December 10, 2018 
 Monday 
 
 

Forum
Topic:
Correspondence from the President of OAU

       

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 By Michael Miller

09/22/2003  9:22AM

Jonathan, I am posting the brief I filed as promised for you to read. As important as exposing the mal practices gives us some compensation, the damages inflicted far exceed the $24 million dollar claim filed with Sierra County Board of Supervisors. The satisfaction you said today you felt is my satisfaction as well. These twenty four million dollars are based on losses suffered using a minimum decline of two dollars per outstanding shares. By sending you my response to Wilkinson’s brief via the company’s web page, others may read it and discover our intent of bringing special mining recognition to Mark and the rest of the guys. An unintended consequence has occurred. Wilkinson did not abide by the Courts Order on June 11th. His delay pushed me, but I finished my writings and filed my response on time. I am pretty disappointed in the work product of the US Solicitor General. I expect a higher degree of professionalism from these public servant lawyers than the slop from the private crew working for CDAA.

Go read your transcript if something is unclear. Because the issue of illegal extortion through any channels reached murder charges filed and then maliciously prosecuted, a lot of people suffered in addition to you and me. Jonathan, spend some time with the thoughts and documentations on these pages. California safety is up next. I believe the federal lawyers and the private lawyers willfully ignored the law. By logic that would make them criminals; however I cannot call them criminals for two reasons. It is against the law to threaten criminal prosecution to gain an advantage in a civil matter. And the other is, I am a private or non-government person with no power to entertain the power of pressing criminality. Jonathan, do you have Chris’s brief? There are so many falsehoods. Have a laugh, and then ponder the events from November 6, 2000 to today’s conversation. If you do not have a copy, let me know and I’ll see how difficult it is to post it here. Hang in there…Mike

See condensed brief under "News".
 By Michael Miller

08/21/2003  10:00PM

Drafts only and never typed.


The time to write the annual President’s message has arrived. It is that time of year for corporate leaders to explain the past, comment on the present and offer its shareholders a glimpse into the minds of its leaders and management.

I relish the opportunity. The drafts pour onto the paper…so many themes. It is a deep reflective time for me and not an easy one. As a large owner, how do I feel about the time period between May 2002 and today? What is better? What is worse?

Years ago, I believed in the Security Exchange Commission’s advocacy that Presidents are expected to be the most capable person to report, evaluate and analyze a publically listed company. Also implied, that officer has a duty to discuss the business. A noteworthy accomplishment last year was the growth of www.origsix.com.

Years ago, with the interest of our mining engineer as the driver, we pioneered the development of corporate Internet sites. I went kicking and fighting but supported the concept. In 2001, I understood the value for our company extended way beyond the initial reasons for investment. Our 100-year history is in an unfamiliar business to most everyone. People may know of the mine but not its complex history since 1853 or as early as 1848. Second or third generation shareholders knew its value. Most others would agree, but the depth of data is deeper than what is necessary for other investments.

As shareholders increased numerically (an early goal of current management), the writing challenge was to broadcast the past because key elements of the Sixteen to One will never change. Nature has welded its geologic behavior between the foot walls and hanging walls below the earth’s surface.

Management concluded that it is necessary to advance technology as well as create fruitful ventures to compete in modern America. It became necessary to discuss national and international areas of gold mining as well. Gold is an intricate and fascinating subject of global relevance. How many people do you know own gold or ownership in a gold mine?

It became tedious to repeat the geology of a pure high-grade gold mine or the proven patterns of its successful operation. It was also boring. It is no longer as critical as our ability to broadcast information to shareholders and the public at large is as easy as clicking a computer. However, many shareholders…….and here is where I cast this draft into the reflection bin. All the above was written three months ago on a piece of paper.

I have not read last years annual President message recently and cannot recall what it says. Shareholders always received the annual letter. The letter is a private communication to owners. SEC notification is not required. Now anyone can read last year’s annual President’s message. By posting to our site, the letters become public, a high level of communication for material or significant events.
 By Michael Miller

07/27/2003  10:00AM

Good Morning

Rick, if I were a district attorney or attorney general, I would prosecute lawbreaking lawyers. I am not, and neither is Oau. However, in the non criminal (civil) court room, the facts supporting disregard for the law by CDAA can become the preponderance of evidence to prevail as a plaintiff, even against the all mighty lawyer. I know two lawyers who were disbarred. I know many lawyers young and old, both men and women. I know many judges both alive and dead. Three have been either my personal lawyer or Oau’s. I know that more lawyers want to regain the stature of their profession than those breaking the law, especially those who also shutter with silent rage about the loss of ethics. Just like the Cayuga River in Cleveland, something must burn up before the pollution is seriously addressed.

GM, your well-founded and expressed logic or at least understanding of labor law crashes because of the specific facts of plight the past few years. Who but anyone financially impacted would want to take the time and get involved, other than a few characters with higher motives than money. Don’t misunderstand me. Money is a factor here, not revenge. I have a solution for serious people, other than thoroughly reading and rereading this web, but it carries a cost. (If I could afford it, I would give it to everyone.) Your fatal flaw, besides having all the facts, is understanding who I am and what I am not. If you are having this mix up, others are as well. So, I’ll give it another shot.

Michael Miller has a Class A General engineering license (since 1983, I think). However, and it is a BIG however, he does not control the behavior of any hard rock miners, personally. He does have some input via his employer, who has no such license. Our state government stumbled through the same thing by naming Michael Miller as an applicant for a permit for the Sixteen to One mine. He never applied. Anyway it could not legally be done.
Gray Davis fell into the same misperception or conception when his central valley water board chose to add me to its permit. Hoping to do this was the forerunner for its staff recommendation that Michael Miller be criminally indicted by the Attorney General. Because of his (Governor Davis) behavior and because I believed it would be positive for him and the company to join this grass roots business, I nominated Mister Davis and elected him to our board of directors last year.
These Alleghany underground hard rock miners you think of as payroll are similar to the hearty men and women who walked, road and sailed into California to its gold fields 150 years ago. They are not ‘payrollees’. They choose to work at financial risk in the richest operating high-grade gold mine in the United States and perhaps the world. I have given them an opportunity to become richer than they are. With a measly 1000-ounce pocket each one will receive over $20,000. It has happened many times in one day. Mister Pocket meets these miners. You and others also have an opportunity to buy into the risk through the OAU X-Mart or our current funding program.

Because I have friends or acquaintances across the country that read our web, I must clarify some of your recent statements.

1. The Big Bond Disclosure. Where is this property and who is the company? Only a fool, an ignorant person or a con man or outright thief would demand or pay such a bond as you mention. Since you proffer, “it is almost impossible for a smaller company to meet these requirements”, OAU must be in the million to one class for doing the almost impossible.
2. Good For Your Accounting Firm. I am sure it gave you the advice regarding multi wholly owned subsidiaries. This concept has been around decades. Accountants resemble lawyers. They get paid by billing hours. The advantages of our corporate formation are perfect for OAU at this time. The company operates as a wagon wheel. The hub is the company. Each of its headings is the spoke. Fear, especially the ‘chicken little type’ does not drive the decision making process of management.
3. Worth Of Property. You make another good point about the worth of each individual property as “worth roughly what you paid for it”. Those acquisitions in 1911, 1919, 1940, 1952 and 54, 1995 and 1999 are as inaccurate a tool for value in 2003 as imaginable. Oh, the luxury of presiding over a family or private corporation. Oau chose to join the game of public reporting in 1986, to cautiously nurture and grow its assets and business. Choices remain.
4. Reclamation. Read my lips. The beautiful mine sites of OAU and others in our district reclaim what little we need to do as we mine. Everything we “disturb” is saleable, a valuable product. The company is in compliance with all state and federal laws governing reclamation. Our well-established private roads represent golden assets not only for Oau but also for all Californians who care about the ravages of fire and forest management. Also owning a mineral deposit where qualified geologists safely predict that 20% or less of the deposit is gone is a cautious rationale for planning another 100 years of mining. It also helps that these basic resources are not deposits in political or unsavory countries.
5. Bits and Pieces. One of Rick’s perspectives deals with an age-old concern of mining entrepreneurs…political stability. California is a great state for honest corporations. Yes, any government can file any allegation of wrong doing it wants. Even those leading to, heaven forbid, criminal charges. We have many sayings at the Sixteen To One. One is SQUARE: Safety first. Quality of Work next. You. Accountability. Responsibility. Efficiency. It has been practiced and proclaimed underground and on the surface for over a decade. SQUARE. Personal accountability goes with the turf of those in government and those pretending to be in the government as well. Steel doors?? Come on. Closure has become simple with the newest foam applications currently used in the national forests. It is quick and unsophisticated but deadly to the bats.

In closing, if government agents and lawyers (maybe accountants too) followed the laws and codes of the land and their respective professions, OAU would have been successfully mining gold at a profit. Damages to its owners are material and significant. Recovering money has a reasonable chance of prevailing in court. Efficient mining is more than a plan. It has been in place a long time. Had the laws not been broken by agencies, non profits or individuals, Oau stock prices would undoubtedly be significantly higher than today. We have another saying around the mine. “When you miss a round, you never get it back!”

In order to provide facts and evidence surrounding one of the spokes of the wheel (headings), I will provide the following to anyone asking and paying for the expenses involved.
1. Grand Jury indictment. October 2002
2. Sierra County Superior Court transcripts
3. MSHA administration hearing. June 10 and 11, 2003
It is a lot of reading, even for me, who participated in all the events. It is about 1000 pages but interesting and intriguing.
 By Michael Miller

07/25/2003  10:27AM

GM:
In your last message you say, “unfortunately we don’t get a choice on how to operate anymore.” How sad if this becomes America’s mantra and unfortunate if this is our legacy to the following generations! It is not the laws, codes, regulations or even policies and practices of our country at issue as much as the background, experience, training and motives of the individuals and collectively speaking the organizations interpreting and enforcing them.
America is an admirable contemporary social experiment. A concern of mine is experiencing the mores and customs of its foundation crumble. America needs more OAU’s. Instead we are getting more MMC Norilsk Nickel, which acquired the United States’ only platinum and palladium producer. Mikhail Prokhorov is CEO of this giant Russian corporation. The circumstances surrounding the collapse of Stillwater are worth pondering. Stillwater stock had fallen steadily, with the price of PGM’s, from the high 30’s at the opening of 2001, to about 2.50 earlier this year. The issuance of 45.5 million new shares by common stock to Norimet Ltd., a wholly owned unit of Norilsk Nickel, turns about 51% of the Montana mining company over to the Russian firm. Prokhorov is a 37 tear old banker who owns about 28% of Norilsk Nickel. Another banker Vladimir Potanin, 41, president and chairman of Norilsk, also owns 28%. It reminds me of the disappearance of Homestake Mining into the Canadian company which acquired its assets. Is the United States becoming a natural resource colony for exploitation by foreign corporations or is this just good business? More power to these capitalistic Russians, but what is happening to the capitalistic Americans in their homeland?

You ask for constructive criticism (7-15-03; 12:45am) regarding tax codes, accountants:

Have you noticed how many mining and non-mining companies wrote down their assets or reserves? Reserves require an economic performer - the "potential gold must be projected to be mined profitably." OAU is lucky. It does not have to play the game of defining reserves and gambling on spot prices. Did you read in our SEC filings how the company expenses most costs instead of capitalizing them? The only time we capitalized underground costs was in sinking a winze in the south and developing levels in the virgin ground. The materials and labor remain as valuable assets; however, the company's independent SEC qualified auditor suggested the assets be removed because no one was currently working in the area. This represents a cautious move by management. I may not agree with this professional logic but elected to take it.

The company has not sold stock since a Private Placement in 1987. See 10-K filings. It announced its intentions to consider selling treasury shares at the annual meeting.

There is an old wonderful idiom, "You can lead a horse to water, but you can't make or teach it to drink."
You wrote, "Please teach me, I am open to learning and to new ideas and approaches to doing business."

I already know we are leaders and innovators. Years ago I got a phone call from a man who asked me a lot of questions about our MD (Metal Detector) Program. The years of 1993, 1994, 1995, & 1996 were very productive in MD technology for us. I finally asked him who he was. He said he was calling for one of the Homestake Directors. I laughed and asked why is a Homestake Director contacting me? He said that most innovations in mining have come from the activities of junior companies. I decided, after that call, the research we were doing with SRI (Stanford Research Institute), Lawrence Livermore Lab, and one public company and three private companies working on gold detection and imaging would become less revealing; however, we reported to the SEC that detection is a material and significant consideration. The product of our research and development is the exclusive property of OAU and may become quite valuable in the industry.

You can read about the technological Summit we sponsored in Nevada City. Click on "NEWSLETTERS", then "# 35 DECEMBER 1996").

The GM concept of Reclamation as it applies to OAU is ill informed. OAU is in compliance and has been since SMARA (Surface Mining and Reclamation Act) was passed in the California legislature in the 70’s. Reference to this and other government regulations are verified each year in our annual report (going back over a decade). I support ecological and safety regulations. Read some of my published articles, which you can find under "NEWS". I support federal mining laws and represented a counter point in the National Geographic article. The Whopper was a prominent photograph in the story; so don’t be messing with the Whopper. But one more representation. Miners, management and third parties have discussed most comments appearing on the FORUM both on paper and in dialogue. There is a long line of participation from people within and without this old company. I have a great reference library and willingly share it through this FORUM as time allows. The strategic position of OAU is perhaps a good one for current and new shareholders interested in gold, when compared with most investments, gold or non-gold. I only know of three gold companies positioned better than OAU for significant appreciation of value as events unfold.

JUST ANOTHER HEADING

HOW DOES THE labor Commission enter into this area? In 20 years of mine management, I have never encountered this agency. This crew (the labor force) is also a capital force. Think about it! Miners get to share the success of day-lighting Sixteen to One gold. So does capital. The Labor Commission is a hearing board and since there has never been a labor/management dispute requiring its participation, it is not a factor we need to discuss.

GM — read the "MOTION TO SET ASIDE" (NEWS 12-18-02). Do you understand what happened? Two court days after filing, the Superior Court Judge granted this motion and dismissed the charges. You are wrong in writing that CDAA etc. "were correct" (7-21-03; 11:53 pm). The proof that Steve Cain, MSHA, gave false and conflicting statements can be found by comparing his testimony at the October, Sierra County Grand Jury and the June 10 - 11 MSHA administrative hearing in Nevada City.

OAU was the recipient of the Holmes Safety Award (MSHA presentation)(see MINE; CHRONOLOGY OF EVENTS; OCTOBER 28,1996). It is a prestigious acknowledgement presented to mines with a great safety record by MSHA. The crew was very proud of its accomplishment. Enough of this nonsense, please. Let’s go mining!
 By Michael Miller

07/18/2003  9:44PM

Tonight, anyone who happens to turn into the FORUM, let your thoughts, opinions, desires, dreams, disgust, passions, frustrations, and soul speak out or stand by and just read. You all are here because of similar reasons. At times our intellectual (and physical) paths do cross. When that happens on this World Wide Web site, who knows who or how many, if any, read what we type into our computers. Tonight and until Monday when Rae gets into the office, take a chance with your thoughts. On Monday we will erase the whole episode if necessary.

Tonight, I invite you who stop by to register. It is safe and it is easy.

The crew mined some gold this week from the area north of the ballroom. Since they only get paid from gold production, they risk their most important resource, time, each day. Moral is pretty good. This block of ground is north and up-dip from the Ballroom. Those of you who are shareholders know the ballroom pretty well from the underground tour each year. Not only are we following recent past production and metal detector signals, but also the geology supports the possibility of a pocket.

I will officially get back into the groove of participating beginning with my summary of the annual meeting. Thank you, thank you. This FORUM is operating as envisioned. It requires attention for certain modifications, additions, clarifications or extractions. My involvement is daily if I have access to a compatible phone link.
In order to gain the most from our company’s public library, the sections entitled FORUM, NEWS, GOLD SALES, COMPANY, MINE, are periodically expanded. You must go back and check ‘em out. Even reading old data, whether from a 1932 US Geological Professional Paper or the stock OAU X Mart is important if you want to understand what the heck OAU is. Now that Dan is gaining momentum, read the Comics section. Read the entries again for they represent a chronology of events.

I am checking out for a while.
 By Michael Miller

06/03/2003  8:44PM

John Muir is embraced by historians, naturalists and others as a man of great sensitivity and awareness and vision. One group extols his virtues to validate their narrow view punctuated with dogmatic arrogance. That group would be the environmentalist. John Muir has become their definitive authority, the one unquestionable figure that really speaks for the Californian environment.

Here is what John Muir, an important American, had to say in 1894. These are his words.

“…the people and the region beyond the camp furnish mines of study of never-failing interest and variety. When I discovered this curious place, I was tracing the channels of the ancient pre-glacial rivers, instructive sections of which have been laid bare here and in the adjacent regions by the miners. Rivers, according to the poets, “go on forever”; but those of the Sierra are young as yet and have scarcely learned the way down to the sea; while at least one generation of them have died and vanished together with most of the basins they drained. All that remains of them to tell their history is a series of interrupted fragments of channels, mostly choked with gravel, and buried beneath broad, thick sheets of lava. These are known as the “Dead Rivers of California,” and the gravel deposited in them is comprehensively called the “Blue Lead.”
The importance of these ancient gravels as gold fountains is well known to miners. The hills have been cut and scalped, and every gorge and gulch and valley torn to pieces and disemboweled, expressing a fierce and desperate energy hard to understand. Still. any kind of effort making is better than inaction, and there is something sublime in seeing men working in dead earnest at anything, pursuing an object with glacier-like energy and persistence. Most of the pioneer miners are sleeping now, their wild day done, while the few survivors linger languidly in the washed-out gulches or sleepy village like harried bees around the ruins of their beehive. “We have no industry left now,” they told me, “and no men; everybody and everything hereabouts has gone to decay. We are only bummers—out of the game, a thin scatterin’ of poor, dilapidated cusses, compared with what we used to be in the grand old gold-days. We were giants then, and you can look around here and see our track.” But although these lingering pioneers are perhaps more exhausted than the mines, and about as dead as the dead rivers, they are yet a rare and interesting set of men, with much gold mixed with the rough, rocky gravel of their characters; and they manifest a breeding and intelligence little looked for in such surroundings as theirs. As the heavy, long-continued grinding of the glaciers brought out the features of the Sierra, so the intense experiences of the gold period have brought out the features of these old miners, forming a richness and variety of character little known as yet. The sketches of Bret Harte, Hayes, and Miller have not exhausted this field by any means. It is interesting to note the extremes possible in one and the same character: harshness and gentleness, manliness and childishness, apathy and fierce endeavor. Men who, twenty years ago, would not cease their shoveling to save their lives, now play in the streets with children.

Mines, morals, politics, the immortality of the soul, etc., were discussed beneath shade trees and in saloons, the time for each being governed apparently by the temperature. Contact with Nature, and the habits of observation acquired in gold-seeking, had made them all, to some extent, collectors, and, like wood-rats, they had gathered all kinds of odd specimens into their cabins, and now required me to examine them. They were themselves the oddest and most interesting specimens.

Fresh beauty opens one’s eyes wherever it is really seen, but the very abundance and completeness of the common beauty that besets our steps prevents its being absorbed and appreciated. It is a good thing, therefore, to make short excursions now and then to the bottom of the sea among dulse and coral, or up among the clouds on mountaintops, or in balloons, or even to creep like worms into dark holes and caverns underground, not only to learn something of what is going on in those out-of-the-way places, but to see better what the sun sees on our return to common every-day beauty. “

John Muir might not approve of freeways, shopping malls covering the earth, cell phones competing with the chattering of birds or other cultural evolutions scattered through the Sierra Nevada landscape; however, according to his own handwriting, he would praise and encourage the old and dignified industry of California gold mining, mining as we do at the Sixteen To One mine. John Muir, this master of the Californian environment, recorded for posterity his feelings about life, nature and the gold fields of the Sierra, “Still,any kind of effort making is better than inaction, and there is something sublime in seeing men working in dead earnest at anything, pursuing an object with glacial-like energy and persistence.”
 By Michael Miller

04/28/2003  10:19PM

Introduction of Damages


letter to Editor, Mountain Messenger



SIERRA COUNTY BOARD OF SUPERVISORS
APRIL 15, 2003


Good morning. My name is Michael Miller from Alleghany. The drive to Loyalton was a delight thanks to all the road crews. It is a beautiful day after so much snows the past couple of days. The sights from peaks of western Sierra County through the deep river canyons, the great Yuba pass into the iced down Sierra Valley reminded me why I choose to work and live here. I stand before the board: to publicly announce some misconduct, which occurred in Sierra County; to disclose my intentions for remedy; and to encourage your participation.

There is a growing awareness of the existence and dangers of rural cleansing. Rural cleansing comes in many forms. It is proposed by various individuals, government agencies and non-government organizations. Rural cleansing …do we willingly give up our country sovereignty? Our chosen qualities for life must be defended. I will not go down easily, nor should you. Today, I address you because of the damage claims filed in Downieville. Their basis stems from the tragic industrial accident which took the life of Mark Fussell, our fellow miner, on November 6, 2000. The Sierra County Sheriff, California Department of Safety (Cal-OSHA) and its federal counter part, Mine Safety Health Administration (MSHA) investigated the accident. All three professional agencies independently agreed it was an accident without a smell of criminality.

Seventeen months later the Sierra County DA issued criminal indictments. A private lawyer, Kyle Hedum, signed the allegations under penalty of perjury. Mr. Hedum and his co-workers, employed with the misleading name California District Attorney’s Association, conducted the investigation. They brought the package to Sharon O’Sullivan, our D.A. Sharon’s conduct in office was controversial; however, I never was nor even today am in the camp that hated her. As an elected officer of Sierra County, her official behavior did contribute to the damages I have alleged. She breached her fiduciary duties, which resulted in malicious prosecution, slander, libel, civil rights violations and more. Sharon, like Mark, was involved in a tragic accident, a tragic legal accident.

I first learned of the criminal charges in mid June 2002. That is when I began gathering evidence for the offense, which I knew was my next move once charges were dismissed. The mining company and I are quite confident in winning a lawsuit for damages. Sierra County and Sharon O’Sullivan are not the targets. On all the paths of malicious prosecution, slander, libel, civil rights and constitutional wrongs, one will find employees of the California District Attorney’s association. Their behavior defies the law. In other words they broke codified laws.

I actively sought to end or mitigate the damages caused by Sierra County’s prosecution. Letters were exchanged between Sharon and me. At my request, her secretary kept a phone log of my calls. In September I submitted a request to the Sierra County Grand Jury to investigate the activities of the district attorney office. Instead of responding to my written request, the Grand Jury indicted me on the first specious charge and added murder at the request of Gayle Filter, who was the lead attorney working for CDAA. It also indicted Original Sixteen to One Mine, Inc. On November 20, 2002, a Motion to Set Aside was filed prior to entering not guilty pleas that day. On February 13, 2003, Superior Court Judge Stanley Young granted my Motion to Set Aside the indictment and all charges were dismissed.

Damages submitted by Original Sixteen to One Mine are $24 million. My damages are $50 million. The claims were filed prior to 100 days from the dismissal of the charges; however, alleged damages are ongoing.

My objectives today are to publicly present my position. I understand the process of Sierra County’s review procedures. Legal issues are discussed in closed executive sessions. I will be in the audience at your next meeting on May 6th in Downieville. Sensitive issues of legal substance and strategy should be discussed in confidentiality. I will be in the audience at your call, prepared to expand the evidence supporting the claim. I am confident that a settlement is possible, thus avoiding a costly lawsuit.
 By Michael Miller

04/11/2003  12:36PM

There is one sizable difference between all puny gold mining companies like ours and the puny ones who are not. Distinctions between an exploration operating company and a development operating company resemble the distinctions between night and day. Mining encompasses a variety of words created to distinguish or classify. There are operating and dormant exploration companies. The same is true for companies engaged in the next step before production, the development companies.
.
“The opinions create the arena for dispute, as to which heading to drift upon.”
Anonymous hard rock gold miner.



An exploration operation will not be expected to find commercial gold. A development operation may, under scientific analysis, mine commercial gold. ORIGSIX conducts an exploration and development operation while also producing gold. These are major distinctions to consider. As an investor in gold, one's timing combines both the fundamental and technical disciplines of the market place. . If you want to know about the Sixteen to One, do not expect a simple math equation like proven gold in the ground equals so much an ounce. That was the twentieth century thinking. In this next bull market of gold, an investment should answer these questions: what does this ownership give me now and what is a reasonable expectation and what does my certificate of ownership represent or give me if that expectation is reached.

The differences in the puny companies were cleanly expressed by past director Charles I Brown, when he said, “I would rather be involved with a gold mining company than a company that mines for gold. There are many of the latter but very few corporations are actually gold producers.” There is no company like ORIGSIX or mine like the Sixteen to One left operating in the world today. Is that reassuring or alarming?
 By Michael Miller

03/30/2003  8:56AM

Response to Foolsgold

You raise good points. I completely understand why skeptics ask questions. There would be less failure haunting the junior gold mining industry if investors knew the questions to ask or better yet took it onto themselves to do the research that can be found on the corporation the wish to own. I entered the world of gold mining in 1974, before the US government unleashed the shackles it placed on the gold miners in 1934. I found it amazing that Original Sixteen to One Mine, Inc. was still in existence. Furthermore, it was the longest sustained gold producer west of Homestake in South Dakota. Its mineral deposit is a proven one. Its financial success was first rate. Could the corporation and its operation be revived was the questions facing me in 1975.

My “due diligence” began in 1974 and continues today. So this response does not become a book, I will focus on your concerns….management, substantial owners and directors. In 1974-75, the directors were also management. Little was going on with the mine, and I asked a lot of questions. They quickly grew to dislike me, so we entered into a proxy fight. I won in 1979 but was overthrown when one of my supporters joined the minority. He was elected president to replace me. Oh, well. I regained absolute control in April, 1983. I actually respected the rich old directors. They held the company assets together in the most difficult time the US gold mining industry ever experienced. They resented me because I wanted to move the company forward while they were grateful that it still existed. They were about to lose the company by transferring its assets to another company. I was offered to join by members of the Take-over Company but refused. That is why we fought so long and hard.

The Sixteen to One shareholders large or small have been led well. What impressed me was the attitude of paying dividends. I talked with many shareholders as I campaigned for their votes. Everyone said how much their families relied on the dividends from the mine. In 1995, the company paid its first dividend since WWII. I pushed the other directors to declare a dividend. They argued that prudence and good economic sense regarding taxes supported investing the money in the mine or in reserves. I also agreed with those reasons. It was important for the company to send a message to its owners: DIVIDENDS FIT OUR PHILOSOPHY. It remains today as a primary goal. The next dividend, however, will be in the form of gold not paper.

Something else I learned from our past leaders was the wisdom of acquiring solid gold mining property. The company grew from one mine in 1896 to at least seven mines by the 1950’s. Since 1983, we have added the Brown Bear mine in Trinity County and the Plumbago mine near Alleghany. We also invested one million dollars in developing our southern claims and sinking a winze into a block of virgin ground. You will not find those assets or value on our balance sheet. The workings remain accessible and add substantial value to our future. An aside: Past management did not anticipate the impact of WWII. In 1941, they acquired the Bald Mountain properties north of Alleghany. It was a great buy; however, none of us either past or present could mount a mining campaign to test its potential. I did not foresee the wicked forces unleashed against us over the past seven years. The brief mining plans I outlined in the last shareholder letter will open our diverse yet proven gold deposits, if not for me, for those who follow and lead the company through the 21st century

Do management and the directors want success? Is this just a toy? Read the past financials and you will find how little compensation has been paid and how much has been given to the company. If I sometimes refer to underground high-grade traditional gold mining as a “game”, it is with the greatest respect and admiration for the game of life.

Now about the downward trend you mention. That is true. It began in 1997, but was interrupted in 2000, because the company recorded a profit. Revenues declined. Expenses were systematically reduced. Production declined. The gold industry was wallowing in a severe bear market. But just like the period after WWII, the company survived with its assets intact and actually much stronger. People more knowledgeable than I have initiated lawsuits against financial institutions and gold mining companies alleging price fixing. Time will tell if those claims can be proven. An aside: certain expenses increased dramatically, such as insurance and electricity. Beginning in 1998, federal agents began an unwarranted assault on our miners and management. Their tactics cut the actual time the guys were able to break rock, which resulted in less gold production. While our recent news or forum entries are loaded with MSHA, CDAA, CVRWQCB stories, it has not always been this way. This is a fact. Time will tell if our claims for damages can be proven. Management felt it had no other course of action than to stand up to the questionable interference it was experiencing if the company were to once again prosper.

Each person must decide his or her concept of time and its relationship to an investment. Management develops the company as a long-term investment. By no means does that imply that we do not want quick or near term profit. We do, but not at the expense of our future. We follow the dictates of “patient capital”, something that was lost during the recent dot.com gold rush. At one point the market cap of individual corporations in that industry exceeded the market cap of the entire SEC reporting gold companies. Wow! We have groomed out timber holdings so the company can reap a sustained income forever, developed our gold markets to prosper regardless of the price of gold, and place our gold detection capabilities as a vital component for success. What I cannot groom is the investing public’s attitude towards gold. I believe the direction has changed from past years of scorn and inattention. If the company looks inviting to some, we will receive the funds needed to produce gold at a profit. That is all that is currently missing in the formula for success.

The word insolvent, which you mention, came from a Certified Public Accountant as an appropriate word to describe our finances. When ones current assets are less than ones current liabilities one is insolvent. It does not mean we are bankrupt or necessarily broke. I felt it was important to speak truthfully in terms used today. I have many issues about the accuracy of our financial statements and have argued with accountants and auditors for years. For example, our inventory of gold is reported at crush spot price. We have a proven record supporting that the value of our gold in the jewelry market significantly exceeds the bullion price. Our real estate is reported at depreciated values. This is truly a distortion that I have argued with lawyers working for the SEC as well. Our timber resource is not reported at all. None of this can I change due to general accounting principles enforced by the government. Yes, the company is insolvent. Management has chosen to work itself out of the cash flow problem and hold onto its assets. The only one currently for sale is the 116 items in our gold collection.

The overall plan for investment [ownership] appreciation has not wavered over the years. I suggest all interested to read the newsletters. If possible, we will add the earlier ones to the web site. Years ago I attended a special gold presentation in New York. One old geezer told me something I will pass on to you. "Read the President’s annual message going back at least five years." We are operating under severe time constraints for help, but perhaps can add the annual president message to this web site as well. While our plan is focused it does adapt to present conditions. Much has been accomplished that has financially benefited the shareholders. Much remains which makes this an interesting investment.
 By MadMike

03/18/2003  3:37PM

Mike, Just received my Shareholder letter today and it sounds like very good news! It seems like there may have been malicious intent by CDAA, what is the likelyhood of civil litigation to recoup at least some monetary losses?

Thanks and keep up the good work,

Mike
 By Michael Miller

03/15/2003  3:17PM

Dear friends,

A shareholder letter was mailed yesterday. Included is a large page [both sides] of information on the NEWS section of this web site. Many of our shareholders do not use a computer. I can relate because I am a recent user. The meat of what I have to say is in the letter itself. We are going after Mister Pocket through the proposed Red Star shaft. The letter is posted under Newsletters. Thanks to those who added your comments and encouragement during our trials with unreasonable and/or illegal activities against the company and the solid crew of miners. We have turned a page with the CDAA. Issues remain with MSHA and the water extortioners. Well, that is what they are! Again, I truly appreciate keeping in touch with you using this medium.
 By Rick

02/27/2003  8:04PM

For those of you who haven't personally witnessed Mike Miller's conviction and passion in this matter of freedom, allow me to add my perspective: he's the real deal.

I often crossed my fingers watching Mike in court, knowing well what we are up against, and regret having missed the last hearing.

Let's all take a lesson in conviction, persist in whatever passions we feel so strongly about. This fight in particular defied odds, yet Mike didn't care....

Truth has a way of prevailing, no?
 By flakey

02/27/2003  5:51PM

Congratulations Mr. Mike! As a share holder,
I thank you for all of your hard work to keep
everything going. Some day I hope you are rewarded
for all of your dedication to the mine. Alot of us has believed
in the mine and in your operation of the mine.
Once again, thank you!!! Atta Boy!!!! Flakey
 By bluejay

02/22/2003  9:00PM

Congratulations Michael Miller for defeating the "mighty" CDAA.

You have taught them a good lesson. Maybe next time they'll evaluate things better before they enter into the "perceived bush" to find out too late that they have upset a hornet's nest of patriots.

Your endless hours of research and preparation has saved the day for the shareholders against this vicious attack.

Talk around is that you significantly held down the Company's legal expense during this barbaric assault. My hat is off to you. Thank you!
 By gfxgold

02/14/2003  4:41PM

You open up the paper and find a story like that... Now that's what I call a great Valentine card. Hey, Mike. Does that mean the gag order is off?
 By Michael Miller

02/13/2003  9:16PM

Today, February 13, 2003 in Superior Court of Sierra County the Court granted the Motion to Set Aside and dismissed the defendents from the criminal case No. S -0046-CR -0000000768. Sierra County Superior Court judge Stanley C Young certified the Minute Order.
 By Michael Miller

01/31/2003  10:35PM

Everyone in the courtroom on Thursday familiar with the history of the CDAA contract to prosecute the residents of rural California counties, left with no doubt. It was so remarkable when it truly hit everyone . Judge Young asked the court reporter to flag the record. Since I am not a member of the State Bar and have never presided over a judicial hearing, I cannot fully understand the degree of significance; however by the reaction of Thomas Crary, and George Gilmour,, it was not difficult to judge that a monster of an important legal, ethical and perhaps criminal light bulbs illuminated the courtroom. Later I learned that most everyone in the cheap seats also the violation i have felt for seven months.

Chins dropped. Beliefs became hard-rock solid. No one knows this till now but my chin probably dropped the most because of shock. Even though I am the one most familiar with Mark's accident and the subsequent action by state and federal agents.

I was dumbfounded upon realizing that beyond all of the questionable activities I saw with Kyle, Gale. Denise. Tony and Larry Brown, all CDAA employees, willful and knowing fraud was not one of them. The existence of malice leaves little doubt. Their first 105 pages of discovery specifically identified all mine chutes down the drift from the one Mark hit were in compliance with safety standards. When Vince, Mark’s mining partner at the 1700 foot level, was called by the prosecutors to testify before the Grand Jury, Gale Filter clearly limited his testimony to one chute, which was “all that he cared about.” The CDAA closer witness was Steve Cain, a federal MSHA agent. For those who thoroughly want to complete the puzzle, go to the news page and find the first or oldest entries. The two parts on the MSHA hearing contain significant facts in evidence and in yesterday’s record, and one can smell a rotten rat.

Neither the public defender for Jonathan, Jerry Cooper, who was participating by telephone because of an illness, Tom Crary, who spoke for the company, or I, still en proper, pushed the judge to rule on the motion, because the new district attorney requested a consideration for him to study the record deeper than he has. The next court date is February 13, in Downieville. The motion as orally strengthened may end this fiasco. If not I will ask for an immediaate trial by jury which will likely be dismissed by Larry Allen , the new DA because he knows that part of the CDAA prosecution strategy is to name employees as defendants in order to gain an advantage.
 By Michael Miller

12/28/2002  11:23AM

Second part of letter started below.

Is not this [government oppression of the people] what Americans fought and died for? How can anyone rationalize the loss of so many lives if those living today ignore the oppression displayed by water bureaucrats? In addition to their unfounded opinions masquerading as facts to levi oppressive monitoring of the rain and snow that falls on the mine site, the Attorney General and his client seized our bank accounts in December. This has paralized us. We face PGE shut offs and other ill consequences which endanger the lives of the men and women dependent upon the Sixteen to One.
A workshop to discuss the Sixteen to One is scheduled on January 7,2003 at 9am in Sacramento. The California State Water Board called the meeting in response to my petition for review of the Central water agencies unnecessary demand for monitoring etc. We have been granted ten minutes to present data. I received the State Board proposal on December 26,2002, which gives me one week to submit our case in writing [the last day the board will accept paper is January 2,2003.] Your participation is one weapon against oppression of honest hard-working Californians. Please help us.
 By Michael Miller

12/28/2002  10:46AM

Letter to Rico Oller, California state senator...

Thanks for the time Dan gave to the recent regulatory crisis thrust upon Original Sixteen to One Mine, Inc. Your help in modifying the behavior of the state water bureaucracy is appreciated; however your recommendation of exposing the unreasonable treatment to the general public is difficult to execute. What will it take? A lawsuit filed by the miners for the taking of their employment? A law suit filed by the shareholders for damages? A class action suit filed by Californians?
My question to you remains unanswered. Legislators passed a law, the Porter-Cologne Water Quality Control Act, which governs the central and state water agencies. This law has been broken and ignored by the executive agencies empowered to enforce it. Those people responsible have violated their fiduciary responsibilities to Senator Oller, the legislative bodies, and most significantly to the People of California whom they serve. The question again...where do we go or who do we turn to to stop and correct this lawlessness? The Attorney General is the most logical; however with water issues his clients are the very agencies currently violating the act. It is an interesting fact that the government employees press their behavior "on behalf of the People of California". The "People's" rights to sound or Best Management Practices", a concept embraced by all governments and non governments has been compromised by Gary Carlton and many of his staff.
This is a battle in a war that I am too underfinanced and do not want to participate in. This is war with certain people and practices of our own government. It's not the American people who will benefit from the current actions of various water employees in our district. Their highly questionable actions against this small old and very sensitive traditional gold mining company high up in the Sierra Nevada Mountains is a battle of attrition or of survival, just depends on how one views it.
 By Michael Miller

09/25/2002  11:03AM

Ryan, thanks for your remarks. An elected person may hold non governmental offices or positions outside his elected office. That goes for Gray Davis. It is a choice not a law .

If I were a political operative for Mr. Davis, I would suggest he take the seat on the board of OAU. Why? He has little non-government business experience, which is continually used against him. He could add to his populist image as well as being a tireless advocate of the little guy. He could become proactive in the controversial environmental war and his input could lead to positive solutions that please all Californians. OAU is a perfect company for his wisdom and leadership to shine.
Governor Davis has yet to respond to his election to our board. Do you think he would be a good director for OAU? How do we get him on board for our journey?

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