The Sixteen to One mine in theAlleghany 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 traditionalCalifornia high-grade, hard rock, underground gold mine. The Company celebrated its 100 year anniversary onOct. 9, 2011 . It is the oldest gold mining corporation inthe United States . The same company owns and operates (maintains) the mine. Experts estimate that less than twenty percent of the deposit has been mined. Production is approximately 1,500,000 ounces of gold. Over thirty miles of horizontal workings and millions of cubic feet of vertical excavations called stopes exist. 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 a positive effect 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". At the Sixteen to One the search for gold or ore embraces: (1) historical maps; (2) geophysical prospecting; (3) underground headings, drifts or tunnels. When operations detect the presence of gold, the Company evaluates the indicators. Its operation changes from exploration to development to production rapidly. 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.
Balance Sheet notes:
Gold inventory is recorded at spot price despite proven additional value for specimen and gem-stone material which is substantially greater than spot price. Jewelry inventory is recorded at labor plus gold cost. No value is recorded on the balance sheet for timber reserves. The company owns 470 acres of prime forested timberland. No value is recorded on the balance sheet for the Company owned water-rights. Reduced value is recorded on the balance sheet for buildings, equipment and land. No value is recorded on the balance sheet for marketable aggregate and decorative stone currently stockpiled. No value is recorded on the balance sheet for goodwill. Fixed assets are recorded at historic cost less depreciation.
BALANCE SHEET COMPARISONS
For the six-month period ended
STATEMENT OF OPERATIONS Revenues
Gold revenues for the six-month period ending
Expenses
For the three-month period ended
For the three-month period endedJune 30, 2019 compared to the same period in 2018 the company showed an increase of$26,714 . The increase is due to decreased revenue from the shift in objectives of production to maintenance and development.
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