September 23, 2017 
 Saturday 
 
 

07/14/1995
Newsletter #31 - July 1995

Dear Shareholders,

 

The 85th annual shareholder's meeting was called to order in the company's refurbished old theater in Alleghany. Almost 200 people attended, one third participating for the first time.

 

After re-electing the existing board of directors, we discussed Company affairs for 1 hours before adjourning to the mine. In addition to offering the underground tours, we melted and poured gold bars and treated everyone who went underground to the thrill of experiencing a dynamite blast. Guests also took advantage of the variety of gold specimens, jewelry and souvenirs offered for sale. We sold gold and jewelry valued at over $10,000 in five hectic hours.

 

Status of the Mine

After a lean beginning in 1995, underground preparations and dead work for gold productions began paying off at the end of June. We produced 649 ounces in June, not quite enough to offset the second quarter expenses. Most of the gold came from the 1700 level in a block of ground previously identified with metal detectors as promising. What excites the crew, however, are the five headings with find prospects for eminent gold production.

 

The new 2600 level has been established and is creeping south. Our problems with water control have continued, delaying the advance of this new level. The vein and other geologic indications for gold depositions exist, as we projected. It remains the Company's best heading for significant gold production. Time and work will tell the story of the richness of the Sixteen to One in this area as we move forward.

 

Corporate Strategy or Business Plan

 

{bullet}Continue the primary development on the 2600 level.

 

{bullet}Keep crews mining the small block of ground in order to offset expenses.

 

{bullet}Improve our metal detection abilities.

 

{bullet}Broaden our gold sales.

 

{bullet}Strengthen the skills of our staff.

 

{bullet}Increase our assets.

 

{bullet}Expand our public relations.

 

Goals Offered at Shareholder Meeting

Although the Securities and Exchange Commission (SEC) recommends management offer its shareholders an idea of its expectations, I find this an uncomfortable process, given the nature of hard rock mining. Nonetheless, I offered the following specifics for the next 12 months:

 

{bullet}Gold production range: 10,000 to 30,000 ounces.

 

{bullet}Gold jewelry sales: $250,000.

 

{bullet}Increase employees to: 55.

 

{bullet}Acquisition of additional gold property.

 

{bullet}Initiation of mining program with Brown Bear Mine.

 

Our goals are tempered with the understanding that mining for gold in a deposit like ours is inherently risky, and that risk is beyond our control. While spirits are high and the short-term likelihood for gold production is good, Mother Nature could deny us the reward. If we were to continue current expenditures without production, we would exhaust our gold inventory.

 

Stock Prices and Dividends

The Company's philosophy regarding dividends was thoroughly discussed by Charles Brown (treasurer), Leland Erdahl (chairman of audit committee), and myself. Until our inventory significantly exceeds current levels, or our operation reaches a more predictable and sustainable level, the directors view dividends as unlikely at this time.

 

Shareholders raised questions about the stock prices on the Pacific Stock Exchange.

 

Pacific Stock Exchange Trading

In 1994, there were 490 transactions and 398,265 shares were traded. It is not my purpose to suggest anything by reporting these figures; however, since it is difficult to follow the PSE activity, it seemed appropriate to provide shareholders with this summary.

 

January was the most active month with 176 transactions of 123,389 shares. In the first six months of 1194 there were 352 transactions of 336,349 shares.

 

On September 31, 1994, the specialist closed out the monthly trading at 4, the low for the year. September 19, a sales volume of 3,300 shares caused him to drop the stock $0.50 per share. Put in perspective it means that the selling side of transactions that day decreased our value on the PSE by $1,747,947.

 

On October 27, the stock closed at $4.00 per share, a new low. The volume required to take away another $1.7 million was 9,967. So in 19 calendar trading days in which the stock traded 16 days, 13,287 shares or .38% of our outstanding shares caused a paper loss of $3,495,897 or 22%.

 

In January 1995, twenty transactions resulted in a volume of 14,782 shares and a stable price, closing at 3. February's lackluster activity (4,690) shares resulted in no net changes, and the price closed at 3. Demand increased in March and a volume of 9,800 in the first half of the month pushed the stock up 7/16. Most of that gain was lost when a seller dumped 5,300 shares on March 17, 1995.

 

For the first five months of 1995 there have been 91 transactions and 54,598 shares were traded. Hurrah for the gold that is there and Hip, Hip, Hurrah for the miners for finding it.

 

Sincerely yours,

 

Michael Miller


 

  
 
© 2017 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910
 

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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