We've received a number of requests for newsletters, so here's a quick wrap up of 1992. It's nice to know you read these.
The year closed well, with what started as a fluke last January - gold location by handheld metal detectors - sustaining profitable gold production through 1992. The hot spot on the 1700level mentioned Newsletter No. 24 contributed to a great November and a more than respectable though holiday shortened December, 920 and 400 ounces respectively. As a consequence, our predictions of a profitable fourth quarter and year have proven accurate, with a full year total of 5,000 ounces.
A few other predictions have yet to be tested. The 2400 level remains under water and that hot spot we hit on the 1500 level remains un-mined. Both projects are on hold while we continue to clear the rest of the 1500 level to get us to the Red Star area of the mine.
The audited financial statements for 1992 will not be completed until March. I'm including un-audited proforma statements with this newsletter and am glad to point out for those of you who hate figures that we're showing a pre-tax profit of about $ 700,000. January's production was 430 ounces, allowing us to start 1993 on a profitable note. Remember, please, these figures are approximate and may change when decisions about inventory, taxes and other relates items are determined in March.
Some $ 400 modifications to our metal detectors have doubled their depth penetration. We have already gone back and found more than $ 100,000 worth of gold missed by the first generation of detectors. The miners will continue to survey the old workings with these improved machines.
I am particularly anxious to take a new detector to those areas we mined in the 1991 Go-For-The-Gold program. Even though we failed in those pre-metal detector days to produce enough gold to sustain the company, the program opened some remarkable ground. It may be profitable to go back now and test it with our new technology.
I continue to receive inquiries on these topics: How do I find a stock price quotation? Can I purchase stock from the company? ANSWERS: the Original Sixteen to One stock is traded on the Pacific Stock Exchange, and is quoted in the Wall Street Journal and San Francisco Chronicle under the name "ORIGSIX" each day it is traded. If there's no quote, no shares traded. The Grass Valley Union provides daily quotes whether the stock is traded or not.
If you're interested in seeing the stock quoted in your local paper, why don't you give the business editor a call and ask him or her to publish Pacific Stock Exchange trades? Please let me know if you're successful.
As to buying stock from the company, on rare occasions we have been able to match a shareholder who wants to sell with one who wants to buy. Usually, though, your best bet for buying or selling your stock is through any registered broker. The symbol is "OAU".
I know what you're wondering, and no, we haven't forgotten you. Issuing a shareholder dividend is one of our priorities for 1993.
Past newsletters have alerted you to television shows featuring the Sixteen to One, some of which were not aired at the originally scheduled times. For those of you who missed the Discovery Channel program on the sixteen to One entitled "The Next Step" or the PBS coverage on the series "California's Gold", we have combined both programs into a 22 minute videotape that includes excellent footage of the mine and some of the technology we've been testing this year. If you send me $ 10.00 to cover the cost for tapes, copying and mailing, I will send you the video.
Michael M. Miller
P.S. I just received a letter from a shareholder who asked for a video. He writes: "Thanks for the video on the mine. WOW! I have watched it several times and am very very impressed. What this does in fifteen minutes can never be accomplished by annual reports or written material. We finally get to see how hard these men work and dedicated they are to our company. My daughter was amazed and would love to visit the mine.
Once again great work and a big thanks to all those who keep the mine running."