September 22, 2020 

Risk Management Strategies


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 By bluejay

07/16/2012  9:35PM

It's apparent the best time to acquire more shares or to begin new purchases is the lull between discoveries.
 By Rick

07/16/2012  5:30PM

I always urge everyone to read below first...

Considering the total drift and raise square footage already mined vs. quartz deposite worthy of gold, this is a live horse.
 By Michael Miller

07/16/2012  4:12PM

California’s largest high-grade gold pockets were mined in the Alleghany Mining District according to the State Geology Bulletin 193. Eleven of the top 25 were mined on Sixteen to One patented mining claims. The spot price received today for those eleven pockets would be over four billion dollars ($4,114,950,000). The current spot price of the largest pocket, which was mined in the 1920’s, would increase our bank account by $154,814,400 or $11.55 per each outstanding share of Original Sixteen to One Mine, Inc.

There are no arguments against the fact that the Sixteen to One quartz and gold sells for a premium over spot. Twenty years of sales records are proof! If only 50% of that largest pocket qualified as jewelry slabs or specimens, revenue from that single pocket would be $222,546,500 or $16.61 per share.

Most geologists, historians and men that have actually worked in our mines reckon that the biggest pocket deposited within our mining claims remains to be found. To find and mine this pocket is our mission. (NOTE: the 10,000 ounce pocket we mined in mid-1990 would become number eleven if the State of California updated the list.)

Many times people have asked me why I stick to this dead horse of a mine, industry or occupation. The above mathematics is a partial reason. I believe we will find that pocket. Do you?
 By Hans Kummerow

12/27/2010  4:14AM

Mike, is it correct, that the two high grade pockets on the 1915 progress map, that you have written on in May last year - see below - would be worth 60 million US $ at todays prices?

Could you take a picture of that part of the map and send it to me or post it on the website?
 By Lone Wolf Geologist

12/15/2010  6:21PM

I have worked in the Alleghany district for over 35 years. Less than half the gold on the 16:1 Mine property has been mined.
 By Michael Miller

12/15/2010  5:46PM

One-way to send article to others: print article, scan it, transfer to desktop or my documents, and attach to e-mail.

Someone else chime in with an easier way. There must be a better way, Lone Wolf Geologist. Hope someone else shows the way. Is there any gold left in the Sixteen to One or have the "old-timers" mined it all?
 By Lone Wolf Geologist

12/15/2010  3:26PM

How can you e-mail this article to friends?
 By Michael Miller

12/15/2010  12:44PM

Please go to NEWS on this web site for an interesting newspaper article published on December 13, 2010 in The Union.

It was a surprise to see this article in the semi local newspaper (Grass Valley). I’ve talked with the publisher/editor, Jeff, over the years. When he was typing on his computer while in his office, he must have been writing down my words. Hmm, I’d better be careful what all I say about gold mining to him in future conversations. To his credit, he got my sentiments right. Hope you enjoy his article.
 By Hans Kummerow

11/08/2010  1:51PM

Robert Zoellick's recent remarks on a possible revival of the gold standard as an international benchmark to measure inflation-rates or currency-fluctuations are good news for Origsix-Supporters. After all, Origsix was created in times, when an official gold standard was strictly observed inside the USA.

The risk-management strategists of the World Bank have obviously rediscovered the value of precious metals whose supply is limited by scientific facts that cannot be tampered with. Better times for Origsix may be just around the corner.
 By Rick

09/16/2010  7:38PM

As a canvas painter, I sometimes refer to it as the "rubber-band effect"....the harder the pull, the bigger the snap.

There are times when I paint, and curiously times when I never paint, building the momentum for when brush hits the canvas (this is never intentional, it just happens this way)...usually the result is an explosion of something entirely new, and good.

The underground is waiting. The political and regulatory caltrops have been thrown down in front of this mine's main focus for a very long time (pulling the rubber-band), and the obstacles have never stopped the next pocket.

This is the time!
 By martin newkom

09/16/2010  2:08PM

I heard on CNBC yesterday that
Gold is becoming the "other"
currency "world-wide"; not only
in places like Sierra, Trinity
Counties. Each pocket found in
the Origsix is like a "Jackpot"
waiting to happen.
 By Hans Kummerow

09/15/2010  10:21PM

The gold seizure, that has happened in 1933, may happen agein if things become bad enough.

In 1933 it was smart to have gold jewelry rather than coins, bullion or certificates.

To read the orginal wording of President Roosevelt's gold seizure order go to:
 By Dave I.

08/26/2010  4:51AM

The securities market is the back bone of the derivative market. Which is why it got in trouble with mortgages being held as securities.
There has been some written news about another type of security which is electric power plants. there is a plan for the government to guarantee loans for development of new electric power plants. once these plants are built they then become security for the power plants them selves as well security for other development such as new housing, or other higher risk ventures. Mining would fall into higher risk ventures.
In the past a hydro electric power was discussed in this forum. I am wondering if it is windy on your hill top?
 By Michael Miller

05/18/2010  11:48AM

One of several hidden asserts of this mighty little gold company is its map collection. We don’t write about it much but the information contained therein is priceless. Here is what it means to me. The maps cover over one hundred years of development. One grouping is titled “Progress Maps”. They are usually depicting annual work and the months are colored individually. My mind turns to the appropriate dates of these progress maps. I transform into that miner, geologist, engineer or mining executive while studying the monthly (yearly also) progression of development and gold production. Why did they go here? Why did the go there? Why is this block of ground untouched?

The answers are speculative but, come on, all mining is speculative as are most investments. The ‘whys’ of the Sixteen to One are great topics for discussion. These maps affirm a fact: this deposit involves risk with hope of large profits. Also we have years of data beyond the times the maps were drafted.

Work to reorganize the map collection is underway. Years ago an old building was renovated to house the maps and have space to spread them out. Other needs preempted the reorganization…no longer so. The thirst for knowledge of the past now preempts other needs. I am thrilled to return to study of the work of yesterday’s miners. With each map comes the opportunity to learn.

I had an epiphany this morning after unrolling a 1915 map of the Tightner Mine Company. The map details the early working which are near bedrock elevations above the 250 level. The gold values are recorded in dollars when gold sold for $20 an ounce. One stope is breath taking…$700,000. Not far away is a $350,000 stope and there are many values at five figures. Times these numbers by 60 for gold today. Breathe taking!

Back to the epiphany. Are there no risk takers today for investing in this gold deposit? Apparently the answer is yes. Why? No one has taken the time and effort to understand this gold deposit, how it became successful and whether our plans will reap large profits. It is as simple as this…we are on our own.

Mining legends like Fuller, Searles, Foote, Kallenberger, HR Cook, Alling, Ferguson, Bennett and Taylor left their imprint in Alleghany. I have my answer to understand the risk/reward of mining for gold here, which is strengthened with these maps and thoughts of these great men. Thank you..
 By Hans Kummerow

05/06/2010  4:27AM

It is good to see in the News-Column that a portable, underground rock-screening device has delivered promising first results.

This is exactly the type of low-cost exploration activity that seems indispensable before money can be raised to start drilling and blasting again.

Manage and minimize exploration risk. Manage and minimize production risk. Good luck!
 By Hans Kummerow

03/14/2010  1:05AM

There is a lot of talk in Europe right now about hedging the credit risks that weaker Euro-Members like Greece, Spain, Portugal and Italy cause for the Euro-Currency via creating a new European Monetary Fund similar to the IMF.

And guess what the German Department of Finance has proposed to back up that fund? Plain old gold. Is that a new approach to manage paper credit risks? Nope. It is a very old and very conservative approach.

But right now the biggest risks for Origsix seem to be legal risks. Maybe you'll have to do something extraordinary - like converting the mine temporarily into a "gemstone quarry" to get it off the hook.

Maybe in a not too distant future a new California Administration will be happy to see some folks re-converting "gemstone quarries" into real gold mines again.

Anyway, I wish you luck.
 By Dave I.

03/02/2010  10:11PM

After seeing "How The Earth Was Made". I stand corrected as for the gold deposit in the quartz vain. It is a very good program, and the interior of the Original sixteen to One looks very promising for much more gold value. I like that ribbon quartz.
 By Observing one

02/28/2010  11:31PM

Dave & Hans,

There was a guy named "Gold Master" who suggested this very thing 5 years ago on this forum, I think he said they should drill holes as a patern down through the tunnels at some degree of angle aiming both up and down of the structure of the vien! (45 degrees & 225 degrees) with the vien running 45 degrees of verticle and bore into the face of each tunnel. This opens up and defines pockets with out actually stoping or blowing and mucking the face! I think this guy said you can run a metal detector up the bore hole to detect gold 3 or 4 feet around the bore hole. It's a lot cheaper testing than actually mining a dry hole.
 By Hans Kummerow

02/28/2010  3:51AM

I feel that Dave I.'s proposal has a lot of merit for future, underground exploration projects.

If we could use the existing horizontal bore-drill at the mine to drill - may-be 5 inch bore-holes - several hundred feet(?) towards the prospective pay-zones, collect and examine the drill spoils and then run micro-detector-coils through a set of bore-holes about 20 ft apart from each other, Ray and Mike should be able to make very precise decisions on how to point the future headings.

That would be exactly what I mean, by "establishing proven reserves" within the Origsix. And if the crew is just a bit luckier than during the past few years, the bore-drill might hit a "high-grade-pocket-home-run" during the exploration stage.

If you need additional information on bore-drills for pointed bore-holes in hard-rock that can be operated in a very limited underground work-space, let me know. I have collected such information already over here in Germany.
 By Dave I.

02/26/2010  11:27PM

Exploration needs to the required development. Metal detecting is probably lowest depth indication from the existing walls of the mine. What is the next highest exploration method to determine the depth of the next gold bearing ore body. I think that drilling holes normally for explosives, rather for exploration to depth of 6 to 10 feet in the walls of highest probability form indicators would be away to locate another gold source.
Collect the drill spoils from the drilled hole and check for gold content.
I have also noticed that the major gold ore came from the upper quartz deposits of the mine.
The 16 to One lode ore body was originally found chasing an under ground ancient river bed. Is it possible when the intrusion of the igneous host rock went around a previous river channel of quartz cobbles causing the metamorphic melting of the cobbles and gold into pockets of the molten quartz. There has been previous quartz mines that the gold was less at depth.

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