July 24, 2017 
 Monday 
 
 

Forum
Topic:
Correspondence from the President of OAU

       

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 By martin newkom

04/02/2008  10:15AM

Yes, there were stream miners
referred to as "grifters" who
were forced into the activity
because of the bad times.
 By Rae Bell

04/01/2008  10:42AM

I thought the second California gold rush was in the 1930's during the Great Depression?
 By Michael Miller

03/31/2008  3:08PM

A shareholder sent me an article from London’s Financial Times 30 Mar 2008 titled:
“New California Gold Rush As Prices Soar”. It’s cute but far-fetched.

Though it's been more than 160 years since the first California gold rush, record high prices of the precious metal are driving a new gold rush, equipment retailers and government officials say.

“This is the second big California gold rush. We’ve had a lot of phone calls from people who are quitting their jobs and prospecting full-time," Harrigan McGregor, owner of GoldFeverProspecting.com, an equipment retailer in northern California, told London's Financial Times.

The Bureau of Land Management - which handles commercial mining claims, most of which are for gold mining - said new claims are up fourfold since gold topped $1,000 an ounce earlier this month. It now hovers well above $900 an ounce.

Roger Haskins, senior specialist for mining law at the BLM, told FT the high price of gold was “obviously driving [mining] activity up tremendously."

“We have a market imbalance at the moment and there’s more demand than supply,” he noted. “Gold sits in a little niche because it’s speculative?.?.?.?People buy it as a hedge for the future."

The most notable mining location for gold is a strip known as the Gold Belt, or “Motherlode”, which runs near Highway 49 (named for prospecting “49ers” of the 19th century) and the Sierra Nevada mountains.

Experts say only about 5 - 10 percent of available gold had been mined already.

Here are my comments:
1. The second California gold rush began in 1975 and lasted until the beginning of the 1990’s bear market. It was the awakening of the unmined gold left in the Sierra Nevada mountain range and other former gold productive regions in the West. What is now happening in the gold sector in California is basically apathy. I doubt many people are quitting their jobs for the rigors of prospecting.
2. It was less than a month ago that gold passed the $1000 price. I doubt many people headed for the mountains during the winter to stake a new claim with the BLM. Many companies and individuals abandoned marginal claims as the filing fees increased. Few if any claims with gold potential were dropped. Any increase in filings would likely be on dropped claims with little economic value.
3. California’s gold belt tops the most proven gold deposit with the fewest active mining operations. A safe estimate of unmined lode gold is in the 80% to 90% range; however the surface placer gold and shallow pickings are probably 90% gone. Gotta love those Brits for comprehensive and reliable reporting. Unfortunately, an article like this could appear most anywhere. I do, however expect more trucks pulling into Alleghany with anxious men ready and equipped to pluck that easy gold from the waterways.
 By Michael Miller

02/28/2008  10:23AM

Yes, Dick, it is not only possible but very likely to locate a signal 20 meters or more.

When we were inspiring electronic inventors, dreamers or complete nut cases after our successes with detectors (1992) were widely publicized, all degrees of the above named wizards found their way to Alleghany. It was a lot of fun. I kept an open mind and discouraged no one to test his or her invention at the mine. I knew that the technology to find gold in our quartz veins was “the real deal”. We proved it time and time again. Any improvements would mean more pockets of gold to mine.

Perfecting detection in the range of five to fifteen feet was our main thrust. Some of the equipment I saw detected a signal three hundred feet or more. This great distance was not particularly valuable to us because we already identified our vein system and to drill a core or drive a drift three hundred feet on an unproven signal would be expensive and foolish.

The electronics for identifying gold verses iron differs. I think iron technology is more advanced than gold technology because of its value (and financial support from taxpayers) to military applications. One group of investors that came to Alleghany was made up of retired military high-ranking officers. They were also gold mining lovers. One night after a barbeque (they supplied the steaks and scotch) we lit up some Cohiba cigars I smuggled out of Cuba. The talk turned to Russian and American military history, so I listened but led the conversation with questions. I respected these men and will never forget that night of conversation. Why am I telling you this?

These men, retired generals and admirals, knew the value of technology and related its military development over their careers. Now they were pursuing gold. A reoccurring remark that night was how much more enjoyable it is to work for gold than for a better way to kill and destroy. I was humbled and honored to be in their presence.

We have yet to perfect the search for gold. Technology of detection and deception with other metals has reached outer space. Much of this advancement will benefit our development. Finding a WWII buried tank is not a problem for hunters today. Finding gold at the Sixteen to One will not be a problem after our technology plan is set in motion. We will change the face of underground small vein high-grade mining. We have the best mine in the world as a beta site to do this.

Thanks for the question.
 By martin newkom

02/28/2008  10:20AM

Mike, my holding of the 16-1
is partly historical and e-
motional, ie I am owning a
piece of my heritage: my mother
was born in Alleghany near
where the Red Star cafe is,
my grandpa and one of his
brothers ran the general store
there from 1900-1915, approx.
Those two also operated the
Eldorado mine which at that
time was a complete "craps
shoot" and they went broke,
however my grandpa had an
almost completely ongoing
checkers game with H.L.
Johnson of the Tightner.
All I am doing is offering
a possible suggestion for
promotion if the 16-1 with
the caveat that it must be
economical or it is not
feasible. I have in no way
any problem with management
who is doing a fine job under
the circumstances.
 By Dick Davis

02/28/2008  12:21AM

Dear Mike,

Currently the news is reporting a hunt for WWII treasure in Saxony Germany. An article claims that a “sophisticated metal detector” has indicated gold at a “depth of 20 meters.”

Depending on geology, is this at all possible?

Best regards,

Dick Davis
 By Michael Miller

01/03/2008  4:12PM

Bluejay, are you familiar with the data that goes into specifics about our development that is available to anyone? If not, please get it. It is offered for free by e-mail or regular mail. The info can be found a few entries below this one.

Specific corporate advisors are listed on the short form executive summary. There are nine names. Eight have over 325 years of mining experience. All have had exceptional careers and continue to be of great value to the Sixteen to One. There are others who are readily available to me (not listed) with the touch of a phone. Our Company is fortunate to have such people on board and interested in participating in our success. One of them called me within an hour of your posting with a recommendation that I respond.

Martin, promotion or “getting our name out there” can be expensive. Liquidity is a result of public promotion. In the process the market place allows owners and non-owners to decide whether to buy or sell. I know a lot about the Gold Sector market and have advisors who know more than I.

For all those without a gold position and on the sidelines the questions are, “Do I have discretionary money to join the future excitement in the Gold Sector? If so, how shall I do it?” It is true that if the first answer is yes, will that person even know there is a situation like ours available. Our use of proceeds addresses this current shortcoming.

Over the past thirty years gold speculators (they used to be called “gold-bugs”) have had a decreasing selection of opportunities in the stock market. Many companies merged and most others have poor prospects of actually producing gold. There are gold speculators still, but there are few if any gold bugs anymore. When I got into gold, the “gold-bugs” were twenty years or more older than I. Most are dead. I have not see an infestation of new gold bugs hitting the marketplace. Having said this I do believe that more and more people are aware of the necessity to preserve (store) their wealth (assets). Gold is a proven way to do this. Ignorance is our biggest enemy. This FORUM has always been maintained to inform, educate or entertain. It is an economical method of advancing our company and ideas. I have yet to discover a better gold play in the marketplace than the one we have detailed in our data package.

Please reread the entry in this topic submitted on the first day of 2008 . I must have failed to express what I meant to say or what I wrote is not what you heard. I welcome any improvement.
 By bluejay

01/03/2008  1:28PM

Gold almost hit $870 today and most would expect that shareholders would have something to show for it with an advancing share price. Instead, basically, no one cares, how sad.

I, along with many, have invested in this operation with unsatisfactory results.

Everything positive I have read is stated to be just right around the corner and it has been that way for years.

I think it is high time for the board of directors to take some responsibility for their elected positions by figuring out why things are not working out or by hiring an outside professional to tell them.

Personally, I would like each board member to submit to the shareholders on this forum page what they have done and what they are doing individually to increase the value of our company.
 By martin newkom

01/01/2008  8:19AM

The company needs to explore
an economical way to promote
its common stock other than by
present means whether it is by
an exchange, bulletin board,
pink sheets, boiler room or
by direct sale. There is not
enough apparent publicity now
going for the mine.
 By Michael Miller

01/01/2008  12:19AM

Why I would consider putting some of my money or available assets into a gold company:

1. The Gold Sector must have strength and length.

2. There must be an honest buy/sell market for my investment. If events both external and internal look better than they do at the time of my purchase, I may invest more. If circumstances deteriorate significantly or my personal needs change, I may convert back to cash and find another speculation, investment or storage of my wealth.

3. No matter what the size of the market capitalization or any other relevant figure stated in financial statement or other company documents, my rationale for determining the amount of risk to the amount of reward (my money becomes greater than the amount spent) leans towards the reward side. Time is also a consideration.

4. There must be some unique, specific or other reasons particular to the company beyond those general reasons within the Gold Sector on the horizon.

5. The Company must disclose an outline of its current situation and its program or plans for the future so I can make an evaluation of its proximity to reality and its likelihood of success.

IN OTHER WORDS FORECASTING, AS ALWAYS, IS THE KEY TO PROFIT. It will be up to me to conclude the upside potential and the downside risk.

A package of documents is available either by e-mail or regular mail for you to forecast and predict what will happen to the Sixteen to One mine in 2008, one hundred and twelve (112) years after its discovery in 1896.

Address: Original Sixteen to One Mine, Inc.
P.O.Box 909
Alleghany, CA 95910

corp@origsix.com

If you send for the information, I would appreciate any constructive criticism you may have for us to fulfill our dreams and the implementation the our plans for the future.

Sincerely and best wishes for year 2008 and your future,
Michael Meister Miller, president
December 31, 2007
 By Michael Miller

11/12/2007  5:30PM

Dear Andy,

It was a long and enjoyable conversation we had today about gold and the opportunities at the Sixteen to One mine. I just wrote the following historical perspective that fits nicely into our shared beliefs.

Californians will occasionally read a newspaper story about all the abandoned mines throughout the State. Are these mines really abandoned? Likely nine out of ten people not directly involved in mining, when the subject of gold mining comes up, respond automatically with something like, “Oh yeah, there are a lot of abandoned mines out there.” There is very little awareness on the part of the general public or no awareness of the facts that contributed to this historical ignorance.

The spot price of gold was frozen at $35.00 an ounce in 1934 by U.S. legislation. Nothing else in the country was frozen. Nothing else that human beings buy and sell was frozen, only gold. The spot price of everything else went up either due to inflation or the economic principles of supply and demand. This is what caused most of the mines to close. There is no awareness that those “abandoned” mines were not abandoned, they were forced to close by $35 gold. The next knock out punch was the federal war limiting order of 1942 by Presidential Order to force miners into essential war industry by significantly cutting back supplies available to the mine operators. After the war was over everything else except gold went up in price. There was no point in opening or reopening a gold mine. Those that did survive like the Empire in Grass Valley, California (closed in 1956) and the Homestake in Lead, South Dakota (closed a few years ago) eventually got caught in spot price manipulation.

The gold and anti-gold bugs have persisted for generations. One of the casualties of the $35 spot price fix was that an entire generation of men who would ordinarily have gone into mining did not do so. One consequence was felt in the modern gold rush that occurred after the price fixing of spot at $35 was lifted by legislation in 1974. Gold mining had blossomed with large open pit metallurgy. The footprint of mining changed. The generations of underground gold miners were in short supply. Skills were lost.

Fortunately, for the Sixteen to One mine in Alleghany, California, gold mining in this high-grade district defied the $35 spot price. It and others were operated by their owners and continued to be mined by aged miners. In 1975, when investment capital appeared, eager to strike it rich, few young men could be found with the skills to get the gold. Unproven and untested men responded to the new liberation of gold. It is all about price not source. Unfortunately, most operations suffered from the generational loss of experienced men to teach their skills as underground gold mining craftsmen. Many mistakes were made and much money was lost and again most of the mines fell silent, a condition that exists today.

Limitations, fixations, interventions, inflation and regulations about wiped the underground gold miners from the “abandoned” mines. But that was not enough to complete the job. In addition to the $35 route of ’34 (no longer a factor) a new idea was implemented to beat back the appeal or opportunity of gold. It was called the IMF GOLD AUCTION.

The IMF (International Monetary Fund) played a major role in gold prices during the exciting years after gold was de-regulated. In 1977 its last monthly gold auction on December 7 awarded 524,800 ounces of fine gold. Awards to successful bidders were made at a common price of $160.03 an ounce. Prices submitted ranged from the common price to $165.00 an ounce. Bids were received for a total of 1,133,600 ounces. Various market sources expressed their disappointment at the results of the December auction and pointed to it as the reason for the sluggish action of gold in recent weeks. (Gold was unable to rally even though the dollar’s weakness was quite pronounced.) It turns out there was a “leak” by somebody at GSA or U.S. Treasury that the Treasury was printing forms for its own auction to be held soon. Professional traders began shorting the yellow metal and to a certain extent so did the public. Months later the Treasury announced it had not printed invitation forms for an impending gold auction. Some who were short for the February delivery in New York or the March delivery in Chicago were in for a rude awakening.

Something I noticed years ago and is currently true today is the privacy of gold buyers. Gold is a storage of value with characteristics like no other asset. I was surprised to discover a list of the December 7, 1977 buyers of the IMF auction. It included: Union Bank of Switzerland, Zurich, N.M. Rothschild & Sons Ltd., London, U.K., Republic National Bank of New York, New York, U.S.A., Homestake Mining Co., San Francisco, California, U.S.A., J.Aron & Co. Inc.,New York, U.S.A. and three banks from Germany. In total there were nineteen buyers of the 524,800 ounces.

You are right. People with no gold mining background or experience in gold or mining may find our plans difficult to understand. Thanks for you help in developing working capital. Original Sixteen to One Mine, Inc (yes, I know you are a shareholder and know this) never was nor ever will become an “abandoned” mine. Its owners know its resources value.

Regards,
MMM
 By Michael Miller

08/14/2007  12:56PM

Brief Analysis
August 14, 2007

One big obstacle blocking this business opportunity is reaching consensus of the ultimate objective. Shall the Company be a conduit for making more money so the players can then do it again with another venture? Can it become an end in itself rather than another means to an end? Few people know our vision. Why? Probably because management is unable or unwilling to discuss the vision and end product. Only a few people have expressed an interest and also have some ability to advance the vision. If I cannot find them, they must find me. The public vision is readily found throughout company documents.
We discussed diversification. I agree with the concept. There are two immediate areas of great future growth that nobody is cracking: forest improvement and water treatment for stream bed mercury. There is a worrisome collapse of the lumber milling industry in California. There are mine sites (20,000) in California with alleged “toxic” water discharge. We have the knowledge to meet these needs. Imagine miners wearing white hazard suits cleaning the mercury from the streams and getting paid to do so. What do you think will be attached to the mercury? That’s right…. gold. The fear of regulations has sparked property owners with “toxic” discharge to offer their land to the Company at reduced or no cost.
Signs are appearing in print that the environmental movement has reached acceptable lunacy. My logging friends and I discuss solutions to the problems now cited in newspapers: fire dangers (too much understory) and excessive imports. There are no better businesses in the world than the ones where competition is minimal and demand exceeds production.
Water is a California resource of expanding interest. Our next phase of water development is generating power and redefined consumption. The Company has water rights to enter both these lucrative fields. Our water should become a great hit because of its minerals. The world suffers a shortage of minerals in all areas of food and beverage (World Health Organization). The “waste” from our operation has positive soil amendment minerals and is a great gardening product.
The Company owns large land positions in two very appealing rural locations in northern California. Both locations could be successfully developed for recreation and tourism.
The Company is not just another gold mine. It operates a precious gemstone mine. Currently, only one commercial operation produces quartz and gold in the world. Ours is noted as the best in color pattern and hardness.
Original Sixteen to One Mine, Inc is more than a one-dimensional opportunity. It can dominate the natural industries of high-grade mining and forestry husbandry.
 By Michael Miller

07/12/2007  1:19PM

For those of you new to this web site and the Sixteen to One mine, some confusion make arise about the hoopla-taking place in the courtroom. Dig deeply under NEWS and the FORUM for an historical presentation. Do not be misled about our corporate goals, our past accomplishments and our visions for the future. We find and mine gold for our existence. That is my main interest.

Original Sixteen to One Mine, Inc is the last and oldest traditional underground, high-grade gold producer in the United States. Gold mined from the well proven quartz vein system can be documented by reading various technical papers included herein as well as reading the newsletters and annual messages from the president. Even after 100 years of mining the people most familiar with the mine and company are excited about what’s ahead.

Noteworthy great strengths are the men and women who have and continue to participate in the ongoing affairs of business. I hope to expand those numbers as we proceed with developing our corporate assets. Gold, while not attractive to some has its own proven history and value for over 6,000 years.

Past board members can also be found here for your evaluation. With this introduction I submit a recent letter from a long time friend and confidant, Charlie Brown.


Supreme Court of California
350 McAllister Street
Sacramento, CA 94102-4797

July 4, 2007

RE: Court of Appeal CO516696
Supreme Court Case S153654

Ladies and Gentlemen:
My name is Charles I. Brown. I was a Director of the Original Sixteen to One Mine, Inc. from 1990 to 2002. I am very familiar with the circumstances surrounding the
death of Mark R. Fussell on November 6, 2000, and have diligently followed the developments since that time.
In my opinion, the indictments for manslaughter were totally unjustified and without merit, as determined by the Superior Court which dismissed the case. Also, the dismissal and/or favorable resolution of all fines by MSHA and Cal-OSHA are powerful evidence that the death was accidental and the indictments unwarranted. It is therefore my opinion that the indictments were politically motivated.
All the courts that have ruled on this case have also agreed that the prosecution of this case was illegal. The District Attorney of Sierra County never legally appointed the CDAA attorneys, and the attorneys did not conduct themselves in accordance with the California law that governed their activities.
The decision by the Court of Appeal to grant the CDAA attorneys immunity under the anti-SLAPP statute is totally illogical, and fails to follow the facts and the law. It is apparent that the Court of Appeal reached its decision independent of the facts and the law, and then had to bootstrap an illogical justification for their decision. Under the circumstances of the earlier decisions in favor of the company and Mr. Miller, the award of attorney fees to the CDAA attorneys is incomprehensible.
I urge you to review this case inasmuch as the decision by the Court of Appeal could have significant and widespread effect on the rights of citizens to challenge the authority of a defendant to exercise powers reserved exclusively to the government. Additionally, the case deserves review solely on the basis of the award of attorney fees.
I know that both Mr. Miller and the Original sixteen to One Mine, Inc. were severely damaged by these illegal indictments. It is impossible for a company to arrange financing or otherwise conduct its business when its CEO is or has been under indictment for manslaughter.
Thank you very much.
Respectfully submitted,

Charles I. Brown
 By Michael Miller

05/07/2007  4:46PM

Short crew this Monday. Still 1000 level advanced five feet and two rounds in secondary headings. Also a new mechanic on board to fix our rolling stock (two loaders and one flat bed truck.

This sounds like something SCOOP would write about, which is not my purpose. I received a letter today from an investor wishing to take a good position in the Company. He found trades on the pink sheets for a penny or over the years for a dime and became confused about the private placement price. Don't fault him. For more information on this subject check Stock Exchange Listing on FORUM. Here is my reply.

Dear X,

Good to hear from you. I also would be feeling uncomfortable with the information you have at your keyboard regarding two markets. This topic has been discussed on the FORUM over the years. It has been called the gray market, which some brokers have used the pink sheets for grounding (stealing is a better word).

A former director sat on the Pacific Stock Exchange (PSE) in SF for many years. When the PSE closed OAU (the exchange symbol) lost its public market. I let it go to conserve money. Plus gold was in a heavy bear market, so stock interest was low. The exchange on our web site is the fairest market for buyers and sellers. The price represents knowledgeable and willing buyers and sellers. A shareholder selling via the pink sheets has a broker or lawyer who is either lazy, dumb or a white-collar crook. Take your pick.

There is no bid or ask on the Pink Sheets. The transfer agent gets some transfer notices but does not know the buyer or seller. It is usually a clearinghouse. All shareholders of record receive an annual report with a meeting date and voting proxy each year. Therefore shareholders know about the market place on the web site. Why would anyone sell their stock for a penny or even twenty pennies when a buyer has an offer above that price? The Pink Sheets list a phony market. I will once again contact US regulators about the situation but once again nothing will change.

The company places a value on its treasury stock greater than either market price. Until the fools have liquidated their stock or have been cheated out of it, this pink sheet fraud will continue. When I pulled up pinksheets.com, I noticed very little volume. This will correct itself when we hit our next pocket or when I have successfully borrowed some working capital to implement our mining and business plans. I am confident that the problem you see will disappear rather quickly. As a major shareholder I value my shares well over $1.00


With this situation I understand you may not want to proceed. I am glad you wrote back and will continue to blast the pink sheet boys for screwing with our shares. I do not care for the American public market situation and have written that we will entertain listing on some other country’s market if a good one can be found. Gold is looking very strong and there are not many opportunities like ours around. Please stay in touch.

Sincerely,
Michael
 By Rick

04/02/2007  10:04PM

Please read below first! Scroll down to Michael Miller's recent entry first to get a perspective.....

My inference in the more-recent Forum entry just now, the one to a "shy-lock scheme" is bourn from a love of Elmore Leonard's books and yet there is an applicable reality check here: not a caviat, just an explanation of how there is absolutely no way I was referring to the Sixteen to One Mine as the shy...instead, the other way around.

The real deal is always the real deal. After all, "It's not lying when it's true."

Now, anyone that wishes to meet me in person and find out for themselves who I am, I plan on being at the hearing, this April 18 in Sacramento, to witness the CDAA's misguided pitch, and if called upon, offer my own. I'll be the guy guy who looks just like you, except I may have recently gotten a hair-cut...just because it's been tickling my ears, not my brain.
 By Rick

04/02/2007  9:52PM

Considering the asset, the stock is worth upwards of $2.00 per share traded in an open forum. Sub-penny purchases in a sly trading venue substantiates value upward of $5.00 per share, being a shy-lock scheme.

No, I don't owe anyone money, and do own some legitimate shares in OAu.
 By Michael Miller

04/02/2007  4:59PM

Here is an issue of concern for the Company.

From time to time sales of stock are reported to us. Someone has been buying stock between $0.001 and $0.195 for several years (Bloomberg account). The current bid on the market is $0.01. Shareholders aware of this have written the SEC complaining and asking me to investigate. One shareholder placed a bid with his broker for 10,000 at $0.10 when he heard stock was selling for $0.01. Even though he placed a higher bid, it remained at $0.01. A shareholder wrote that the pinks and OTC Bulletin Board were the source for the penny quote. I contacted Carl at pinksheets.com, who said OSTO is not on either pink sheets or OTC Bulletin Board. I later received a communication from a New York broker that Hill Thompson was a market maker on the Gray Market, so I called Hill Thompson and talked to George on the trading floor. The following summarizes our conversation and was sent to him.

April 2, 2007
Dear George,

I am somewhat smarter after our conversation today but still do not know how to treat the trading abuse of Original Sixteen to One Mine, Inc stocks (OSTO). I asked about the Gray Market. You called it the “non published price” market, which is how OSTO is trading. You said that upon receiving a sell order, you find a market maker to buy; however apparently there are no market makers except Hill Thompson. If there is a market maker, how can I identify him? If there are no market makers, how do we get one or what happens to the stock shares that are sold?

My responsibility is to protect shareholders from unfair stock market trades for both the seller and buyer. Also, it serves the Company no useful purpose for stock accumulation at a penny or other price below the current prices that can be found on the Company’s web site (OAU X-Mart).

You asked about our transfer agent. Our transfer agent is a meticulous record keeper. He transfers all the sales on OAU X-Mart. We may not know about sales/transfers by shareholders in street name, especially if they object to the release of information to the companies they own. Also this is a very old company. Many shareholders are third or fourth generation descendants from the first shareholders. They may be out of contact with the company and have an old share certificate. This is important because there have been two stock splits and one old share now equals thirty shares.

Some shareholders are willing to increase the penny bid but have had no success with their brokers. Is there a better way to handle this issue? We need a quick or short-term solution. Our goal is to bring our financials into SEC compliance (needs auditing), find an appropriate market place and the problem will go away. Until then, your ideas will be appreciated.

Sincerely,
Michael M. Miller, president
 By Michael Miller

03/22/2007  2:55PM

I received an interesting letter from a shareholder, Mr. X, last week. I answered him with the following letter, and he returned an answer today. Whether Mr. X is a prophet in his analysis of the future remains to be seen. I wondered about Fort Knox thirty years ago when gold became a free traded commodity. Questions like Mr. X were rampant with the “gold bugs” with much speculation that the vaults were empty. Most people’s attitude is, “Who cares!”



Dear X,

Your last email to me was very refreshing to read. I'm so glad you recognized and acknowledged that we Sixteen to One shareholders have gold on our properties and its value rises as the gold market shakes itself. I know there are many concentrations of high-grade gold that exist and will not move. In other words, as we mine we will find them. If we do not mine, they will still be there. The upper elevations north in Red Star ground look very positive, which is why I want to sink a new shaft.
Measuring our "value" with the stock price means little. You and I and all shareholders are in the gold game. We have a stake and a good one. You may not agree with this but I feel much more in the game as a shareholder of OAU than I do as a shareholder of Newmont. Barrick as well, but I own no Barrick shares. I am becoming impatient after 30 years for the pieces to all fall together. The only piece missing now is working capital. I am trying to hold our very real assets together and find money via a secured first TD or some other way. I have several back up plans, which you as well as anyone who knows me should surmise. I was impressed with your thought process.

Let me know. MMM



Hi Mike

Concerning your impatience, I think you ought to applaud your persistence more than anything. A great percentage of people would have folded the tent by now and hit the road.

The major end game for investors in the world of gold is in sight as far as I am concerned. Eventually in time, the major gold producing properties will be in the hands of governments and their central bankers just to save their asses with all the debt that they
have created. During the time period up to this event the lower and middle class will get killed. I mean their last remnants of wealth will be completely wiped out.

Barrick Gold is the representative of the central bankers that are in trouble. I mean the ones that have lent out their gold and have no immediate hope of ever getting it back. The central bank of Germany is a prime example of this. Why won't our government allow a federal auditor inside Fort Knox? Somewhere in time Barrick will go private and be exchanged for fiat currencies. What will be left are the smaller deposits around the world and there certainly will be a gigantic rush towards them by the public when all this becomes clear.

The timetable for this has been recently stepped up as Barrick covered most of Placer's hedge book in the 540 to 580 area of gold. The floor on gold is now at 612. Barrick is stepping up its acquisitions with the last being European Goldfields. Barrick is interested in a few gold belts in and near Romania. There used to be a year or two between acquisitions. Now it is months. Does this tell you something?

In twenty years or so the world gold production will be significantly lower. I mean off like 60% or so. In the case of silver, production figures should continue to grow for a while longer. Peak gold has definitely been reached.

I believe, although we need gold for the payroll and some minor exploring, we should be exercising one of your plans for the acquisitions of more properties in the area. We should tie up the whole District and brag about it. The main problem here is financing. So, this might not be an easy task.

The game has begun to tie up natural resources. People are exchanging depreciating currencies for these resources in a big way led by China and it is becoming quite a competitive and serious pursuit.

Soon, the small gold related companies would be valued more for their mineral property holdings as opposed to production figures as the game gets played out on an international scale.

Mike, you were clever to acquire properties in the past. Don't forget we are: Asset Rich and Cash Poor. I think we need to expound on the Gannett report versus what potential gold investors want to hear.
Governments tell lies and they are believed. Why can't we concentrate on 20% mined, 80% left by telling the truth?

I believe we have been news dormant too long and the current environment supports our becoming proactive.

We are listed for trading in the OTC Pink Sheets as so many other companies are. We need to get that market in line with ours. Sure these guys are crooks but we are also out of money. Currently there is just one market maker. He doesn't care or know about us. We need to change his or her mind with news and encourage other market markets to join in with the current one and put up markets. The last price is 1 cent and that is how Wall Street views our company. We need to do some serious PR work.

The X-Mart does not rate with Wall Street. We need to get the word out and we need to put gold in our name and we need to put exploration in our name, too.

Mike, we are not young. We can't afford to sit and wait while others get all this money from private investors and the funds.

Best of luck,
Mr. X
 By Michael Miller

03/07/2007  10:14PM

March 5, 2007

Dear Directors,

Just a brief update on the underground progress. Monday (3/05/07) I headed into the mine at 7:30 am. One miner absent. Ian on the hoist and three miners working on pulling the 58 hp pump from the 1500-foot level. It quit Friday morning. This is the same pump we paid almost $6,000 to rebuild the electrical parts a couple of months ago. It should last two or more years, especially since much of the surface water has been collected on the 800-foot level and flows out by gravity. Very disappointing. Britt will check everything to determine the problem. Once we have an idea and if it is not our fault, I plan to talk it over with the electrical shop about its responsibility for the failure.

I went down to the 1000-foot level, north to the active face. Not happy with the progress. It has been slow because of many reasons: track needed repair, tight drift so mucking machine cannot throw bucket and must reverse direction to load ore car, semi rotten old timber lying in drift, dump is getting farther away from face as we advance and more.

Next, examined the two headings south of the Tightner shaft below the 1000-foot level. These spots were selected for a quick look that could yield gold with each round. Several spots exist. We have mined in two with piss poor results…gold but amount did not cover labor costs.

Met Ian about 11 am at the 1000/Tightnert station. We went back through the 1000-foot level and made some important changes to the mine plan. As you know we are betting the mine on the success of clearing the 1000 level to the 1064 winze. Not only will we have a good highway but also we are installing 2-inch air and 2- inch water lines as we advance. We have some very interesting gold in three areas above the level and will need utilities to set up and drill around the gold in order to get it in large pieces. Ian and I believe that we could have similar gold production as we had when we opened the southern part of the mine in 1993-94.

The first decision was to reemphasize that moving the muck must not stop, which means providing all the support to extend utilities, timber where necessary, repair and maintain the level. The mucking machine, no matter who is running it, must be advancing all day long. We then decided to shut down the short tern headings after this week and move the men. We found gold along the 1000-foot level. After one surface blast, we decided to pursue it later. Working in the drift could slow down tramming the waste rock to the dumpsite and I want nothing to slow moving the muck. Well, we hashed it over and developed a plan in which we will accomplish both goals: finding gold and reaching the 1064 winze. We are starting a new drift on the level in a hanging wall vein, which was recently discovered. It has never been mined. Vein junctions are favorable structural occurrences for gold deposition. Breaking virgin ground along the strike of the vein instead of raising up dip theoretically improves our chances of locating a pay shoot. The concern we share is twofold: we may not find gold or it may take 100 plus feet to gain a statistical average for success; and our gold inventory is shrinking.



Next, Ian and I walked up the Tightner and took off to the north on the 800-foot level. We’ve been here many times and have discussed mining options over the years. This is an interesting part of the mine. Because all of our attention is not only north of the Tightner shaft but ultimately continuing north into Red Star country, we are becoming familiar with the subtleties of the old workings and the exposed quartz, mariposite and serpentine. What it is telling us is that while it has been rumored for decades that this part of the mine was unproductive, it is quite possible that from 100 to 200 feet beyond the end of the 800-foot level, we will find the continuation of a known rich pay shoot. The geological explanation involves negatives about dome structures and very thick quartz veins. Again this heading will not provide us with immediate inventory we need to finance operations in the near future. We are looking at a two to three month project, which under normal circumstances would not be a concern. I authorized Ian to prepare a plan and time projection to undertake this heading. I will work with him so we will not break a rule I learned from our failed attempt to dewater the Tightner to the 3000-foot level.
 By martin newkom

02/24/2007  6:50AM

I don't think I would be inclined to do any banking or
loan business in Nevada Co.
there are too many adverse
factors there.

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