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
California
high-grade, hard rock, underground gold mine. The Company celebrated its
100
year anniversary on Oct. 9, 2011. It is the oldest gold mining
corporation in
the 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 June 30, 2019 there was no significant changes to the balance sheet.



STATEMENT OF OPERATIONS

Revenues

Gold revenues for the six-month period ending June 30, 2019 decreased by $$6,582 (50%) compared with the same period in 2018 due to the emphasis on development instead of production in 2019.

Expenses

For the three-month period ended June 30, 2019 compared to the same period in 2018 total operating expenses decreased by $784 or a negligable percent due to the in-place managment program.



For the three-month period ended June 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.

© Edgar Online, source Glimpses