Original Sixteen to One Mine, Inc.
Newsletter #50 November 2003
Few situations challenge a hard rock gold mine with more gold than money.
This is the current situation at the Sixteen to One Mine. For those with a passion for adventure and treasure, figuring out how to locate and daylight the gold from our underground quartz veins is the job for a few financiers and gold miners. We will be doing this in one of the worlds most intriguing gold mines. If wealth and adventure are not enough compelling reasons to join the hunt, the country, local communities, miners, shareholders, and future generations of Americans will benefit when we succeed.
Coupled with taking chances in this underground experience, any investment is also risky and riff with the components of chance. Both are unsafe places for miners and financiers without broad experiences. Above and below earths mantel are no places for lightweights seeking the treasures of the Sierra Nevada. There are few short cuts. One can lose his life or his money. The only way to learn why people do it is to try it yourself. The company announces to its Shareholders its intention to issue treasury stock in the Mister Pocket Private Placement and its plan of action.
The Sixteen to One vein, which includes the Red Star geologic structure, has caught the attention of miners and financiers for years. It began when the Blue Lead (a million year old dead river) fueled their imagination and then their pockets with concentrated gold. They pondered, Where did the gold come from as the old tertiary river broke down the Sierra Mountains way before the mountains had a name. Where is it now?
Where is the lode, eventually was the topic for reflection and opinions by miners and financiers and just about anyone familiar with the riches that poured from the underground tunnels. It is beneath the lava cap in the central holdings of the Sixteen to One.
The likelihood of mining some large placer nuggets, as well as finding another great pocket in the hard quartz is greater than speculating on not finding any. Magnificent riches blessed the owners of these deposits in past operations. The drilling machines and miners have not yet penetrated a vast area of quartz, which has remained hidden due to a lava cover. We work just as hard today, but our tools are vastly improved. Technology will aid those who take the risk in our search for gold.
There has always been a substantial core of owners who recognized the worth of our company. Major shareholders and minor ones as well kept the mine claims in tact, actually adding to the rich bank of gold property. There has never been an IPO, a public offering or serious promotion of treasury stock for sale. There was one registered private placement in 1988. The purchasers were selected from the eastern United States. Our shareholders and miners believe their investment in the company is a priceless asset with far reaching potential for profit. Unlike the vast majority of junior mining companies, they shun dilution, unless the terms serve the long-range goals for prosperity. This explains why management has elected to finance its future development in two steps. The first funding is via a Private Placement for $1 Million. The next will be a public offering, if necessary, sometime in the future.
Mister Pocket is our next underground project. The project has all the risks of high-grade hard rock gold mining. To summarize the risks, I say, the gold might not be there, there might not be enough in Mister Pocket to carry the operation into the next phase, or the project beat our efforts and the money ran out before the miners conquered the obstacles of hard rock mining.
Use of Proceeds: SUMMARY
Use of Proceeds of Private Placement:
1. Open an heretofore inaccessible area for exploration .. $200,00.00
2. Re-Establish compliance with SEC ... ... $75,000.00
3. Place Company on one or more Public Markets ... $75,000.00
4. Build a new Gold Detector ... $150,00.00
5. Working Capital including preparation of a Public Offering ..... $500,000.00
A Public Offering is under consideration only. Many factors will be evaluated before a Public Offering Prospectus is prepared. The following Use of Proceeds is in its earliest draft concept.
Use of Proceeds from Contemplated Public Offering:
1. Build Red Star Shaft and levels .. . $3,500,000.00
2. Complete the following Projects:
a. Hydro electric facilities $100,000.00
b. Rock classification plant .. ... $75,000.00
c. Quarry equipment .. ... $125,000.00
d. Expand Gold Jewelry facility .. .. $100,000.00
e. Investor Relations .. ... $150,000.00
f. Lumber Mill equipment .. $75,000.00
g. Brown Bear Exploration ... . $250,000.00
h. Plumbago Exploration ... $250,000.00
i. Bald Mountain exploration .. . $250,000.00
j. Miscellaneous Internal affairs .. . $250,000.00
k. Other .. $1,000,000.00
TOTAL . $6,000,000.00
For the entire month of November the Company will sponsor an old fashion workday for shareholders and supporters of the mine. Camping, motor home spots or very crude overnight accommodations are available. Areas for improvement are: organization, gardening, moving material, building maintenance, data base improvements, car dismantling, diesel and small equipment repair, welding, fire prevention and more. Please call us at (530) 287-3223.
Historic Gold Miners Drill Collection Remains in Alleghany
Phil ODonnell spent fifty years collecting pneumatic mining drills and gathering parts and other equipment related to one of the most difficult phase of hard rock gold mining. After ODonnells death, interest grew in keeping the collection in the still active Alleghany Mining District. While his heirs respected their parents lifetime of mining, they faced the realities of life and decided to sell the collection. Like any collection, certain key pieces attracted serious attention from a couple of collectors. A $60,000 offer was turned down mainly because the extent of the collection was not known. (The drills and parts covered the entire garage under the ODonnell house in the small mountain community. No one really knew what was buried beneath the stacks of iron).
The family began the process of inventory, identifying ninety-four complete drills. Although none have been hooked to an air compressor, it appears that thirty or more of the drills are ready to run. About a quarter of them have descriptions and some indications of how or where they were acquired. The earliest date documented so far is 1876. Many were purchased when the Sixteen To One mine sold its equipment at auction in 1968.
This October the family house on Main Street sold. The collection must be sold or transferred into storage. Those residents who have watched artifacts and history leave their towns in the back of trucks or never- to- be- replaced structures torn down know the loss and feared it was happening again. A friend of the Underground Gold Miners Museum shared the local sentiment that this collection, which rivals any other, should remain in the gold country. He put up the money and paid to temporarily keep the collection in Alleghany. It took seven people, two trucks and a front-end loader to move the collection. A dozen complete drills were moved directly to the museum. The rest were placed where workers can begin the task of cleaning, repairing and identification.
The museum now has the possibility to own and display a world-class collection of equipment that has influenced the growth and development of California and the West. What makes this even better is the drills will be housed where they actually bore into the hard quartz and gold.
The museum seeks sponsors to establish permanent ownership and to properly display a representative evolution of the hard rock drills used in this famous gold mining district. This has all the makings of becoming a premier drill collection in western America. The museum needs your support.
Your donation as a drill sponsor goes directly into capital outlay. Pick a drill or your name will be added to the drill closest to acquisition. Please consider supporting one drill as its sole donor. A Brass plaque will display the names of all donors for each drill.
If you wish to be the sole sponsor of one of the drills, your wish will be granted. Please act now. The history of gold mining and the preservation of this fine drill collection are at stake. Lets not be short sighted. Looking ahead and preserving the work of miners and dreamers who opened western America is endangered. Future generations will gain a real sense of a small part of mans evolution underground and an understanding and respect for the blue collar workers who took the risks and called themselves hard rock gold miners. The completion of this project of preservation is something to be proud of maintaining.
Your donations are needed now. Please help with the preservation and display of our American heritage; and please tell a friend.
The drills are:
A. Price: $4,000. Manufactured by the Redfield Drill Company, Denver, Colorado.
B. Price: $4,000. Manufactured by Jackson Drill. Patented May17, 98 and March 7, 99.Denver, CO
C. Price: $4,000. The Ingersoll Sergeant. Model 13004. No 14069. New York.
D. Price: $4,000. Manufactured by Sullivan. Model 404F. Shop No 18742 FF12
E. Price: $3,000. Manufactured by Rand Drill Company. Model 3B. New York
F. Price: $3,000. Manufactured by Ingersoll Drill Company, New York. The New Ingersoll. 1885 Seargent.
G. Price: $3,000. Three-piston tappet version. Model and year unknown.
H. Price: $3,000. Sullivan Machinery Co. Chicago, Illinois. Model 007 US Shop No 11879US
I. Price: $2,500. Ingersoll Rand Company. Jack Tamer 190 BC4
J. Price: $2,500. Denver Rock Drill, MFG Co, Denver USA. Stoper Model 16V-Part 1
K. Price: $2,000 Ingersoll Rand
L. Price: $2,000. Manufactured by Denver Rock Drill, Denver, USA. Stoper
The Underground Gold Miners Museum is a non-profit organization. You will receive a receipt, which is tax deductible. Mail donations to:
Underground Gold Miners Museum
P.O. Box 907
Alleghany, CA 95910
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