August 18, 2022 

How to Approach Thin Veins & Cost


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 By Michael Miller

05/17/2016  8:23PM


Every year about this time we mail the annual report to shareholders. Every year my mind searches for the clearest words to report the past year’s activities and report on some intentions for the coming year. Below is one paragraph from the annual message:

“Here is what good gold analysts write: message to gold share investors. Look for companies in which the management team has a significant stake. Look for companies that are taking concrete steps towards building a mine. And ignore the ones that keep issuing paper, particularly when markets are weak; another message for the mining companies. If there is any potential for near-term production, start producing. Forget all the other stuff. And, for goodness sake, ignore the bloke with the white teeth. Original Sixteen to One Mine, Inc. fits this analysis.”

Shareholders of record or all those that sent us their address will have the report this week or early next week, depending on postal service to your locale. There are three colored photographs on the back page, all relevant and historical. The last one entitled: A GOLD POUR—steps of the Pacific Stock Exchange—SAN FRANCISCO. During the coming year promotion of our Company will have a modest budget of time and money. I agree with all of you regarding the public exchange of Sixteen to One ownership. It makes little sense.

I have a long standing knowledge of the gold junior market, also called “penny gold stocks”. In the Form 10-k filed with the S&EC Washington D.C. there is ITEM 5, which informs the public (and shareholders). “Management believes that the assets of the Company are understated due to the age of acquisitions. No value is recorded on the balance sheet for timber. No value is recorded on the balance sheet for the Company owned water rights. Reduced value is recorded on the balance sheet for buildings, equipment and land. Fixed assets ate recorded at historic cost less depreciation.”

Unlike most of the remaining junior gold companies, our Company does not capitalize exploration work. This is most important for anyone considering taking a position in a gold mining company. I read outlandish dollar numbers for assets on most balance sheets. Who are these presidents officers and board members fooling? Many is one answer.

Gerald, Bluejay, jnjennings, Hans and cw3343 let’s work to change some of this obvious foolishness regarding the Sixteen to One share pricing. One hundred shares as a buyer or seller is uneconomical at penny prices especially for sellers. Last year the high was $0.56 and the low was $0.44 on our website. Promotion is in our future.
 By gerald vittitow

05/17/2016  1:28PM

I have been trying to get the pink sheet price up for years, but at least one broker drives the price to very low.Some shares were sold today at$o.10 but not mine.
 By bluejay

05/17/2016  8:04AM

I'm willing to buy more shares at below asset value. Letting the shares trade so low on the Pink Sheets is just foolish. Show me some real size.
 By jnjenniings

05/12/2016  11:47AM

 By Hans Kummerow

05/12/2016  8:06AM


for tansactions below 500.00 US-Dollars both transaction fees for buyer and seller of 75,00 US-Dollars each are to be born by the buyer in deals that are brokered via the company.

In Gerald's case you would have to pay a fee of 1.50 US-Dollars per share on top of the 0.20 US-Dollars per share that you are paying to Gerald.

Should that fee-policy not be reviewed?
 By Michael Miller

05/11/2016  8:30PM

I remember talking with your grandfather years ago about gold and gold mining. I'm curious regarding your good till cancelled order for 100 shares at $0.10. Your gross will be ten dollars. will that cover the commission? What is the commission charged to a buyer? What is your desire regarding these 100 shares? I can pay $10 as others can also. Get the share certificate from Fidelity and I will double your asking price. You can call or write me (530) 287-3223
 By jnjenniings

05/11/2016  1:59PM

I had to re-register to get my message through .my name is gerald vittitow jnjenniings is my grandfather
 By jnjenniings

05/11/2016  1:52PM

I have 100 shares for sale on a good till cancelled,all or none order at limit of $0.10 at Fidelity broker.
 By Hans Kummerow

04/25/2016  6:39AM

I have prepared three bids to buy OSTO-stock together with a friend of mine at prices between 0.08 and 0.10 US $ per share and have sent these three bids to the Corporate adress.. They are good for one year.

As long as these bids are good, nobody needs to sell at lower prices.
 By cw3343

04/21/2016  9:42PM

OTC trades this month, so far:

04/05/2016 3000 shares at 0.001
04/05/2016 3000 shares at 0.03
04/15/2016 300 shares at .06
 By Hans Kummerow

04/15/2016  8:30AM


as far as I know the OTC market is rather intransparent because nobody has a complete overview of all active bids as long as there is no "market-maker" for a certain stock.

There seems to be some sort of a nation-wide bid-notification system, but being no stock-broker, I do not know anything about the details of this notification system and how well it works in life-trading. From your experience it seems, that it doesn´t work very well.

However, the buyers´ and sellers´ lists on the company´s website are easy to look at. And anybody, who is thinking about buying or selling stock will look there first.

I think, I will give it a try and see what happens.
 By Michael Miller

04/14/2016  11:21PM

Hans, I know some facts about the stock you posted below. April 4, 2016, I received a call regarding 5000 shares belonging to a man I knew. He died in November and his executor wanted to close the estate. He suggested I put a low bid and see what happens. I did at $0.05 a share. Someone paid three cents when a five cent offer was on the table. Who gained? Who lost? Who or How as this decision made?

People tell me that they have placed buy orders at prices higher than the one executed. They wonder, “how does this happen?” I just had this experience and don’t have an explanation.

Yes, anyone can place a buy order on our STOCK page at any price. A seller makes the decision. The Company is like an escrow holder. The stock market takes second place to the need of mining. We are successfully moving forward towards debt elimination and increased gold production. When our financial issues are satisfied, I will institute a program towards increasing the awareness ot this great little company.
 By Hans Kummerow

04/14/2016  12:12PM

On April 5th, 2016, 3000 shares of OSTO stock have been traded on NASDAQ for 3 cts per share, down from 9 cts per share.

If I would submit a bid for the purchase of 100.000 shares at 3 cts a share, would this bid be published on the company-website?

And would it not be in the long-term interest of all shareholders to have comparatively low bids on the company-website rather than having no bids at all?
 By gerald vittitow

03/22/2016  7:46AM

i think a price of 0.09 is an insult to all owners of stock.
 By gerald vittitow

03/22/2016  7:04AM

i have 700 shares for sale at fidelity at limit of 0.47.someone who reads forum should be able to buy a few shares!
 By cw3343

01/15/2016  6:29PM

Mike pointed out a GREAT idea below. Even though the shares are no longer "valued" at $0 in a brokerage account, it still could be great opportunity to remove shares from an IRA (or Retirement Plan/tax-deferred) account. People are often mistaken in the belief that they can only take cash from an IRA, especially for a Required Minimum Distribution at >age 70.5

Your new cost basis outside of the IRA is the value on the date the shares were transferred.

If you are considering moving shares in kind from an IRA, please be sure to speak with your broker/advisor, AND, more importantly your CPA or tax-preparer. THIS POST, AND THE POST OF MIKE'S BELOW IN NO WAY CONSTITUTES TAX ADVICE. EACH PERSON HAS HIS/HER OWN UNIQUE SITUATION - THIS MAY NOT BE ADVANTAGEOUS FOR YOU. TALK TO YOUR TAX PERSON...
 By Michael Miller

01/13/2016  3:33PM


If you or anyone you know with shares in an IRA or retirement plan account, consider taking a distribution now. You can move shares in kind, from IRA to taxable account, and the distribution amount (or taxable income) is the value of the shares on the day they are distributed. With the gray market sales at last tradesAt $0, right now is the perfect opportunity for that. If shares go up to $5 later (or $25) then it'd be capital gains in a taxable account, but if taken from IRA at that value, is considered income, which for a lot of folks is taxed higher than capital gains.
 By bluejay

04/30/2015  10:46PM

Rob McEwen who originally built GoldCorp was a believer like Mike. Rob goes after gold where gold has been produced before. Consolidation is the formula that started Kirkland Gold. Years ago some past producers at Kirkland Lake were Wright Hargreaves and Lake Shore Mines, I know because I traded them. The two abandoned mines were consolidated with a few more and today, the company has respectable high grade production.

I predict the face of Alleghany will be greatly changed when the money bags journey up the mountain as gold makes new all-time highs following its final low sometime before the end of the year. The final shake is coming and it will be the last opportunity to pick up more shares at below bargain prices. Time is on the side of OSTO shareholders, finally. Just an opinion based on my increasing knowledge of markets based on my continuing education, mainly, from Martin Armstrong.
 By Michael Miller

04/25/2015  2:00PM

Consolidation is a big concept in mining districts. My early adviser, WP Fuller, Jr, said “keep this in mind. Original Sixteen to One Mine, Inc.’s management knew how and why to consolidate and was successful in keeping the Alleghany Mining District strong and vibrant.” I did keep it in mind. Prior to the dollar production listed below by Bluejay, our company owned the following mines: Eclipse, Ophir, Rainbow, Rainbow Extension, Sixteen to One South Fork, Tightner, Twenty One, Bald Mountain, Bald Mountain and Extension. The Gold Crown and Plumbago were acquired after 1990. It is important that each mine retains its own identity but together, economic factors of scale, supply/demand, give each mine the edge to prosper.

Those dollar figures represent ounces produced times spot per ounce price of $35. For the value today, multiple the dollar amounts by 34. Do this and you’ll realize why shareholders kept the Company alive for over 100 years during its lows. Educated geologists estimate that 70% of the vein system remains untapped.

True, gold mining carry risks. Its history in California resembles a boardwalk roller coaster: that big high ride to the top, the plunge down, jerky turns and curves. I had many such rides on the Santa Cruz Big Dipper in my youth. When the ride ended and I step out of the car, I usually wanted another ride.

Reflections are great! I remember when this topic first started. A better name would be How to Approach a High-Grade Gold Deposit. Maybe changing thin to small is enough. Better yet, if you forgot what was written in the beginning, give 01/28/2009a look.
 By bluejay

04/25/2015  11:03AM

Mines.Lode: Brush Creek $4 million+, Dreadnaught $50,000 to $100,000, Docile $100,000 to $200,000, Eclipse $20,000 to $50,000, El Dorado $325,000, German Bar $200,000, Gold Canyon $750,000 to $1 million, Gold Crown, Golden King $250,000, Irelan $350,000 to $500,000, Kate Hardy $700,000, Kenton $1 million to $1.25 million, Mariposa $50,000, Morning Glory $80,000 to $100,000, Mugwump (both lode and placer) $50,000, North Fork (both lode and placer) $125,000, Oriflamme, Ophir, Oriental $2.85 million, Osceola, Plumbago $3.5 million, Rainbow $2.5 million, Rainbow Extension, Red Ledge, Red StarOsceola- $200,000, Rising Sun $58,000, Shannon, Sixteen-to-One $25 million+, South Fork (both lode and placer), Spoohn, Tightner, Twenty One, Wyoming, Yellowjacket. Drift: Bald Mountain $3.1 million, Bald Mountain Extension $500,000 to $1 million, Gold Star $250,000+, Highland & Masonic $300,000+, Live Yankee $750,000 to $1 million, Ruby $1 million+.

Excerpt from: Gold Districts of California, by: W.B. Clark, California Department of Conservation, Division of Mines and Geology, Bulletin 193, 1970.

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