October 24, 2014 
 Friday 
 
 

12/23/2005
Newsletter # 51 December 22, 2005

Dear Shareholders,

Greetings from the high-grade gold capital of the world.

 

The sudden rise in gold prices has sparked an interest in gold that has been lacking for over a decade. The mine’s biggest barrier to profit is inadequate working capital. Maybe those with an interest either as an investment or a speculation will participate in the next gold rush by researching the opportunities we have prepared for the Sixteen to One. They just have to find us. Ours is a unique mine and a unique company. Our gold deposit is unparalleled, as is our gold marketing program. Perhaps only 20% of the proven gold vein has been mined, leaving a very favorable section as an attractive target.

 

Occasionally, someone states that the mine is played out. Well, this is not true. The old workings have been hit hard with the newest technology for locating gold that is hidden in the quartz. Yes, the crews have been successful in detecting much of the old workings; however, below the water level on the central and southern levels, several large blocks of ground are exposed with high-grade showing. We were forced out of these areas when the price of gold began to fall. They will probably remain below the water until we complete the Red Star Shaft. The miners moved to other spots, which are less costly to mine.

 

The 2005 fiscal year is about to end. It appears that gold production for the year will be the lowest for the past twenty-five years. We mined where we expected to find gold, but there was only a repeated smattering, just enough to keep us in the headings but not enough to wire into a pocket. Even though the ground still looks good, we decided to pull out and move to another area. The crew is small, and therefore, so are our chances of success. A while ago we shut the pumps off, allowing the water to rise. Management could not support the burden of maintaing the pumping system with a small crew. Plus is cuts our power bill. It was more of a moral defeat than a physical loss.

 

Over the years you, the shareholders, have provided the Company much support. A few people have loaned the Company significant money to keep the operation going. Currently, the outstanding figure is $200,000. Many of you have given financially as well through your purchases and donations. You also write us, participate in the FORUM or call us with encouragement and ideas. Your interest is appreciated. These are some of the reasons I am so fond of the Sixteen to One and how I remain positive during hard times. Thank you.

 

Here I go again, asking you to do something for us. It may only cost you some stamps. Enclosed is the introduction to a new Private Offer to raise working capital. Please circulate it to people you know who may be qualified to participate. With high-grade gold mining the more quartz we expose the more gold we find. The same concept is true for finding money. We need exposure. Our web site has enough information to introduce a serious gold advocate to a real opportunity. Visits to Alleghany or answering questions confirm the thoughtfulness and integrity of our plans for profitability. Our Company is asset rich and cash poor. We may sell our gold collection or mines in Trinity County as an alternative method of getting working capital.

 

Update on the lawsuit for damages against the California District Attorneys Association (CDAA) and four of their lawyers. It is moving closer to trial. The defendants chose to bury us with paper work via specious motions to get the case tossed. It has not worked. The Court has acknowledged their illegal acts and has ruled against them seven times. They moved to throw the judge out, change the venue from Sierra County and concocted a story that their freedom of speech was violated. Step by step we are moving forward to a just resolution and the recovery of damages. I encourage all of you to access the web site or have a friend or relative tap into the FORUM and NEWS sections to stay on top of the activity. I believe the defendants damaged the shareholders by ensnarling their top employees in criminal accusations, which dissuaded potential investors from participating in an investment. I believe their actions continue to leave a smell of wrongdoing. I seek $2.00 per share or $25,734,500.00 and appropriate punitive damages as well.

 

On a related subject, the following was posted on our web site on December 7, 2005, under the topic, “Ideal Time For Facts”. This is an important outcome resulting from discussions between Cal/OSHA and me:

“ The contested citations were issued after the tragic accident that took the life of miner Mark Fussell on November 6, 2000. One citation alleges that the 1-½ ton Mancha battery operated locomotive had a defective speed controller and was not removed from service. One citation alleges that no warning device was installed on an overhead chute that restricted clearance. Both allegations were considered as accident related, especially the later, which was considered as Serious Accident Related.

The first citation is withdrawn by the Division on the ground there is insufficient evidence to sustain the Division’s burden of proof that the speed controller on the locomotive was defective prior to the accident or whether the defect was caused by the accident. The second citation is reclassified to ‘Serious Non Accident’ related. The Employer Appellant has provided new evidence to the Division indicating that the cause of the accident was not the failure to have the chute marked but was the fact that the victim was distracted by another miner and by personal problems that caused him to be inattentive just prior to the incident. The Employer contends that the incident would have occurred regardless of whether or not the chute was marked or if warning devices were in place since the employee was not looking at the chute or in its vicinity just prior to the accident and consequently would not have seen markings on the chute or other possible warnings of the restricted area caused by the chute.”

There you have it. All the information was available to CDAA prior to its ill-conceived assault on the mine and its employees. The administrative process in California was preempted by the private lawyers now defendants in a civil action for damages.

 

On a sad note, my friend and brilliant attorney, George Gilmour, died in a tragic single car accident not far from Alleghany on September 12, 2005. George and I developed a close relationship, which centered in mutual respect, a deep love of the law and disgust over the legal machinations of Gale Filter, Denise Mejlszenkier, Kyle Hedum, Anthony Patchett and the CDAA. There are many more issues surrounding the case than have been aired. Ours is a crusade to stop abuses that affect the people and businesses in every state of America. A mutual confidant, Klaus J. Kolb, presented our case to the Court in October and November, prevailing both times. He is a strong advocate for our position and a very capable Harvard Law School graduate. Our case is gaining notoriety around the country, as it should.

 

To quash a claim by defendants that we have “tainted the jury pool”, I am refraining from calling the defendants carpetbaggers, bottom suckers or using words like scofflaw, lawbreaker or other appropriate names they deserve. All that was necessary in our defensive strategy. Now that we are on the offense, they are referred to as “the bad guys”. George knew the law from a long, thoughtful career. He recognized unprofessional behavior. A favorite saying in describing the bad guys was, “So, when did Americans say it is okay for lawyers to suborn perjury in the Courtroom?” We have not.

 

I am unusually optimistic about all aspects of our corporate activities. Once again excitement has returned to gold industry. Mining for gold continues to be my objective. Other benefits such as stock appreciation or gold dividends will follow as we achieve our primary goal. From our dedicated crew here in Alleghany, we wish you a Merry Christmas and for all of us a Prosperous New Year.

 

Sincerely yours,

 

 

 

Michael Miller, President


 

  
 
© 2014 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910
 

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