Original Sixteen to One Mine, Inc. - Forum Topic: "Gold Enters Major Bull Market"



	August 14, 2020 Friday

Forum
Topic:
Gold Enters Major Bull Market

By REAP
04/18/2012 8:05AM

BlueJay, here's an interesting report that PROVES my earlier post about the potential advantage of buying and selling gold in foreign currencies. The same argument holds true for foreign countries investments in gold mining companies. Perhaps the Sixteen should consider contacting foreign companies/investors, particularly in Japan, and Euro Countries for a possible private placement. I know this is more difficult than obtaining US investment, but it is also more lucrative. Let me know what you think.

The key themes for gold during Q1 2012 were:
•Rising price in all major currencies with yen investors
benefiting most: Gold prices climbed 8.6% QoQ in US$/oz on the London PM fix, despite a number of headwinds. Though the quarterly return was almost twice the ten-year average of 4.5%, similar gains in gold were seen across all major currencies with yen investors seeing a gain of 16.1% in local currency terms.

By bluejay
04/14/2012 1:51PM

Jim Sinclair comments in a recent King World News interview:

On the heels of the Fed members commenting publicly, legendary trader and investor, Jim Sinclair, told King World News that even though we have already seen $17 trillion of money printing, we should expect another $17 trillion going forward. KWN also asked Sinclair how he knew, from the beginning, that there would be ‘QE to infinity,’ before anyone else. But first, here is what Sinclair had to say about the action in gold: “$1,650 is a comfortable number (for central planners). Haven’t you seen the tremendous jawboning and market intervention to hold gold in that range at $1,650? $1,764 and they lose control. That begins the move which is exponential.”

Jim Sinclair continues:

“It’s a formidable challenge (keeping gold below $1,800). The true range of gold is $1,700 to $2,111, but these guys are going to try to fight it like nobody’s business. Do you think for a moment they are not listening to you and I speaking right now? Forget it, Eric, we are the morning ‘Squawk Box’ tomorrow.

Now comes the payback. The hope and desire that things would improve is ignorant because of the fact that the trillions which have come in have been to save the financial organizations, not Main Street....

By bluejay
04/14/2012 1:37PM

Vietnamese sociologist; “Empires may fall, currencies may change … gold will always survive.”

By REAP
04/12/2012 6:47AM

Here's some good news that could push the price of gold much higher.

Hybrid copper-gold nanoparticles convert CO2

Copper — the stuff of pennies and tea kettles — is also one of the few metals that can turn carbon dioxide into hydrocarbon fuels with relatively little energy. When fashioned into an electrode and stimulated with voltage, copper acts as a strong catalyst, setting off an electrochemical reaction with carbon dioxide that reduces the greenhouse gas to methane or methanol

Now researchers at MIT have come up with a solution that may further reduce the energy needed for copper to convert carbon dioxide, while also making the metal much more stable. The group has engineered tiny nanoparticles of copper mixed with gold, which is resistant to corrosion and oxidation. The researchers observed that just a touch of gold makes copper much more stable. In experiments, they coated electrodes with the hybrid nanoparticles and found that much less energy was needed for these engineered nanoparticles to react with carbon dioxide, compared to nanoparticles of pure copper.

The link to the full article is:
http://web.mit.edu/newsoffice/2012/hybrid-copper-gold-nanoparticles-convert-co2.html

By bluejay
04/07/2012 11:26PM

Fact Versus Fiction

Jim Sinclair lays it all out for us concerning gold:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/3_Jim_Sinclair_files/Jim%20Sinclair%204%3A3%3A2012.mp3

By bluejay
03/22/2012 7:58PM

Gold $1647.50 UP $2.60
Silver $31.53 OFF $0.06
XAU Index 174.26 OFF 3.53
HUI Index 465.34 OFF 9.34
US dollar Index 79.74 UP 0.08

Gold since the February 13th alert has softened as expected. The 1640 to 1650 area on its chart continues to offer support. If this level gives way the declining consolidation period from above the $1900 highs will continue. The downside exposure below looks to be at about the 1500 area. If 1500 level breaks the metal could retreat a few hundred points or so. Not that these levels will be reached during the current bull market or not but these are possibilities.

Gold is stronger than silver and silver's next stop could be in the 26-27 zone.

The gold indexes look anemic in here. The XAU has its next support in the 170 area with the HUI expecting help at the about 440.

The dollar looks to be emerging to higher levels with some professionals looking for the 82 level to restrain it from advancing farther.

It is important to understand that the gold price is being orchestrated lower by the western handlers of a decaying monetary system from their towers of power which will prove to be futile in time. The lower gold goes in value the better of a purchase it will be for the fearless.

China continues to quietly accumulate the metal during this unknown period of softness.

By bluejay
03/21/2012 10:09AM

More important gold related info from Jim Sinclair in this recent interview:

https://goldsilver.com/new/ellis-martin-report-with-jim-sinclair-and-the-nuclear-economic-trigger/

By bluejay
03/18/2012 10:58PM

Keeping your eye on the ball

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/11_Dr._Stephen_Leeb.html

By bluejay
03/17/2012 11:26PM

Pierre Lassonde interview:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/17_Pierre_Lassonde_files/Pierre%20Lassonde%203%3A17%3A2012.mp3

By bluejay
03/17/2012 10:09PM

Many long-time followers are stating that recent weakness in gold was brought about by our leaders selling physical and paper gold.

And then you wonder about the following that appeared on the jsmineset.com website yesterday:

"According to comments made in the euro press, the Fed is in arrears concerning gold audits due to countries storing gold with the New York Federal Reserve Bank."

By bluejay
03/15/2012 9:31PM

Jim Sinclair updates his thoughts on gold:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/16_Jim_Sinclair_files/Jim%20Sinclair%203%3A16%3A2012.mp3

By bluejay
02/26/2012 5:40PM

Professor Fekete on Silver

http://www.goldstandardinstitute.net/2011/06/the-marginal-utility-of-silver/

By bluejay
02/25/2012 9:25PM

Strong words from Jim Sinclair:

1. What is going to happen is going to take place in March somewhere between the 14th and 20th in all probability.

2. What will determine the fate of markets is what action China does or does not take in providing funds to IMF bailout funds.

3. I believe China can and will extract significant trade and other benefits for their presence.

4. I believe China will want the same immunity that the IMF just took for themselves on sovereign debt in liquidation.

5. Greek gold will be held hostage to their debt.

6. That will accelerate the modest trend of repatriation of gold for the cellar of the New York Fed to nations like Germany that are certainly able to store their own wealth.

7. There will be an acceleration in the trend of utilization of other currencies than the dollar for contracting internationally regarding goods, service, oil and minerals.

8. I do not agree that we are at the doorstep now of major changes in the international monetary system. That comes in June of 2015.

9. I am certain that we are on the immediate threshold of the monster kick of the financial can down the road that is a dead end.

10. I believe China and the US Fed will assist in that great last can kick that backfires.

11. I am certain that I am in the right business and that business is the identification and accumulation of gold as gold is the ultimate survivor of what is about to happen.

12. I am certain the gold industry is mad as a Danbury hatter in selling their product the moment they produce it.

13. I am certain the gold and silver industry is in a transition back to the dividend producers they once were.

14. I am certain that the volatility in gold, silver and equities we have already seen is nothing compared to what is about to happen.

15. The last man standing among asset categories as the new monetary system is introduced sometime post June of 2015 will be gold and gold alone.

By REAP
02/25/2012 11:42AM

Mike, I'm Ron Pacholec. HEre's my email address. I'll send all my contact info to your email address.

ron.pacholec@mindspring.com

By Michael Miller
02/24/2012 2:16PM

Continuing on with the private placement concept for investors to profit and the company profit…

The rich history of operating the Sixteen to One mine is scattered throughout this website. An ongoing goal is to expand the readership, especially to people or companies thinking about buying a gold opportunity. Smart investors are on the prowl for finding ways to place money whereby the rewards make the risk advisable. I have yet to find a stock offering where the upside potential measured with the flat out downside probability is more favorable than OAU (the symbol when the company was listed on the now defunct Pacific Stock Exchange in San Francisco). Its history of trades was managed by a very competent market maker.

No one may ever know the outcome of my beliefs for OAU unless someone steps forward with an investment. It is against history that our small crew will mine a pocket of gold and finance the operation AS IT SHOULD BE OPERATING. We have data to approximate gold production, not by projecting reserves of some qualifying definitions. Few underground (if any) California gold mines can create actual gold reserves of economic substance. There are other ways to determine risk/reward: costs verse production, time and recovery of initial outlay.

The current price or whether spot increases or decreases are a very modest factor in analyzing Original Sixteen to One Mine, Inc. The only negative against our operation is the lack of working capital to run the company in a proper business-like fashion. We know how to do it even though our Canadian friends start the game with a five touchdown lead. I think Americans of large financial wealth don’t give a rat’s ass about gold. This is nothing new. I recently found my old files from 1975 to 1985. They support this opinion. Americans have the universal currency and cyclical trends whereby markets can be exploited for gain. Wealthy Americans are very smart and I am betting that these are the folks who will benefit from aligning themselves with one of the world’s great gold mines. The problem? How do they find us!

REAP. Send me your email address or other mailing address. Someone will find the solution as I have found the solution how to mine gold profitable and get it to owners in the most favorable way. Oh, I almost forgot. Technology, which we call metal detection, awaits. It has stood still for over a decade for our industry. Look what technology has done for oil. Predictions in the 1970’s were the world would run out by 2000. Now global reserves are greater than they were forty years ago. California has a lot of gold remaining underground.

By REAP
02/24/2012 10:09AM

Strike while the market’s HOT!! The strong expectation that the Bull Market will continue to make gold prices rise has been very successfully exploited by yet another Canadian gold company. Their Sales Pitch: Buy stock today, take losses today, and get richer tomorrow as gold continues to rise!

"San Gold announces $15.0 million private placement."

This is another Canadian company placing tax flow-through stock through a syndicate. These shares are not available for sale in the US, only in Canada.

San Gold calls itself a “New Exploration and Production” company. In 2011 they reported revenue of $114M CD but reported a net loss before tax of $9.3M CD due to $25M CD exploration expense, $79M CD operation expense (28% of which was non cash expense Dep and Amort) and $17.5M CD Admin, about half of which was paid in stock.

BUT in terms of HARD CASH they Actually Made Money: $114 rev - $59 ops - $24.8 explor – $9 admin = $21.2MCD. (A more careful analysis would yield their reported cash increase of $17.2M CD) Besides making cash, they sold flow-through stock. Not bad for a year’s work. Though the mining and tax laws in Canada are much more favorable than the US, San Gold is an example of what clever finance and tax law can do. San Gold, by having actual revenue, is perhaps more similar to the Original Sixteen than Pertium.

By REAP
02/23/2012 12:37PM

Mike, I’m glad to help!

I agree with you about the capitalization in Note 4. I have some other Pretium financials and I am working my way through them to see what they did.

I think they call themselves an exploration company and don’t show any revenue from gold or silver for TAX reasons. This private placement was a bought deal constructed by a syndicate of underwriters led by Salman Partners Inc. The shares offered were “flow-through” common shares which allow the losses generated by Pretium to flow through to the investors filing taxes in Canada. Thus no revenue from sales.

“The gross proceeds of the Offering will be used during the 2012 exploration program to incur eligible Canadian Exploration Expenses (“CEE”) that will qualify as “flow through mining expenditures”.

As you said, Canadian taxes are different than in the US. However, the US tax code has some similar mechanisms for flowing losses through to investors (both individual and corporate). Though they exist, “tax shelters” are more regulated in this country. This makes them more difficult to create, but not impossible. But similar to the Pretium offering the US code allows flow-throughs mostly for investment partnerships and Subchapter S Corps.

One thing that Pretium did do to help their offering was to hire P & E Mining Consultants Inc. to produce a humongous (I mean 170 pages) “Technical Report and Resource Estimate” on the Brucejack Project. I have that if you want a copy. The timing of this report, “Effective Date: November 28, 2011; Signing Date: January 12, 2012”, sounds a little suspicious. Apparently they needed a “Sales Document” to make the deal work.

The Tax Code is not my expertise, but I am an excellent researcher. I’m happy to help the Original Sixteen. It’s an “Excellent Company” with a great history. My researching also helps me to better understand what to do with my Golden Gate Claim. And I agree that to really understand the Original Sixteen and gold mining in California requires a visit to Alleghany. I’m planning to attend the ICMJ Gold Prospecting and Mining Summit in Placerville, 11-15 May. I would enjoy meeting you and learning more about the Sixteen.

By Michael Miller
02/20/2012 4:33PM

Thanks REAP for alerting me to Pretivm.

Robert Quarterman, president of Pretivm Resources has an interesting background in finance and increasing shareholder value. Silver Standard, a small company which Mr. Quarterman successfully exploited, had similarities to Original Sixteen to One Mine, Inc. Junior mining companies must be evaluated on their own. They do fall into classifications, when studied; however, their differences are most important to recognize and discuss.

In reading Pretivm’s financials, Note 4, the huge increases in capitalization puzzle me. Canada established accounting rules that differ from American. The treatments of “reserves” differ by definition before assigning them an asset value accounting on a balance sheet as well. Pretivm calls itself an exploration company. Most juniors are exploration entities.

Tax treatment is more advantageous for metal mining in Canada than the United States. There are very few US gold mining corporations operating anywhere. Having said all this, our Company can learn from Mr. Quarterman’s financial wizardly ways. Our holdings, current and past operating histories may be considered beyond exploration. Production comes to mind. I noted on the income statement for Pretivm no line item for gold or silver sales.

Over the past three decades, gold stock pundits wrote that the exploration companies (most speculative) were more exciting a gamble than gold producing companies. The belief was based on the notion that a big company would take over a small exploration project, thereby rewarding the exploration company shareholders a good uptick in stock price. They all chimed in that once a gold company begins producing gold the stock luster fades. I disagree!

Our properties are difficult to analyze. Our company is an anomaly. It is so strange an occurrence in junior gold companies that outsiders frequently don’t know the questions to ask. How can anyone with a feel for gold lose interest in pursuing an investigation! The Sixteen to One should bore no serious gold advocate or person desiring to profit from their accumulated wealth.

This is our immediate goal: expose the money making opportunities to people willing to take a close look and step outside the old conventional box. I need help extending invitations to individuals or companies willing to investigate America’s oldest gold mining company (Original Sixteen to One Mine) in the world’s most proven gold deposit with the least miners employed in their trade. That would be California.

Briefly, following are important facts: the mines are on privately owned property, not federal lands; the infrastructure for mining is in place; great maps and reports exist; corporate profile excellent for growth; knowledgeable people associated with the company; spot price for gold not an issue of importance due to unique demand for Sixteen to One gold; expectation of gold production immediate; motivated management.

Our business plan is to complete a private placement, spend the money wisely, evaluate results, reactivate stock market identity, prepare our first public offering, spend the proceeds wisely, declare a gold dividend, and evaluate California’s gold mining opportunities. The only way to fully disclose Original Sixteen to One Mine Inc. and its mines requires a visit to Alleghany. Your help is appreciated.

By REAP
02/18/2012 2:23PM

Bluejay,

I understand your point about being able to locate the pockets of gold in the veins before any investment is possible. I am searching some other technologies developed by non gold mining companies that might be useful in combination with the GPR data.

But, I want to add this post to show that private placement is becoming a more common form of finance in the gold industry. This is also a mechanism that can create a public market on the Exchange. Pretivm did increse its gold reserve estimates as a necessary first step, then sought financing. I am searching to learn what Pretivm used to determine these reserves.

------------------

Pretivm Closes Bought Private Placement of Flow-Through Shares
MARKETWIRE - Mining and Metals
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm" or the "Company") is pleased to announce that it has closed its private placement of 1,250,000 flow-through common shares ("Flow-Through Shares") of Pretivm at a price of $18.50 per Flow-Through Share for aggregate gross proceeds of $23,125,000 (the "Offering").

By martin newkom
02/16/2012 2:09PM

The 16 to 1 has a very famous
name, albeit historic. Think about
setting up a purveyor system and
sell the mines gold outright like
these advertisors claim they are
doing. There must be something in
it or they wouldn't be on the
"tube" hawking their wares. You
might eliminate a middleman or
two.

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Phone:
Fax:
E-mail:

(530) 287-3223
(530) 287-3455
corp@origsix.com

Gold Sales:

(530) 287-3540
goldsales@origsix.com

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