other hand, gophering has a place in mining small irregular portions or isolated part of an orebody, where cost of systematic development is not justified by probably tonnage to be won. This is especially true of small, high-grade spotted deposits,
 By Rick

12/26/2010  9:07AM

Tis the season! I hope everyone had a grand Christmas and continued holiday spirit!

I simply wanted to infuse the positive optimism that comes with Christmas, to remind us all of what will help us look in the right direction. When times seem down, down, we look up up up...and once again noticing (well, heck, me included here) all the negative-vibe stuff this great mine is enduring, a healthy dose of positive energy and optimism is what we need!

While the top-most topic on the News up there says "forgedaboudit" (sp?) how about NEVER forgetting about it! Miracles do happen, along with $million pockets.
 By martin newkom

11/14/2010  10:01AM

Mike, I hope the Company hit some
luck and paydirt on your proposal.
 By Lone Wolf Geologist

11/08/2010  9:00PM

No, you never give up. You just keep full on blasting ahead!!
 By StevenJ1989

11/08/2010  6:59PM

I am planning to do mining, Should I stop that thought because of some environment hazard
 By Michael Miller

11/02/2010  4:51PM

Gold Mining Opportunity (see the entry below this one)

There is an inquiry about the lease. Mining leases have terms and conditions unique to the industry. The Sixteen to One requires a modest amount due at the time of recording the lease in Sierra County, a gross royalty on gold production, fair performance clauses, proof of required insurances, minimum monthly payments, rights of inspection, and the usual covenants that protect both parties. We want the new operator to succeed. Capitalizing the operation should be a minimum of $2 million. Three million is safer and $4 million really gets the operation flying. There is room for creative thinking on exit strategies for the lessee.
 By Michael Miller

11/01/2010  12:54PM

GOLD MINING OPPORTUNITY

The South Central Sixteen to One underground workings are available for lease. The Sixteen to One has thirty-five miles of levels. The current operation and the long range plan concentrate in the North Central. We will be there for another 100 years. The South Central is idle with no plans for immediate mining. This valuable part of the Sixteen to One deposit (extensive maps, production records and equipment available) is wasting away.

Why would one spend five to eight years getting permits to operate a gold mine? Put your money to work in direct mining. Here is as good a gold bet as any IN THE WORLD. Your investment goes to work immediately to access KNOWN DEPOSITS OF GOLD. Put a group together or go it alone.

Here is a proven gold mine, just sitting idle. I know that some Germans, English, Canadians, Iranians, Chinese, Australians, Saudi Arabians and even perhaps some US Americans have thought about or are currently looking for a way to get gold. AND ALL OF YOU SHOULD BE LOOKING FOR THE BEST WAY TO GET GOLD QUICKLY. What about all the venture capitalists? Why not undertake a special adventure?

Our company worked the South Central from 1995 to 2000; most of the labor was spent in the installation of equipment and sinking below the fault beneath the 2400 level. A fall in the spot price of gold and the tragic accidental death of a miner left us under financed to continue mining. An absence of gold was not the problem!

Go buy gold, if that suits you; however, that our venerable Company offers its prized gold deposit for exploitation to a third party is worth some serious investigation. One condition for this look: other than the information contained in this web site, the investigation begins in Alleghany. Questions encouraged. Call (530) 287-3223 or write me at PO Box 909, Alleghany,
CA 95910 or email to mmiller@origsix.com

You can help by introducing this gold proposal to others. Check this entry from time to time because it may be revised as time passes. Comments appreciated. Thanks.
 By Rae Bell

10/13/2010  11:57AM

Thanks for the clarification "Lone Wolf".
 By Lone Wolf Geologist

10/10/2010  7:37PM

Several years ago I purchased the library of a Canadian geologist that contained several publications on the Bralorne mine in the Bridge River district of British Columbia. This mine has some characteristics of the 16:1 including some highgrade, serpentine, mariposite and metamorphic wall rock but it is more like a Mother Lode mine than an Alleghany mine. Both are great mines with the Bralorne having produced over a million ounces. Other great mines of this type are Gympie in Queensland and Beaconsfield in Tasmania.
 By Rockroby

10/10/2010  8:45AM

Look's like North Bay resources is going to be mining the Ruby Mine sometime next summer.
Take a look at some of the nuggets pulled out of the mine at
htpp://www.northbayresources.com/ruby/
This mine has had lot's of money dumped into it recently,the amount of gold that this mine can and should produce is not even close to this companies mines.
As the price of gold climbs the public will become aware of just how valuable the Sixteen to One Mine is...........
 By Rae Bell

10/06/2010  8:22AM

I looked at the Bralorne Gold Mine site. It is an interesting mine but I have to respectfully disagree that it is similar to the 16 to 1. There they are drilling to establish ore reserves, here we are not able to that because of the nature of our deposit. That is the challenge of the Alleghany Mining District's high-grade deposits. The only mine that I know of in our district with a disseminated ore body is the Oriental Mine.
 By FranSix

10/06/2010  7:25AM

Hi, thought you might like to look at the Bralorne Mine website. If anything, this mine is very similar to 16:1.

http://www.bralorne.com/

(they just posted the website so some of the material is not yet there.)
 By martin newkom

09/14/2010  2:34PM

I have news for all: Gold spot
went well over $1200 and $24
increase today according to CNBC
 By FranSix

09/14/2010  2:56AM

Here's a discussion in exploration-processing.com about the historical Pickle Crow mine in Ontario, CDN:

http://tinyurl.com/2b7b6pg
 By Rick

07/28/2010  7:00PM

Dave, I will. Yup, I agree. (I't not bragging when it's true.)

Perhaps you, and all of us can send this page around to those not in the know.

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PO Box 909
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