October 17, 2021 

Clips from Alleghany


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04/30/2004  3:33PM

Rehabilitation of the 49 winze continued this week. Production was minimal, but the targets still look promising.
Mike is busy getting things lined up for the Empire Mine Adit Project.
Rae is still trying to make time to get the museum presentable for the season.
Cool nights and warm days in Alleghany. A burn pile near Downieville got out of control on Monday, if we don't get more rain it could be an early fire season.

04/24/2004  2:56PM

The Board of Directors met on Friday. After an underground inspection of the mine, the members moved to the Rainbow mine to conclude the meeting. The shareholders list will be closed on May 1, 2004, for qualification to vote at the upcoming shareholder meeting on June 26.

Both headings produced gold towards the end of the week. The signal above the Ballroom production was about $10,000. Unfortunately it is not the type of gold suitable for slabbing and will be crushed and poured into bars. The “Kitchen” heading is another story. After just two rounds the lead miner, Reid Miller, found high-grade in the muck. The crew became very excited because this is a large area within a favorable history of gold concentration. Who knows, that is the Sixteen To One! Who knows?

The office is compiling a master list of companies, which should have an interest in the doings of the California’s last hard rock mining operation. The consensus is that not enough people are aware of the opportunity for making money via the corporation, its assets and its associates. Too few people and even fewer understand how to interpret the solid facts surrounding the Alleghany Mining District and the die-hards who continue to believe in its future.

Life looks pretty good around the Company. Everyone is more upbeat than Scoop can remember. Round in…round out. The gold is not gone. You just have to find it and you will not find it by wishing.

04/20/2004  6:07PM

Dead work or maintenance, whatever you call it, there comes a time when it preempts looking for gold. The ‘49’ winze is the main artery of the mine. It was an old raise that was extended and improved in 1984-85-86 by our lessee, Kanaka Creek Joint Venture. It provides the miners with a primary exit, hoisting capabilities to the lower levels and utility services for air, electricity and water. While it is regularly checked and repaired, it became necessary to hit it harder with some new timber, rock bolts and steel sets. Part of the crew will dedicate two weeks towards this effort.

The kitchen raise crew is drilling six-foot rounds. If rock does not break, do not expect to find gold. The other production crew is slushing what they thought was a drift above the fishpond. It turns out to be an old timer’s raise. Confidence remains high that both crews are working in an area with great prospects.

04/15/2004  1:57PM

Much needed rain fell last night. No snow on the ground. Temperature is about 42 degrees. One more day of preparation in the “kitchen raise”. Utilities are completed and a powerful slusher is installed. Crew will drill first round today or tomorrow. The “no-dog-raise” is set to go. Its crew moved to and drilled a signal above the fish pond on the trail to the ballroom yesterday. They will drill again today but not on Friday (we do not leave shot rock with gold over a week end). We do not expect much here but the jewelers need slab, and we aim to please them.

Mike is working out a new agreement with PG&E. March bill was over $7,000, mostly from pumping. It is costing us to keep the lower levels from flooding; however the rational supports the decision. Besides the equipment that would be damaged, there are some very good areas of known ore. It is too costly to go after them now.

Rae has taken time this week to whip the museum into shape for its opening in May.

04/09/2004  5:07PM

The week ended on a positive note for all the Sixteen to One crew. Andy and Charlie slushed recently shot- rock and some rock probably mined fifty years ago as they set up their heading for next week: raising. Andy found a soft ball size chunk of quartz and gold that weighed 38 ounces (15 oz fine au. Estimate). The rest of the crew installed two slushers. Joe and Reid will also begin a raise next week. Two raises running in a hot large block of quartz makes everyone‘s outlook positive.

The Paradise Gem and Mineral Society is having its 50th annual event this weekend at the Veterans Memorial Hall. David and Rae are taking some of the company’s specimens to display. They also will have a booth, selling jewelry, slab and small specimens. Oh, they also have T-shirts and hats. David hopes to net enough to buy a new four-wheel polisher (about $2,000). Stop by. Paradise is east of Chico. There are many enthusiasts living in the area, so the show should have a wide selection of minerals.

Director Emeritus Dick Sorlien stopped by for a visit. Dick lives in Philadelphia and has the Alaska Mine a few miles down the ridge from Alleghany. He will be 82 in June, still plays tennis and recently had eye treatment to eliminate the need for glasses, which he has worn since childhood. Dick played a key role in the growth of the company while he served as a director and was awarded a gold plated hard hat when he retired. In Australia a gold plated hard hat represents a very high honor of service in the mining industry.

Bill Walker (water guru) and Rae installed a new facet to the unit that cuts the arsenic out of the drainage water. It is another “secret” process the company has perfected over the years to handle its water discharge for 2005.

Mike and Rae reviewed the cash flow and bills. They wrote over $5,000for property taxes due April 12, $8,750 to PG&E as well as maintained the beginning of the month regular payments. The money is mostly from slab sales, but David has been busy filling requests for specimens and cabochons. Still mining after 108 years!


04/02/2004  4:18PM

The week ended with gold production from the Ballroom heading yesterday and today. It was the heavy sulfide gold. All the miners will be working several headings in this location for several months. Mike bought new slusher cable in Oroville for the crew. Moving the shot rock requires two slushes. About half a mile of phone wire was laid from the office in Alleghany to connect with the internal mine communication system. This will allow direct contact, which makes us all feel safer. Tomorrow is a volunteer day at the museum. The drive from highway 49 to Alleghany is spectacular with all the evidences of spring. Join us if you need a reason to have an adventure.

03/27/2004  12:24PM

CORRECTION from Last Entry.

The lawyer representing the CDAA group of rascals is Calvin Clement or Clements from the firm of Knox, Lemmon and Anapolski in Sacramento.

03/27/2004  11:29AM

Last week of mining was mostly one of maintenance. Timber support was replaced on the 800 level, the 1300 level and the 1500 level going south towards the pump sump. This work required four miners all week and two miners for two shifts. A small amount of gold was found in the ballroom area. The crew slushed for two days and drilled and shot three rounds. The vein has some good-looking characteristics: evidence of an old watercourse, mineralized footwall, multiple quartz lenses, mariposite and crystal pockets. For those reasons and the recent production of gold above, below and to the south side of the heading, the crew will continue to break rock there next week.

Proof of service was returned in the offensive suit the Company has launched against four lawyers and their employer (California District Attorney Association). Their lawyer, Mister Kirk Clements in Sacramento asked for a week extra time to respond, which was graciously given. Damages to the shareholders are estimated at $24 million or $2.00 per share or 60,000 ounces of gold.

David in gold sales is considering filleting the golden trout carving, turning it into jewelry slab. The trout is valued at $75,000 but will not yield that much money in slab. No one is particularly happy about sawing into the fish. Mike has considered a compromise, sawing the base and keeping as much of the sculpture as possible. He said the golden eagle and bear are not to be cut up no matter what. Time will tell as short cash flows threaten the operation. Anyone want to buy a one-of-a-kind fish?

03/23/2004  2:37PM

The company has set aside the funds to install a passive water filtration system to eliminate or reduce the low levels of arsenic in surface water. The new requirement is proposed to become effective in year 2005. The company has monitored stream and other water flows almost twenty years. The ranges of temperature, conductivity, acidity, flow and mineral content are well documented. Arsenic, a naturally occurring element in the regional waterways is now measured in parts per billion.
“While there is no evidence of biological harm, in Kanaka Creek above or below the mine property, the company elected to install the plant,” reported Michael M. Miler, president. “Our crew works well with the physical sciences and natural laws of the environment,” he said. “For several years the social sciences have preempted the bureaucratic thought process. It has become necessary to abandon sound reasoning to effectively function in the current Californian regulatory climate. We have asked the bureaucrats to work with us to develop solutions to real or perceived issues. Their cooperation has been slow in coming.”
Miller said now that gold is an attractive investment; savvy investors are looking for ways to participate. “Even though we are unsure whether the proposed standards will be finalized in 2005, by installing the filtration system now, it should eliminate any concerns serious investors in our new shaft sinking plans may have about water issues and compliance.”

03/16/2004  8:16AM

The weather has been unseasonably warm in Alleghany. The plum tree in front of the office is in full bloom. We all know more snow will fall before spring really sets in. In the meantime we are enjoying the break from snow.
Locally the big news is the threatened closure of Pliocene Ridge School our local k-12 school located in Pike. It serves the communities of Alleghany and Pike primarily, with kids from other outlying communities attending as well. In 1983 when the school was relocated from Alleghany to Pike nobody in their wildest dreams thought the population would shrink. When the school was in Alleghany there were about 60 kids in grades K-12 now there are 48 including the kids from out of the area. Because the school district needs to cut expenses they are seriously considering closing our school. It would only take about 15 more students to make the school viable.
Casey's Place is having a Mexican Dinner on Saturday March 20th with music from Spain. (a Flamenco guitarist)Happy Hour starts at 5pm dinner at 6pm. Call to make reservations 530-287-9809.

03/04/2004  4:37PM

An OSHA inspector visited the mine today. He will be back to finish his inspection next week.
Two crew members undertook the task of "drill doctor" and repaired five drills. Still have some legs to repair in anticipation of more activity in the ballroom headings.
Several metal detectors were shipped to both White's Electronics and Fisher Research Laboratory for repairs. They take quite a beating underground.
Nice weather in Alleghany. The snow is melting fast.

03/01/2004  4:55PM

Heavy snow throughout the day in Alleghany. Miners are processing February's high-grade ore. Total weight was about 400 pounds of sacked gold bearing quartz not suited for jewelry application. Bars will be poured and shipped to the refinery for separation into pure gold and pure silver.

Crew slushed two rounds in Ballroom heading. The 1500 level is still active because of visible gold showing in each round. Maybe gold won't wire up. Then again, maybe it will.

Ordered three rebuilt gold detectors from the manufacturer today. Mike talked to them about improvements and a possible joint promotion campaign. Hundreds of detectors were sold in 1992, when the first campaign took place.
Company received its second serious inquiry about the Private Placement investment offer in Houston. Scoop can't figure out why seekers of wealth and security are so bashfull when it comes to gold and real hard assets like the Sixteen to One. Mel Gibson hit a good pocket last week, so did the Lord of the Rings participants. Gold is the foundation of it all.

02/20/2004  4:29PM

A large order of explosives, blasting caps and det-cord was delivered to the mine this week. The miners were happy, as they inventoried the supplies, which should last for four months. Years ago explosives were an insignificant cost of mining compared with labor and other supplies. This is not true today. People involved with the manufacturing, storage and delivering of explosives credit paper work as a significant factor in the cost increases.
The 1500-foot level in the most southern part of the mine yielded about three hundred pounds of high- grade ore (using industry standards for high-grade). Gold sales, however was unable to cut any of the material into jewelry products.
Check the NEWS for the story about calling out the evil CDAA lawyers’ behavior. The Company has stated in the past that shareholders suffered $24,000,000 in damages. Scoop will get a copy of the complaint for your reading. Four CDAA employees (lawyers) were personally named along with the non-profit corporation.

02/13/2004  10:25PM

There has been a lot of activity at the company office lately. Cars and trucks are coming and going, but Scoop is in the dark regarding the activity. It’s something other than gold. Miners were seen each day this week depositing high- grade sacks, but that’s not the source of the activity. It is something else. Not a big gold strike. Maybe the newspaper will dig up the story next week. I failed to find it from my sources.

02/10/2004  8:54PM

Miners sacked one bag of high-grade ore from the 1500-foot level in the most southern part of the mine. Strong signals remain in three places in the raise. The water supply for the drills quit. Installing a new pump to provide water in this remote location solved the problem. Two miners are working the heading and should get a round in each day the rest of this week.
The company received a new head for its most proven metal detector, thanks to the generosity of a shareholder and active supporter of the mine. C. Johnson, who runs the detector each day, found three signals in areas that were examined previously with the device. The new head has a greater depth penetration than any of the other heads. An even small advance in technology means an increase in gold and money. This is the main reason the company has not back filled waste rock into the old workings. With about 29 miles of tunnels and millions of cubic feet of quartz exposure, a gold mine of prospects awaits each improvement in the gold detection technology.
A 58-horse power pump failed last week, which completely stopped the removal of water from the mine. Rae got on the phone and ordered a replacement. It arrived yesterday and was installed today. No damage was done to the electrical transformers and the system is back on line. It was a $10,000 loss.
Mike returned safely from the North American Prospector Expo in Houston, along with the Whopper. He promises to share his experiences on the Forum as soon as possible.

02/02/2004  11:41AM

Our server is having trouble with the "my doom" virus and as a result we are having trouble recieving e-mails. Hopefully this will be resolved soon. If you send an e-mail and don't hear back you may want to try later.

Nasty weather in Alleghany. It has been alternating between rain and snow for two days now. The school bus had to chain up this morning to make it into town.

To answer "wild wests" question about links. Yes it is ok to post links on the forum. Thing is they don't work. That is something our site administrator will have to look at.

Good point about GFX, his site will be added to our "links" page!

A small amount of gold continues to trickle in from the mine.

The Alleghany Volunteer Fire Department is working with the Sierra County Fire Safe council to get funding for a defensible fuel break around the town. We all know that could mean the difference between saving or losing the town in the event of a Forest Fire.

01/24/2004  10:56AM

Of the eleven people working at the mine, seven live in the mining village named Alleghany. The historic explanation of how the camp got its name is that a prospector from Allegheny, Pennsylvania suggested the name and chose to change the spelling (Alleghany). The village housed surface prospectors, early underground drift miners working the buried “dead rivers” and the underground hard rock miners. It grew, burned, was rebuild, burned down, rebuilt and during several slumps in gold mining was home to social outcasts and, according to a professional geologist’s report, old men hiding out from the law. It may be the only community left in California with a gold mining based economy. Early California publications state there were over 20,000 mines in the State. Many and maybe most have been paved over as the population expanded, unchecked into the Sierra Nevada Mountains. ORIGSIX ‘s existence and its operation have protected the untapped mineral wealth from the developers’ exploitation, something that cannot be said in most of the Californian gold belt. The Company owns adequate land for the development of housing and the support infrastructure to grow. Surprisingly, the main road to Alleghany was not paved until the mid 1960’s. Much of the old waste dump from the mine was sold as road base. Hmmm, before metal detectors!

The miners look forward to next week. Nothing around Alleghany creates more positive excitement than sacking gold. Caution, however, because it is not on any time schedule. What did Will Rogers say, “It is much harder prospecting for gold than it is for spinach.”
 By smithsgold

01/21/2004  7:31PM


01/21/2004  6:03PM

The news release sent to regional newspapers is available under NEWS. The Union is sending its business reporter to the mine on Friday for details.
Scoop overheard Mike’s side of the phone conversation with PGE. He mentioned the Company’s long and successful relationship and said that gold mining in California could create new customers for electricity over the coming years. This may not have been a selling point because of the power shortage in the State. After hanging up the phone, little tears of joy appeared in the corners of Mike’s eyes. One of several burdens hindering gold production melted away.

The Company ordered 2000 gallons of diesel to be delivered Friday. The weather remains warm and sunny during the day but a storm front is predicted Friday night. One reason the Sixteen to One mine continued operated as the longest gold producer west of the Missouri River and prospered was its ability to stock up on supplies before the heavy snows.

The crew is advancing three headings. Miners got four rounds in today, one in the Ballroom area , two in the Ray-rock raise and one splitting a pillar off the 1500 level-south.
 By Rick

01/17/2004  6:53PM


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Alleghany, California 95910

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