July 15, 2018 
 Sunday 
 
 

Forum
Topic:
Correspondence from the President of OAU

       

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 By Michael Miller

05/11/2018  11:40AM

With a growing interest in gold, I’m spending time compiling Sixteen to One data from old records and hours of work. Geologists and others are looking for mining opportunities and information. The letter below isn’t one for those interests; however, I snorted after reading parts of it. Bill Murphy is Chairman of the Gold Anti-Trust Action Committee. He exposes the manipulations within the precious metal industry. I saw this letter and the line, “The public will get another hosing in a couple of years as others pedal their stories” came true.



March 23, 2009
Dear Bill,

We spoke when you were looking for plaintiffs in your lawsuit against Blanchard. I said okay, but I guess our company was not needed. I would have been proud to be a party to your exposure of fraud or collusion.

I still am President and now our company has become both the oldest U.S. gold mining corporation and the longest producer of gold in North America. It has not been an easy trip. Nevertheless, I look forward to every day and am positive that gold has a solid future for another decade or so.

I tried to participate in Le Metropole Café. It was very unsuccessful. I notified you by e-mail at least three times over the past eighteen months of the troubles but heard nothing back. I had signed up for a trial membership. It was a technical disaster that never got solved. For a year or longer after signing up, I continue to get e-mail notifications from Le Metropole, but I have no password or ability to open them. I wrote explanations to your web master to give me a real trial or stop sending these worthless e-mails but nothing happened. Will you look into it, please?

The gold sector is different from thirty/twenty years ago. Events will not duplicate. Interest has waned. My involvement dates to 1974. As a real gold producer, a junior at that, I see very few articles about how to evaluate the small companies. I don’t find the articles about the large companies that compelling either. (I broke bread with past presidents of three of the big companies and rubbed elbows with many small company executives.) Right now I have little hope for true improvement in the Big Guys, the analysts, promoters or newsletter writers. The public will get another hosing in a couple of years as others pedal their stories. The past has hurt those who actually take the risks of gold mining, something the owners and management of Sixteen to One mine have done in the last three centuries. You have a tool to help the real gold miners and a naive public. I would like to learn more about Le Metropole Café and perhaps become an educator, not to shamelessly promote but to combat ignorance.

If you have the time, please give me a call, check out the FORUM on our web site or if you have no time or interest, please tell your web master to quit sending me emails that I cannot access. Hope the best for you and your publication.

Sincerely, Michael M. Miller
 By Michael Miller

03/23/2018  1:46PM

Our office (Alleghany) lost all satellite internet service for two weeks less one day, today when it resumed. Northern California rural areas, the extreme rural spots like Alleghany do not have cell phone as well. The cause was the inaccurate disconnection from our provider, Hughesnet discontinued our address not the address it was ordered to turn off. A technician is necessary to make the reconnect on site.
Rae, Edda and I spent hours, many hours communication with voices all over the world to get it fixed to no avail. Among zero emails our website was silent.

I was in a grocery market in Oroville when its computer service went down. What a scene! Shoppers waited with full and partially filled baskets. The cash registers would not work. After about twenty minutes waiting everyone left and left our baskets. I was in the bank one time when its computers went down. Adios dinero!

Can you imagine the scene when this happens on a larger scale: no money exchange, no purchase of gas or food, a ruckus on every roadway.

Thank you for staying informed about our business in California’s greatest goldfield. We are somewhat backlogged and will knock away at keeping you UP TO DATE.
 By Michael Miller

02/13/2018  8:44AM

Why is the United States reliant on China and Russia for strategic minerals when we have more of these valuable resources than both these nations combined?

This has nothing to do with geological impediments. It is politics and business or more broadly, economics.

Rarely do I see a news report with this economic reality that is vital to America’s industries. The rapid decline in mining jeopardizes American security. The U.S. Geological Survey reports Americans are 100 percent import dependent for 20 critical and strategic minerals (not including each of the "rare earths"). It gets worse. America is reliant for another group of 30 key minerals. Who will sing for the miners? (I’ll tell you later how I asked Willie Nelson to sing for the miners as he sang for the cowboys).

This import dependency continues to grow as forces continue to misrepresent the effects of site specific regions where nature influenced our mineral wealth, our deposits. Why? Ignorance is blight against governmental and private planners to look to and anticipate future needs

The Trump administration is working to reverse decades of policies that have inhibited our ability to mine our own abundant resources; however Washington DC cannot solve this dilemma. When flying throughout the United States, I am always amazed at how much land resembles “open space”, even in the most populated state, California.

“No nation on the planet is more richly endowed with a treasure chest of these metals than the U.S. The U.S. Mining Association estimates there are more than $6 trillion in resources. We could easily add $50 billion of GDP every year through a smart mining policy” writes Stephen Moore. Stephen Moore (born February 16, 1960) is an American writer and economic policy analyst. He founded and served as president of the Club for Growth from 1999 to 2004. Moore is a former member of the Wall Street Journal editorial board.

Thank you, Mr. Moore. You have publicly addressed long standing, social and growing behaviors…IGNORANCE. My industry knows the extent and many reasons for America becoming a second rate resource country. I am less familiar with how the multinational corporations think but have close up and personal experiences for small mining operators.

Rare earth minerals are the seeds for building new technologies, and a strong case could be made that these strategic metals are the oil of the 21st century. Yet here in California an economic deposit of these vital multifaceted minerals has changed ownership under suspicious machinations.

Mr. Moore explains, “The suite of 15 primary minerals -- which the U.S. has in abundance domestically -- has been referred to as "the vitamins of chemistry." They exhibit unique attributes, such as magnetism, stability at extreme temperatures, and resistance to corrosion: properties that are keys to today's manufacturing. These rare earth elements are essential for military and civilian use for the production of high-performance permanent magnets, GPS guidance systems, satellite imaging and night vision equipment, flat screens, sunglasses and a myriad of other technology products.”
 By Michael Miller

01/25/2018  4:23PM

January 24, 2018

My friend in Germany sent me an English Translation of a recent Chinese analytical release by Dagong Global Credit Rating Co. LTD (China). It is considered a negative outlook. Not by me. The international outlook or perspective about gold has never been a topic of wide spread consideration and analysis. Many that undertake the project are hopelessly overly optimistic that gold will reach thousands of dollars on data similar to what Dagong did to project a weak dollar or negative dollar conclusion. The English translation is numbered. The unnumbered paragraphs are some thoughts.

Response to Dagong Downgrade:
The main reasons for downgrading the sovereign credit ratings of the United States are as follows:
1. Deficiencies in the current US political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track. Under the political ecology which is built by the factional rivalries, factional interests are prioritized, and it is hard for the government to focus on the management of the national economy and social development. Therefore, the national economy is highly debt-driven. Nevertheless, the government did not discover from the financial crises that it is the debt-driven mode of economic development that has hindered the country from making ends meet. Instead, it continues to seek credit expansion through direct issuance of the US dollars, therefore serves as the “track walker” on the wrong track that departs from logic.

Response: US, California and Sierra County are not nor have they been operating as “efficient administration”. Federal, state and county governments’ management has derailed economies from the right track, a main explanation for a President Trump instead of a President Clinton. Factional rivalries and factional interests were prioritized creating the difficulty to focus on management, social development and international relations. The direction has changed and the future holds fresh outlooks for overly suppressed businesses and people.

2. The distorted credit ecology that violates the law of value leads to the abnormal solvency of the federal government. Capital’s desire for profits makes the financial sectors of the United States strive for more profits through continuous expansion of the chain of credit transactions by designing capital products and trading structures, and the virtual value-added model of capital self-circulation that runs out of the real economy provides living space for the ever-blooming debt bubble of the federal government. The government has formed a virtual solvency by increasing new debts in the name of the United States through abusing the right of issuance the US dollar as the international reserve currency. Therefore, the distorted credit ecology has made the federal government's abnormal solvency become its derivative product.

Response: The above paragraph is tough to read and comprehend. Perhaps its intent is lost in the translation from Chinese to English. USA and Californian governments are not operating according to capitalism ecology today or last year or last decade or last century. The first sentence of Chinese #2 is an inaccurate or at best a weak assumption. Therefore what follows is worth nothing. International economic concerns are well established by some before January 16, 2018, the date of the Dagong downgrade.

3. Massive tax cuts directly reduce the federal government's sources of debt repayment, therefore further weakens the base of government's debt repayment. The tax cuts act implemented from 2018 did not attack the root cause of the unsustainable debt-driven economy of the US, so it is projected that the US economy growths only 2.3% in 2018, and would grow even more slowly in the years after. Besides, fiscal revenue of the federal government will keep declining due to the tax cuts, so it is projected that the fiscal revenue to GDP ratio will fall to 14.0% in 2022, a 3.3 percentage points down from that of 2017. The rising demand for national defense, infrastructure and rigid spending will made it hard for the federal government to reduce fiscal expenditure effectively, thus it is estimated that the fiscal deficit of the federal government in 2018 and 2019 will rise to 3.9% and 4.1% respectively.

Response: No “base of government’s debt repayment” is large enough to dent the level of debt. What is this base? The multi trillions of paper? Therefore, the speculated massive tax cut has little or no significance in accomplishing the Dagong reason to fear. The 2018 tax cut won’t violate the root cause of the unsustainable governmental malfeasance in economic, social and international operations; however it is an initial step. Identifying “the root cause” is currently a popular buzz fad of government thinking. Unfortunately, government employees I meet are unable to identify root causes.

4. Using the rising debt to make up for the fiscal gap brought by the tax cuts will inevitably increase the credit risk of the federal government. The financial gap and the pressure to repay maturing debts raise the financing needs of the federal government. It is estimated that ratio of fiscal revenue-to-debt of the federal government will be 14.9% and 14.2% in 2018 and 2019 respectively, and the ratio will deteriorate to 12.1% in 2022. The government will then have to raise the debt ceiling frequently. In addition, the government’s realizable assets-to-debt ratio is merely 7.3% in 2017. That is to say, the government cannot stay solvent relying solely on its realizable assets and it has to resort to debt monetization to maintain the balance between repayment sources and debt. However, interest rate increase and balance sheet reduction of the Federal Reserve raise the cost of finance through debt roll-over. Thus to roll over debts is unsustainable.

Response: Sure, the tax cuts may inevitably increase the credit risk of the federal government; however true capitalists and economic theorists embrace risk because it may bring obscene rewards. Obscene thinkers are ones whose obscene management contributed to today. Which side of the monetary picture are you on? It’s the yin and yang of social sciences. Maybe China wants large multinational entities to prosper now that it has become a large player in international economics. Good bye small business. Ho hum.

5. The virtual solvency of the federal government would be likely to become the detonator of the next financial crisis. The serious imbalance between the sources of debt repayment and liabilities makes the federal government the weakest link in the US debt chain. Taking the advantage of its right to print money, the US strives to maintain its solvency by purchasing treasuries with newly-printed dollars, which, in itself, is a debt crisis. The market's reversing recognition of the value of US treasury bonds and US dollar will be a powerful force in destroying the fragile debt chain of the federal government.
Response: Why did Dagong inset the adjective “virtual” to illuminate solvency? Americans of all ages are now familiar with virtual reality, being in effect but not in form. Solvency of the federal government is unlikely to become the “detonator of the next financial crisis”. History proves that America’s threat of insolvency is transferred from the public (government) sector to the private (corporate) sector. The history is long in tooth. Think: dot-com; tulips; automobile industry; oil/gasoline; saving & loan associations; corruption.
Thank you, China’s government and non-government thinkers and leaders. I hope the rest of the like-minded share your conclusion, below. I hope they act and do business according to Dagong’s report. Why? We are resource miners. We produce gold, inventory it and sell it for dollars
【Dagong Downgrades the Sovereign Credit Ratings of the United States of America】

CONCLUSION: Debt economy model determined by US political system, strategy and economic base will not change; tax cuts have increasingly adverse effects on the government’s repayment sources; continuous reduction of fiscal revenue and increase of debts show that the government’s repayment ability is weakening. Hence, Dagong holds a negative outlook for both the local and foreign currency sovereign credit.
 By Michael Miller

12/07/2017  8:30AM

IT IS ABOUT TIME FOR THE FOLLOWING EXECUTIVE ORDER TO REACH MSHA!

EXECUTIVE ORDER- - - - - - -
ENFORCING THE REGULATORY REFORM AGENDA
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to lower regulatory burdens on the American people by implementing and enforcing regulatory reform, it is hereby ordered as follows:
Section 1. Policy. It is the policy of the United States to alleviate unnecessary regulatory burdens placed on the American people.
Sec. 2. Regulatory Reform Officers. (a) Within 60 days of the date of this order, the head of each agency, except the heads of agencies receiving waivers under section 5 of this order, shall designate an agency official as its Regulatory Reform Officer (RRO). Each RRO shall oversee the implementation of regulatory reform initiatives and policies to ensure that agencies effectively carry out regulatory reforms, consistent with applicable law. These initiatives and policies include:
(i) Executive Order 13771 of January 30, 2017 (Reducing Regulation and Controlling Regulatory Costs), regarding offsetting the number and cost of new regulations;
(ii) Executive Order 12866 of September 30, 1993 (Regulatory Planning and Review), as amended, regarding regulatory planning and review;
(iii) section 6 of Executive Order 13563 of January 18, 2011 (Improving Regulation and Regulatory Review), regarding retrospective review; and
(iv) the termination, consistent with applicable law, of programs and activities that derive from or implement Executive Orders, guidance documents, policy memoranda, rule interpretations, and similar documents, or relevant portions thereof, that have been rescinded.
(b) Each agency RRO shall periodically report to the agency head and regularly consult with agency leadership.
Sec. 3. Regulatory Reform Task Forces. (a) Each agency shall establish a Regulatory Reform Task Force composed of:
(i) the agency RRO;
(ii) the agency Regulatory Policy Officer designated under section 6(a)(2) of Executive Order 12866;
(iii) a representative from the agency's central policy office or equivalent central office; and
(iv) for agencies listed in section 901(b)(1) of title 31, United States Code, at least three additional senior agency officials as determined by the agency head.
(b) Unless otherwise designated by the agency head, the agency RRO shall chair the agency's Regulatory Reform Task Force.
(c) Each entity staffed by officials of multiple agencies, such as the Chief Acquisition Officers Council, shall form a joint Regulatory Reform Task Force composed of at least one official described in subsection (a) of this section from each constituent agency's Regulatory Reform Task Force. Joint Regulatory Reform Task Forces shall implement this order in coordination with the Regulatory Reform Task Forces of their members' respective agencies.
(d) Each Regulatory Reform Task Force shall evaluate existing regulations (as defined in section 4 of Executive Order 13771) and make recommendations to the agency head regarding their repeal, replacement, or modification, consistent with applicable law. At a minimum, each Regulatory Reform Task Force shall attempt to identify regulations that:
(i) eliminate jobs, or inhibit job creation;
(ii) are outdated, unnecessary, or ineffective;
(iii) impose costs that exceed benefits;
(iv) create a serious inconsistency or otherwise interfere with regulatory reform initiatives and policies;
(v) are inconsistent with the requirements of section 515 of the Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516 note), or the guidance issued pursuant to that provision, in particular those regulations that rely in whole or in part on data, information, or methods that are not publicly available or that are insufficiently transparent to meet the standard for reproducibility; or
(vi) derive from or implement Executive Orders or other Presidential directives that have been subsequently rescinded or substantially modified.
(e) In performing the evaluation described in subsection (d) of this section, each Regulatory Reform Task Force shall seek input and other assistance, as permitted by law, from entities significantly affected by Federal regulations, including State, local, and tribal governments, small businesses, consumers, non-governmental organizations, and trade associations.
(f) When implementing the regulatory offsets required by Executive Order 13771, each agency head should prioritize, to the extent permitted by law, those regulations that the agency's Regulatory Reform Task Force has identified as being outdated, unnecessary, or ineffective pursuant to subsection (d)(ii) of this section.
(g) Within 90 days of the date of this order, and on a schedule determined by the agency head thereafter, each Regulatory Reform Task Force shall provide a report to the agency head detailing the agency's progress toward the following goals:
(i) improving implementation of regulatory reform initiatives and policies pursuant to section 2 of this order; and
(ii) identifying regulations for repeal, replacement, or modification.
Sec. 4. Accountability. Consistent with the policy set forth in section 1 of this order, each agency should measure its progress in performing the tasks outlined in section 3 of this order.
(a) Agencies listed in section 901(b)(1) of title 31, United States Code, shall incorporate in their annual performance plans (required under the Government Performance and Results Act, as amended (see 31 U.S.C. 1115(b))), performance indicators that measure progress toward the two goals listed in section 3(g) of this order. Within 60 days of the date of this order, the Director of the Office of Management and Budget (Director) shall issue guidance regarding the implementation of this subsection. Such guidance may also address how agencies not otherwise covered under this subsection should be held accountable for compliance with this order.
(b) The head of each agency shall consider the progress toward the two goals listed in section 3(g) of this order in assessing the performance of the Regulatory Reform Task Force and, to the extent permitted by law, those individuals responsible for developing and issuing agency regulations.
Sec. 5. Waiver. Upon the request of an agency head, the Director may waive compliance with this order if the Director determines that the agency generally issues very few or no regulations (as defined in section 4 of Executive Order 13771). The Director may revoke a waiver at any time. The Director shall publish, at least once every 3 months, a list of agencies with current waivers.
Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

DONALD J. TRUMP
THE WHITE HOUSE,
February 24, 2017
 By Michael Miller

11/07/2017  1:46PM

Hi Faithful Readers:

The crew continues our plan to get-to-the-bottom of Sixteen to One.When the third quarter ended, we were ahead of schedule; however a series of non-mining setbacks puts us a little behind now.

A review the recent annual report explains why I'm posting the letter below. Searching for not just someone but the right someone is a high priority. Like the miners always say, if you don't turn over the rocks, you won't find the gold.



September 19, 2017
Bloomberg Philanthropies
25 East 78th Street
New York, NY 10075


Dear Mister Bloomberg,

That you continued gathering people initiated a dozen years ago by the Clinton Foundation, inspires me to write you today. If this letter is destined to reach you, your staff must know somethings about me and why I chose to write to you. I read where your event aims to bring policymakers, CEOs and powerful people together to address pressing issues of the day. Introducing you to Original Sixteen to One Mine, Inc. and to me is aimed at mutual desires.


I doubt that the Bloomberg Global Business Forum drew any attendees with my points of view about gold, its relationship to our security, prosperity, currency and United States production/ mining. Since being a California gold miner ( 1974), living in the remote California gold belt and running the oldest American, public- operating, gold mining corporation, my beliefs regarding the global seriousness of this thousands years old industry should be in the fore front of people you know.


Gold has its share of wacky admirers and detractors. I am neither. I am in a small and elite industry, one that actually mines the stuff in the United States. With global movements continuing today regarding petrodollars, dollars, yuan and a few other currencies, those with an abundance of wealth and an interest in maintaining the strength of our economic influences will be wise to ponder our small but influential industry. I seek the opportunity to exchange views.


Enclosed is the current annual report for Original Sixteen to One Mine, Inc. Our website’s purpose remains the same as it was over twenty years ago: the dissemination of information. You will find enough mine and corporate history to judge our importance in furthering the pursuits expressed in your global business forum. I invite you and your appointees or business associates to visit the Sixteen to One mine in the Sierra Nevada, California gold belt. Please contact me with questions or for additional information about our operation in California.


Sincerely,
Michael M. Miller
Phone number: (530) 287-3223
Email: mmeistermiller@gmail.com
 By Michael Miller

09/29/2017  2:47PM

Thanks for your memory of my speculations or wishes. We were walking on the 1500 level by June; shareholders were invited to travel down the 49 winze to the 1300 level and travel north to the Ballroom. Many made the trip. From the 1300 level all could see the lights on the 1500 level. Miners were walking on the 1500 level but the stairs and hand rails were under construction. They are in great working condition now. All of us have traveled the 1700 level for inspection.

I doubt we will see the 2200 level this year. Our crew members experienced some medical set backs (not mining associated)which slowed progress. The water is below the 1700 level. We have work to do on this level going north to Tightner Shaft due to rock slides from old stopes...no big deal but time consuming. I'm proud of the effort of the crew and their desire to progress downward.
 By karld

09/29/2017  9:49AM

How is the mine doing the past few months? (quote from May 22nd, below) "...we will be walking on the 1500 level by June, the 1700 level station will be renovated by August and the 2200 level will be dry by December."
 By Michael Miller

08/25/2017  2:44PM

Friends,
The MSHA hearing early August went very well. ALJ William Moran has high ranking in Washington DC. This was our third hearing together and the best. The judge understood the issue and plainly saw that the inspector is REDACTED. The briefs are due October 23 and each side has until Nov 6 to respond. I expect a decision before Christmas.

Before the first day of the public hearing, the judge accepted my invitation to see the mine. The Secretary of Labor representatives were also invited but declined. The underground trip went well. Most people find the underground awesome and unfamiliar. Perhaps the decade’s long fight with illegal inspections and MSHA enforcement is closing. A favorite sayings, “Truth like gold rests at the bottom.”

It should be obvious now that evidence proves that over the past decade, our Company received many unwarranted citations. As an expert noted “Now that you have someone with experience as an underground miner, your citations dramatically dropped. The mine and operation are the same, the difference are inspectors.”

For the first 2017, quarter we had one silly (on our part) citation. The miner took off his belt, took a pee in the mine and walked out without the self-rescuer on his belt.. This never would happen years ago because each miner’s light was on his belt and hard hat. Now the light attaches directly to the hard hat: could be tough if the miner knocks his hat down a stope.

The second quarter ending June (20-17) brought us one citation…on me. My self-rescuer stays in my truck and I forgot to give it to Miner Reid to weigh, which must be done quarterly.

The current quarter (third) was almost citation free. A disagreement over non electric detonators led to non-serious and non-substantial citations. Our goals are zero citations in the future. It will happen if the agency assigns well rounded, experienced, underground miners to inspect our operation.

An experienced authorized representative for the federal Secretary of Labor of underground experience can evaluate it a hazard when he sees it. So do our miners.

The mine made front page August 8 with a story about the upcoming hearing. The judge brought me the paper Tuesday when he came to Alleghany. Good timing. The reporter made mistakes, not serious except he reported we have twenty miners. He took a video with his phone. Surprisingly good. It is on our face book but also at: the union.com (Grass Valley paper) web site. Check it out. Input Sixteen to one video. Then: Between a rock and a hard place. Spread the word.

Last week Rob Campbell, our water expert, came to the mine with a crew to fly a drone over the property. He is preparing a report about the Toxic Mine Waste requirement by the water agency. He agrees with me that we do not have any mine toxic waste. We have products: road rock and masonry stone. He said he has never seen water so pure coming from a mine or a more beautiful operating mine site.

Rob brought a geophysics professor and his two college age boys with him. I took Rob's group down the winze and across the 1300 level and up the ballroom trail. He was in awe of the quartz vein and seemed smart. Once out of the mine, we talked about plate tectonics, geology and when will someone add a new twist to why the Sixteen ranks with top richest gold deposits in the world. Gold is here and we just have to find it.

Our crew is doing grand reconstruction of the 49 winze, our main access to the lower levers of the mine. The 49 winze project is on schedule and the unwatering is ahead of schedule. We will hold the water where it is until safe access below the 1700 level is achieved

Before the water gang arrived in Alleghany that morning, I spent two hours in our map room visiting old reports and maps thinking: how can I meet a fresh geologist. Rob knows Eldridge Moores, a leader in plate tectonics. He still lives in Davis, where he taught. Born in 1938, and in good health, Rob plans to bring him up. I met him years ago. He visited the mine and was fascinated by our deposit. The fresh conceptual idea escalates calcite as an important indicator of the gold pathway along small faults. I doubt anyone doubts gold remains nearby the open levels and stopes; but where, oh where do we run our drills to mine it. GPR etc. technology has yet to prove itself of economic value and geology has. Okay fresh geologists; give me a call (530) 287-3223.
 By David I

08/01/2017  11:29PM

Excellent letter to Secretary of Labor. Hope it will be acted upon.
 By Michael Miller

07/13/2017  1:45PM

Secretary of Labor R. Alexander Acosta July 12, 2017
200 Constitution Ave NW
Washington DC 20210

Dear Secretary Acosta,

I write you from my position as an underground gold miner, President of a 106 year old operating and producing small Company and a spokesman for American miners here in California and beyond. Our industry (Metal Mining) needs your attention as much or even more than the coal mining industry. A primary threat to this dying endeavor is the enforcement of An Act of 1977 and subsequent standards which are regulated under your duty by Mines Safety Health Administration (MSHA). While some standards are outdated our primary concern is with inexperienced federal inspectors’ interpretation of actual underground mining.

I wrote President Trump while the position of Secretary of Labor was vacant encouraging him to understand the importance of his Secretary of Labor. I am hopeful after reading your quote to senators, “As a former prosecutor, I will always be on the side of the law and not any particular constituency.” The law is not guiding enforcement in our mines. It has disappeared under layers of management’s misdirection.

Mining is not fifty years ago when miners suffered death and unnecessary dangers in exploiting the vital natural resources needed in the United States. The time is long past for MSHA to return to the practice of recognition that “the first priority and concern of all in the coal or other mining industry must be the health and safety of its most precious resource—the miner.” Sec. 2(a) of An Act.

Selecting your Assistant for MSHA management may prove a difficult proposition. As I wrote President Trump, I am not looking for a job. I have a good one yet have a sense of responsibility to my country to assist you regarding MSHA. I support your mission:

The Department of Labor's mission is to foster and promote the welfare of the job seekers, wage earners, and retirees of the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and health care benefits, helping employers find workers, strengthening free collective bargaining, and tracking changes in employment, prices, and other national economic measurements.

There is widespread talk about the need for our Country employment to grow. There is talk much less, about our Country’s weak position in natural resource production. What is not talked about is the professional and cultural loss the United States is seeing in these natural resource extraction industries in California, and I assume elsewhere. For national security now and for future generations, encouragement or at least no hostility should be the mantra for 2017. I am an elder now but when I entered the natural resource industry, I was a neophyte. The elders taught me tricks of the trade, such as cracking hard quartz with a double jack or placing a two ton locomotive back on the track by myself. It is the same for the logger. Our skills will be lost to neophytes in the not-to-distant future as our industries cease to prosper.

Please direct someone from your agency, preferable in the Western District, for me to contact or have them contact me. Signed letter will be posted to you in US Postal System.


Sincerely yours,
Michael M. Miller
mmeistermiller@gmail.com
(530) 287-3223

Attached are two letters:
To President Trump Staff
To Dear ALJ and SOL
 By Michael Miller

07/04/2017  8:07AM

No other date exceeds the relevance of today, July 4th. Growing up in Sacramento, a federal holiday was a day of celebration and historical reflection for me. No school, of course, but my family always had conversations about the meaning and significance of each special day. Years past and one day these special holidays became three day weekends. Sigh, Americans no longer celebrated that one and only special day on the actual date of the month. The day became something else. It turned into a three day vacation.

Well, today can only be celebrated on the fourth of July and today is a Tuesday. Hey, let’s make it a four day vacation. Two hundred forty one years ago 56 men working in the summer heat of July in Philadelphia finished a document that remains acknowledge on the actual date. It is the day Americans no longer were subject of the King.

Thank you for such forward thinking. Thank you for undertaking a great risk. Thank you for establishing the land of the free and the home of the opportunity to be brave.
 By Michael Miller

06/23/2017  10:23AM

Dear Shareholders and Interested People:

The Annual meeting last Saturday was an hundred percent success. The grounds and underground never looked better. The weather was warm but not overpowering. Our miners and helpers performed well in serving the safety and enjoyment to all. The food and drinks pleased everyone except a couple who ate late and all the pasties were gone.
No negativity was on display in this crowd. There were few questions which were easy to answer. I reviewed the annual report, gave details about our current work, the past year and my expectations until we meet again. Sales were modest which has been the pattern for the past five years.
Much detail was given about the underground tour options, the degree of difficulty and the time. I probably over stated the difficulty because of concerns someone taking the full option may experience problems in the climb up the 49 winze.
We have really nice shareholders, getting older but four or five brought children. It was a larger turnout from last year, 120

My desk work was mostly on hold the past week. This morning I had two emails from very different sources about the same subject of modest interest to me. Both related their topic to gold so I read them and pass information along to you: performance of cryptos and monetary metals and digital currencies. If cryptocurrencies is a word, I do not know. Summary follows.

One article contrasts the performance of cryptocurrencies with the suppression of gold and silver prices and argues that the potential for the monetary metals is great. Its basis recognizes the Gold Cartel as the power broker influencing the economic principles of pricing based on supply and demand. Its international actions continue to negate the value, worthiness etc. of silver and gold. Therefore, those wanting assets but not a closet full of one hundred dollar bills are looking elsewhere. That elsewhere can be stock markets, real estate or others. Many financial gurus play along with the powerful Gold Cartel.

The other article presents a similar view but never mentions a gold cartel. It offers more details. What are digital currencies -- and what do they mean for gold?

Eight years after the launch of bitcoin, there are almost a thousand competing digital currencies. Bitcoin remains the leader by market capitalization, and almost all other currencies are based on bitcoin’s fundamental technical innovations. Bitcoin and other digital currencies set out to become a kind of “digital gold.” Like gold, they do not rely on any centralized institution for backing or accounting; but as digital assets, they exist only virtually and can be transferred instantly to any user anywhere in the world. In this goal, they partially succeeded and partially failed. They ingeniously marry two mathematical and algorithmic innovations: public/private key cryptography, and the block-chain -- a distributed transaction ledger that’s maintained by competing processing nodes in the bitcoin network.

The vast majority of users interact with digital currency systems in a way that exposes them to potential fraud or theft. The block-chain is a public record of all transactions in a given digital currency – presenting concerns that artificial intelligence and big data leverage will be able to associate real-world identities with those transactions. Digital currency solution to the problem of identity and ownership of assets relies on difficult mathematical problems: a cracked when functional quantum computers arrive.

When the current cryptocurrency excitement fades, gold continues an important refuge of safety and the preferred hedge against the incompetence and dishonesty of government. Speculating in cryptocurrencies and making money is not a gold asset. Keep an eye on the exit. Over time, most cryptocurrencies will fail.
I repeat what I say and write about Original Sixteen to One Mine, Inc. Our asset is the most proven gold deposit in the world with the fewest operating gold mine and miner employed. We don’t make money. We mine gold.
 By Michael Miller

05/22/2017  6:08PM

The 2016 Annual report was mailed to shareholders last week. We returned to the full sheet size used for decades until the short-fall of gold production. If you are a shareholder of record, you should have it by now. I can hear your chuckles and see your smiles as you turn the pages. For all non-shareholders but worthy friends and followers of our history, my annual President Messages will follow.


Dear Shareholders,

What a wealth of fact, fiction, poetry romance and deceit has been built around the thought conjured up by that simple word gold. When I began my journey with this old gold mining company in 1974, overriding facts convinced me the pursuit was a rock solid choice. In 1974, who was thinking about gold mining? Few, if any were, except the historic management and shareholders of Original Sixteen to One Mine, Inc. They owned the longest surviving producing gold mine in the West: the Sixteen to One.

I thought, “There must be reasons why the owners kept the property and corporate organization. There must be. Why did those generations hold their belief and trust in the last mine standing?” I decided to give the pursuit five years of my life to find the answer.
The answer was a simple word: gold. It still is in 2017. Mining has proven our wealth and value. Our assets, opportunities and potential continue to increase. Unfortunately, accounting rules and an illogical share trading market called “Gray Market” cast a false value of our assets as dollars on the enclosed balance sheet.

In a state where gold is a proper and popular noun, adjective and adverb, hard rock gold mining has ended, except for us. Once again Sixteen to One is the last mine operation standing. Last year our net profit was $610,160 or $0.04 per share. This is nothing to brag about but a positive indication of our direction. My belief is: gold drives the operation. The crew remains small (ten). We are very aggressive in attacking the issues before us; however the goal is only one: gold.

The theme for the present and future: Everyone is right some of the time. No one is right all the time. No one has made “it” without someone. If you have never been to Alleghany, now is a great time. In 1983, the annual meeting moved from San Francisco to Sacramento, then to Alleghany, home of our mine; so all shareholders can visit the mine and kick some rocks. Three underground locations will be available for your inspection. The gold tent will be open with a variety of items to purchase or just admire.

Our crew began a tough but significant project last December: reestablish the 49 WINZE for mining. Crumpled stairs and ground support, failed electrical switches, transformers and wire, dilapidated compressed air and water lines faced the miners. The 49 WINZE, access to the southern levels (of the underground), is a vital component of mining. It became a victim due to depreciated gold prices over a decade ago. The task seemed an overwhelming head ache to even think about its rejuvenation; but we did think about it and decided to risk our profit here. Why is our future tied with the 49 WINZE project?

The Company has two new gold detectors with proven successes of identifying gold in quartz previously undetected with older models. Our miners stopped working in the deep levels due to uncontrollable economic changes. It was not the absence of gold. I saw multiple areas with visible gold targets now below today’s water level. Our current inventory (gold) gives me capital and confidence: we will be walking on the 1500 level by June, the 1700 level station will be renovated by August and the 2200 level will be dry by December. What jump-kicked this project over other great targets (see Ray Wittkoppp’s memorandum) is the possibility of pumping the 3000 level. No one has walked this level since 1939. This is iffy, but this deepest working could be detected by June 2018. The 49 WINZE also satisfies federal requirements for a second exit for miners, which influenced my decision to renovate.

Last year besides mining gold and maintaining or repairing infrastructure, I confronted regulatory drama with tools of reason and common sense. Two giant, harmful distractions remain but are disappearing: improper federal enforcement by Mine Safety Health Administration (MSHA) and California’s misguided water public servants. Inspectors with little or no underground working experience descended onto our property, wrote citations without the experience to evaluate what they were seeing. Regulating government agencies cost us dearly in time and money over the past twenty years. Some consider these main problems for miners. Others consider them the price of doing business in California.

What about water? California is nationally known for its environmental hostilities towards business. The mineral and timber extraction businesses became easy targets. Our operation does zero environmental/public harm, zero. Sixteen to One water has minerals naturally because the entire watershed and Kanaka Creek are mineralized. Water passing through our property has no adverse effect on any beneficial use downstream. Outright reckless enforcement by some Californian public servants is shifting towards reason. Top water consultants are working with us and regulators to fix problems. Indeed it is an exciting time.

Some shareholders want the opportunity to cash out some shares. I support this desire. Historically, promotion is part of my job. I look forward to the time when spending money on stock promotion is the right time. With two consecutive profitable years, improved relations with regulators and the significant underground improvements over the past ten years, we are an attractive new investment for anyone without a gold position.

The term capital allocation refers to how a company spends its money. For example, it can pay down its debt, pay its shareholders a dividend, buy back some of its shares, buy another company or use it to further its own growth. The money should be spent in the most productive ways. When a company’s capital is not allocated effectively, it’s wasted and that hurts shareholders. The past four years we have allocated our capital to further our prospects of mining gold. Gold drives our operation. Its strong price is a bonus we cannot influence, but we have taken advantage of it. Sixteen to One gold ranks at the top within the jewelry businesses and we actually mine the stuff.

Earlier I wrote, “The theme for the present and future: Everyone is right some of the time. No one is right all the time. No one has made ‘it’ without someone.” Your help will help the Company make ‘it’ a reality. With 1600 shareholders receiving current information, you are or may know that “someone” interested in participating in our future. My point: someone exists with the mind set and resources to join us in advancing these goals: mine lots of gold from our exceptional properties, keep the gold mining tradition alive, strengthen our domestic economy, improve national security, provide great jobs, pay a dividend and increase our appeal for promotion. I doubt there is another junior gold mining company with better untapped targets and therefore potential. Our asset is gold. Please help that "someone” find Original Sixteen to One Mine, Inc. I pledge to work with all qualified “someone” in negotiating an agreement that benefits each party: our shareholders and the new investor.

Best wishes and thank you for your support during the past years. Come see the mine this June 17th.

Michael Meister Miller, President and Director
April 22, 2017
 By Michael Miller

03/28/2017  10:39AM

Dear President and Presidential Staff,

First, thank you for getting to these vital positions.

A most important federal appointment falls under Secretary of Labor, the executive of Mine Safety Health Administration (MSHA). Few know how important it is for America's safety. I do. I'm President and Director of the oldest USA gold mining company (Incorporated in SF California in 1911) and last operating underground gold mine in California. Other minerals may be more relevant but all operators have been under an attack by federal regulators for years.

You control our future with the appointments and hires. I've worked over forty years in natural resource production with experience in how this twisted and misguided governmental responsibility hurts all social, economic political and private aspects of our country. I am a fighter to preserve, protect enhance and exploit our Sixteen to One resources in the toughest state to survive, California. I represent gold miners and was "green" before it became a buzz word. I'm not looking for a job but some ears to redirect a failing industry.

Please stay strong against all the opposition. I've done it since I moved to remote Sierra County 43 years ago.

Regards,
Michael M. Miller
(sent today)
 By Michael Miller

02/23/2017  4:11PM

Thank you for the comments. Some are coming via email: mmiller@origsix.com.

Suggestions were: fixing a chip/crack as a vehicle windshield, comparing the repair with a counter top or more of a filler type repair. These won’t work with the quartz/gold slab. The cracking problem needs more explanation. It is hard to describe. But I’ll try.

A slab ranges from golf ball circumference to softball circumference and from 2.5mm to 4 mm thick. The cracks are very small (the pieces no matter how large still hold together). Have you seen tempered, thick plate glass shatter? This is what these slabs do when handled during the jewelry process. Better yet, imagine Humpty Dumpty.
We give the slab an ultrasound bath to remove saw dust from the small crack. Next it is soaked in the ??? and put under a vacuum. Afterwards it is cured. We are considering preheating the slab (500 degrees or more) to open or clean semi “dirty cracks, thus allowing more ??? and surface contact.

Whereas Opticon is a successful filler that blends well with each gemstone, our need includes a great binding ability as well. A product must exist for the high tech/micro size manufacturers. I truly appreciate your minds helping to find this needle in a hay stack. I will keep you informed.
 By cw3343

02/23/2017  1:13PM

A friend who works with Opal suggested: Google "How to fill cracks and crazing in opal" Has good ideas that work for opal, which is also silica (quartz).

I did not look in to it, as this is not my wheelhouse. Good luck!
 By Michael Miller

02/22/2017  9:50AM

This correspondence is just for you, who read the FORUM.

But first: the time of submission on the FORUM is corrected. It was on Hungarian time for a while but now is back on real time in California and your time wherever you are.

Our lapidary operation needs a product the will cement small cracks in the quartz and gold that we slab. For 50 years Opticon is used by high-end gem stone (ruby, sapphire, diamond) jewelers to fill small cracks. Filling cracks go back centuries when cedar oil was used. We use it to help hold the slab together under the pressure of the rock saw.

We mined some quartz with the most beautiful gold pattern previously mined. It made me gasp in awe and appreciation for its beauty and structure.
Unfortunately Opticon does not work to glue the small cracks which tend to break the slab into small pieces. This is a shame and of course a loss of use.

My google experience has not found a 21st century sealer/glue to fix this problem. Word used were: Opticon, glue, adhesives sealing cracks. Our process is to mix the Opticon, submerge the slab and put it under a vacuum before curing the Opticon. If you have an idea and time to help us find a better product, please help us. This rock is too beautiful to crush.
 By Michael Miller

11/17/2016  12:13AM

The elders among us continue to shrink in numbers. Today’s date marks one year of another mentor’s loss. Below are my thought a few days after his death on November 17, 2015.



November 22, 2015
Alleghany

When an important person in your life disappears, a multitude of emotions begin…and linger. In the process of lingering, thoughts (remembrances may be a cleaner word) are drifting around my head tonight. Where did it begin? What was the first meeting? Why do I remember them today? After all, with Donald R. Dickey it began forty years ago.

I had acquired the Morning Glory Gold mine from the son of A.R. Codd. A.R. plunged into gold mining as an investment 100 years ago. He built a sound surface plant and drove a crew underground. My intentions were to find a wholesome security with gold. My choice was to mine it.

Electricity is a power for underground gold miners. I needed it, although my life’s experiences held no gold mining. I knew nothing. PG&E is the Alleghany provider of power. It is a California corporation that grew because of the gold mines within the Sierra Nevada Mountains (just look at the path today of the electrical poles).

To get power I had to build the power lines to the mine. PG&E provided power, but I had to make the pole line. It proved to be difficult to put a twenty foot pole down into a six foot hole. I had some help, but we just couldn’t get the pole in the air, vertically enough, so it would slip cleanly into the hole.

I heard there was a man, Don Dickey, who owned one of those WWII four by four’s with a winch and A-frame. He had a mine and maybe would be for hire. It would only take a few minutes, so I thought I could afford the help. A couple of guys and I failed repeatedly to raise that damned pole so it would slide securely in the hole: no power pole no electricity.

I called Mr. Dickey and explained my problem. Shortly later, up comes a WWII relic with him behind the wheel. It only took moments. I thanked him and said, ”What do I owe you?” I never forgot his reply, short, honest and very personal. “There is no charge. I don’t do this for a living.”

Don died last week. The news hit hard. Everyone knew that the 90’s means the person is hunkering down….loading his last hole. Even though, when someone touches you, the foundation is just that: hard rock solid. That happened with me and Don. Don is a pillar for California gold mining. Fortunately for him, he chose a hands on life as a gold miner. Money is fine yet finding gold is finer.

My first underground blast was with Don in the Oriental mine. Quartz is bright white while gold is, well, golden. I was green. He led the way into a very strange environment. I just followed behind. We climbed up a black hole on a trail of shot rock and reached the end. Dangling from this solid face of quartz was a long orange fuse. Don grabbed the fuse and then pulled out a lighter from his vest. He told me what was coming. All I wanted to do was come away either one step ahead of Don or one step behind. Was I nervous? Would you be?

I thought, we’re going to blow up! I’ll trip and fall on the trail while running away from the blast. No, this miner, Don, must have done this many times. He’s alive so, to my frightened mine: enjoy this moment. I did. Fire in the hole! Fire in the hole!

Four or five years later, I wrote an announcement about gold. I’m a miner now and had something to say. It was two typed pages. “Don, would you read this and see if it is okay?” A couple of days later he gave it back with one comment. I was pleased that my work passed his scrutiny. My mistake was about blasting. I had done some since the first time explosives became an experience in mining. What I wrote was, “the next step in the process of blasting is to explode the dynamite.” Don said, “You don’t explode the dynamite; you ignite it. The dynamite explodes.”

I could not anticipate the dilemma facing me with such a simple change. Here is the gold mining master correcting my words. The remembrance brings a smile with a shake of my head, thoughts traveling in that head. What is this dilemma with such a small correction for mining truth? I decided a life path to follow: when seeking advice from an expert, a factual misrepresentation that the expert recognizes must be acknowledged.

The time was pre-computers. We used type writers and carbon paper, and I am a pecker typist. I faced retyping two pages with only one word to change. Perfection in thought and accuracy regarding hard rock gold mining is a pursuit we shared. If Don actually takes the time to read my drivel, I must honor his observations. I was working with The Master. It was not quick or easy.

Don is the hard rock, high-grade traditional California master of keeping an industry alive. He did it to satisfy his appreciations of life. Future choices became very clear. Now I knew another truth of breaking rock. I retyped the entire two pages. Decades later I found another truth of mining and life: “Truth like gold lies at the bottom.” Thank you Don.

One morning I went to the Oriental to see Don. He was underground and the outside man did not know when he would tag out. Time passed. I knew the outside man and asked him if I could help out while waiting for Don. He was screening ore over a portable grizzly: big rocks collected on the ground from the classification. Kevin said to grab a double jack and break them. I did. Don came out and directly to me. He gave me a tongue lashing, which confused me. My helpfulness put him in danger, if I got hurt. Whew! Another mind bender. I thought I was helping Kevin and Don’s operation. Why are my feelings so hurt? After our conversation I realized how my “help” had a potential to financially harm Don.

Don gave me the first opportunity to see and hold gold mined in Alleghany. I was invited for dinner at his home overlooking Kanaka Creek canyon. During dinner he said, “I’d like to show you something.” He disappeared down some stairs. When he returned he put what looked like a quarter pound of butter on the table. He said to go ahead and pick it up. Was I surprised! I fumbled at bit. This block of butter was very heavy. Over the years we had conversations about the subjects we both enjoyed: gold and gold mining.

The two most often places we met were at the Post Office in Alleghany or in our trucks. During one of our conversations Don said, “It’s a lonely life to run one of these gold mines.” Maybe he expanded in telling me what to expect. Good fortune allowed him to lead a private life. Sometimes Don’s impact came from what he didn’t say, what he left unspoken. We agreed that in mining and maybe in life, you never make up a lost round. We shared a love for our country and a dislike of specific directions. He listened to the multiple tales I was experiencing as a gold miner and always encouraged me, privately, to continue the good fight.

Our last conversation was one of the best. We met in our parking lot. He was pulling a portable air compressor behind his truck. He just finished some long hole drilling at the Oriental. He was a happy miner, still looking for gold at ninety years. It showed on his face and from his words. He died shortly after drilling that last round.
 By Michael Miller

11/16/2016  11:46PM

Time sensitive test.It is 2:46 pm in California

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

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