April 18, 2021 

Correspondence from the President of OAU


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 By cw3343

02/06/2012  12:36PM

Very good letter. Thank you for keeping up the endless fight against all of the nonsense.

Good luck!
 By martin newkom

02/04/2012  9:56AM

I sincerely hope you will be
successful with the " friendly
folks" in Sacto.
 By Michael Miller

02/02/2012  2:08PM

I met with the Governor’s senior advisor this week in Sacramento. I’m not sure if the meeting resulted from a letter I wrote to Governor Brown on May 30, 2011 (see entry below) or from the letters I wrote to the water department in January with copies to the Governor. Will we get a long sought meeting with the water heads? Stay tuned. Here is my letter sent today to the senior advisor.

Cliff Rechtschaffen, Senior Advisor February 2, 2012
Office of Governor Edmund G. Brown Jr.
State Capitol
Sacramento, California 95814

Dear Mr. Rechtschaffen,

It seems appropriate since we agreed to shorten our meeting on January 30, 2012, to provide you with a full picture of Original Sixteen to One Mine, Inc.’s desire to settle the lawsuit initiated by Central Regional Water Quality Control Board. We believe it is all party’s best interest to move forward; however, a settlement benefits the People of California the most, which is a prime concern of the Governor. The Company offers to pay the balance of past annual fees for the 3C category. Classifications are defined in the regulations according to the threat and complexity of water runoff. We will comply with all regulations required for the property, including keeping our storm water program up to best management practice.

As you pointed out, settlement means the participants do not get exactly want they believe is just. You asked what I want or what can the Governor do. The Company requests a meeting with Kate Hart, chairman of CRWQCB and its Executive Officer, Pamela Creedon. This is a very reasonable request by the Company of its government. CRWQCB held no administration hearing to discuss the mine’s issues, which is very unusual. I am confident that when the water board understands our position and the Company understands its position, the discussion will result in a settlement.

When it comes to environmental issues with the mine in Alleghany, historical evidence combined with present observations must preempt the alleged, potential harm speculations. California regulators must take site specific reality into account, which is required in California’s water regulations. This can be accomplished in a meeting room instead of a courtroom.

I also asked the Governor to take a leadership role. In the Executive Branch he is the only person that can. It is not meddling with an agency. It is no different from my position of President and the duties and obligations that come with the job. Our position is not a debate about the need for regulations. Societies must be regulated. Americas are crying out for honesty. I do believe that Ms’ Hart and Creedon are honest: but somewhere within the water agency, deceit and dishonesty and arrogance exist. I also believe that Hart and Creedon will welcome the Governor’s interest in improving just treatment for the rights of others, especially in matters of business or property. From my brief contacts with the Chairman and Executive Officer, I doubt they will think that a message from the Governor is micromanaging the department. I believe the opposite: a push in this direction will help them manage their department for the best outcomes now and in the future.

If any of the above beliefs seem unsound to the Governor, please point out that the economics of pursuing this lawsuit are ridiculously flawed. Right now everyone is losing, including the public and Californian. Financial crisis are everywhere.

I appreciate your time and hope to hear from you soon. The Sixteen to One mine is an industry leader. We do what federal and state governments want by creating blue collar jobs, keeping it local and increasing the GDP (new wealth creation). The Governor referenced gold and the Sierra Nevada Mountain range in his last speech. A healthy Sixteen to One creates a spiritually uplifting atmosphere in California tied to its great past and important to its future.

Michael Meister Miller
 By Michael Miller

01/31/2012  2:27PM

Eight months ago I wrote California’s Governor, Jerry Brown. Following is the letter edited to protect the shareholders, personal friends of Governor Brown. I am confident that when others in government review the litigation initiated by CRWQCB, settlement will obviously become apparent for the benefit of the people of California. I‘ll copy some of my correspondences on the subject so you gain knowledge and help the Company fight ignorance about a very threatening situation. We have a mission: settle lawsuit, raise a little money, go find some gold.

Governor Jerry Brown
C/o State Capitol, Suite 1173
Sacramento, CA 95814
May 30, 2011

Dear Governor Brown,

Mr. Shareholder said he gave you our shareholders’ letter at your niece’s wedding and asked that you read it later. The reasons for your help in settling a dicey situation between our 100-year-old California Corporation and the Central Regional Water Quality Control Board (CRWQCB) are positive for Californians. CRWQCB filed a lawsuit against the company and me during your tenure as AG. It is weak with a legally unsound foundation. Over my lifetime of business experiences with government, its acknowledgement of wrong or questionable behavior seems difficult for employees to admit and correct. Such is this case with the serious consequences for the loser.

I ask for meetings with you or that you direct a close associate of yours to meet with me in Sacramento or in Alleghany, California’s last working gold mining community. Mr. Shareholder’s father was a Sixteen to One shareholder, which is how I met him in San Francisco thirty-five years ago. Perhaps he could evaluate the record of the wrongful pursuit of justice threatening the very existence of this great gold mining operation and report back to you. The problem is incompetent, lazy or evil bureaucratic regulators, not toxic or harmful activity by gold mining.

Some people you knew years ago also found their way to Alleghany. Through Dan O’Neill, George Gilmour contacted me. George provided a mantle of hope for the Sixteen to One against law breaking prosecution of the mine, its manager and president by Gale Filter, Deputy Director of the California District Attorneys Association. George became a close friend and a man of great legal professionalism. He died in a car accident a day before an important court hearing in Downieville. He spoke highly of you with one interesting story whereby his decision ticked you off and maybe tarnished your admiration of him. You would be proud of calling him a professional friend today. He fought for justice.

Nothing about our company or its behavior with regard to the environment is negative. Much of the ongoing raves about the ugly physical environmental conditions in California are pure hyperbole, bunk! Money is wasted. Lives are wasted. Energy is wasted. The costs are high: lost blue-collar jobs, reduced GDP, misspent talent. Rural California is getting hosed through a process called “rural cleansing”. We are under attack. Original Sixteen to One
Mine, Inc. is the apex of responsible mining for the 21st Century and should be promoted by California’s leaders.

Enclosed is an article I wrote (by Scoop) about George, posted on www.origsix.com. Another friend of George’s, who I never met, wrote three songs in his memory, very moving. I’d like you to have the CD. Hoping you appreciate an historical message from a previous Californian Governor and a brief personal introduction, which are also enclosed.

Some of us beat-up rural folks coined a saying years ago, “The future of (California) is the preservation of its past”. Gold mining could jump start the California economy as oil did in Texas, and other states. You and I are leaders in our chosen fields. Right now, your help is needed. The Californian traditional underground hard-rock gold miner is the most endangered species in the West.

Sincerely yours,
Michael Meister Miller, President
 By bluejay

01/19/2012  9:49PM

Great letter, Mike!

Unfortunately, we are dealing with a body whose governing and dictating powers over others have exceeded their authority. I'm confident that a fair-minded judge won't have any difficulty in seeing what's going on here.
 By Michael Miller

01/19/2012  10:57AM

I have written numerous letters to California's public servants regarding the treatment this company has received over a decade long time span. You may learn sometning from the letter below. The pendulum is moving away from the past direction, aq good move.

California Regional Water Quality Control Board
Central Valley Region Sacramento, CA

Please process and take notice of the most recent water tests performed by Original Sixteen to One Mine, Inc, hereafter called (“the company”). A copy of the laboratory report is attached to this notice. Additional comments about the relevance of the water testing data are included.

The status of the company permit remains unclear. The company has performed what was asked by the water agency in submitting its application and paid the fee under protest. Is a permit in place or pending? If pending, what is holding its process? Other than fees are the requirement unchanged? The company ceased milling ore in 1998 thereby eliminating the use of water for processing ore. It has repeatedly written the agency annually informing the agency of the change in operation. The water agency continues to ignore the company’s request to modify testing requirements.

The company undertook the lab/ testing action in April once again to demonstrate that the effects of surface water seeping through its property has no deleterious effects on plants, animals, aquatic insects or people. This belief is substantiated according to the results by Basic Laboratory on April 27, 2010.

There were seven sample locations identified by numbers one through seven. The locations are:
1. Above the 21 Tunnel
2. Below the 21 Tunnel
3. At the 21 Tunnel
4. Happy Jack portal
5. Kanaka Creek at Hour House dam site
6. Above the 21 Tunnel
7. At the 21 Tunnel

Please incorporate the following observations into your evaluation of the impact that the company’s properties have on water related concerns. The company demands a fair review by responsible parties in your agency with adjustments to settle the contentious lawsuit initiated against it.
1. Samples one and six came from the same distance above the 21 Tunnel. One was near the left bank of Kanaka Creek and six was near the center of Kanaka Creek. The results vary by almost 300%.
2. Sample three and seven were taken from the same location but about fifteen minutes apart. They vary by almost 2%.
3. Sample four is from a discharge about six hundred feet above Kanaka Creek. It is higher than the arbitrary limit, but the water agency ignores this discharge because Sierra County is responsible for leaking toxic substances onto the company property.
4. Sample five is about seven miles downstream from the company. It is below the arbitrary limit set by governments.
5. Sample two is about four hundred feet upstream from where Kanaka Creek exits the company’s property. It is below the arbitrary limit used by the water agency for enforcement.

The results prove that there is no negative evidence to support a theory that surface water and arsenic passing over or under the company’s property is a nuisance, detrimental to the health and well being of anything alive or dead. Both above and below the 21 Tunnel arsenic is present below the arbitrary limit. The Hour House test site also has arsenic below the arbitrary limit. Once again the company asks your staff to reconsider its onerous position about alleged toxic discharges contaminating Kanaka Creek that are directly related to the company’s operation in Sierra County. There is no evidence to support this claim.

Testing for elemental arsenic has proven to be an inexact science. Measuring in parts per billion has proven to return different numbers from samples gathered at the same source. Also it is clear that Cranmer Engineering, the only local laboratory conducting water tests, was not a reliable lab. It no longer will process tests for arsenic that are demanded by government agents. Basic Laboratory appears to have a higher level of performance. Even though this may be true, results for the same water sample sites have varied.

A greater concern of the company is how laboratories prepare the water for analysis. Artificial chemicals are added to the samples that do not exist in Kanaka Creek or anywhere in the Sierra Nevada Mountain watershed. The laboratories inject caustic acids into the sample that dissolve non-harmful arsenic into potentially harmful arsenic. The whole method of testing for arsenic has no value for determining a natural element that occurs throughout the earth and its potential for concern.

The company awaits your reply.
Michael M. Miller, president
May 8, 2010
 By Michael Miller

10/10/2011  1:39PM

To You Readers:

Today is a California state holiday (a three day weekend of course) to recognize a daring event that changed the course of history. Is history nothing more than a relic? Or does history have only a whiff of importance to our confident, arrogant or stressed out people alive today? No. History is worth the effort to preserve and recall events and life from yesteryear.

Yesterday, the Pliocene Ridge communities from Highway 49 to the end of the pavement in Alleghany were invited to an underground tour of the Sixteen to One and hold a Pot Luck dinner in the old theater/gym in Alleghany. The room looked festive and special. Decorations were designed and installed by Rose Cain, great performance. Most unusual wast the gold confetti number 100 that was spread over black table cloths.

The surprise was a raffle for a beautiful quartz and gold specimen from the mine. Everyone in attendance was qualified to win. The ages ranged from 1 year old to 73. The wining number belonged to 9-year-old Kyle, visiting with his grandparents. By request the table decorations of gold and white helium filled balloons were giving to the lucky numbers drawn. We laughed, ate and shared stories while honoring the mine, our communities, Tom Bradbury, founder of the Sixteen to One vein in 1896, and the company celebrating its 100-year anniversary.

The local celebration may be the beginning of events to take place for one year.

I recently read the following remarks about how the big gold companies were producing less gold over the past decade. “Here are some of the main takeover of major gold mines since 1999: Great Central Mining, Echo Bay (Canada), Normandy (Australia), Homestake (oldest gold mine in the United States which had even survived the crisis 1929), Placer Dome (Canada, founded in the early 19th century), Ashanti (South Africa, producing gold since 1897), Glamis Gold (Canada), Sino Gold (Australia), Lihir gold (Australia).”

I went to Homestake’s last meeting where a majority of shareholders voted to sell out to Barrack. I had a proxy in hand and voted against the motion. At that time Original Sixteen to One Mine, Inc was the second oldest gold mine operating in the United States. At that meeting it became the oldest. I will need some help to weather the current storms in force to sink the oldest gold mine operating in the United States. I want and encourage your support for this old ship will not go down with ease.
 By Michael Miller

09/05/2011  3:58PM

Hello from Alleghany on today’s recognition of Labor Day. Sacramento Bee newspaper reports on the value of labor, mentioning mostly farm workers and government employees. I searched for any recognition of miners, loggers, fishermen and other blue collar “bottom line producers”. Alas, none appeared worthy of print.

Following is a letter sent about a year ago to a Federal administrative law judge regarding a topic that few are aware: abuse of laws of interstate commerce. For the important and powerful federal Department of Labor to assert that tiny-shackled Sixteen to One mine affects interstate commerce is impossible to document. So, I only asked her for an administrative hearing to present evidence and confront the accusatory. DENIED.

Honorable Jacqueline R. Bulluck
Federal Mine Safety & Health
Review Commission
601 New Jersey Ave., S.W. Suite 9500
Washington, D.C. 20001

Re: Secretary of Labor (MSHA), Petitioner v. Original Sixteen to One Mine, Inc., Respondent
FMSHRC Docket No.: WEST 2009-65-M
September 15, 2010

Dear Judge Bulluck,

Our miners, management and shareholders strongly object to the approach to miners’ safety exhibited by the U.S. Department of Labor and the disdain of Legal Assistant Stephanie Stacey and Trial Attorney Ian H. Eliasoph shows towards truth, justice and following the intent of “An Act”, which established the federal participation in protection of miners’ safety and health through federal legislation.

Though FMSHRC Rules 2700.10(d) and 2700.8 deals with general provisions of time and motions, they do not apply to the request of Petitioner. Petitioner, while legislated to act on behalf of the public’s interest, is evading justice in its treatment of these citations. His actions in this case benefit none.

The procedural rules cited above are “intended to secure the just, speedy and inexpensive determination of proceedings”. Speed has not been the petitioner’s concern either, as evidenced in its approach to the citations under review. The concept of inexpensive determination applies to both parties. While our Company celebrates its 100-year anniversary in 2011, it remains a very small operation that continues to be bombarded with regulatory agencies from both the federal government and Californian agencies. Our operational management is one person, who also manages the underground operation. Time delays are the result of a small staff and not disdain for the rules of MSHA or the exercise of Administrative law.

Rule 2700.10 (c) requires the moving party to confer or make a reasonable effort to confer with the other party. Petitioner failed its duty in this regard. Respondent replied to the large list of legal authorities alleged to support Petitioner’s interpretation of interstate commerce. Respondent reviewed each reference and replied that the facts of our situation do not resemble those cited in the references. There are significant issues of fact in this case to be resolved.

Interestingly, the trial attorney has misled the court, which in California is an offense. Mr. Eliasoph writes, “Pursuant to FMSHRC Rules 2700.10(d) and 2700.8, a party responding to a motion must submit its opposition within eight days of service…”
The reference cited says, “a statement in opposition to a written motion may be filed by any party within 8 days after service upon the party”. There is no MUST in Rule 2700.10(d). I request that you sanctioned his behavior, as it is an insult to your honor, your position as well as respondent.

The attorney wishes to side step the administrative process and avoid adjudicating the facts of the status of Original Sixteen to One Mine, Inc at the time of the inspection, which lead to the citations in dispute on the applicability of legal authority he supplied. He completely ignores the reality of the operation in Alleghany and gives the broad-brush arguments for proving that our tiny operation affected interstate commerce in our great republic. He is mistaken. He fully understands the scope of our maintenance program both via written and vocal communications. He disregards the evidence yet continues to beat his drum of justice. He is just plain wrong.

May I add that the specific events here in Alleghany at the mine will not setback the federal position of interstate commerce. It will help it. The great value of federal involvement in helping operators and miners carry forth safety in America’s mines will not be threatened. The contrary may actually be gained if you do not hear the evidence in this case and make a judgment about the situation in favor of Petitioner. There is no need for federal tax revenues to be spent where the benefit is not commensurate with the cost. Small-scale mining has mostly disappeared in our country due to excessive interference. America is the loser if this continues to be the methods of MSHA health and safety enforcement.

I have spent thirty-five years in the mining industry in California. I actually started prior to the formation of MSHA. My history shows strong support for bringing another set of eyes (MSHA inspectors) into a mining operation for the purposes of health and safety; however at times agencies perform beyond their purpose and sometimes impede miners’ safety.. You have before you one of these instances.

I request that you reprimand Petitioner, who really should know better what the purposes of MSHA are, set a hearing or dismiss the citations outright. I do not know if you have our response to the references the Petitioner sent to us to document its position. I do not know if it is appropriate for me to send them to you. If you wish to present a demand to me to provide you something, please tell me. I have documented phone calls and written communication with Petitioner to no avail. He has not addressed my objections. They remain unchallenged.

This correspondence is a response to a letter dated September 7, 2010 to you. We received the letter on September 15, 2010. I am responding the same day. A copy of this letter will be mailed to Petitioners, listed below.
Sincerely yours,
Michael M. Miller, president
Original Sixteen to One Mine, Inc.
CC : Lawrence Brewster, Regional Solicitor
Susan Gillet Kumli, Counsel for Safety and Health
Ian H. Eliasoph, Trial Attorney
Mathew Flairty, Student Intern

Office of the Solicitor
90 7th Street, Suite 3-700
San Francisco, California 94103
 By martin newkom

08/31/2011  10:27AM

The other motive the Water Qual.
staff may have is since Jerry has
tinkered with their budget they
must resort to their own resources
to cover their money shortages
such as: enhanced and frequent permit fees,fines and such like.
You pay the demands but they are
sure to return for more.
 By martin newkom

08/14/2011  7:28PM

Looks like a reasonable request if
the State will respond properly.
They don't seem to have much in
the way of manners or gentlemanly
traits. Of course they don't
learn that in law school now do
they? Many of them do not learn
to be attys. moreover they just
learn to to pass the bar exam.
 By Michael Miller

08/10/2011  2:25PM

Michael M. Miller (530) 287-3223
P.O. Box 941
Alleghany, CA 95910

Pamela C. Creedon, Executive Officer August 9, 2011
California Regional Water Quality Control Board,
Central Valley Region
11020 Sun Center Drive #200
Rancho Cordova, CA 95670

People of the State of California, Ex Rel. CRWQCB
Central Valley Region V. Original Sixteen to One Mine, Inc.

Dear Pamela,

Deputy Attorney General prosecuting Original Sixteen to One Mine, Inc stated that Plaintiff, People of the State of California, was willing to release me personally as a defendant in the water agency lawsuit. The condition was that I sign a release of liability thereby excusing the Plaintiff from any malfeasants or wrongdoing it alleged in the multiple causes of actions against me. I refused the offer and remained a co-defendant with Original Sixteen to One Mine, Inc.

Months later the Deputy Attorney General filed a motion to dismiss in Superior Court. I objected to the motion. The presiding judge said that my remedy for closure would be filing a lawsuit to extinguish the threat posed by the allegations and repair the personal and business damages caused by the lawsuit. However, I believe the sensible actions and best management practice are for both parties to settle the issues. This is truly in the best interest of the People of California as well as mine.

I am prepared to sign a waver, as an individual and as President of defendant Original Sixteen to One Mine, Inc., which releases the named Plaintiff and potential associates of said Plaintiff from damages. In return, a dismissal of the lawsuit and issuance of a water-monitoring program (should it be determined that one is required) will be filed in Superior Court.

Please instruct the appropriate staff member(s) to meet with me and work diligently to perfect a lawful and honorable solution to the issues as hand. Last month five staff came to the property in Alleghany to take a water sample. Four members of the staff came two days later to take additional water samples. You should have the results of their visit, which will assist us in determining what, if any, ongoing water monitoring meets the “Best Management Practice” standards. Our geologist was present and responded to observations and comments when appropriate. You are most welcomed to visit this historical California gold mine and the operator celebrating 100 years in business as a California Corporation this October. It will be helpful in guiding the CRWQCB towards a decision.
Sincerely yours,

Michael Meister Miller
CC: Assemblyman Dan Logue
 By martin newkom

06/23/2011  9:13AM

Hurrah!! Looks like Michael has
actually found an advocate in the
person of his old friend, Bruce.
Maybe the mine can actually move
"Forward" with his (Bruce's) help.
 By Michael Miller

06/22/2011  1:45PM

“ Efficiencies and innovation in regulation will allow businesses to pay higher wages, while still remaining competitive. Growing middle-income jobs will reduce demand for public services and increase tax revenue.” California Forward. June 2011

Retired Director, Charles I. Brown, recently noted a story from another gold seeker, Mel Fisher. Fisher spent years searching for the sunken treasure on the Atocha. Most days were failures, but each morning as the crew set forth, the discussion was…this will be the day!. Yesterday, company geologist Ray Wittkopp and I were engaged in more than just a geological discussion about the Sixteen to One. One comment dealt with attitude: the gold miner must view each day positively or if in a negative mood, just stay in bed!

What we have on our plate right now is a large unmined section of the Sixteen to One in line with a proven ore shoot. If we drill and break enough quartz, we will find gold. It’s there, in the next round. But.gold or mining is not why I write to you.

My purpose in writing today is to give you something to discover, the California Forward advocacy association. I learned of its existence Monday from a life long friend, Bruce MacPherson, who is one of its leaders. Last week I wrote Bruce seeking advice to settle the California water agency’s dispute with us. Logic, sound reasoning and critical evaluation flew out the windows of the Central Valley Regional water board staff during the 1990’s and into the early years of the twenty-first century. I know why. The beginning of “for profit lawyering” from non-profit corporations found a cash cow, a helpless or pitiful one to boot. Yum, yum, they moved in on the prey. My source comes from members of the agency who felt powerless to defend the legal attack against them.

There is no greater obstacle to the intellectual progress of mankind than man’s unwillingness and inability to seek verification of conclusions through evidence. I sense the pendulum of environmental claims of doom and gloom is changing, swinging in the opposite direction of the 1990’s-early twenty-first century. This is beneficial for the public and in California’s best interest.

To the present: Pessimism, depression, dooms and glooms are expressed throughout America. Okay, we recognize it. How about reversing it? How about solutions and positive stuff to think about and act upon? Below is the mission statement from the californiaforward .org website. Its leaders are proven, like this great gold deposit in Alleghany.

I know Bruce well, since our surfing days as teenagers in Santa Cruz. He served Californians well as an assemblyman, senator and Secretary of State. He is enthused about changing the political and executive field of battle. Let’s make it happen. Learn more about ways or what is needed to fix our problems. One way I see is to hold all three branches of our government from appointed men and women, top elected person and the bottom level employees accountable and responsible for their behavior. But first they need to see their insidious growth of demagoguery.

"California Forward's mission is to work with Californians to help create a "smart" government – one that’s small enough to listen, big enough to tackle real problems, smart enough to spend our money wisely in good times and bad, and honest enough to be held accountable for results.

We’re different from other efforts to reform our state, because we believe in the importance of working together and understand that only robust public discussion and the creation of broad coalitions can move solutions forward.
California’s state and local governments must work better together for everyone. If Californians can come together to restructure the relationships between state and local governments, the experience of other states indicates that in five to seven years, we will begin to see the benefits of better governance and renewed private investment.
Continuous improvement in the performance of education and social programs will allow the state to shift resources from prisons back to universities. Efficiencies and innovation in regulation will allow businesses to pay higher wages, while still remaining competitive. Growing middle-income jobs will reduce demand for public services and increase tax revenue.

Restructuring California’s government can be the beginning of a cycle – improved education, increased employment, decreased poverty, improved health, and less crime – that can lead to the best possible outcome: A government that achieves positive social gains in a financially sustainable way.

California Forward believes we can revive the California Dream and turn our broken government into an efficient, effective body, focused on performance, accountability, and transparency. But we must all get involved."
 By Michael Miller

04/28/2011  11:52AM

To America: Our Proponents and Opponents

This is written for you as well as people unfamiliar with our Company, its history, the FORUM and our wonderful mines; however, you who have taken time to read about them provide the spirit we need for support and sustainability. Patience, please if you have heard it before. This muse about taxes, assets and value is prompted by the satisfaction of paying Sierra County almost $75,000 for delinquent property taxes last Friday.

No, that doesn’t represent one-year taxes, but the amount required to stop the sale of two gold properties in Alleghany. Taxes were five years in arrears. The sale was scheduled for April 30, 2011. Over 2100 people clicked on the sale information on the Internet. Why not have dreams of picking up the Sixteen to One for seventy-five grand? So for any of the 2100, contact me with your wants. The operation would benefit from an influx of capital. Maybe we can work something out that benefits everyone.


The value of Original Sixteen to One is most likely in the minds of its owners. But what or how is that value determined requires an historical perspective. Shareholders may use the market capitalization formula: shares outstanding times price. Some use the balance statement: assets minus liabilities equal owners’ equity. Some use the income statement: sales minus expenses equals profit. All have a place and are useful; however none of the above reveals the value of the Sixteen to One mine.

Some shareholders tell me they bought a couple of hundred or thousand shares for the fun of owning a gold mine. Others bought to enjoy or support the historical past of the pioneers and movers of the West. Others bought to increase their assets and make a profit when they sell. It has been called an investment or a gamble.

In 1976, I sought shareholder proxy support to unseat proud but tired (and wealthy) directors. There were about 300 shareholders. Most shareholders I talked with inherited their stock. They said they were told, “Never sell your shares in the Sixteen to One mine.” During the dark times of the depression the mine’s gold made a difference in their family’s life. I understood. They related wonderful stories. Their ancestors were very familiar with our gold mine and its record. They knew an asset to keep. Our assets are greater than a dollar amount on a balance sheet.

Not one method of seeking value works with the Sixteen to One. The decision for investment is difficult. Potential to mine gold at a profit looms large with me as data to study; however, bankers and others put little or no value on potential. . I know from experiences. It is not ‘mainstream’ thinking. Historical data is a primary tool for critical analysis (which is why this information is on our website.) The gold market is a factor but a minor one because there is nothing a small producer can do to affect the spot price. Yet at $1500 an ounce its importance looms larger today than in 1976, when an ounce of gold ranged in price from $104 to $140.10.

So, how have I analyzed and evaluated data to arrive at the conclusion that my ownership in Original Sixteen to One Mine, Inc is worthy of my time and my savings as well as coughing up collateral to pay the Sierra County tax bil?

Taxes, assets and value prompted this muse. I took some of my assets to pay the taxes to save the property from auction because of its value. The potential I recognize today, after years of exposure to data, supports a value greater than I can critically imagine. At $1500 an ounce, knowing the geology of the mine, understanding the threatening lawsuit, the on-the-ground physical situation here in Alleghany I can imagine a billion dollar mining opportunity.

Another circumstance reaffirmed itself during the past years. Smart people with limited knowledge about the Sixteen to One will not step up to (a) conduct a due diligence analysis; (b) pragmatically analyze the risk/reward reality of current assets with a comparison to the risk/ reward analysis of the Sixteen to One, including its potential.

Since we are under utilizing our potential due to inadequate working capital and people with disposable or discretionary assets are not in our game, our potential billion-dollar production possibility may never be tested. Fortunately, a surprising number of shareholders believe otherwise. I am grateful, appreciative and will continue to remove the obstructions blocking our mining for gold in California. Thanks. Adios auction.
 By Michael Miller

04/18/2011  1:38PM

Found this old letter to an eastern writer. Never heard back from him. Still, gold is an enigma not adequately reported to the public. Think about how often you read or see an in-depth gold story about its when, where how, why and what. This is not just true today. When time permits, I’ll search the archives to pass on stories told since my interest in 1974.

September 9, 2007
Dear Robert Frank,

By chance I was visiting a friend when your talk at the Hamptons came on the TV. My heart went out to you. I have never witnessed a talk to a group whose personality was such a bore. You did great with the most uninspiring audience I have ever seen in person or on the screen. It was painful to watch. Having said this, something you said made me run to get a pencil and paper to write down your address. You were asked about your next topic. My impression was that you wanted a really great and untapped subject yet discovered.

Well, there is one and it is one that I first took notice of in 1974. I’m still taking notice today and the interest remains strong: GOLD. The Wall Street Journal has never really published GOLD beyond the normal blah, blah, blah. When my Economist arrives, I scan the table of contents to see if there are gold articles with precious few results. There are half a dozen opinions as to why America has so few gold stories. More interesting to me is how inept journalists have been, as John Stuart Mill wrote, in giving readers an original thought about GOLD.

Remember Brea X? The press reported and the market reacted contrary to economic logic. The whole Gold Sector was painted ugly. Spot bullion prices dropped. Brea X, prior to the geologist falling out of a plane over the jungle, was billed as world’s newest and greatest gold find. If suddenly it were revealed that it was a scam and the whole gold field estimated was zero, the spot price should have risen based on world supply/ demand evaluations: an anticipated supply disappeared.

Let me shorten this initial letter. I run America’s oldest gold mining company. It is one of the world’s richest concentrations of gold and has been producing since the 1800’s. Guess what? The mine is in California, the government perceived as the least friendly to natural resource production. Since I cannot move the mine to Mongolia or Peru, I found ways to make a payroll (those great blue collar jobs that helped make the United States the world’s leading economy) while operating in California. I would like to get to know you and visa versa. Gold remains one of a few topics that interests all cultures, all classes of people and plays a most hidden role in international finances. Americans are ready to be exposed to its stories, stories that rival the American cowboy, the accumulation of wealth by a few, an adventure available to every US citizen and mysteries well concealed from public scrutiny.

I invite you into the world of GOLD. A place to begin to determine its worth is a web site we started years before most others. Our cite is designed to educate. My goal is to address ignorance. My vision became public on the FORUM under the topic “No Better Deal”. I have never found a more honest eclectic gathering of gold information anywhere. Duties limit my time to explore for information. That seems to be your forte. I would really appreciate an acknowledgement to this invitation to learn about stuff that rocks the world. Such as: What the new Dubai Gold Exchange brings to the
Gold industries? There are so many unexplored or undeveloped personalities of gold. Please contact me. I respect your journalistic attitude.
Sincerely yours,
Michael M. Miller
 By David I

04/17/2011  5:01AM

I was reading your past posts regarding trying to sell electric power to PG&E. \
We just had an election where the people of California shot down The monopoly by PG&E as the sole power producer. This opens the door for counties and cities to go into business for there communities need to produce power for the area.
Should Sierra county set up a plan to produce power as a cooperative with those land holders that have the hydro electric resource in the county. Then they would set up a competitive resource To PG&E. Even if such discussion of a plan were being considered it would influence PG&E stop such an event from occurring.
 By Michael Miller

04/02/2011  5:07PM

Mr. Tim Beals, Director August 25, 2008
Sierra County Public Works
Downieville, CA

Dear Mr. Beals,
There are times when the phrase, “Time is of the essence” means just that. Time is of the essence and a critical component in cleaning the Alleghany situation. This is how Original Sixteen to One Mine, Inc views the proposed work at its Happy Jack Extension claim.

The longer the alleged toxic condition remains the greater the exposure to the company, its operation and mine. I encourage Sierra County to move with haste to implement remediation work. The Company believes the seriousness of its exposure to liabilities warrants treating the initial phase of the project as an emergency. Any damages occurring to the mine from Sierra County’s will be placed at the County’s doorstep. Therefore, “Time is of the essence” means that time is of the essence to Sierra County as well.

Sierra County may not have the same viewpoint, which is why I now write you. This tiny hard rock underground gold mining operation in Sierra County has witnessed too much questionable interference by State and Federal government agencies and other vial humans. A strong history exists that document people want the mine to close and are willing to go to illegal lengths to achieve this goal. One present huge concern is finding the Sixteen to One mine connected in a newspaper story about this current situation. Even though the Company is faultless, the headlines will read something like this: “Toxic waste discharged from Sixteen to One mine”. The last paragraph in the story will say that the contaminants likely leaked from old Sierra County fuel tanks, but no one will remember this important fact. The damage will be done!

When the Company was ruthlessly and illegally indicted for manslaughter in Sierra County, the LA Times carried a front-page story, which painted an untrue picture of the events. The results of this story were the losses of much-needed working capital that I had secured. It fled. A story alleging that the mine is a toxic discharger will wreck our future and ability to raise much-needed working capital. Please, lets get going and fix this problem and eliminate the possibility immediately.

The other serious concern is equally important but not the least bit speculative. California rules regarding surface construction change on September 15 each year. Phase one must be concluded before that date or significant additional paper work costs and preparations for winter must take place. Since the mine has permits with Water Quality, a knowing violation of these rules will be “willful” and therefore carry potential felony indictments. Been there, done that and don’t want to go there again.

My suggestions to Craig Morgan have consistently been to use all abilities and options to get paperwork done. Set the required Supervisory meeting (if necessary). Craig said this was not the County’s wish. My suggestion was to invoke existing emergency rules so construction could began weeks ago. No support. I have also discussed with Craig the information necessary to secure the proposed insurance. I do not have that information yet. Insurers are not gung ho about mining. Policies and bonds are expensive and difficult to get

I encourage Sierra County to extend its intellect, get this project underway and get at least the first phase done by September 15, 2008. Once underground, everything changes and a whole new set of rules go into affect. I have been assured that Morning Glory Gold Mine will place this project as its highest priority and get the job done in the shortest number of days.

Truly yours,
Michael Miller, president

 By ABrink

03/13/2011  4:25PM

I hadn't read Mike's message about 'Wonders of the Universe' but watched the second tonight, and a minute or two was spent underground at the 16 to 1. It was in the context of discussion of the geology and the meeting of plates.
 By martin newkom

03/07/2011  2:04PM

The recent episodes of "Gold Rush"
in Alaska (TLC) even though it was not a "hard rock" operation
is a perfect example of how not
to run a gold operation, moreover it was a complete "comedy of errors". Mike and his crew really have the know-how. They
altogether could mine circles
around those poor guys in that
 By Michael Miller

03/06/2011  12:00PM

Last summer film producers approached the mine for an upcoming BBC presentation about “Wonders of the Universe” (the title of the proposed television show). Word was just received today that the Wonders of the Universe has its first of four episodes beginning Sunday March 6 2011 or today. The fist episode is titled, Destiny. A review of the show is found at www.bbc.co.uk/programmes/b00zf9dh . The second episode is entitled Stardust where the presenter, a physicist named Brian Cox, explains how the earth’s resources have been recycled through the ages. It is likely the underground working of the Sixteen to One mine will be a part of this episode.

The BBC producers brought two crews to Alleghany to interview us, flash some Sixteen to One high-grade gold and film a glimpse of what the earth looks like a 1000 feet below the surface. Brian was a nice chap and appeared mostly with the crew that filmed the show to be shown in Great Britain. The second crew filmed footage to be edited into episodes for the rest of the world.

I don’t know what to expect once the mighty and powerful editors cut and paste. If anyone can get additional information about channels or times, please let us know.

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