The company is currently operating within the budget dictated by its income from minimum royalties (see page 2). Minimum payments will increase to $45,000 per quarter in 1991. Other than corporate maintenance, my primary objective is to locate investors, so we can begin Phase Two of the Red Star/Osceola project.
New Public Relations Program
Later in this letter you will find two news releases. Bob Richelson, a retired public relations executive, is assisting in developing interest in our company. How else can we "be discovered" by serious investors wishing to partake in a serious search for gold? The issuance of News Releases is in itself new to Original Sixteen tone. News Releases are different from newsletters to shareholders. Newsletters are written to inform you about what is happening with the company. News releases are written to introduce Original Sixteen to One to non-shareholders so they can then begin their investigation into the risks and rewards of stock ownership. If you see any news releases in your area, please send me a copy with the date and publication for our files.
Royal Gold Back in Production
KCJV is up and running after an eight month shut down. The twenty-four-member crew is breaking rock in four headings and producing 60 tons of mill ore per day. Currently there are 900 tons of broken ore underground and 2,800 tons of ore stored near the mill. The mill itself is under renovation and expected to restart by December 1, 1990. Small amounts of high-grade have been found, yet that big concentration we all believe exists, remains elusive.
Company Earns Cover Story
California Mining Journal, the wests leading domestic mining publication, featured our company on the cover of its August 1990 issue. The cover story was entitled "Re-opening the Original Sixteen to One." Included were two color photos of quartz and gold from the mine. We purchased extra copies and will gladly mail you one for $3.50.
RECENT NEWS RELEASES
Wittkopp Named Geology Consultant
By Original Sixteen to One Mine
Alleghany, CA, October 24 - Raymond W. Wittkopp has joined the Original Sixteen to One Min4e, Inc. as consulting geologist, it was announced today by Michael M. Miller, company president. Original Sixteen to One is California's oldest gold mining company.
Wittkopp, 47, will work closely with Original Sixteen to One's management in developing and bringing to production its Red Star/Osceola project here. Over the past 15 years he has been involved with a number of projects in the Alleghany District of Sierra County and has published several papers on the district's geology.
Wittkopp has headed his own consulting firm since 1987. Prior to that he was senior geologist for Santa Fe Mining, Inc. for four years. He was with Cordex Exploration Company from 1981 to 1983 and with Robert L. Helms Construction and Development Company from 1978 to 1981.
A graduate of San Jose State University with a B.A. degree in geology, Wittkopp is a registered geologist in California.
Original Sixteen to One had its headquarters in San Francisco for many years before moving here in 1984. It is listed on the Pacific Stock Exchange.
Original Sixteen to One
Sees New Gold Rush Coming
Grass Valley, September 25 - High technology and un-precedented economic changes could be leading California towards a new gold rush, shareholders of and potential investors in the Original Sixteen to One Mine, Inc. were told here today at a public meeting at the Holbrook Hotel.
"Gold yield in California was 894,000 troy ounces valued at $343 million last year, compared with 4,000 ounces in 1980," Michael M. Miller, president of Original Sixteen to One, said. He projected that the figure "should reach 1 million ounces a year before leveling off."
Miller said that 12 mining companies in the Mother Lode "are busy digging and more are tooling up to join the treasure hunt." He described Original Sixteen to One, based in Alleghany, just north of Nevada City and the state's oldest gold mining company, as "one of the key players in an industry that is betting more $700 million on rising prices in the highly volatile gold market."
He based his optimism on "several encouraging developments." Technological procedures from the oil industry and the military have found applications in the search for gold in high-grade underground mines. Also, the demand for gold jewelry, electronics and the storage of wealth show no tendency to slack off.
Original Sixteen to One went public last year, listing on the Pacific Stock Exchange under the ticker symbol OAU. The "O" is for "Original." AU is the elemental symbol for gold. There are now 2.4 million shares of the company's stock owned by 360 shareholders in 25 states. Miller said he expects the company to have 750 shareholders by the end of 1991, and an output of 100 tons of ore per day by 1994. High-grade ore in Alleghany is measured in ounces per pound, not in hundredths of ounces per ton as in open pit mines.
Miller also said the "any perception of mining as being detrimental to the environment is totally false." He explained that since mining is done underground anyone at ground level "wouldn't even know there are people down there working."
Miller joined Original Sixteen to One in 1975, and was named president in 1983. Brian R. Van Camp, formerly California deputy district attorney general and commissioner of corporations, is secretary of the company. In addition to Miller and Van Camp, other bard members are Charles I. Brown, chairman of Rawlings National Bank, WY.; Willard P. Fuller, Jr., registered geologist who served two terms on the California Mining and Geology Board; and Richard C. Sorlien, counsel with a Philadelphia law firm.
Michael M. Miller