December 17, 2017 
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Let's back physical shares with physical gold

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 By Michael Miller

11/15/2017  11:09AM

My email has a dozen investment/gold senders, which I quickly read until an article strikes my fancy. The following extract was from Investing News Network by Adrian Day. Mr. Day has been around the gold investment market a long time but less than I’ve been around the gold producing market. I wrote him decades ago and a note a year ago at the urging of a friendly investment/banker. Adrian never replied. Their mantra is predictable.

Day was asked: INN: Should we have a group of people that tells [gold producers] what they should be doing? This question upgraded my interest. I thought, how lovely, investment promoters wonder if they should start telling gold producers how to do their work. Sounded good to me to learn a fresh twist!

Adrian’s reply:

“I do like the idea, with a few caveats. The senior mining companies have had awful returns on the money that we (who are the we?) give them, not only over short term, but over long term Over the last 40 years, the gold-mining business has the second-worst returns of any industry in the world, and the worst was the airlines. In the gold-mining business you do have inherent difficulties. It’s a very, very capital-intensive business, it takes a long time after discovery, the odds of discovery are low. After discovery, before you put something into production, it’s a long time with environmental permits and everything else. Then once you’ve built the mine, you’ve sunk a billion dollars into Tanzania or something, the government can come along and say, “hey, now you’re here and you’ve spent the money, we’d like a little more of that.”
I think the gold-mining managements have really exacerbated the problems by being pro-cyclical. Now, pro sounds like a good thing, but when you’re investing it’s a bad thing. The gold-mining companies, with few exceptions, typically have been overpaying for marginal properties at the top and then not buying at the bottom. Very few companies were buying anything in 2013, ‘14, ‘15 when the prices were low. Companies were on the edge of bankruptcy, you could’ve stolen projects, but companies were selling their own assets and reducing their debt. The time to take on debt is at the bottom but not at the top. You don’t take on debt at the top when things are expensive, to overpay.”

Compare his descriptions of gold mining companies or gold deposit situations with Original Sixteen to One Mine, Inc. The Tanzania reference can be global. You will find references in many TOPICS of the FORUM that tell details of the problems Mr. Day lists; however much analysists, promoters, puff the golden smoke into the public air, the marks continue to breathe deeply. As I wrote to Hans in Risk Management Strategies yesterday, I am a buyer of Sixteen to One on the open market higher than the last reported sale for reasons Mr. Day recognized that do not apply in Alleghany, California..
 By Michael Miller

11/01/2016  4:37PM

More information about the time stamp mentioned below.

If you live in Hungary, the time of posting on the FORUM is actual time. If you live in California as I do, it is nine hours different. So if you are in Chicago, it is seven hours. Sandor Holly, past director, is Hungarian and wrote me last night with the explanation.

Hans, I look forward in receiving your report, email is best. Where have all the spirited, adventurous and speculating capitalists gone? Our under financed operation became tediously old after the 2007-2008 financial collapse; however, few junior gold producers remain. We have.

The pattern of operating the Sixteen to One has a solid history going back over an 100 year history. We’ve blown that pattern and have been outside its proven success the past ten years. Last year was profitable, which is certainly better than a loss. What bothers me is the knowledge that the mine has many areas with positive evidence that mining them will bring forth one of those 5,000 to 10,000 ounce concentrations. Eight locations stand out. This means we must increase our crew. When we do hit a pocket, the result will be rewarding.

While more sophisticated technology for detection remains elusive, the Australian Mine Lab detector, which we bought last January has led the crew into new gold. We know it has increased the depth of identification. This means that most of the exposed vein with favorable geology and history must be re-examined. It’s a big vein system with miles of exposed vein to reexamine.

Economically speaking, the dynamics of scale of mining is working against us. We need some cash to buy more labor! We need a crew in each of those eight lip smacking underground areas of high probabilities. Even today, though, our crew can open up the right ground to mine several thousand ounces. We have done this before. Lady luck likes an honest gamble.

Our story is rock solid and appealing to anyone thinking about the future of gold. Pundits are speculating for increasing demand of gold in the coming years. We are doing okay with current prices but any increase helps. Most people with risk capital or excessive wealth must think about gold but shy away. Gold is a tricky asset, but then again knowledge is power. Original Sixteen to One Mine, Inc. shares the top tier with few companies owning under developed gold assets. I can prove it.
 By Hans Kummerow

10/31/2016  7:48PM

I have done what Mike has suggested to do a few days ago - I have reviewed the entire thread.

And now I have just finished doing, what I had suggested to do about 18 months ago.

I have drawn up an action plan for Origsix to pursue in 2017. It is not ready yet to be posted on this FORUM.

But I will send it to Mike for further review by himself and the Board.

Hans

...

 

  
 
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