May 21, 2018 
 Monday 
 
 

Forum
Topic:
Ideal Time for Facts

       

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 By Michael Miller

03/28/2018  2:06PM

IN 1970, JACK R. WAGNER WROTE “GOLD MINES OF CALIFORNIA”. It is a must read for those interested in understanding California gold. Chapter 14 entitled “The Original Sixteen to One Mine”, in thirteen pages, details one of the world’s greatest mines in a top ranking gold field, California. Following is the beginning of the author’s PREFACE.


“As a native Californian I was brought up to think of California as the “Golden State”, not only because of its heritage, but because gold mining was still a fairly important industry. Today this is no longer the case and I now realize that much of the California I knew is slipping away. Even the physical evidence is rapidly eroding due to the ravages of time, neglect and the constant rearranging of the landscape. In its own way I hope this book will capture the dramatic life and sad ending of what once was a major California industry produced between 1848 and 1967 nearly $2.5 billion in gold. It was an industry that influenced the placement and development of many California towns and contributed enormously to the prosperity of our state.

From the discovery of gold-bearing quartz on Gold Hill near Grass Valley in 1850 until December 31, 1965 when the Sixteen to One Mine in Alleghany shut down, California was world renowned as one of the most important gold fields. Fortunately in 1850, about the time when most of the easily-mined placer claims were worked out, miners were able to turn to deep or hard-rock mining. This period, which lasted 115 years, was aided by the newly discovered dynamite and the perfection of the air drill, both of which carried gold production to great heights and the mines to great depths.

Actually, it was the Sixteen to One mine that led to my undertaking this project in the first place. It all began when I read a short article hidden away on the financial page of a San Francisco newspaper, reporting the demise of California’s last producing gold mine. While I had known for years that profitable gold mines were few and far between, I had no idea of how many or how few still existed in California. It became apparent to me that this was truly the end of an era in our time and I determined to set some of it down on paper before it became lost entirely. Since the Sixteen to One was the last operating quartz mine it also seemed appropriate that it should be the final chapter in the book, which means that I wrote the last first.”


Does Jack Wagner’s research have any meaning 48 years later? Déja vu regarding the last operating quartz mine in California. The layoff of our Company’s miners in 1965, was directly related to the thirty six year freeze on spot price of gold plus the fact all production must go to the US government. Whew! No déja vu to that economic legislation. At today’s spot price for one ounce of gold, the Sixteen production according to Mr. Wagner is $1,350,000,000. Yes, over one billion dollars came from Sixteen to One gold. How much remains? Read our web site. The June shareholder meeting in Alleghany will number 107.

Jack Wagner began Chapter 13 with:

"A good story, like gold, is where you find it and this one began in he classified section of the San Francisco newspaper in June 1965 with an ad which read: To be sold. 25 beautiful irreplaceable quartz and gold specimens suitable for museum or private display. A simple ad, but behind it ran a pathetic story of the decline in the fortunes of one of California's most famous gold mines, the Original Sixteen to One Mine of Alleghany. It is a story so typical of the plight of the California gold mining industry that it could be used as a textbook example."

What Jack did not know was the miners stayed operating as independent miners keeping the main adit and some levels open as water flowed into the mine. The author concludes his wonderful story. "Barring an increase in the price of gold or some other economic miracle (or catastrophe) future historians must surely agree that the Sixteen to One mine was truly the last producing gold quartz mine in California, the once golden state." The miner's prayer: gold in the next round we drill, blast and muck.
 By Michael Miller

01/27/2018  1:12PM

In addition to the Sixteen’s petition for review by the State Water Board (full petition under Topic: Water and Arsenic: which came first? 01/26/2018), all residents have rights to petition this board for redress of an absurd position by public personnel. I chose to exercise this right and below is my petition to be heard by the State Board. Although I wrote both petitions, the tone represents a different perspective. If you have discovered this abuse of our public servants on our website, please help us broaden the exposure of this ignorance. For you and for future generations of Californians, public accountability of destructive powers based in Sacramento must be challenged and returned to the beneficial powers we want and expect. Help us.



State Water Resources Control Board January 8, 2018
1001 I Street
Sacramento, CA 95814


Dear Members of the Board,

The Porter Cologne Act passed in California legislation as solutions of water quality, conservation, control and utilization. What water issues troubled elected officials, industries and businesses in the 1960’s? Fundamental observations, conditions, predictions and downright speculations contributed to this law. It was justified according to give and take actions by Californians for the benefit of Californians: protected for use and enjoyment by the people of the state. The Legislature declared regulations shall be reasonable, considering all demands made on our water quality and considering the total values involved, beneficial and detrimental economic and social, tangible and intangible. Development projects were growing in scope and size; however the law specifically cites factors of precipitation, topography, population, recreation, agriculture, industry and economics shall apply.

The law established a State Board and regional boards. They shall conform to and implement the policies of Chapter 1, (policy) at all times of the Act. Water quality objectives mean the limits or levels of water quality constituents or characteristics which are established for the reasonable protection of beneficial uses of water. The first item listed for a water quality control plan is: (1) Beneficial uses to be protected. The intent of the Legislature is unequivocal: waste or contamination must create a hazard to the public health through poising or the spread of disease.

One key in the Legislative and administration process was science. Science began and drove concepts and words that eventually were passed by our Senate and Assembly. Science, after all, is knowledge, understood facts or principles. Knowledge is gained by systematic observations, experiment, and reasoning; knowledge is coordinated, arranged, and systematized. Its goal is the prosecution of truth thus known, both in the abstract and as an historical development.

What John Stuart Mill wrote 160 years ago holds true today: “Since all phenomena which have been sufficiently examined are found to take place with regularity, each having certain fixed conditions, positive and negative, on the occurrence of which it invariably happens, mankind has been able to ascertain the conditions of the occurrence of many phenomena. The progress of science mainly consists in ascertaining these conditions. Science is nothing but the finding of analogy, identity in the most remote parts of the subject.” There is no science involved with the enforcement of the current CVRWQCB in Rancho Cordova, California.

In science, you must not talk before you know. In art, you must not talk before you do. In literature, you must not talk before you think. In government all three apply to our public agencies, public employees, elected and appointed officials. Science persists with the knowledge of things, whether ideal or substantial. Art works the modification of substantial things by our substantial power. Literature brings to the mind the modification of ideal things by our ideal power. All are lacking with the Prosecution Team, the Administration Team, most of the Board members and the Executive Team.

The work of the true masters of Science is a perpetual striving after a better and closer knowledge of their environment from the planet on which their lot is cast and the universe in the vastness of which our planet is lost. CVRWQCB execution of the Porter Cologne act has become an illegal taker of life, liberty and the pursuit of happiness with no sense of support from Science, Art or Literature. It’s good and worthwhile intent turned into a sham, nothing more than a trick put upon the public. It has become evil that lacks any bearing on its expectations. The people should fear the destroying of long standing public and private benefits of our water. If the environment is sought to be defended or pressured for the safety and benefits of Californians, some advocates and some enforcers twist, ignore and lie. It is a sham and the goodness we know and expect will be lost for future generations. The actions I witnessed at the December 8, 2017, public CVRWQCB hearing will alarm Californians as I was alarmed.

Porter- Cologne Water Quality Control Act is the law. It preempts all other plans, such as the Valley Basin plan. Its importance in Californian’s behaviors patterns the relationships between the Constitution of the United States of American and the Constitution of the State of California. Law has definitions: recognize shame answers, sham defenses, and sham pleas. The entire agenda item on December 8, 2017, was so clearly shameful, in fact, presenting no substantial issue. It is make believe to assert that natural waters traveling through the Alleghany aquifers, above and underground, produce harmful conditions to public health. An historical mantra holds true here in Sacramento: “We must have a case that we do not sham fallacies upon the people for current reason.”

Fear of this material (natural elements for life) and native water precipitating high in the Sierra Nevada mountains is a pretense for highjacking industrial freedom and rights, justify employment for the prosecutors, fatten self-serving appetites, and is illegal, immoral and against both State and Federal Constitutions. “Truth, like gold, lies at the bottom.”

In reference to the degree of specialization on display during this public meeting, the sciences may be arranged as follows:

(A) Mathematics, the study of relations of the parts of hypothetical constructions, involving no observation of facts, but only of the creations of our own minds, having two branches – (1) pure mathematics, where the suppositions are arbitrary and (2) applied mathematics, where the hypothesis as simplifications of real facts – and branching again into (a) mathematical philosophy, as the theory of probabilities, etc. (b) mathematical physics, as analytical mechanics, etc. and (c) mathematical physics, as political economy.

(B) Philosophy, the examination of and logical analysis of a general body of fact is a science in which reason and history precedes successful dealing with special elements of the universe – branching into (1) logic and (2) metaphysics.
(C) Nomology, the science of the most general laws or uniformities, having two main branches – (1) psychology and (2) general physics.

(D) Chemistry, the determination of physical constants and the study of the different kinds of matter in which these constants differ.

(E) Biology, the study of a peculiar class of substances, the protoplasms, and of the kinds of organisms into which they grow.

(F) Sciences of organization of organisms, embracing (1) physiology, the science of the working of the psychical structures of organs and (2) sociology, the science of psychical unions, especially modes of human society, including ethics, linguistics, politics, etc.
No science was on display by the Prosecution Team, the Advisory Team or other public employees. My wonderment is that the seven board members voted six to one in support of the staff with so little knowledge of what they were voting for. Science is nothing but the finding of analogy, identity in the most remote parts of the subject: water. “The work of the true man of Science is a perpetual striving after a better and closer knowledge of the planet on which his lot is cast, and of the universe in the vastness of which that planet is lost.” –J.N. Lockyer. What science triggers the serious efforts across the spectrum of living in our Golden State? What is the duty of water?

Terms contain some qualification to denote that it must not be excessive are to be based in science. The buzz ‘word’ has become ppb. The word "reasonable" being considerably used in law is not used now in science: reasonable in care and diligence, reasonable in economic evaluations (cost/benefits), reasonable unavoidable. This board lacks an understanding of reason because the staff either fails to know or withholds important information (exculpatory evidence or statements which tend to clear Original Sixteen to One Mine, Inc. from alleged fault or guilt). The duty of water is found not to be a constant factor for all places but varies with the character of natural surroundings, climatic conditions, diversification of environments and various other conditions.

Kanaka Creek does not present a water quality problem for fish, plant life or aquatic insects. No one suffers a beneficial loss downstream from the ancient 21 portal. During the meeting the question, “What is the full definition of serious?” was brushed aside by staff. The proper action for the Board to take at this meeting was to table the topic and send it back to staff for review and clarification on the issues raised by Operator. The insistence that it could not take this action is weak.

I am aggrieved by the action at the December 8, 2017 CVWQCB meeting.

I file this petition for review with the State Water Board.

I hereby attach to this petition by reference the three attachment filed by Original Sixteen to One Mine, Inc. as support for my request for the petition. I have suffered great financial losses due to the ongoing behavior if CVRWQCB in the Kanaka Creek watershed. I have suffered great mental strain and harassment.

Required Information:
Michael Meister Miller
PO Box 941
Alleghany, CA 95910
(530) 287-3224
mmeistermiller@gmail.com

A copy of this request is given to the US Postal office in Alleghany today, addressed to the CVRWQCB in Rancho Cordova. Presenting new and accurate information and delivering true and scientific information regarding the issues under review by CVRWQCB in order to preserve, protect and enhance the regional environment both naturally and socially are not a choice but a right and a public responsibility.

Sincerely,
Michael M. Miller
 By bluejay

01/19/2018  11:35AM

Google "New California."

Good bye to the Water Board!
 By fredmcain

11/22/2017  11:46AM

Michael,

I would gladly drink a glass of cold water that had leached out of your mine long before I'd gladly drink a glass of tap water in Sacramento !

Regards,
Fred M. Cain
 By Michael Miller

11/10/2017  2:59PM

TRUE OR FALSE

The arsenic limit established by governmental speculation for harmful health is set ten times below the number used as medical dosages in the treatment of cancer. California enforces the natural runoff from subterranean sources flowing into Kanaka Creek (contains arsenic) be reduced to drinking water standards, which are arbitrarily set lower than the amount physicians prescribe intravenously to patients to cure leukemia and other diseases or conditions.

Sadly, this is true. Is this deliberate behavior?
 By Michael Miller

06/09/2017  1:29PM

Supply/demand news on India’s gold market (GST).

The simplified taxation structure will make the gold supply chain more transparent and efficient. It should also boost India’s economy which in turn will support gold demand

Key points:
• At 3%, the GST rate announced on the 3rd June was lower than the industry had feared. Industry reaction has been positive.
• There are two important GST rates which will affect the gold industry: the 3% tax on gold products – which replaces the excise duty and VAT components, but sits on top of the import duty – and an 18% tax on services, which will affect small-scale artisans who design and manufacture jewelry for larger manufacturers.
• While the overall tax rate consumers face is likely to increase slightly, GST will bring benefits too. Firms will be able to offset the GST they pay against their revenues, and double taxation throughout the supply chain will be eliminated. Supply chains will become more efficient.
 By Michael Miller

05/05/2017  9:48AM

Gold mining in Mexico has a 500 years history of both commercial and artisan production. Today, gold and silver account for more than 50 percent of the country’s total metals output.

Over the last decade, gold production in Mexico stayed relatively stable; however, an uncertain gold price environment limited new mines openings in recent years. Most mining companies operating in Mexico focused on reducing costs and improving capital management. In 2016 gold output dropped from 135 MT to 125 MT. The decline, which was one of the country’s biggest, was partly due to harder and lower-grade ore types available.

One problem is that relatively little exploration is taking place. Last year, spending on exploration and development declined for the fourth year in a row to reach a 10-year low of $483 million. Mining in Mexico is a significant employment industry and valuable as an export producer of gold, silver and copper in that order. Expect it to continue.
 By abboseo

03/25/2017  11:52PM

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 By cw3343

02/02/2017  5:34PM

Some good comments/info in the post below.

One thing they did not mention was the current strength of the US $, and the fact that it may become weaker (Trump has alluded that he would like a weaker USD - this helps any USA company that exports goods/services to countries who pay in other currencies). If the USD weakens, then that should be good for the price of gold (and other commodities in general). I do not want to get into it here, but there is usually an inverse relationship between the strength of the dollar and the price of gold/commodities. One of many caveats however, is the Federal Reserve Open Market Committee. If they continue to raise the federal funds target rate, a result should be a stronger US dollar. The USD is the reserve currency of the world, and will be for the foreseeable future. It's strength or weakness should have some effect on spot gold prices.
 By Michael Miller

01/13/2017  6:45PM

Information about gold has numerous sources. Many relate facts and opinions to support a bias view intend to support some theory, position or gain by the writers. My subscription to the World Gold Council goes back decades. It is required to declare ones interest from six categories. I checked ‘Gold Mining and Gold Technology”. Below is a summary from a report I received today. It covers investment yet you may find it interesting as I did.

Outlook 2017 World Gold Council
Global economic trends and their impact on gold


The gold price had a strong performance in 2016, rising close to 10% in US dollar terms (higher in most other currencies) and amassing multi-year record inflows through physically-backed gold ETFs - making it one of the best performing assets last year, despite a post-US election pullback. And the price has gained more than 5% since the Federal Reserve (Fed) increased rates in mid-December.

Political risk is rising. Europe will hold key elections in the Netherlands, France and Germany in 2017. The election cycle will happen “against a backdrop of continued citizen unrest, fueled by the ongoing uneven distribution of economic welfare.” In addition, Britain must negotiate its exit from the European Union. In the US, there are positive expectations about some of the economic proposals of President-elect Donald Trump and his team, but there are also concerns

Monetary policy is likely to diverge between the US and other parts of the world. The Fed is widely expected to
tighten monetary policy, but it is far from certain that other central banks may be willing and/or able to do so.
over the past century, gold has vastly outperformed all major currencies as a means of exchange. One of the
reasons for this is that the available supply of gold changes little over time – growing only 2% per year through mine production. In contrast, fiat money can be printed in unlimited quantities to support monetary policies.

Nominal interest rates are widely expected to increase in the US this year, but all the economists we spoke to
forecast that inflation will rise as well. An upward inflationary trend is likely to support demand for gold for three reasons. First, gold is historically seen as an inflation hedge. Second, higher inflation will keep real interest rates low, which in turn makes gold more attractive. And third, inflation makes bonds and other fixed income assets less appealing to long-term investors

Stock markets had a significant rebound in the last stretch of 2016. And while some stock markets are just recovering from lackluster multi-year performance, stocks in the US have reached historical highs. In many cases, valuations have been elevated, as investors increase their risk exposure in search of returns in a very low yield environment.

Until now, investors have used bonds to protect their capital in the event of a stock market correction. As rates
rise, this is a less viable option – and in the meantime, the risk of a correction may be increasing. The interconnectedness of global financial markets has resulted in a higher frequency and larger magnitude of systemic risks. And as Jim O’Sullivan puts it: “The [US economic] expansion will not last forever.” In such an environment, gold’s role as a portfolio diversifier and tail risk hedge is particularly relevant.

Macroeconomic trends in Asia will support economic growth over the coming years and, in our view, this will
drive gold demand. In Asian economies, gold demand is generally closely correlated to increasing wealth. And as Asian countries have become richer, their demand for gold has increased. The combined share of world gold demand for India and China grew from 25% in the early 1990s to more than 50% by 2016. And other markets such as Vietnam, Thailand and South Korea have vibrant gold markets too.

While jewelry demand in China has suffered from changing consumer tastes, the investment market has undergone a remarkable period of development. In little more than 10 years its bar and coin market has become one of the world’s largest. Trading volumes on the Shanghai Gold Exchange are increasing. And interest in new products continues to increase; we believe innovation should continue to support China’s gold market in years to come.

Gold is becoming more mainstream. Gold-backed ETFs made gold accessible to millions of investors, primarily in the West, over the past decade, but other markets continue to expand too. China has seen dramatic growth in recent years through Gold Accumulation Plans, physically settled gold contracts in the Shanghai Gold Exchange

In Japan, pension funds have increased their gold holdings over the past few years. In the corporate sector, more than 200 defined-benefit pension funds have invested in gold. In addition, more than 160 defined-contribution plans have added gold to their list of investments. We expect this trend to continue and expand into Western markets, where pension funds have had to rethink asset allocation strategies following prolonged exposure to low (and even negative) interest rates. In our view, this will result in structurally higher demand. Innovation is evident across all markets, but at the end of last year one development stood out. The Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), with support from the World Gold Council, launched the Shari’ah Standard for Gold, opening up the Muslim world to gold investment.
 By Hans Kummerow

11/17/2016  5:05AM

Found this at the bottom:

"Mariposite formed when serpentine was altered under pressure by mineral-laden hot (650oF) water. The water, containing potassium, silica, carbon, oxygen, and other elements, flowed upward from sources deep in the earth’s crust along fractures, faults and fissures in the rocks. When these hydrothermal fluids reacted with the serpentine, they formed deposits of quartz, chromium-rich mica, sulfides, and occasionally gold. At that time these rocks were completely hidden under the surface of the earth. The ancestral Sierra Nevada began to began to rise 100 million years ago (Hill 1975) and the rock above the mariposite slowly eroded. The rich veins were exposed about 45 million years ago. Continued erosion released the gold from the rock and streams carried it down the slopes.

Mariposite rock and the varied quartz and gold veins are found along the mother lode’s Melones fault which separates the Paleozoic Calaveras Complex phyllite from the late Jurassic Mariposa Formation greywacke and volcanic rock."
 By Hans Kummerow

11/16/2016  4:54AM

Dear geologists on this forum:

"The appearance of Mariposite all over the Northern Sierra Nevada was caused by the same hydrothermal processes that caused the gold precipitation inside the quartz veins."

Is that true?
 By Michael Miller

11/15/2016  12:26AM

When I take people into the mine, I stop on the 800 level where there are magical open stopes, pillars and thick quartz. Included in the quartz is a "horse", a miners term for some irregularity dragged into the vein.

Most of the time a horse is a mass of country rock lying within the vein. This horse is mostly bluejay. I asked what makes this rock green? Copper is the favorite guess, which is not true. The answer is chrome.

For those geologists out there mariposite is a chromian variety of phengite, a siliceous variety of muscovite.

The real old timers believed that the appearance of bluejay held promise of gold nearby.
 By Hans Kummerow

11/14/2016  10:30AM

Thank you Big Al. I understand now what the miners mean when they speak of BlueJay.
 By Big Al

11/14/2016  9:11AM

Hi again Hans, I misspelled it, it is spelled Mariposite. Here is a link to more information and pictures. Big Al http://mariposachamber.org/mariposa/mariposite-the-rock-that-made-california-famous/
 By Big Al

11/14/2016  8:54AM

Hi Hans, BlueJay is another name for Maraposite, it is quartz based with white and green to blue green characteristics, there is quite a bit of it in the Allegheny mining district. I have personally saw a lens at a mine I worked at that was over 50 feet long, it is a very hard rock. BigAl
 By Hans Kummerow

11/13/2016  8:25AM

Could readers of the Forum please give me some information on the chemical nature of the mineral that the miners call "Bluejay"?

In addition it would be interesting for me to learn more about the appearance of Bluejay in the neighbourhood of of gold-bearing quartz veins.
 By Michael Miller

08/19/2016  1:59PM

Consumer demand within two countries have acted as sponges for surplus gold in recent years – China and India - marked time during much of 2015. There was a noticeable upturn in interest later in the year. China increased the value of gold reserves to 1,762 mt by the end of December, worth $56.7 billion. The addition was 104 mt during the second half of the year. Indian imports totaled more than 900 mt of gold worth some $35 billion in 2015. 105 mt of imports in December alone.

For producer the main focus worldwide continues on cutting costs. Much of the industry benefitted from favorable exchange-rate movements, while the fall in the price of oil helped producers across the world as diesel costs came down

The Russian gold sector has been subject to some unwelcome influences over the past year or so, as the devaluation of the rubble against the dollar and the effects of economic sanctions imposed by the rest of the world over Russia’s annexation of Crimea from Ukraine have taken hold.

Chinese money may soon appear in Russian gold mining. Chinese gold miners have skimmed off the cream at home so today they’re looking at Russia with interest. They recognize that the ruble devaluation has made mining in Russia more attractive.

Although China’s gold output has achieved spectacular growth over the past 10 or 12 years, (World Gold Council (WGC), its reserve base cannot support current output levels. The bulk of the country’s production comes from relatively small mines. The “low-hanging fruit” in China’s gold deposits may already have been picked.

Three main factors contribute toSouth Africa’s decline from world leader to the current No. 7: cost of labor, cost of electricity, and the depth of the mines. The resources are there in the ground, but the economics of turning these resources into reserves are uncertain. OPINION: If South Africa largest gold miners are going to survive beyond the next few decades, a radical reshaping of the industry is necessary.
 By Michael Miller

07/07/2016  7:47PM

PAPER GOLD IS A COMBUSTIONABLE
Very quickly, here is a news flash (July 7, 2016) that crossed my office from Calico Resource Corp. The officers and directors are pleased to announce that they sold out to Paramount Gold Nevada Corp via a court approved plan of “arrangement”. Love it! It used to be called reorganization under bankruptcy laws.

Look at how the insiders financed this raw land proposal to the public.


Common shares outstanding 2011: 15,275,127
Common shares outstanding 2012 29,923,504
Common shares outstanding 2013 = 38,669,547
Common shares outstanding 2014 = 51,557,212
Common shares outstanding 2015 = 75,785,794
Common shares outstanding 2016 = 102,445,845

The Canadians have another sweet accounting gimmick, all legal, I presume. It is called “Exploration and Evaluation Asserts”. While this remarkable asset basically stayed physically the same, its exploration and evaluation numbers explode from $140,795 in 2010, to $1,168,286 in 2011, $8,777,390 in 2014, $12,433,509 in 2015 and at the time of the “arrangement” is listed at $14,381,982. How does this happen when the cheap nike free expenses mostly listed are: investor relations, management and professional fees. They exploded and are most of the annual corporate expenses.

Keep your eyes wide open air jordan to what may be heading into the financial news as gold gains more attention. This game is as old as gold, when those crafty people centuries ago filed a little gold from the currency.
 By cw3343

04/11/2016  9:50PM

Hans,
You are correct, kind of. The Washington Mine is in a community called French Gulch, NW of Redding, CA. They are one and the same mine. I believe the company used the names interchangeably - or referred to it as French Gulch, being the town that it is near.

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© 2018 Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, California 95910
 

Phone:   
Fax:
E-mail:
 
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(530) 287-3455
corp@origsix.com
 

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