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 By SCOOP

06/23/2008  4:08PM

Thanks for your questions and observations. Let’s see if Scoop the on-sight reporter can respond to your satisfaction. Please let Scoop know if you want further clarifications.


#1. You are correct. That was a typo.

#2 No, the bulk of the interest expense is for a $400,000 short term note at 12% plus fees every six months; overdue property taxes of approximately $80,000 accrue interest at 12% and some other bills in the Accounts Payable charge interest between 10% and 12%. The $400,000 is secured by a first trust deed on the mine property.

#3 The related party is primarily Michael Miller, who has covered operational expenses for awhile. The interest accrues at the same rate his bank charges for his line of credit. There are other related parties (shareholders). One is charging interest at the same rate as his line of credit with his bank currently 6.75%. The shareholders have gold as collateral. Miller is also secured with a note on mine property.

#4 During the recent and lengthy bear market for gold stock ownership, the company elected to conserve its dwindling gold inventory by placing the physical needs of the mine above all else. It terminated the outside accounting firm from signing off on the financial statements. The lack of one has nothing to do with what they might or might not say about the financial condition. To give you an idea, the cost of the last audit in 2001 was $27,800 (going up up and up because of federal legislation and specious law suits). Since the Company files as a gold producer, the SEC requires a SEC approved auditing firm anoint financials. Many qualified as SEC auditors had their errors and omissions insurance skyrocket, which is an expense that is passed along to the client. A SEC audit today will significantly increase over the 2001 date.

Once the gold collection is sold it will not be a problem to have the last several years audited. All of the financial records are being maintained exactly as they were when the company was being audited. An approved auditor independently audited year-end inventories, which were a significant figure. The last SEC auditors recommended this. The Company’s published Future Use of Proceeds includes a line item to resume audits to meet SEC requirements. Reenlisting should not be a problem that cannot be solved.

#5 The peaks and valleys, feast or famine or any other metaphor articulated to describe the Sixteen to One mine or many other mines affects exploration; however pundits acknowledge that the Sixteen to One is in a class by itself. Why? Sufficient geological data exists to support exploration. A high level of confidence for risk capital can be found because the gold has a provable history of concentrating in the richest “pockets” yet recorded. Working capital to fund a well-designed plan is the key to the Company’s success for over 100 years. Miller and the board chose to sell one of its valuable assets to implement Step One of its mine and company development plan That decision reflects just how important the physical mine properties are as well as the unissued treasury stock. Gold is offered for sale to get working capital.

#6 A convertible debenture is a grand concept and has been discussed over the years. It will not work along the lines you mentioned. There are 1,640 shareholders, but 1600 own less than thirty percent of the outstanding shares. The numbers do not support a pro rata offering.

The above represent factual information in answering the questions from the last posting. Scoop wants to stray into some opinion reporting.

1. In following the operation of the Alleghany mines under ownership of Original Sixteen to One Mine, Inc from 1911 to 1958, management did a fine job of controlling its expenses during some difficult times in the gold mining business. There was little or no shareholder dilution or loss of real estate. In fact some very good properties were acquired when other operators decided to quit the business. The slippery slope of a pending Gold Sector valley began shortly after WWII and bottomed out in 1974.

2. Current management (since 1983) has experience the world wide Gold Sector swings as well as some swings peculiar to itself. Right now is not a time of worry. It is a time of decision. The gold inventory value exceeds the liabilities, which is why a gold sale is the current focus. How much will be sold and at what price are questions that never go away. Priceless is how many over the years have reacted to Sixteen to One gold.

3. Therefore, “we seem to be at a critical juncture in the log jam” (see below), is not an accurate perception of Company status at this time. It was more critical a year ago when the mine plans to open the 1000 foot level and search for some short term targets were started.

3. In response to Question Number 6 below: entering an equity position in a company is a choice, usually a logical one based on all available data at the time of purchase. The same goes as a seller exiting equity ownership in a company. It depends on many factors: size of investment or speculation, expectations, length of time for development and foremost, opportunity to play. If there is a better risk/reward speculation than betting on the Sixteen to One mine, play it.

4. The Company purchased three historically valuable mines over the last dozen years. It is doing what a gold mining company should do rather than what a gold stock dependent company does. It is in a position to respond when investors take a fresh look making money in gold.
 By RyanBaum

06/22/2008  7:43AM

Good morning. After reviewing the annual report and proxy statement, I came up with a few questions:

1. The 2006 EPS is listed as (.001). Shouldn’t it really be either (.009) or rounded to (.01)?
2. We show 2007 Interest Expense of $(106,207). Is nearly all of the interest expense attributable to the $677,598 Due to Related Party? If so, the interest accrued is somewhere above 15%. Is that directionally correct?
3. What are the specifics of the note due to related party? Is it secured by a first lien on all or some of the properties? Who is the related party?
4. We no longer have our financials signed-off by an outside accounting firm. While that in and of itself doesn’t bother me, it presents a worry that (a) we’ll have an even greater hurdle to get listed on an exchange and (b) one of our directors is a CPA yet we couldn’t find another CPA to sign-off. Is it that any impartial accounting firm would give us a “going concern” warning given our lack of liquidity?
5. As for the lack of liquidity, we seem to be a critical juncture in the log-jam that has been building for nearly the past decade. If lay-off notices were given in November, we shouldn’t expect the mine to provide liquidity in the short run since the exploration is on hold. We must go to the financing side of the balance sheet to provide the liquidity.
6. To raise funds instead of continuing to offer common stock to a single large investor at $1 per share, why not consider something like offering convertible preferred to current shareholders? Because of the lack of liquidity in the common, it is hard to determine what its true fair value is. A preferred or convertible debenture offering could be structured as something like 1/25th of a share offered for every common held, priced at $10, and payable in kind annually at some rate between 5 – 10%. The math could be worked to figure out how to raise the level of cash the company thinks it would need for a 5 year project. Something like this has to be figure out since no logical person will buy a block of new stock at a $1 per share when he can fish on the pinksheets and grab existing shares for far less. Clearly the company needs liquidity since in its current state, nothing will change.
 By Rae Bell

05/26/2008  7:56AM

Somebody named Curtis Davidson sent a note using "feedback" about a bid to buy stock. He did not provide a return e-mail address. Curtis if you see this message please contact the corporate office. corp@origsix.com or call 530-287-3223. I am not sure how you submitted your bid but we did not recieve it and we need your contact information in order to post it.
Thanks.
 By Thushara.Weligama

05/17/2008  12:40AM

Have not used it to get Sixteen to One stock yet & am thinking about getting a third,,Wells Fargo because a stock broker i know & trust kinda just started working their.

....................

Thusha
http://fasttrackitc.com/sp/
 By Rockroby

04/21/2008  1:10PM

I had no trouble today picking up 1,500 shares at .40 cents took less then 1/2 hour after i called.
Will start getting more as soon as I take care of my back taxes I now owe the IRS.
Good article on California gold in the new Gold Prospector magazine & in the mining the internet section the Sixteen to One has their own little article.
The gold collection has been sold before,no one wants to see it go,the good thing about it is when the new shaft is sunk a lot more will be found.
 By cw3343

04/17/2008  4:35PM

One of the main problems is that there is seldom a "firm" bid/ask with this otc/pink sheet trading. Some of this stuff is still done over the phone, and a lot of the time there is no quote unless someone is requesting a bid/ask.

I work at a nationwide broker/dealer (anonymous for now) and have researched this a little, and spoken with Mike about it. It is hard to buy or sell shares with the lack of market makers, no automatic executions, and very vague bid/ask quotes, inaccurate trade reporting (my opinion), etc. etc. I was able to buy some shares in the .30-45 range last summer, but only 500 or 1000 shares at one time, and was not very easy. I have not tried to sell any. It is barely worth messing with this, in my opinion, unless the company can get listed somewhere like the Amex. If you buy or sell shares on this website, at least you know it is a real market/prices/size.
 By Rockroby

03/21/2008  7:34AM

U.B.S. Financial,about $25.00 for such a small amount..if i bought say 50 shares of hl it would cost double that.I have another account
have not used it to get Sixteen to One stock yet & am thinking about getting a third,,Wells Fargo because a stock broker i know & trust kinda just started working their.You can't keep all your eggs in one basket can ya Bluejay,,,i have stuff at home too but i worry more about getting ripped off then i do U.B.S. folding.
Gold that's what they want to see,,now if you could put a flashing add on Kitco not sure what something like that would cost.One of the problems is the market cap of 5 mil & it goes up and down when we all know it's worth 23 mil plus without the gold/////
 By Gold Poachers

03/20/2008  1:32PM

What brokerage firm did you use? What was the broker’s commission for the 500 shares at $0.39?
 By Rockroby

03/20/2008  11:35AM

Just put in a bid for 500 shares at .60 cents or better & i got it for .39 cents.So far these market makers have not brought it back down like they seem to do when i start buying...a lot of the other metal stocks are falling like nuggets out of my pan so a 30% increase looks good for the Sixteen to One.Not sure why they won't take a bid for 10,000 shares at .50 cents or more,i would have got a thousand shares@.39 cents will have to wait.
Have a good Easter everyone
 By Michael Miller

02/12/2008  11:37AM

A shareholder sent me the following exchange:

Morgan,

How does the Grey Market work? 21,000 shares just traded at 0.27 even though I have a bid in for 0.55. And there’s a friend of mine who has a bid for 10,000 at 0.50. And yesterday two transactions went through for 300 shares at 0.25 . Who’s arranging the sell below higher bids? Should I try a large volume bid at a much lower price just to see if it goes? There’s actually a bid for 0.80 on the web site.
Thanks, Sterling

Hi Sterling,

Let’s say ACME Securities and Jones Financial Group both make markets in OSTO. That means both firms must be willing to buy and sell OSTO at any time during the trading day. Both firms will post a bid price at which they are willing to buy, and an asking price at which they are willing to sell. So let’s say we open the day with the following spread:
ACME Bid $0.40
Ask $0.70
Jones: Bid $0.38
Ask $0. 60

You come along and place an order with Global to buy at $0.55. We have to place the trade with one of the market makers. So let’s say your order gets routed to ACME. The spreads now change:
ACME Bid $0.55
Ask $0.70
Jones: Bid $0.38
Ask $0.60

Note that Jones is not required to reflect your bid, since they don’t have it. Now, someone in the world comes along and sells shares of OSTO through Jones. The trade occurs at their bid price of $0.38/share, well below the price you are willing to pay..

Hope this helps. Morgan
 By Rae Bell

04/27/2007  8:43AM

This OSTO stock has been haunting us for many years. Back in the days when we were listed on the Pacific Exchange the price for OSTO remained on par with OAU.

Over the years several brokers and even our market maker at the Pacific Exchange tried to track down who was doing the trading. To no avail.

My suggestion is that those who have the means should be buying OSTO so that the price will move up to reflect the true value. At the current price there is little to lose.

In other words since this ticker symbol is out there can we use it? Can people sell as well as buy? Bluejay???

Here's my disclaimer: This is not a recomendation to buy or sell Sixteen to One Stock. You do so at your own risk. My opinions are my own and do not reflect the opinion of the Corporation.
 By Crush

04/26/2007  8:44PM

Mike, if this is really going on, cancel the ex-mart, ASAP.

Sometimes we make faces and pretend, but when crush time comes, we speak our minds. (Can you tell that I've been home-schooling?)
 By martin newkom

04/26/2007  7:58AM

what amount of market cap. does
it take to get listed on amex
or bulletin board. emgold which
owns the Idahoe-Maryland may be listed on toronto and elsewhere
 By Michael Miller

04/26/2007  7:50AM

I recently received the following note from an outraged shareholder. Gee, at this price one could buy all the outstanding shares and thereby own the whole enchilada for $1,200. Here is a suggestion for some industrious person with an industrious stockbroker:
research this gray market and bid


“ Mike,

That gray market guy let 300 shares trade at .0001.

What a jerk! This is pure stealing.

I can't imagine letting 300 shares trade there when a
better market exists in Alleghany. He knew we had a
much higher bid because you told him. Now he'll try
and sell it on the X-Mart, probably through one of his
family members or one of his friends.

He bought the 300 shares for a total of 3 cents, if
you can believe that.”


Does anyone know what to do about this? It isn’t right to let our fellow shareholders get screwed like this and it is not good for the company either.

For more information about this “gray market” go to Correspondence from the President, 04/02/2007 4:59pm.
 By martin newkom

04/03/2007  6:25PM

For those of you who hold your
16 stock in "street" name I
have ordered my shares out from the broker into certif. form. All others who haven't
done so should bear the expense
and do likewise as I have. No
fool'n.
 By Michael Miller

04/15/2006  4:40PM

For many gold bugs or investor/speculators, it’s all about the stock challenge. Our market situation has been of interest to me from the moment I became a shareholder in 1975. An article in the Economist revealed a fresh view of market value. Thought you may ponder its underlying theme. (I was recently advised to get Original Sixteen to One Mine on the Icelandic, Irish and Chinese Exchanges from a man well versed in global energy.)

Anglo American, a gold mining giant, announced it would sell 10% of its stake in AngloGold Ashanti (the third largest gold producer in the world). Anglo American’s interest will be reduced from 51% to 41%. Why is a company keen on mining getting out of gold? The answer is that at the moment, the market places a big premium on the share of companies such as AngloGold Ashanti, which are pure “gold plays” (hint- hint- hint). Since AngloGold Ashanti’s “gold premium” is not fully reflected when it is folded into Anglo American, it makes financial sense for Anglo American to sell some of its shares to unlock that premium. Accounting rules mean that once its shares of AngloGold Ashanti falls below 50%, the value of that holding can be reflected in its books at market price, as an investment.
 By hapbird

11/04/2005  5:58PM

Makes you wonder if its just better off to live underground...
 By SCOOP

11/03/2005  1:46PM

The Sixteen to One mine has been a year-round operation with a few intermittent closures for harsh weather. Old reports talked about the mines stock-piling winter supplies, which was a tidy sum of money for all. The family type small operations usually took a break for winter. The Sixteen to One, Oriental, Plumbago and others in the Alleghany Mining District continued mining year round. The men had families to feed and needed to work. The hardships of winter were getting to work and back home, fixing a broken truck or other equipment in the snow and frozen water pipes. Once underground the temperature is a stable 50 degrees.
 By hapbird

11/02/2005  1:15PM

Does mining activity usually shut down this time of year or later when the snows hit? Or does it remain active all year around?
 By Michael Miller

09/07/2005  1:08PM

Our gold collection was secured for the bank loan. The only remaining bank loan is for one of the trucks, so the gold collection is no longer encumbered by the bank. The $400,000 loan is secured by our property in Alleghany with a private lender. We have discussed the means of repayment and have agreed that the loan will not be called as long as our inventory remains above the loan value. So, if we sell the gold collection, we pay off the loan.

The crew in Alleghany has been shrinking because of little or no production this year. There are currently eight at the mine. Financial times are tough, and we need to cut back soon or mine into the pocket we are seeking off the 1000-foot level. All the miners are employed by Morning Glory Gold Mines (MGGM), which has the workers compensation insurance that was unavailable to the Sixteen due to past debt. MGGM provides the labor to the mine at no additional cost to the Sixteen. No one likes this situation, but it was the only way to keep the mine operating.

As far as the well being of the mine, it will always be decaying. Wood will not hold up underground, and we have miles of levels and other working shored up with wood. A decade ago we began using metal. It is the best way to go in those areas desired to keep open over a long period of time. As I have stated before, our small number of underground miners makes it difficult to maintain the workings and mine for gold. For that reason we are limiting our work area to the 1100-foot level.

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PO Box 909
Alleghany, California 95910
 

Phone:   
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E-mail:
 
(530) 287-3223      
(530) 287-3455
corp@origsix.com
 

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