April 18, 2021 

Correspondence from the President of OAU


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 By Michael Miller

08/01/2004  9:37PM

To None in Particular:

Do I dare submit a letter at this hour and on a Sunday? Why not! It should be a Scoop writing, but Scoop stepped off duty. Actually these thoughts which will be passed via the SUBMIT button on the computer screen are for you.

If you know little about the mine, the company, me or the men and women who contribute ( in the past or currently in the present) actively or not, go read the newsletters posted here. They begin in 1983. Read the news articles published by others. Then come back to the FORUM. Submit, to the gold or to another of your passions in life. What we have been developing in Alleghany cannot be replicated anywhere else. Also it has never been done before now. Come back later to this submission after you gain some understanding of the California gold rush and a small company and gold mining village that would not die.

Revenue from this pay shoot will be between $700,000 and a million. Maybe the crew will produce another couple of similar pockets within this great-untapped footwall vein between the 1300 foot level and the 800 foot level. Maybe, but not solid enough to bank on, the sale of treasury stock will not be necessary to fund the new Red Star shaft. A few potential investors express interest in non-equity speculation. I like investment over speculation, myself, and have a difficult time understanding this business outlook. Nevertheless, I will remain open to limited partnerships.

Anyone with knowledge of past performance should be able to speculate on the wisdom and unparalleled excitement of opening up the Sixteen to One vein in our Red Star patented claims. The thought of it has been in my mind since 1974, when I did my first due diligence investigation on Original Sixteen To One Mine, Inc. It still gives me the trembles to visualize the vein. All shareholders who follow our progress know the potential for a 100,000-ounce pocket. One hundred times richer in gold than the one we just mined.

I believe it is there. It was laid down 150 million years ago and awaits our drills and explosives.
 By Michael Miller

07/24/2004  11:28AM

The Board of Directors met yesterday in Alleghany. A payment program for accounts payable was ratified. The major creditor, PG&E, agreed to a take $10,000 per month on the past due account. Our power provider has worked patiently with us during this period of financial stress. The company representatives stuck up for us during the dark times we experienced over the past two years. Thanks fellows, here’s to ya! We will begin paying down the note from Gold Country Lenders. These folks also believed in us. Without individuals like these and many others whom I have been associated with, the struggles to break rock in the search for gold could have overcome our efforts. Liabilities will be reduced by $150,000. We budgeted $100,000 for mining (a mix of maintenance and hunting for more gold). The Board will meet again to evaluate the status of our underground projects and finances upon the expenditures of $250,000.

High on the list of payees is our independent auditor. The firm of PerrySmith and Company certainly stands well above the large accounting firms that have so rightly been investigated lately. Business ethics and business integrity were one of my upper division classes at UCSB. It was an elective course and my favorite economics’ class. I have missed the discussion I have had with one of the partners, Tom PerrySmith, about practical accounting and the policies of his profession and the philosophy behind them. I am confident that both of us grew to understand and respect each other’s ethics. He or any one creditor could have broken my spirit and ability to guide our company back to the days of a debt free balance sheet. He chose to give us the time to work through our problems.

There are some other unnamed friends that contributed to my ability to “stay in the game” during the horrendous onslaught of interferences we had to deal with over the recent past. You know who you are. You are supporters, constructive critics and physiatrists. Don’t leave me now. Our offense scored another touchdown. Some have been active participants on the FORUM. By the way, those of you who suggested and supported SCOOP, thanks. It has become a nice diary to reread from the beginning to the present.

It is a safe assumption to expect more gold to come from the large block of ground we continue to mine. Part of it now looks like swiss cheese, but an awfully large footwall vein portion remains. It is not over but this small pay shoot may be. Our crew is exhausted! They deserve a few days of rest and reflection and some time to smell the roses. We all are very happy.

07/14/2004  3:17PM

Everyone in the United States will be affected by the Company’s appeal before the United States Court of Appeals, Ninth Circuit in San Francisco, California. The issue is more than just a mining one. It involves the legality of the imposition by one federal agency and a couple of its employees to define and designate the management of an American business. “There is no precedent for this unwanted infliction, yet we find ourselves defending accusations by the lawyer for the Department of Labor and the administrative judge for the same department. No witness presented evidence to support his claim”, said Michael M. Miller, company president.
Miller sent the following letter to 150 companies in California, Arizona and Nevada that are regulated by the federal Mines Safety Health Administration (MSHA). Prior to the deadline for filing a brief, he received one response. and asked for and received a postponement to August 23, 2004. “Will anyone recognize the importance of this abuse of process by the Federal administrative branch and two of its employees? Does anyone else care or comprehend the impact of this?” he wonders. If so, he asks you to come forward and help set the right precedent.
Newmont Mining, America’s largest gold mining company, placed a call to Miller several weeks ago. Its MSHA manager asked for details and commented how strange it was for the federal government to take such a legal pursuit of this issue. So far only one letter has been sent to the U.S. Court of Appeals. A fellow mine president writes:

“The case concerns a lead miner who died on the job, and the subsequent ruling that the company is responsible for the accident on the basis that the lead miner was management personnel. Whether or not the company’s position was properly argued in Court, I cannot say. However, I can state that in all my 50 years in the mining industry, I have never heard of a lead miner as being part of management. For that matter, I don’t know of any industry that classifies a lead man as management.

Typically, a lead miner would have the responsibility of conducting his specific job in one small location of the mine. He is considered the “lead” due to having the most experience, and thereby is entrusted with the direction and safety of the small group of miners that he works with. There may be several other lead miners in various areas of the mine, depending on the size of the operation.

Over the lead miners would be the shift foreman, who would be considered as part of the management team, and above that position would be the mine superintendent, or mine manager. Generally, at an underground mining operation, the foreman has several headings he is responsible for, but may only be able to inspect each one once or twice during the shift. This is one of the reasons for appointing a “lead” with the most mining experience, so he can keep watch over the area and report his observations and/or suggestions to the foreman.

The lead miner, however, would have no authority over any aspect of the mining operation, but is subject to the direction and decisions of the shift foreman. He cannot hire or fire employees; he cannot change his work location or his assigned task, or make any decisions other than those that directly affect his own job performance.

My conclusion as to the Court’s decision in this matter is that it may have been reached by someone unfamiliar with the working environment of the mining or construction industries. I sincerely hope that this writing, from someone who has been a mine owner for over 35 years, will serve as qualified testimony on behalf of the Original Sixteen to One Mine, and that this case will be carefully considered by the Court in the appeals process before a final decision is made.

Please feel free to contact me concerning this issue should uoy require any further information.”


May 21, 2004

Dear Fellow Miners:

On November 6, 2004, one of our lead miners drove his trammer into a stationary overhang and died. The company was cited for three MSHA violations, which were challenged. The administration judge ruled in favor of MSHA. The company filed an appeal to the United States Court of Appeals in San Francisco, docket number: 04-71301. The opening brief and excerpts of record shall be served and filed on June 11, 2004.
The judge ruled that the miner was negligent and responsible for his own accident. He held the company responsible because the miner was a lead miner with one miner working with him. The judge held that a lead miner is management; therefore the company is guilty.
Our lead miner could not hire or fire employees. He could not change his workplace. His pay was on a regular schedule. He had no management duties other than being the one in charge of his workplace, something I believe all of us have in common in the industry.
There is no precedent for this assumption by the ALJ. Our regional MSHA people are not the ones driving this new interpretation of the codes. They actually do not approve of the concept. The unions are apparently not driving the concept either. I do not know who is but suspect it is the lawyers in government.

Original Sixteen to One Mine is a small company. It has been around longer than any other gold company. I have been its president since 1983. I believe that this decision will cost the mining industry dearly if it is upheld. It will affect your operations in the United States. It will also adversely affect America’s economic freedom and security. It must be overturned.
I seek your participation in some form, maybe an amicus brief. This injustice is important to all the miners in America. I feel somewhat inadequate to handle it alone. Over my mining career, the real MSHA guys have told me that until the industry stands up in court the abuses in judgment will continue. They have proven to be correct. I also realize that many of you are taking action against injustices in the operation of American mines. If no one recognizes the implications of this issue, we will do all we can to defeat the misguided interpretations of MSHA lawyers. If we lose, more American mining jobs will move into foreign lands. I would appreciate your help or acknowledgement that you are not in a position to participate.


Michael M. Miller,
 By Michael Miller

06/29/2004  11:49AM


Call to Order

There are two categorical reasons to gather for an annual meeting: mandatory requirements and optional opportunities. The agenda items of electing directors and appointing an independent auditor are required. Shareholders vote on these motions. This year with the proxies in hand we can accomplish both quickly. The second reasons and important reasons are for you and your guests to see the mine, meet the miners and for us to show you what we have done over the past year as well as tell you our plans for the future.

Approximately nine million proxies were returned; therefore a quorum is present. Last year’s minutes were approved, the auditor was approved and the incumbent directors were re-elected.

Old business:

1. Red Star Shaft
The plan has evolved from the earlier conceived incline shaft to a vertical shaft. Advantages are: less maintenance, lower operating costs, faster trips up and down. Disadvantages: unfamiliarity of working a vertical shaft, inability to follow the dip of the vein, portal will be located in a different location.
2. Technologies and Stock Market
Basically unchanged throughout the year. Past director Sandor Holly is working on some government concepts that will be applicable to our needs for locating gold. Building a new detector remains a high priority.
3. Financing Future Activities
A private placement of treasury stock to fund an initial program previously outlined is our first choice. Selling the Brown Bear mine and real estate will begin if investors are not found soon. Our largest manufacturer needs slab and has offered to advance the company $100,000 if the money will go towards increasing the number of miners in the mine. We agree this is a wise move for all.
4. Lawsuit Against Lawyers
The Company joined as plaintiff with Michael Miller before the statute of limitations expired on February 14, 2004 to sue four attorneys and their employer, the non-profit California District Attorney Association. To stay informed we encourage you to use www.origsix.com as a news source. The FORUM has a topic with the Sierra County Superior Court filings. We are winning this complaint for damages. There should be adequate funds from Lloyds of London (insurer) and assets owned by defendants to collect after our victory in the trial. (An expanded discussion of the suit took place and may be reported in the future.)

New Business

1. Related Underground Mining Project
Morning Glory Gold Mines (MGGM), a general engineering contractor, won the bid to build an Adit at the Empire Mine State Park in Grass Valley, California. It is a $1.5 million contract with the State of California, which begins July 12, 2004. Michael Miller is the sole owner of MGGM, which began business in 1982. The State wants a high profile project. MGGM is not interested in increasing its profile; however the Sixteen to One is and will design events to fill this void
2. Mine Development Plan
We have a three-prong program until funds are secured to begin the Red Star Shaft. We will continue in the ballroom headings because we continue to get gold. It remains too positive to leave but too questionable to place all our future in this one location. We will open the old abandoned Groves Tunnel. These old workings were very productive and have not seen a modern metal detector. If history repeats itself, we will find significant ounces to make the repairs worthwhile. We will choose one of several known targets currently beyond our reach. These high-grade gold targets will require two to three months of “dead work” before a realistic expectation of mining gold
3. Museum
Fourteen mining drills are on display at the museum. Two are over 100 years old and are operated by hand. It is a valuable collection and perhaps one of the best in California. The museum is opened until 5pm today, so you will have time to check it out.

Comments by Company Speakers

1. Charles I Brown
I met Mike in 1983. I was hired to bring a company out of bankruptcy. We gathered at the MGM hotel in Reno one afternoon. There were four lawyers, directors, of the company and consultants, about thirteen of us to negotiate with the Sixteen to One about a lease. Then in walked Michael Miller, alone to negotiate for his company. He did a good job and later I sold my interest in Lucky Chance Mining and bought into the Sixteen to One. I became a director and served as an officer until retiring. I give the current directors credit for leading the company through some difficult years. I stay in communication with Mike and feel the business of our lawsuit is worthwhile and likely to succeed. Mike’s ability to raise working capital necessary to get the mining going again stopped due to the charges against him, Jonathan and the company. I support this action and compliment Mike and the board for their efforts.
2. Ray Wittkopp
The Brown Bear is a great mine with a solid potential. If we must sell it to get our Alleghany properties financed, so be it. The Red Star Shaft will bring our operation to the known extension of the Sixteen to One vein and also the Plumbago vein. It will also give us a look at the rich underground placer deposits. The Sixteen has accounted for over one million ounces of gold. We believe the geology of the northern extensions has the potential of duplicating this production.
3. Scott Robertson
Our accounts payable are mostly PG&E and property taxes. We had a profit for the first quarter this year, mostly because of the sale of the mill concentrates. Also Mike has waived his salary for the second year. Inventory is recorded at the spot price for gold at the close of an accounting period. No credit is recorded for the value added in the jewelry process.

4. George Gilmour
I represent the company in its lawsuit against the non-government, non-profit CDAA. We were in court yesterday for a case management hearing. The defendants’ demurrer based on absolute immunity was denied on May 28. Each side will be conducting its discovery and appear again in the Downieville courthouse on December 10, 2004. I am confident that the defendants’ plan to escape accountability via summary judgment will fail and we will go to trial.
 By Rick

05/30/2004  9:19PM


Everyone, in order for my comments here to make sense, please read Mike's letter below first.

I'll wait............Okay. I feel an external commentary is due:

Since the CDAA obtained an indictment against M. Miller and J. Farrell as well as the Original Sixteen to One in the accidental death of a dedicated miner (and in the process intentionally omitting evidence to the contrary, opting instead to go-for-the-political-banner), this ruling goes far to expose the CDAA for their vigilante attempt to score political points while jeopordizing innocent lives.

This is very simple...the truth can actually prevail...when principle isn't abandoned. This ruling is to be applauded for brute honesty.

This ruling addressed a posture under which the CDAA assumed they could operate: 'district attorneys' are immune from civil liability. What they assumed has bitten them right in their own gullet.

The principle we citizens enjoy by virtue of our Constitution, practiced properly through our system of Representative Democracy, is derived inherently by its definition...in order for the public sector to represent us, they must represent us.

The CDAA has no defined jurisdiction. The CDAA represents no one. The CDAA has not functioned legally in this fraudulent attempt to discredit the Mine, as this ruling will reveal. The CDAA represents nothing more than a plot to undermine propriety and their here-to-fore unchallenged supposed immunity from liability.

Hey CDAA, you just don't go around willie-nillie accusing people of crimes they haven't committed, figuring some idiot politician says its okay.
 By Michael Miller

05/28/2004  4:07PM


TODAY, JUST MINUTES AGO,JUDGE RICHARD A HAUGNER DENIED THE CDAA MOTION FOR A DEMURRER. It was not particulary a pretty presentation, but the defendents were not given the absolute immunity they sought through their lawyer. The transcript of today's hearing has been ordered and will appear on the FORUM as soon as it is received.

When you find yourself in a war, winning important battles is necessary in order to win the war. The CDAA and Gale Filter's team should be held to account for their behavior as they masqueraded as public servants.

Following is my reply to their demurrer. George Gilmore represented the Company and filed a much more "legal" reply.

Plaintiff Michael M. Miller was never served any papers filed by defendants. His ability to respond to the motion has been violated by the omission of defendants to serve the first and second motion before the court. Miller waives his right to service if the court rules against the motions. If the court believes it lacks sufficient documentation to strike down defendants’ motions, Miller asks the court to order defendant to serve Miller and allow him time to respond.
BACKGROUND of Defendants
The official California District Attorneys Association web site has a section entitled, “What is a prosecutor. Section V, Becoming a prosecutor says, “Individuals seeking a position as a prosecutor must know the law.” Section IV provides the “Ethical Duties of Prosecutors”. Excerpts presented orally.
Defendants entered into a contract with the California Department of Industrial Relations in the spring of 2001. Specific terms of the agreement pertinent to the motion before the court today are contained in the following pages of the contract.
“The California District Attorneys Association will employ these individuals.” Page One, section 1.
“In addition, elected District Attorneys will, as appropriate, deputize these prosecutors. The California district Attorneys Association will employ the Circuit Prosecutors and Investigator.” Page One, section 2.
“The California District Attorneys Association (hereinafter the Association or “CDAA”) is a private, non-profit association.” Page Two, section 4. (b)
“The Circuit Prosecutors and Investigator will be employed by the CDAA” Page Three section c.
DUTIES of Defendants
The individuals are members of the California State Bar and are required to follow its requirements. See Motion to Set Aside. Exhibit B. CDAA web site includes a description of duties entitled, “The Ethical Duties of Prosecutors”. It is not a stretch to believe that defendants knew the duties and requirements of a prosecutor. Also, the Sierra County Grand Jury transcript contains many statements by defendants that they were aware of the obligations they assumed as private prosecutors. Team leader and defendant Filter instructed the Sierra County Grand Jury that, “You must accept and follow the law as it is stated regardless of whether you agree with the law.” Page 37 lines 26-27. His omissions to the Grand Jury are flagrant transgressions of the law.

The individuals took an obligation to “bear true faith and allegiance to the Constitution of the United States and the Constitution of California” They ignored the constitution and subsequent statutes and regulations as stated in the Motion to Set Aside and Exhibit A

Breaking the laws and claiming it is on behalf of the publics’ interest and seeking absolute protection under the doctrine of immunity is a specious argument in light of the circumstances involved in the murder prosecutions of Michael M Miller by the defendants. For these reasons and the testimony entered today, Michael M. Miller prays that defendants’ demurrer be overruled.

Sincerely yours,

May 28, 2004 Michael M. Miller
 By Michael Miller

05/20/2004  4:16PM

The following letter was sent to 100 California, Arizona, and Nevada companies regulated by MSHA. Even non-mining individuals and companies will be affected by the utterly ridiculous contention that a “load miner” represents management. Please consider telling others, especially lawyers about this.

May 21, 2004

Dear Fellow Miners:

On November 6, 2004, one of our lead miners drove his trammer into a stationary overhang and died. The company was cited for three MSHA violations, which were challenged. The administration judge ruled in favor of MSHA. The company filed an appeal to the United States Court of Appeals in San Francisco, docket number: 04-71301. The opening brief and excerpts of record shall be served and filed on June 11, 2004.
The judge ruled that the miner was negligent and responsible for his own accident. He held the company responsible because the miner was a lead miner with one miner working with him. The judge held that a lead miner is management; therefore the company is guilty.
Our lead miner could not hire or fire employees. He could not change his workplace. His pay was on a regular schedule. He had no management duties other than being the one in charge of his workplace, something I believe all of us have in common in the industry.
There is no precedent for this assumption by the ALJ. Our regional MSHA people are not the ones driving this new interpretation of the codes. They actually do not approve of the concept. The unions are apparently not driving the concept either. I do not know who is but suspect it is the lawyers in government.

Original Sixteen to One Mine is a small company. It has been around longer than any other gold company. I have been its president since 1983. I believe that this decision will cost the mining industry dearly if it is upheld. It will affect your operations in the United States. It will also adversely affect America’s economic freedom and security. It must be overturned.
I seek your participation in some form, maybe an amicus brief. This injustice is important to all the miners in America. I feel somewhat inadequate to handle it alone. Over my mining career, the real MSHA guys have told me that until the industry stands up in court the abuses in judgment will continue. They have proven to be correct. I also realize that many of you are taking action against injustices in the operation of American mines. If no one recognizes the implications of this issue, we will do all we can to defeat the misguided interpretations of MSHA lawyers. If we lose, more American mining jobs will move into foreign lands. I would appreciate your help or acknowledgement that you are not in a position to participate.


Michael M. Miller,
 By Michael Miller

04/03/2004  11:35AM

Many people unfamiliar with mining and perhaps even you, who regularly read our internet site, will be surprised to learn the following statistics. If mining in America has a future, miners must address the ignorance and misperceptions surrounding the mineral extraction business.

From time to time miners need an infusion of working capital from investors. The Sixteen to One is no exception. It will survive, no worry about that; but now is the time to exploit our rich gold deposites with the assistence of some well informed speculators.

I have pondered about the concerns of the Houston gas and oil men and others who know that a great opportunity exists in the California gold fields. Fears of things they have little or no tangible knowledge rise to the top of their list. Well, ignorance is not bliss. Safety is one of those concers. Enjoy the following article and accompaning chart. I know and can represent that the Sixteen to One has answers for all concerns, including the most important ones of safety and governmental regulations.

Only Office Work is Safer than Mining, Agency Says
From Mining Week, Jan. 9

Only one major industry division had a lower nonfatal injury incidence rate than mining during 2002, according to data released last month by the Bureau of Labor Statistics (BLS).
In a table measuring “Incidence Rates of Nonfatal Occupational Injuries and Illnesses by Industry Division and Employ Size, 2002,” mining had a rate of 4.0 injuries per 100 full-time workers working 40 hours per week, 50 weeks per year, placing it second to “Finance, insurance and Real Estate,” which had a rate of 1.7.
The table was contained in a release entitled, “Workplace Injuries and Illnesses in 2002.”
Mining also had among the lowest incident rates for cases with days away from work, job transfer or restriction, registering better than private industry as a whole; agriculture, forestry and fishing; construction; manufacturing; and transportation and public utilities, the BLS report said.
BLS said of the 4.7 million nonfatal occupational injuries and illnesses in 2002, 4.4 million were injuries.
Manufacturing relatively Safe
“The services and trade divisions had the largest shares of injury cases, about 27 percent each, followed by manufacturing with just over 23 percent.”
Mining and lowest total in this category, 0.5 percent, according to the BLS data.
In terms of illnesses, BLS said there were about 294,500 newly reported cases of occupational illnesses in private industry.
Manufacturing accounted for the largest total, 44.5 percent, followed by Service (25.7 percent) and Wholesale and Retail Trade (12.7 percent). Mining’s total in this category was 0.3 percent.
More information is available from www.bls.gov/iff/home.htm.

Incidence Rates of Nonfatal Occupational Injuries and Illnesses by Industry Division and Employment Size, 2002 (per 100 Full-Time Workers)
Industry Division Incidence Rate
Finance, Insurance, Real Estate 1.7
Services 4.6
Private Industry 5.3
Wholesale & Retail Trade 5.3
Transportation & Public Utilities 6.1
Agriculture, Forestry & Fishing 6.4
Construction 7.1
Manufacturing 7.2
Source: Bureau of Labor Statistics, U.S. Department of Labor
 By Michael Miller

03/30/2004  11:37PM

There is no single reason for my confidence in producing gold from the California gold belt. There are many reasons and facts to support the benefits. Mining gold today has few financial supporters. Very few people know about the following California code. It places a legal burden on the executive branch to follow this code. It is one of those special reasons we remain operating all these years. When the water bureaucracy turned down my offer to turn valuable ‘deep earth minerals’ into a safe and economic product, it violated this code. It lost sight of solutions and focused on monitoring.

Public Resources Code
Section 2650

The director shall carry out the policy set forth in this section. It is the continuing policy of the State of California in the interest of the needs of society for the wise use of mineral resources and for other sound conservation practices, to foster and encourage private enterprise in all of the following activities:
(1) The development within the state of economically sound and beneficial mineral industries and metal and mineral product reclamation industries.
(2) The orderly and economic exploration, development, and utilization of the state’s mineral resources and reclamation of metal and mineral products.
(3) Mining, mineral, and metallurgical research to promote the wise and efficient use of natural and reclaimable mineral resources.
(4) The study and development of methods for the control, disposal, reclamation, and utilization of mining and mineral processing waste products and the reclamation of mined lands so as to minimize any adverse effects of mineral extraction and processing upon the physical environment.

Our government will follow only if we lead. It is probable that no other government anywhere in the world has codified a more magnificent tribute to the worth of its minerals. California has a great and silent gold-deposit, perhaps the greatest untapped opportunity for exploitation. The Sixteen to One vein system rests at its top. It satisfies all four stipulations. Please read them again.
 By Dick Davis

02/22/2004  12:10PM

Dear Mike,

Here's a comment that Will Rogers wrote March 16, 1927:

"Just addressed the California State Legislature and helped them pass a bill to form a lawyers' association to regulate their conduct.

"Personally I don't think you can make a lawyer honest by a act of Legislature. You've got to work on his conscience. And his lack of conscience is what makes him a lawyer."

I think Will put his finger on it.

Best regards,

Dick Davis
 By Michael Miller

02/21/2004  3:10PM

Perhaps I am very wrong, but it seems that the law has disintegrated by virtue of the majority of attorneys’ incompetence, ignorance, arrogance, and disingenuous dishonesty. If this is so, the lawyers without these behavioral characteristics may feast almost at will in their arena of the law upon this motley crowd. In fact many have been feasting for years. What is a common question asked about animals in the wild, “who is its natural predator?” Well, who is the natural predator of lawyers? It is not the legislative branch. Both State and Federal congresses are comprised of majorities of vocal and capable predators but are also members of their respective State Bar Association. It is unlikely the executive branch has the staying power to clean up the judicial market place. The most logical reforms or resurrection shall come from the lawyers themselves. Any learned professional lawyer who comprehends the responsibility that the American people have entrusted to them: take action, speak out or just get out of the way. The populous has had enough. (This is but one mantra for us to use.)

Lawyers and the court process have become predictable. Outcomes are not, and creative lawyers continue to play with unpredictable motions. So, if five or fifteen causes of action were seriously drafted with strong enough evidence, what motions from the defense are predictable?

Once we make the list, we can explore novel or desperate or hugely creative motions that we or some supporting members of the judicial branches may suggest.

In football the offensive coach may play three wide receivers and a tight end on an obvious passing down. The play may end up with a pass or run to the rusher or maybe the quarterback will run inside the blocking tackles for a first down. This is how we begin our offense. In football the professional gamblers give consideration to home field advantage. There are many reasons for this. Also the twelfth player is often mentioned in important games. The twelfth player is the crowd. We have home field advantage. I doubt that the powerful CDAA can convince the Superior Court judge that little “en proper” does not have the right to a hearing in his hometown where the wrong doings occurred.

As far as military tactics and strategy go, battle planners have offense and defense preparations. Military warfare history is good reading for situations with conflict. I believe it is mentally unhealthy to utilize all of these ploys except when confronted with the most serious situations of survival. I need success for my survival both tangibly with money and spiritually with a verdict for the plaintiffs. In plain words I want to win.

One of my friends was active in battle in Vietnam. He would take point on patrol, a position much like the scout in the old western stories we grew up with on the radio and later on television. I only see him every two or three months and for only an hour. We talk about his experiences, and I ask him questions to gain an idea of what in the hell were his reasons for volunteering for point man. His logic is worthy the study. His situations were life and death, and I knew he wanted to live. Consider the “en proper” offense that of the point man or scout. You and _____ are the powers in reserve to destroy the enemy and gain the victory. I hope this is a credible way to look at this. Our weapons are a Grand Jury transcript and the record in Sierra County Superior Court. As additional weapons we have the other CDAA cases, the laws and the public, which is sick and tired of the bullshit.

There is another facet of business and life I have sadly grown to accept. People like to join the winning side. They like it even better when the winner is the under dog. While our Sixteen to One stock always goes up when we find some gold, it will not be because we suddenly have profits or money but because people will see the company as a winner and join. It may be the same for our case. When it moves from a concept to reality, people may choose to join, financially as well as emotionally.

Well_____, I wrote this so you may get an idea of my thinking. Like I said, I may be 100% wrong. The exercise has been a good one anyway. I want to avoid the wrong trail, but I want to get moving. I mentioned to my newfound mountain climbing buddies that I might be too cautious in my approach to my work. One said, “Maybe it is time to let that go.”

I cannot represent the corporation. I believe that it is unconstitutional that a law was passed which prohibits me (President) from doing so because the corporate law is clear that a corporation has all the rights of individuals. I’ll try that issue when I have nothing better to do.

Best regards, Michael
 By Michael Miller

01/10/2004  11:57AM

Yes, years ago gold and black gold were quite a pair. Currency has always been around. Gold, oil, diamonds and paper have liquidity in common as currency. Their reliability to float, hold value or succumb to external manipulation varies with significant consequences. Leslie Snyder wrote a book, early seventies, titled Gold and Black Gold, the story of gold and oil. Successful stories are few, especially for the mega corporations. Gold was coming out of hibernation and a new process was successfully developing to make “no see ‘em” gold microns into gold bars. Oil was trading in high dollars. Gold needed start-up and working capital. Oil saw an opportunity to diversify. Paper and what it represents were exchanged between individuals and businesses. Nothing is new yet everything was different. Oil and gold will combine in the future as technological advancements in each field progress.

Governor Arnold Schwarzenegger fired a shot heard all around the world. Did anyone else hear it? He called for a hydrogen highway in California. Nobody commented because workers comp and blasting the boxes os State government are the preeminent ways to stop or avoid our closest threatening bullet of death or despair. If the closest bullet hits you, the next ones down the line don’t really count. My governor fired the concept of eliminating oil as a method of powering transportation in California. No time lines were suggested, but I see significant changes in two decades. Technology never dies. Advancement continues in both gold and oil.

The modern gold rush for microscopic gold began competing with the underground mines in South Africa, once the political shackles were lifted in 1975. Mammoth pits, heaps of remainders from the chemical leaching and processing developed. They are mammoth tributes to an economic balance of currency. It was also technology that drove oil. Oil is extracted thousands of feet below the ocean surface and thousands of feet through sediment into the earth’s crust. Oil and gold benefited from each other twenty-five years ago by creating supply and demand. They will do so again against other currencies of trade and comsumption.

 By Michael Miller

12/22/2003  1:37PM

To Bluejay, Rick, Oak, and all of you who use communication as a source of enlightenment or education here in our open library:

The following people will be eliminated from our reference files on the Forum because they are not real people. Here are the phony names and addresses they submitted to the Company:
AuMaster is spiderman at aardvark@aol.com, Gold Eagle is Craig Miller at craigmiller1234, and MasterAuMiner is Duck Stew at quacker179@aol.com. Ignorance is okay, but dishonesty has no place on the Forum. We will use the Internet systems available to search out these pretenders, or perhaps we will require an e-mail address to activate those people wishing to learn or teach in our library on the web to avoid future abuses.

In life we have real choices, which are usually made using one's background, experience, training, education and desires or goals. Gold miners or gold investors that I have associated with on a continual basis also deal in real facts. Opinions may differ, which may be a healthy and rewarding interaction. Those who have taken the time to educate themselves on the topics of gold mining and the Sixteen to One have a place on the Forum. The Forum also welcomes people with no or limited familiarity with either. Join the experience. I learn something new about these topics of mining each and every day and look forward in teaching and learning from others. What a great industry!

Returning to Alleghany this morning I heard a discussion on the radio about how much our government should reveal about its terrorist defenses or related tactics and strategies. It could be a great debate no matter which side of the question you were asked to take. Similar philosophical and pragmatic factors come into play with the development of our Company. Adequate data exists in this library. An invitation is extended to serious players to ask questions in areas that need further clarification for them to reach a level of confidence to buy into our future or sell out of our future. This is a very exciting time for all shareholders and an opportunity for others to join us. I really do not know how prepared our government is, but I really do know how prepared our Company is to grow into the void that exists for us in the gold industry.

An anonymous critic raised a valid question about Director Dan O’Neill’s contribution. So far, it has been very positive. With the “Gold and Sixteen to One Capitalists’ Manifesto”, which we are collaborating to complete in January, his future contribution will open the minds of people who can help advance our corporate goals.
 By Michael Miller

10/29/2003  6:17PM

A while ago I wrote about the new regulations imposed on all American businesses that use explosives. Federal agents decided to inspect all powder magazines in the United States, which is a duplication of existing and enforced rules. Without this new regulation we could not continue to purchase explosives as we have done for almost 100 years. The authority comes from the Homeland Security Act. So far, nothing alarming. After our inspection, the agent asked if she could record the location of our magazines with her satellite gismo. I said hold on. I do not think it is a good idea that the location of our magazine along with all the other powder magazines in the United States will now be listed on one computer site. She said, “Why, it is a secured listing.” I just had to laugh. Soon all the world’s terrorist or other criminals can access a list of all places to steal dynamite….except here. I refused her request. This may be a well-intended decision designed to protect Americans, but I do not believe the consolidation is worth the risk. Every county sheriff already knows the location of every explosive storage facility in California. It may be true in other states as well. Do you feel secure now that a computer hacker can find these co-ordinates?

I share this event, which took place last summer with you now because a similar event occurred that makes me shake my head in amazement. Here is a letter the company received on October 9,2003. What do you think about this?
“As you may be aware, additional provisions of the U.S. Patriot Act of 2001 are about to come into effect. These provisions affect the precious metals industry and are likely to result in additional regulatory scrutiny directed at the industry’s business practices.
In a few weeks, you will receive a letter that we will ask you to review, sign and return to us. Our new policy requires certification that you, our valued customer, do not purchase or sell any precious metal, in any form, for cash.”

Sure, we will now exchange Sixteen to One gold for a check from someone we do not know. What is next with this line of reasoning?
 By Michael Miller

10/22/2003  12:13AM

For over its life, pacific electrics and Original Sixteen To One Mine bought and sold from each other. That span is ninety years or more. Because the electrical power to the pumps, responsible for maintaining water levels was disconnected today, the mine is beginning to flood. Is it irresponsible to cut off and discontinue electrical service because of overdue charges?

An employee for PG&E telephoned the company with notification of its intentions. The bill for $74,000 must be paid on Wednesday or the fuses connecting its power to our high-tension transformers would be pulled.

The company has no money. It has gold. I offered collateral for the bill with an expensive specimen from the mine. My offer was rejected. Its spokesman told me that others decided the amount was too small. Before I jumped to attack the others misconception, he went on, “No one knew how to handle the gold transaction and the bill was not that big a deal to them.” That was at about $55,000, two months ago. What changed? Two months without any payment or some formula for delinquent account cut-offs. Cutting off someone’s power is serious business for both parties. The “shutee” and the “shutor” have consequences for losses and damages. It is fair for PG&E to cut off the cost of giving the mine some of its electricity because the user is unable to pay. Contracts, customs and laws have evolved for guidance. There is a law in California that was passed by the elected for Californians, which states that electrical power to a mine shall not be discontinued when the power is required to keep the mine from flooding. It is against the law for PG&E to shut down power.

Some of the greatest members in the western judicial branch practiced and participated in the industry of gold mining. There are some large old law and mining books in libraries written or reviewed by the lawyers and judges. I read the entire books and the law about pumps. It was twenty-eight years ago. The Sixteen to One mine had filled to the 800level when the company voted to pull the pumps from the lower levels. I told our PG&E representative about the ‘no electrical disconnect which would hinder keeping a mine level maintained’ law, which he said he relayed up the chain of command four or more months ago.

In 1975, I studied at UCSB, UCSC library, State library in Sacramento, Mc George law library, and the San Francisco-Berkeley mining and law haunts. The no flooding law stuck in my head but its source escaped. Moisture begins collecting in the pump windings immediately at the time of no power. Damages begin and are the ones that cannot be known for certain. Damages that can be absolutely identified are the ones from fresh water.

George, if you are stumbling along with me, hooray. All forum writers are encouraged to cite this old law on the Internet. I wonder if it were stricken from the codes. It is likely Original Sixteen to One Mine, a California corporation, predated any elimination via the legislature. Ex post facto is alive and well on this issue. All forum readers send it to Alleghany, please.
 By Michael Miller

10/10/2003  11:25AM

Blanchard vs. Barrick and J.P. Morgan

On September 8, 2003, a federal court denied the Canadian giant gold company BARRICK and the equally giant J.P.Morgan (defendants in a charge of violating United States antitrust laws by unlawfully combining to manipulate the price of gold and to monopolize the gold market) their motion to dismiss the claims under U.S.antitrust laws.

A New Orleans company formed and driven by Jim Blanchard twenty years ago filed the complaint on December 18, 2002. The charge evolved from earlier attacks by a questioning number of people familiar with the trading history of gold. Years ago I participated as a presenter of gold from the mine at Blanchard’s annual gathering. Both the speakers and the audience intrigued my interest. Speculations were underlying themes. Who are the buyers? Who sells? Opinions and theories about gold vary greatly and can be very private matters. What I grew to accept about gold is that its mystique is widespread.

Around the same time, I was invited by a stockbroker (Donaldson/ Lufkin firm) from San Francisco to attend an exclusive two day presentation in New York by ten Presidents of the most influential and appealing publicly traded gold corporations at that time. The audience guest list comprised representatives from the Country’s large mutual funds and the States giant public retirement funds. The event was for the heavy hitters.

Quickly, I realized that the Presidents were bored yet into the task at hand. I realized that the audience had no clue of the questions to ask in order to choose the ones to buy or sell. This was the sole purpose of the gathering. I realized that I should behave in a special way: I was not there to buy or sell. I was there to observe, which required sharp antennas for each speaker afresh. Maintain a low profile.

I filled a notebook with each executive’s statements. I wrote down questions asked from those spectators responsible to their employers for making tough decisions. A hot Canadian gold company well known to the market sent its chief officer. He was hammered by questions as to when he would join the New York Stock exchange. It seemed that some institutions were prohibited by their charter to buy shares of companies that are not listed on an American stock exchange. After offering a series of polite reasons, he heatedly proclaimed, “Not until your country cleans up the reckless suits filed against corporations by marauding lawyers.”

This lawsuit is not a reckless one. The court found on September 3, 2003:
Unlike consumers of most commodities, consumers of investment gold are damaged by falling prices: “Here, in the extraordinary market for gold and gold derivatives, consumers/investors are readily injured by market participants with sufficient market power to depress price.”
Defendants’ argument that plaintiffs failed to allege a specific agreement to fix the price of gold is not persuasive: “(Barrick’s) Premium Gold Sales Program as alleged is nothing but a specific agreement to fix prices.”

The trial is scheduled for April 5, 2004. Can plaintiff end the gold contract practices? Will its allegations that the defendants manipulated the price of gold hold the day?

Apparently, the Blanchard crew has alleged causes of action against Barrick and J.P. Morgan for the violation of United States’ antitrust laws through their unlawful combination to manipulate the price of gold and to monopolize the market in gold. The Gold Survey 2003, released by Gold Fields Mineral Services suggested that today, global investment demand is “a tiny amount compared to the potential sums available if more mainstream investors were to allocate a small percentage of their portfolios to gold.”
 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

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.


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!

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