The Sixteen to One mine in the Alleghany Mining District is a unique mine and requires a unique operation, which has been recognized by its owners, its miners, geologists, engineers, and some public agencies during the last decade of the twentieth century and to the present. It is a traditional high-grade, hard rock, underground gold mine. The same company owns and operates (maintains) the mine. Original Sixteen to One Mine Inc , (owner) was incorporated in California in 1911. Experts estimate that less than twenty percent of the deposit has been mined. Production is approximately 1,500,000 ounces of gold. There are over thirty miles of horizontal workings and millions of cubic feet of vertical excavations called stopes. The entire grounds are not maintained for mining. Once an area is targeted for mining, travel ways and escape routes are brought into safety compliance. Production miners set up a heading (face) and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein in exceedingly rich concentrations called "pockets". Metal detectors are regularly used underground as a tool for guiding the direction of the work. Metal detectors are also used as a tool to classify the ore underground. This has the positive affect of reducing the volume of rock taken from the mine, thereby reducing costs. In 1992, the company initiated a gold marketing plan of selling gold in quartz as a gemstone. This produces revenue significantly greater than selling gold into the spot market. Demand for the Sixteen to One gold-in-quartz gemstone exceeds supply. Production has been termed a "feast or famine" situation for over 100 years. Reserves in a high-grade gold mine cannot be termed as "proven". By industry wide definition of phases of a mine operation, the operation during this quarter is exploration. Exploration aims at locating the presence of economic deposits and establishing their nature, shape and grade. The investigation may be divided into (1) initial and (2) final. At the Sixteen to one the search for gold or ore embraces: (1) geological surveys; (2) geophysical prospecting; (3) boreholes; (4) surface or underground headings, drifts or tunnels. When operations detect the presence of gold, the Company evaluates the indicators and if warranted, moves its operation from exploration to development. When the presence of gold is evaluated, the Company moves its operation into production. The company hoards gold and sells it according to short-term cash needs. This fact requires an operator to manage its cash flow to operate between pockets. It is difficult to undertake major expansion plans with an uncertain supply of capital. The Company has announced general plans to build a new shaft in the northern section of its Alleghany patented claims when funds are available. BALANCE SHEET COMPARISONS For the three-month period ending March 31, 2013 , there were no significant changes to the balance sheet. STATEMENT OF OPERATIONS Revenues for the three-month period ending March 31, 2013 decreased by $65,227 (88%) compared with the same period in 2012 due to decreased sales in 2013. For the three-month period ended March 31, 2013 compared to the same period in 2012 total operating expenses remained steady with only a 3% change ( $2,215 ). Significant changes within specific categories include a $16,958 (717%) increase in contract labor which was offset by a decrease of $18,562 (99%) in legal & accounting expenses. The higher legal expense in 2012 was related directly to the settlement of case number 7097 (see March 2012 10-Q). For the three-month period ended March 31, 2013 compared to the same period in 2012 the company showed a loss of $69,788 compared to a loss of $5,249 . The increase of $64,529 (1,230%) is attributable to lower revenue for the first quarter of 2013 compared to the first quarter of 2012. LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity is substantially dependent upon the results of operations. The Company maintains a gold inventory which it liquidates to satisfy working capital needs. There is no assurance that inventory is adequate to sustain the Company.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- U.S. Consumer Sentiment Falls in Early March
- Vybz Kartel Convicted of Murder
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Koch Brothers Step up Anti-Obamacare Campaign
- U.S. to Relinquish Gov't Control Over Internet
- Is Malaysian Airlines Flight 370 in Andaman Sea?