June 5, 2020 
 Friday 
 
 

Forum
Topic:
Correspondence from the President of OAU

       

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 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:

https://original16to1.com

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

04/04/2020  12:24AM

Second effort:

https://original16to1.com

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The first website became outdated.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!

https://finance.yahoo.com/quote/AMZN/cash-flow?p=AMZN

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

PREAMBLE ANSWERING ARAN’S QUESTION BELOW:
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
 By aramfuchs

01/02/2020  7:19AM

Michael,

I would love to hear more specifics on how much scale you need to have the "dynamics of scale" turn in your favor.

Aram
 By Michael Miller

12/31/2019  8:19AM

Twelve years ago I posted a question under this topic on FORUM. “Why I would consider putting some of my money or available assets into a gold company?
Full entry 01/01/2008 12:19am Click on Page 7

The Gold Sector must have strength and length.
There must be some unique, specific or other reasons particular to the company beyond those general reasons within the Gold Sector on the horizon.
The Company must disclose an outline of its current situation and its program or plans for the future so I can make an evaluation of its proximity to reality and its likelihood of success.


The financial debacle quietly had begun, reaching crisis mode September 2008. The interest in financing our development plans ceased 100% with the collapse. Spot gold price closed in 2008 at $869.75. Today spot closed at $1,521.90 an ounce. Our development plans for the Company and Mine have improved since 2008. So have the prices for gold and the demand for Sixteen to One snow white quartz with butter yellow gold. Where is the gold interest today?
I am not a happy gold miner right now. Sure the price has almost doubled and demand exceeds our supply, but our underground headings are too limited. We need to employ more hard rock miners. This takes gold or dollars. In economic theory it’s called “The dynamics of Scale.”

I’m open to ideas. If you have or know others who have investment fears, let’s hear about them or their fears. If you have thought about gold as security and investment, tell me. Solutions exist to join us. “Even cowards can endure hardships; only the brave can endure suspense.”
“There is a tide in the affairs of men, which, taken at the flood, leads on to fortune.” William Shakespeare.

Wishing everyone (except those bad guys) a fun, challenging, adventurous and profitable 2020. Mining the Sixteen to One offers these.

Thanks to all you regular readers and to those who recently discovered Original Sixteen to One Mine, Inc. Regards, MMM December 31, 2019
 By Michael Miller

09/19/2019  7:10AM

Richard Mueller and I met in Alleghany. I don’t remember how it happened but it was about physics. He gave me his book, “Nemesis”” subtitle: The Death Star, published in 1988.He inscribed, “to Mike Miller---who like me, searches for the gold. Very best regards.”

Lately physics has been on my mind or in my thoughts. I meet many geologists and when we talk gold geology its mysteries seem strongly attached to physics. I found Richard’s book and began to read again. Richard hung around some terrific physicists and one project (age dating events). It was a scientific adventure shared with his mentor, Luis Alvarez.

A gold scientific adventure is right here in Alleghany, at our Sixteen to One mine. With the tools and equipment plus the vast growth of knowledge since the last great leap in scientific discovery (USGS Professional Report 172;field work in 1928). I firmly believe that an academic search for gold will bring investment, fun, adventure and challenge.

I wrote Richard and talked about an idea to date the barren quartz and quartz holding the gold. A team of scientists with geology and physics educations may discover another major scientific breakthrough. No better place on earth for a beta than Sixteen to One.

When I read Rae’s minutes and thought, you reading the minutes will wonder why I was excited about a physicist. I did talk about Richard Mueller and the impact of iridium and a cosmic event. Humm

Oh yes, I am excited about a future combination of geology and physics. See meeting minutes below.
 By Michael Miller

09/18/2019  6:26AM

Original Sixteen to One Mine, Inc.
Annual Meeting of Shareholders
August 31, 2019

The annual meeting of shareholders was held at the minesite in Alleghany. The meeting was called to order at 10:00 am by President Michael Miller.

Office Manager Rae Bell Arbogast was present and took the minutes. Approximately 50 shareholders and guests were in attendance.

It was noted that proxies representing 7,234,189 shares were received prior to the meeting with 303,875 voting against the slate of directors and all others in favor. Additional proxies in favor of both items and representing another 24,310 were received at the meeting for a new total of 7,258,499 shares represented. Final tally: 6,954,624 shares voted in favor of item 1 with 303,875 against. Item 2: 6,798,166 in favor and 460,333 against. A motion was made by Michael Miller to accept the nomination and election of the board of directors and seconded by Gay Taylor. All present were in favor.

The minutes of the annual meeting held on June 16, 2018 were approved as read. Motion to accept the minutes made by Jon McGeath 2nd by Jeremiah De La Ossa all in favor.

There was a discussion about the need for funding. The company has never issued an IPO and has no plans to do so because it would dilute the current ownership too much. Mike is currently working with a consultant to but together a limited partnership to attract investors. The idea is to raise 10M with as few partners as possible. The details are still being worked out. Potential investors always ask about gold reserves and because of the nature of the geology in Alleghany the 16 to 1 does not have any proven reserves. This makes it difficult to attract investors.

Water Consultant and Geologist Rob Campbell MS, PG, CEG made a presentation about the mine water discharge and the barrage of penalties and violation notices from the Central Valley Regional Water Quality Control Board. He stated that the staff at the water agency is great to work with, but it is difficult to get action “upstairs”. He has clearly demonstrated to the water agency that the arsenic in the creek is coming from the rocks and that 100 feet down stream from the mine’s property none is present in the creek. He went on to explain the importance of PH and that the discharge from the mine has a PH of about 8 which is really good. The fact that the mill is not operating is also in the mine’s favor. Rob will continue to work with the water board to try to get some common sense action to take place.

Mike thanked Rob for his presentation and returned to the subject of the Company’s financial health. He stated that the company is undervalued especially compared to so many small companies with no hard assets and inflated balance sheets. The Sixteen to One’s balance sheet shows all of the gold inventory at spot price but the specimens are much more valuable than that. He gave a demonstration using an electrical current of a piece of gold quartz that was “wired” together and that could be etched to remove the quartz. There is a market for such pieces considerably higher than spot price. The company’s property is also undervalued on the balance sheet. He stated that he would like to get the shares back on the stock market, when it becomes possible.

There was a discussion about the geology of the mine and the potential market for rare earth minerals. Rob Campbell stated that there are such minerals present in the 16 to 1. Mike mentioned a book by Richard Mueller titled Nemesis the Death Star and theories related to the extinction of the dinosaurs that also have a relationship to the timing of the geological upheavals that deposited minerals such as gold in the earth’s crust. Mr. Mueller is a Nobel Peace Price recipient and teaches physics at the Laurence Berkeley Laboratory. He visited the mine with Mike and shares his appreciation of gold and science.

Mike then fielded questions from the shareholders and gave a safety talk for going in the mine.


There being no further business the meeting was adjourned at 11:05 pm.

Respectfully submitted,
Rae Bell Arbogast

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© 2020 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910
 

Phone:   
Fax:
E-mail:
 
(530) 287-3223      
(530) 287-3455
corp@origsix.com
 

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(530) 287-3540

goldsales@origsix.com
 



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