October 25, 2021 
 Monday 
 
 

Forum
Topic:
How to Approach Thin Veins & Cost

       

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 By fredmcain

03/20/2019  4:31AM

Dear "Scoop" and "CW3343",

During the last few years I was having pretty good luck buying OSTO grey shares through my Vanguard IRA account. They would sometimes take a week or two to resolve but I was getting them nonetheless. Unfortunately, that has been getting harder and harder to do even to the point that I'm not sure I can do that anymore at all. It seems like I'll put in a buy order Good Till Cancelled (GTC) and it expires again after 60 days and nothing has happened.

I have tried "Googling" for "Buy Penny Stocks" and Charles Scwab came up as one of the best brokers for penny stocks. But when I contacted them and asked them if they would do a certificate for me their response wasn’t so much "no" but more like "hell no". They're reluctant to do a cert for any stock but absolutely not for a penny stock. Why? Whatever happened to the old adage “the customer is always right”? If someone is willing to pay for a cert, why won't they do it?

A few years ago I called Columbia Stock Transfer and asked Michelle if she could tell me the name of a broker who could buy OSTO for me AND issue a cert. She told me of a broker in Idaho (I THINK it was) who might do that. So, I opened an account with them and actually bought several thousand shares from them and later got the cert from Columbia, signed by Michael!
I cannot remember the name of the broker but I do recall that about six months later I got a notice in the mail (along with a check for the balance in my account) notifying me that the outfit had been bought out by someone else and my account closed and liquidated.

So, now what? Are there any small brokers left out there who can do this?

Regards,
Fred M. Cain
 By cw3343

03/19/2019  1:45PM

Yahoo Finance, at one time, was a great site with a lot of good information. Sometime in 2016 they redesigned the whole thing, and pretty much ruined it. (Part of the ruination of the whole company by Marissa Meyer, former CEO). A lot of Pros in the Finance world used it, especially the oil traders - they loved the message boards. The new site was so bad that we did not use it at all. Instead we used Yahoo Finance Canada, which was still the classic version, until they changed that too, then we used Australia. Finally the whole thing changed - now it is slow, too busy, missing info, and is trying to be like Facebook with the stupid videos and "news" stories. I would not expect Yahoo Finance to improve much, especially now that Verizon owns it.

The company's stock still trades on the OTCBB, under the same OSTO ticker. I think Fred meant that, instead of STO (which was the old Statoil ticker, until they changed their name to Equinor for some stupid reason).

OSTO still has a quote on the NASDAQ website - I did not try any others. There is never a bid/ask shown, but there usually is several - you have to call a trading desk and they could likely provide that info. I feel that could be one reason for the very low trades we see often, at just a few cents per share. Someone just throws on a "market" order, and they get whatever random price someone comes up with.
 By SCOOP

03/19/2019  10:31AM

Yahoo marches to the beat of its own drummer. Nothing changed OSTO’s market dynamics.

When mine was listed on Pacific Stock Exchange, symbol was OAU, pretty cool, huh…original gold.

Go to schwab.com; research. Enter OSTO. Last price was $0.05. No bid or ask. 52 week range $0.01-$0.20. Mike reported Company Profile/Business Summary needed update. Schwab contractor does it.
 By fredmcain

03/19/2019  7:32AM

Group,

During the last few years I have been keeping track of what our stock has been doing on the Yahoo! finance page. They give you the price on there that was indicated by the last trade and the date of the last trade. They have also provided me with P/E ratios WHEN and IF they applied.

BUT ! ! ! ! (Big BUT) now Yahoo! has completely deleted the "STO" ticker symbol and will no longer recognize it. What's up with that? Is this something that Yahoo! took it upon themselves to do or has something more serious happened with our stock?
If the OSTO ticker symbol has been deleted across the board it will become impossible to buy or sell "grey" shares on the "pink sheets".

Regards,
Fred M. Cain
 By fredmcain

03/11/2019  4:52AM

Group,

I can tell you what I really like and respect about Michael Miller. It's his long-term perspective. He didn't just try to jump in there, make a fast buck and jump out again.

Someone once asked Warren Buffett, what he thought that the best time frame for holding a stock is. His answer was "forever". That is what an awful lot of people don't get. Some people who as of late have shown a major interest in the Original Sixteen to One Mine don't get it either. Because the long-term perspective is simply not there.

This is partly why there are so many abandoned mines in the West. Not because there's no gold there (or silver or copper or whatever) but because they simply would not or could not try and keep going through the bad years. When gold fell below $280 an once, Mike kept the mine going for a better day Now all we'll have to do is remove the water in the deeper levels and there will be lots of gold there. Not maybe, but almost certainly.

Regards,
Fred M. Cain,
Topeka, IN
 By Michael Miller

02/21/2019  4:10PM

Thinking about investing in gold?

Three important areas to ponder: Technical, communication/marketing and operational expertise.


Technical expertise should provide a clear understanding of resource potential, extraction and delivery to market. Engineering, geology, legal, finance and accounting professionals are there to develop and scrutinize opportunities determining that the opportunity is economical and worthy of pursuit.

Communications and marketing expertise engage investors, regulators, end-users and the public. They promote the company to investors, sell the end product and reassure that the project abides by laws and social expectations.

Operational expertise make the project happen. Their objective is to make sure the goals and objectives of the senior management team are realized.

Qualitative considerations are: What is the previous track record of management team? How have they overcome the challenges they were given? Do they have a stake in company, or “skin in the game”? Does management have a clear and simple vision and mission? Do they mask meaning with jargon or can they communicate opportunity in clear, simple terms? What is overall management style and reputation? These types of questions provide a framework for understanding how success or failure occurs.


“In the general resource space, beware of frogs masquerading as princes because there are a lot of those.”
This quote from Mercenary Geologist Mickey Fulp is a good guiding principle for those evaluating the investment potential of an exploration-stage gold company. The game of mining stock speculation attracts many a charlatan, The difficulty becomes separating the wheat from the chaff.

Rick Rule, a long time analysist who wears a Sixteen to One gold ring, describes successful investing in resource stocks as solving a fundamental riddle. “How do you anticipate exploration success before the financial community reacts to the success? While no investment can be 100 percent de-risked, especially in exploration-stage mining, where there are no revenues and plenty of costs, there are a few lines of enquiry that savvy investors should pursue.”

Management: If you were on the hiring board of a major company, would you give the job to somebody who had never done the functions asked for in the job description? Many investors do not bother to research. “The easiest thing to look at is the track record. Have they had success in the past? It sure is nice to have a couple of wins under your belt.” says Ryan Walker, mining analyst. It’s also important to know the intentions of management and board. Do they plan to sell their project to a bigger mining company with the technical expertise to turn it into a mine? Or are they explorers hoping to be miners without the requisite experience to make that happen?


Ownership: Do the managers and directors own a significant number of shares versus the “float,” or the outstanding shares owned by retail investors? Fulp thinks 50 percent of a company’s outstanding shares should be in the public float, which shows both management commitment and is enough to generate a volume of shares traded that can cause the stock price and market cap to substantially increase.


Property: Like real estate investing, when purchasing shares in mining companies a good rule of thumb is location, location, location.. This is due to geopolitical intangibles, such as the threat of expropriation and political instability,” says Chris Berry, of House Mountain Partners. Fulp takes jurisdiction even further by refusing to consider projects in countries where the political situation is considered risky. Consider the deposit’s proximity to other mines. The old mining adage, “to find a mine look near a mine” certainly applies to Sixteen to One. Ownership of the deposit is also important, since ownership factors heavily into who will control future profits and takeovers. Look for the company that owns 100 percent of the asset and has no underlying royalties that they have to pay. Yes, for Original Sixteen to One Mine, Inc.

The deposit’s location is also important with respect to potential expansion. If the company can show that not only does it have a good deposit, but that mineralization lies outside the existing or prospective mine boundaries, that is clearly a good sign for investors.

Geology: The geology of a given project is fundamental importance in deciding whether or not to invest in a gold junior. In gold exploration, the three most important factors are grade, tonnage and metallurgy. High grades are often touted as “king” when it comes to gold exploration. It’s true that many a mine has been built on the back of a high-grade deposit. No greater high –grade mine has sustained production over centuries than the Sixteen.


Mining is to a large extent about de-risking, so it is not surprising that the highest risk-to-reward ratio occurs at the discovery phase: drills are turning on a prospect the explorer and investors are eagerly awaiting drill results. As a company de-risks a project the value of the stock should generally rise. These are good catalysts for investors. Rule insists that the juniors he invests in have a game plan for how they, and investors, are going to make money, and when. “Make the promoter explain in detail how the company’s activities will increase both shareholder value and stock price.

Mineral exploration requires strong capital and an even stronger stomach for risk; but sometimes the risk can pay off big with a well-executed discovery. However, the odds of hitting a wall are much higher than hitting pay dirt. Even a large claim package in elephant country can turn out to be little more than moose pasture. The deposit could be too small, too low grade, or saddled with a host of other project killing pitfalls. A commonly cited statistic among industry experts is that the probability of a mineralized body becoming a mine is about one in 3,000.

Assets do matter and the more quality the better odds for shareholder rewards..
 By Michael Miller

12/21/2018  10:17AM

Your comments are 100% accurate, Karld. (See entry on 12/05/18 below). I’ll add a couple more. Additional comments always interesting and welcomed.

Read their financial statements and check required government filings for accuracy. For Original Sixteen to One Mine, ours are available on the federal Securities Exchange Commission for decades and recently on the website. Only one of the five companies mentioned below have actual gold production. I doubt that 20% of the listed junior companies ever mine gold. Their golden wish is for a major company to take them over. It happens but percentage wise, a rare event.

Another 100% characteristic of exploration companies is their attraction from gold gurus and analysts. Many writers/journalists will make the statement that they hold no shares of the company under review; true, but Aunt Margaret or Uncle Gus do. I actually read drilling results sometimes. Rarely do they tell me valuable information useful for evaluating the possibilities of successfully mining gold. Never do these sharks detail actual costs or time expended before production. There is one exception that I discovered. I actually bought into this Company.

It’s all still good. Many benefits arise from junior gold operations. You know what? With a little tweaking of specifics, these same comments can be said in many other industries; my ongoing motto: Truths like Gold lie at the Bottom.
 By karld

12/20/2018  9:38AM

The theme of those companies below, and most canadian-listed explorers, is (1) Political risk, (2) longshots, and (3) diluting the shares while the Corporate Officers drill on moose pasture and hope to get lucky. (Meanwhile, they get really good at mining the pockets of investors with salaries, travel expenses and sweetheart share grants and Private Placements. (How is that for a summary of Canadian Exploration stocks?)
 By Michael Miller

12/13/2018  11:57AM

“Twenty four years ago a dormant wad of gold signaled the beginning of fresh technological power into the Sixteen to One mine. It was a simple metal detector. For decades a 22 ounce sponge of gold lay on the floor of the main drain tunnel. It is memorialized in a poster called, “Gold the International Language”. For gold seekers this innovation sparked an international rush to buy off-the-shelf, hand held metal detectors, the ones seen on many California beaches.
It led to the production of thousands of ounces of gold from the historic California gold belt.
Physics and electronics had added to the centuries of experience and knowledge about mining for gold.


The most logical place was the Northern California gold belt, a 200 mile deposit under the Sierra Nevada Mountain. The most accessible site was the Sixteen to One mine in the Alleghany Mining District.


The major tool for hard rock underground gold mining will always be geology. Nothing will ever replace prospecting, exploration, development and production as nature’s intuitive geological formations, nothing; however the concept of detection is here to stay.


Forty four years ago chemistry resurfaced as a guide for miners to the hidden high-grade gold in the Alleghany Mining District. Fluid inclusions, ion calculations and all mining leaning chemists could imagine were explored, theorized and tested. Did it give the miners a new twentieth tool? Not yet but those differing ions in quartz may someday.


The twenty first century exploded the technological market with something called a “smart phone”. I don’t have one and don’t even know how the land line phone is capable of performing its magic; however others do. Let’s marry the smart phone technology with the current science of gold detecting. The result will make history. The union will give birth to a smaller and lighter tool with added discrimination features and depth, speed and reliability. All the necessary components likely exist in today’s market. The beta site for perfecting the smart detector can only be the Sixteen to One mine, a proven deposit for producing gold over 164 years. The time is now. The place is here.”



These were my thought two years ago. The smart phone evolved. Now Mars is accessible for photography, science continues with unimagined results, but no one has figured out how to identify gold (one of earth’s densest elements on earths) in a quartz vein. The Sixteen to One host to gold is Quartz, a trigonal mineral (SiO2), transparent and friendly to electronics.
Pass this along, please. WE have a sharing plan. I know someone is out there who could get really excited about locating 10 to 20,000 ounce pockets of gold.

There is no better way to acquire gold than to mine it and share in the bounty. We have a plan.
 By Michael Miller

12/05/2018  1:46PM

Fred, your interest and intuitions are appreciated. Here’s a short story.

Since 1974, when my attention was first aware of gold, a plethora of related articles surfaced. The early ones are fascinating with concern about America’s gold holdings at Fort Knox, wild expectations and speculations. A significant factor that no longer exists today was the human. Humans were called “gold-bugs” and the phrase “gold fever” was popular. Gold fever usually implied negativity, a condition, like the portrayal of the 49’ers panning for gold in California’s northern rivers, streams and creeks. Whoopee! Eureka! My thirst is satisfied. I found gold!
Gold ownership and pricing was a new financial reality, not possible for Americans until December 31, 1974. It was exciting. Only the “old-timers” understood this change that began in 1933, when federal legislation eliminated us to own gold. They knew gold held some very special values.
California was a hot-bed of mining talk. Most of us had zero experiences with gold but the possibilities for gold, well, were still alive. California has the Mother Lode, the Northern Mines also called the Father Lode and truly a golden history that some treasured or disdained.
Gold received a lot of publicity, appealing to pro and against advocates. Does Brea X ring a bell? The true miners for gold were less than the paper miners, a condition that will never fade. It has a history as it does in other financial pursuits.
I remain ex[posed to a variety of gold stuff. Following is a glimpse of investment analysis from an email only edited to eliminate the names of the “Best Junior Gold Stocks of 2018”. I’ll comment after you read about them and read your comments.

“With the year nearly over and done, we rounded up the five best junior gold stocks on the TSXV by share price performance so far this year. All received high levels of investor interest in 2018, with the biggest gainer being up more than 700 percent year-to-date. Following is the selection.
ONE: gold exploration company with assets in the Central African Republic (CAR),
TWO: company that focuses on identifying, acquiring and advancing early stage projects with big potential.
THREE: exploration company with focus on advancing precious metals projects
FOUR: company that caught the eye of investors when it announced it would be completing $3 million private
FIVE: large land position in the mining region of Venezuela’s Bolivar state. “
 By fredmcain

11/29/2018  4:58AM

I would like to share from my own perspective here. Yahoo! has a somewhat user friendly finance page that has a field where you can plug in ANY trading symbol and get the most recent quote and/or history. Then it usually saves it so you can easily pull it up later.

Checking this morning, the last trade for OSTO was 10¢. That is actually a huge ten-fold increase over the penny trades that we had a few years ago. Although that might not be much of a consolation for long-term investors who might have bought OSTO years ago for several dollars a share.

But hope springs eternal. Gold is not doing so well right now and yet our shares are up in what is an otherwise down market. That is a good omen. Also, according to our last annual report, this mine is making substantial progress. I am glad I got involved in this.

Regards,
Fred M. Cain
 By karld

10/23/2018  11:02AM

...and another block of 10K shares at $0.072. I wonder who/why?
 By karld

10/22/2018  8:14PM

Michael, Yahoo is not a market maker. I was just indicating where I saw the Market Cap number. (FYI: I was the buyer, thru Schwab, and I have a sell order on some of them at $0.118)
 By Michael Miller

10/20/2018  10:36AM

Thanks for this recent arms-length-trade on Yahoo. I didn’t know that Yahoo is a market maker. If the seller had checked with Schwab, he/she would doubled or triples the $$$$. Origisix has more value in its standing timber with a harvest plan for sustainable thinning than the Yahoo market cap. Sigh.
 By karld

10/19/2018  12:57PM

Market Cap is an even $1M right, on Yahoo, after 10K shares sold at 7 cents today.
 By fredmcain

05/16/2018  9:48AM

MINES WITH TRACKS

Group,

I thought I post a new message under my sub-subject on this list of "Mines with tracks". As many miners already know, most mines started to steer away from underground rail haulage about 30-40 years ago.

However the pendulum of getting away from rail and going to LHD trucks may be beginning to turn.

Here is an interesting article on rail haulage that I found:

https://www.e-mj.com/features/opportunities-and-challenges-of-rail-haulage-systems-in-current-mining-operations/

URLs will not "highlight" on this forum so you will need to "copy and paste" to your browser.

I'd copy and paste the entire article but it's too long. It makes for interesting reading, though. :)

Railroading in mining might just stage a comeback. Personally, I feel like our president was smart to keep his rail system in the 16 to 1 mine.

Regards,
Fred M. Cain,
Topeka, IN
 By fredmcain

04/20/2018  9:37AM

What really blows my mind is that the reference to OSTO on Yahoo!Finance is giving the company an amazing 5.26 P/E ratio. In most cases, a P/E ratio that low would send a strong "buy" signal.

Yahoo! is also giving the company a total market value of $1.434 million. Huh? The tools and equipment at the mine are probably worth twice that. What about the real estate? What about standing timber? Do we own that? If so, I figure the company, even if liquidated must be worth at $10-20 million and that's a WILD guess.

Then there's the fact that there is probably $50 BILLION of remaining gold reserves under that mountain.

What does all this mean? I think that at 10-12¢ a share, this security is a real steal. You might even call it a real gold mine. (Bad pun, I know).

Unfortunately, our stock is so thinly traded that it's hard to buy shares in it and it seems to be becoming increasingly more difficult. I have had open orders in my Vangaurd IRA account for months but don't seem to be picking anything up. One guy (who is also on this forum) told me in a private e-mail that brokers and finance houses no longer want to mess around with so-called "penny stocks" and the computers aren't picking them up. To buy or sell someone has to actually call around the old-fashioned way and people just aren't doing that anymore. Too bad. :(

Regards,
Fred M. Cain,
Shareholder from Indiana.
 By David I

02/09/2018  2:45PM

You might get in contact with of Elon Musk. He has an underground boring machine development company and your mine would be a perfect opportunity to work with this development. Also your mine is warehouse space for low temperature storage. especially for wine, or other long term low temperature storage to develop the aging process.
 By Michael Miller

02/07/2018  9:40AM

Few gold producers exist among the small vein deposits throughout the world. As a result modern equipment and innovative technology is centered on the monster volume operations. Unlike Sixteen to One, the industry became the playground for men-of-monster money or the ability to attract substantial startup capital.
Today, Mining Magazine set me an interesting article. I copied the first paragraph for you. Some of the mega mining operators continue to face mega economic obstacles. What will this mean for the small vein deposits?


“Sometimes a turning point can only be seen clearly in hindsight. Such is the case for the mine of the future as we begin 2018, coming out of a 2017 where major mining companies continued to demonstrate capital spending austerity and focus on debt reduction. All the while, there were growing signals that digitization, electrification and automation were all gaining momentum, even though actual examples of mine site implementations could as of yet, still be counted on one hand.”

Stay tuned. Here is a clue: look forward to fully electrify the fleet of ground support, ore flow/secondary reduction, and utility vehicles, keenly aware that electrification is but one step in the ongoing mechanization of underground mining.
 By Michael Miller

11/15/2017  11:09AM

My email has a dozen investment/gold senders, which I quickly read until an article strikes my fancy. The following extract was from Investing News Network by Adrian Day. Mr. Day has been around the gold investment market a long time but less than I’ve been around the gold producing market. I wrote him decades ago and a note a year ago at the urging of a friendly investment/banker. Adrian never replied. Their mantra is predictable.

Day was asked: INN: Should we have a group of people that tells [gold producers] what they should be doing? This question upgraded my interest. I thought, how lovely, investment promoters wonder if they should start telling gold producers how to do their work. Sounded good to me to learn a fresh twist!

Adrian’s reply:

“I do like the idea, with a few caveats. The senior mining companies have had awful returns on the money that we (who are the we?) give them, not only over short term, but over long term Over the last 40 years, the gold-mining business has the second-worst returns of any industry in the world, and the worst was the airlines. In the gold-mining business you do have inherent difficulties. It’s a very, very capital-intensive business, it takes a long time after discovery, the odds of discovery are low. After discovery, before you put something into production, it’s a long time with environmental permits and everything else. Then once you’ve built the mine, you’ve sunk a billion dollars into Tanzania or something, the government can come along and say, “hey, now you’re here and you’ve spent the money, we’d like a little more of that.”
I think the gold-mining managements have really exacerbated the problems by being pro-cyclical. Now, pro sounds like a good thing, but when you’re investing it’s a bad thing. The gold-mining companies, with few exceptions, typically have been overpaying for marginal properties at the top and then not buying at the bottom. Very few companies were buying anything in 2013, ‘14, ‘15 when the prices were low. Companies were on the edge of bankruptcy, you could’ve stolen projects, but companies were selling their own assets and reducing their debt. The time to take on debt is at the bottom but not at the top. You don’t take on debt at the top when things are expensive, to overpay.”

Compare his descriptions of gold mining companies or gold deposit situations with Original Sixteen to One Mine, Inc. The Tanzania reference can be global. You will find references in many TOPICS of the FORUM that tell details of the problems Mr. Day lists; however much analysists, promoters, puff the golden smoke into the public air, the marks continue to breathe deeply. As I wrote to Hans in Risk Management Strategies yesterday, I am a buyer of Sixteen to One on the open market higher than the last reported sale for reasons Mr. Day recognized that do not apply in Alleghany, California..

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Alleghany, California 95910
 

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