January 23, 2021 

Correspondence from the President of OAU


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 By David I

01/16/2021  12:11PM

I recommend that you drill and drill some more, chase the quartz seems and drill for width.
 By Michael Miller

12/31/2020  12:57PM

Over 7,000 clicks on our new facebook.com website. Three are mine. Our satellite internet service doesn’t respond well with facebook. Mr. Bradbury handles the information, mostly photographs. The FORUM is more difficult for me that the FORUM on www.origsix.com. With practice, I’ll figure the new site.

Life is okay in Alleghany and at the mine.; even though, our future days have some adventures planned which I will share with you. Even though our crew is marginalized due to restrictions in California, improvements on the mine site are crawling along the right path.

I’ve had time to study our underground with a slower pace to reflect on the gold mined, the subtleties of this heavy industrial work that brought the gold to the surface. Geologists have no method to predict how many ounces remain. Recorded history accounts for 1.2 to 1.5 million ounces. My belief: the figure is closer to 2 million ounces (based on an expanded historical study). No matter, the old timers didn’t get it all. We proved this the past thirty years.

So how many ounces remain where deposited 120+ million years ago? The mine maps have a story to tell. Stay tuned because we are hungry miners. My personal new year resolution is one word, simple and suitable for all: RESOLVE.
 By Michael Miller

09/16/2020  3:59PM

Dear Shareholders,

The 109th Shareholder Annual Meeting held today was called to order at 9:30am. Last year’s minutes were discussed. Chris Smith motioned for its acceptance. Motion passed. Quorum was present. President Miller presented the current directors names for reelection, seconded by shareholder Clark. No other names were presented. Motion passed.

Events during the past year were discussed, guided by the background of histories in the Annual Report. The Annual Report is now available on original16to1.com in both high and low resolution. Click on Newsletter.

During the question and answer period President Miller mentioned that shareholders suggested adding the word “GOLD” to our name. It could bring more notice to internet searchers looking for gold. The idea has merit. No one in attendance wanted to relinquish our “Original Sixteen to One Mine, Inc.” historic name.

Miller raises a topic for discussion: How Gold Dreamers get involved financially with us? Stock with warrants, sophisticated partnerships and forward gold sales were identified as financial incentives plus numerous non-financial points. The group was familiar with 2018, Federal legislation “Opportunity Zone Development”. This became the preferred inducement. It has the highest returns for both parties and is the most secured.

A question to Miller was: How will you find qualified people or how will they find you? ANSWER: Shareholders with an idea were given copies of the 2019 Annual Report to show people they knew who were financially capable and interested in a gold opportunity. Miller said he printed extra copies and is preparing a list of people or businesses with an invitation to come to the mine. The meeting adjourned at 10:43am.

For shareholders that passed on driving to beautiful Alleghany, we miss you. This was the best way to proceed. I thank you for your loyalty, interest and well wishes. Consider participating with questions, comments or profound statements on both of our websites. I read them, participate and enjoy the time. The world is in a dramatic bull market. Our efforts are moving in the right direction for solid returns to you and me as shareholders.

If you are reading this and are not a shareholder, check Schwab.com with our symbol: OSTO Last sale was a paltry $0.25 a share. If you benefit with money to replace your shares, make a market and set your sell price. Better yet, spread the word with people qualified to exchange their dollars for gold.
Respectfully submitted
 By Michael Miller

07/25/2020  2:48PM

To Charlie Brown,

Minutes ago the phone rang. It was Debbie, Lee Erdahl’s daughter. Lee died last May. Our conversation ended with tears forming in my eyes, remembering Lee and many great times. Lee was one special mentor. His pace was calm and deliberate. He knew the challenges inherent in precious metal deposits. His comments and support of our venture stay with me today.

I told Debbie about Lee’s fellow directors, all professionals of the highest caliber. They led us along a path of experiences required for professionals in mining.

I mentioned that Charlie Brown asked me about Lee a week ago. Debbie replied how wonderful this made her feel. She sent me an email, closing with this: “My dad thought very highly of you and the mine and it’s obvious that respect was reciprocated.”
 By Michael Miller

04/08/2020  11:51AM

MSHA Western District Office
James Peck, District Manager
991 Nut Tree Road
Vacaville, CA 95687

Dear James Peck,

Please take notice that the Sixteen to One mine operation is suspended. Last date of employment was March 13, 2020. We recognize the positions stated and sought by President Trump with his administration and Governor Newsom with his administration. We support them. It is impossible for our crew to maintain the distance between each other and perform as a miner. We join the soldiers who fight to beat this enemy.

I am impressed with my fellow Californians’ behavior in public in our region. I am very proud of my fellow Californians’ approach to this life threatening virus. The danger potential seems to change daily; however our crew will wait it out and win this war. We realize the battle may last until June.

A hard copy of this letter will be posted to the district office today as well as this email to you.

Regards to all MSHA employees. Our crew wants your crew to be as safe and careful as we pledged to be during this war.

Michael M. Miller
April 8, 2020
Cc: Troy Van Wey (field manager)
 By dickdavis

04/04/2020  12:39AM

First click:


Go to Gallery...it's a great ride.
 By dickdavis

04/04/2020  12:24AM

Second effort:


That worked.
 By dickdavis

04/04/2020  12:20AM

Mike....I entered--- original1621.com not luck.
 By Michael Miller

04/03/2020  11:40AM

Greetings my friends, followers and regular gold/history folks. This website began shortly after introduction on the Internet. A talented mining engineer, Johan Raadsma, joined me in developing the Sixteen to One mine and company around 1986. He pursued bag phones, desk top and early Toshiba lap top computers and the Internet. It was a fun yet challenging time for technology. Emailing wasn’t popular so negotiations were done with a new invention, the FAX machine. WE also bought a very cool copy machine. Our website was created for dissemination of information not for promotion or sales. We had a story we were proud to share. Still true today.

The first website became outdated. A friend of Sandor Holly, past director, was computer/internet wise and updated the site you are seeing now. He is Hungarian, lives in Hungry and did a great job. After twenty plus years, origsix.com cannot keep pace with 21st technology. Eighteen months or more ago, we began the process of designing the website again. For example, we cannot put pictures on this site anymore.
Our new site is still under construction, more for content than its structure and capabilities. I’m working to tweak its content, preserving its history before saying goodbye to www.origsix.com. Now I invite you to our new site: original1621.com. I made my first entry “test” on FORUM yesterday.

If you are presently enrolled to participate on this FORUM your registration is carried over to original1621.com If you have a problem, just register again. The first thing you will notice is our ability to show photographs. The old helicopter on this site could not be changed, boring. I was told by a friend how tired he was to see it: me too. Check out the recent bobcat photo and Gallery on:original1621.com.

I am learning the new FORUM. Our webmaster took great care to preserve the topics and entries. It truly represents years of history. I will continue to post on this website until comfortable with the new. Well, stay tuned. Edda became the photo installer, which paints a broader picture about Sixteen to One and our Company. We believe you will find it much more interesting.

One more item. Original Sixteen to One Mine, Inc. now has help from reliable people to carry forth a facebook account. It is very difficult for me to participate on facebook for multiple reasons but the fact that our internet service is via satellite and slow causes problems. Try facebook.com/SixteentoOneMine/
 By Michael Miller

03/20/2020  5:27PM

The last paragraph of entry below I wrote in haste and needs further clarification “The present administration at the top is supporting the reasonable performance of MSHA inspectors here and elsewhere.” I am very pleased about the positive direction of regulations. There is no harm to the public or our miners. My choice of the word "reasonable" wasn't the best word. Reasonable has numerous definitions but what I meant was “following the law”. I believe in lawful enforcement and over the years MSHA was conducting its business out of step with the law. One California agency is steeping beyond the law and seems to be moving into a lawful behavior. Okay reasonable behavior.

Now a quick Alleghany update: Snow fell fast and heavy since Saturday. In front of the upper shop over eight feet of snow blocked the road deep. Yesterday and today three of us concentrated on opening the road from town to the upper shop. We almost completed it but about 100 feet of snow still covers the road. Power was off from Saturday until Wednesday. We were lucky. Down the road to Pike, power and phones are still off. Trees are down everywhere, looks like a tornado hit Tahoe National Forest, but it was some wind and heavy snow on the limbs. Miners lost another week ding what they like to do and next week may be the same as new storms are expected beginning Sunday.
 By Michael Miller

03/20/2020  10:55AM

No pattern of violations at US mines in 2019 released March 20, 2020

The US Mine Safety and Health Administration (MSHA) has confirmed that, in its screening of 13,000 mining operations across the US over the last year, none met its criteria for a pattern of violations (POV). MSHA conducts the checks at least one each year. The last review prior to this was between September 1, 2018 and August 31, 2019.

The POV rule has been a part of the federal regulator's powers since January 2013, when it sought to strengthen safety at the most dangerous mines in the country. Its ability to enforce it originated with the Federal Mine Safety and Health Act of 1977, or the Mine Act, which outlined its intent for those operations with chronic violation records.

"Safety and health is what we care about most at the Mine Safety and Health Administration; it's what miners care about, it's what miners' families care about and we can see it's what mine operators care about," MSHA assistant secretary David Zatezalo said. "We'll issue pattern of violations notices when we need to, but it's a good feeling to look at the screenings and see no mines meeting the criteria."

Safety begins with the mine operator and its crew. It’s the law! This website relates decades of judgement abuses against our miners (and believe me many others) by members under federal Secretary of Labor. Check it out if you like but it is now old history. Many MSHA employees have told me that how they enforce begins at the top and trickles down. The present administration at the top is supporting the reasonable performance of MSHA inspectors here and elsewhere. Thanks you from the crew at Sixteen to One, its shareholders and community.
 By aramfuchs

01/21/2020  8:32AM

Thanks Dick. Yes, I would love to do that as I would find it fascinating. I actually just ordered a book from the Underground Gold Mining Museum to learn more about the area.

However, I don't think the visit would impact the way I allocate my investments. I just do not think I would be able to spot a good gold discovery play that wise veterans somehow missed. Does that make sense?
 By dickdavis

01/19/2020  5:32PM

Dear Aram,

You should visit the mine, take a deep look, speak with Mike Miller and those who know the mine best, visit the museum, see what the 16:1 has produced and consider the vein structure.

Best regards,

Dick Davis
 By aramfuchs

01/18/2020  8:26AM

Hopefully you know I am not asking for anything proprietary but I do think it would be helpful for investors (past, current and future) of Original Sixteen to One to see a PowerPoint type presentation that communicates the most salient points. I would be happy to share some of the ones I found helpful.
 By Michael Miller

01/13/2020  10:07AM

Too many choices or variables for a quick answer. Even though, answers do exist. Specific locations, cost and gold thoughts are available for qualified people. What qualifies someone are who you are, what you want, what you have to offer. Swiss gold experts recently wrote that half of one percent of investors have any gold position. Seems small to me but I tend to agree. For the International California Mining Journal January article, the writer asked atypical questions. He was probing my mind for information that benefits his readers, very refreshing.

Dave Hughes did his homework before coming to Alleghany, which created opportunity for his complex digging. Part two will be out in February. I look forward in reading it.

No one will never see the answers to all questions on the FORUM. Our library is extensive. Our FORUM provides enough hard facts, qualified opinions and histories for serious research. Ask away.
 By aramfuchs

01/11/2020  5:45AM

Thanks for the details on scale. Now how much would it cost for shareholders(both in labor and material) to maintain 5 crews for one year (assuming no gold is found until end of day 365)?
Second, how much in capital equipment would they need?
 By Michael Miller

01/09/2020  4:23AM

I appreciate your background and interest. A friend knows nothing about dynamics of scale in analyzing business or life. So put up with some word baggage since we have economics background. Economies of scale apply to a variety of organizational and business situations and at various levels, such as a production, plant or an entire enterprise. When average costs start falling as output increases, then economies of scale are occurring. Capital cost during development of our gold deposit is ignored for now.

Scale permits purchasing supplies at a lower per-unit cost when purchased in large quantities. This is very true for Sixteen to One because the mine is remote and pays transportation costs for supplies. If we run twelve drills destroying carbide bits during each round, a large order replacement costs less per bit when drilling one round. We are track miners and lay track ties, use spikes and 20 pound rail. The crew is most efficient supplying multiple headings. (Traditional small vein high-grade mining is labor intensive vs huge equipment and tonnage.) My point: expenses will decrease both in labor and supplies. Not speculation but known from years of experience.

Scale has limits: passing optimum design point where costs per additional unit begin to increase and production shrinks. Our massive historic map inventory is priceless. The pattern of development has been entered monthly. Our maps go back 120 years. It influences future decision of where to mine. Saturating the market gold and our artisan quartz/gold has no relevance with Sixteen to One scale. The market is begging for product (written proof from customers). Most examples of scale referencing the great Adam Smith and other economists are also irrelevant due to our modest yet significant industry. For us, scale is doing things more efficiently by increasing size. Size is determined by the number and type of underground mining headings. What do I study to evaluate possible target areas underground? Accessibility, expected gold production, length of time and type of mining are critical factors for success over failure.. The exploitation of economies of scale helps increases and guarantee profit.

The distinction between two types of economies of scale (internal and external) has little value. I’m speaking about internal management and strategies. An external study may have value for comfort . I’ll leave that to others. Briefly, spot price is beyond our control or influence. Our Company does not sell unmined gold ahead of production (forward selling as Barrick and others). Our artisan gold is on-the-market but not spot gold (dore). We sell into spot, reducing inventory, when we needs cash. Sixteen to One is an American artisan gold operator, which has global significance.

The base of scale is linked to statistical factors. The greater the number of resources involved the better the analysis. We have many: Risk and reward looms large. Finally I’m nearing the point. Original Sixteen to One Mine, Inc. has survived and operated for 108 years in an economically compromised industry: scale, risk and reward.

In 1995, shareholders received a dividend. Dividends saved shareholders during the depression and up to WWII. Stories are somewhere on the FORUM. Directors chose to invest its gold into development. Our eye is always optimistic. The imbalance of scale moves me to reduce this negative. Past director Charlie Brown said, “We are a company that mines gold instead of a gold mining company.” This separates us from the exploration companies, a significant separation. Sixteen to One has large and readily available statistical resources used on a regular basis to determine future underground mining headings. Scale is one goal.

Now to those heading and scale. Five are the least headings for success (producing more gold than the cost). Eight is tops increasing the likelihood of success. Their locations are not for public disclosure; however here they are: OTTO= six months to access area; very high past production; unknown ground condition; very high gold production; unpredictable expenses. RICE= immediate access; speculate overlooked targets exist; solid map verification support; cost not a factor in risk/reward; JELLYBEAN= known presence of gold showing in quartz; modern production over 5,000 ounces; expensive but costs have long term value as development; THUNDER= high probability of long term targets; historically supported and visually confirmed; requires multiple considerations to establish a budget; YUTANG= easy, simple and quick (two or three months); unable to quantify gold production; technology supports mining. NO BRAINER= Details to qualified people with capability and desire to join a small and elite gold mining operation.

Aran and others interested, continue this discussion with comments or questions. Gold is an investment. Mining it makes business sense. It’s fun, challenging and an adventure. Be careful. Diligence will separate companies with moose pasture or feasible economic deposits. Alleghany is proven yet undiscovered to the gold investment communities.
 By aramfuchs

01/08/2020  6:21AM

Thanks for the response, Mike.
I also took a similar class but it was in the very cold winters of Schenectady NY.

I have also spent a career hearing executives saying they just need to "grow into profitability" but they never seem to get there.
Indeed a company we are probably all customers of, Amazon.com, is about to become the first trillion dollar market cap company and it is still losing money or barely cash profitable every year. This is on $260 billion in sales!


So I would love to see some specifics on why you think 5 headings is a reasonable number of headings to benefit from economics of scale as we know gold mines can't attract capital like ecommerce companies.
They need to do it the old-fashioned way and earn their own capital and then return it to the shareholders.
 By Michael Miller

01/04/2020  10:55AM

My economic university learning began sixty years ago. Majors were not as prolific for choices as the last thirty years. I picked Economics since it was the only business related choice. Principles of Supply and Demand were simple even when the teacher tossed in a bunch of knowns and unknowns. The Law of Diminishing Returns was even easier. Professor put it this way: Suppose it is a hot day and you are sitting on the beach. (I was at University of California at Santa Barbara so he named a well known place.) You think about beer and how much pleasure (value) to you. (Another quick image to plug into his lesson.) With $3 in your pocket, you’d gladly take out one buck for that beer. But it only costs $0.25. You buy it knowing you got a good deal, would even pay fifty cents for number two. You guzzle it and burp. It’s so tasty and hot, so you buy another for $0.25. Down it goes. Your third beer is okay but the price isn’t a big savings but it is worth $0.25. You chose not to buy a fourth beer. You save money and maybe other problems since all in this class are under the legal drinking age. You have experiences the “Law of Diminishing Returns.”

The other Econ. 1A law , “Dynamics of Scale”, rounded out requirements for fundamental economics. I don’t remember understanding it as well as the first two; however, I learned it over the next fifty years of life’s experiences. What will follow is personal from my perspective only as a California gold miner. To others who are looking to acquire some gold, I look forward to comments.

Dynamics of scale are the cost advantages obtained with my individual mining operation, measured by amount of output produced with associated costs per unit of output measured in footage or actual gold and decreasing with increasing scale or increasing with decreasing. At the foundation of the analysis there are technical, statistical, organizational and related factors according to where the miners work underground. Gold is always measures in fine gold or .999 fine. Footage is rounds drilled, blasted and mucked in high probability quartz, mid range likelihood of gold , long term development of about eighteen months duration to reach target. Footage is also something else particular to Sixteen to One. With over 35 miles of levels and raises some have yet to be walked since 1945.

Without detailing how we are most likely to produce more gold that it costs at this time, I know with a minimum of five active headings, our efforts will compensate for the expense of the program. We currently have one heading with 100% gold production. I will write more for you but must leave my office now. The economic game here involves the measurements of risk and reward.

how or types of scale to push success to the highest possibility.
 By dickdavis

01/03/2020  8:21PM

Mike have you connected with Aram Fuchs? I'm also interest in "scale." Thanks, Dick

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Alleghany, California 95910

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