SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C.  20549


                                    FORM 10-QSB



                    QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                      OF THE SECURITIES EXCHANGE ACT OF 1934



   For Quarter Ended September 30, 1998          Commission File No. 001-10156



                            ORIGINAL SIXTEEN TO ONE MINE, INC.
                  (Exact name of registrant as specified in its charter)


                   CALIFORNIA                            94-0735390
      (State or other jurisdiction of     (I.R.S. Employer Identification No.)
        incorporated or organization 

                     Post Office Box 1621, Alleghany, CA  95910
                      (Address of principal executive offices)


                                     (530) 287-3223
                            (Registrant's telephone number)
                                (including area code)

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the past 12 months (or for such shorter period that the Registrant 
was required to file such reports), and (2) has been subject to such filing 
requirement for the past 90 days.

                        Yes:  X                      No:                 



As of September 21, 1998, 3,534,065 shares of Common Stock, par value $.10 per 
share, were issued and outstanding.

<PAGE>
PART I:  FINANCIAL INFORMATION

                  Original Sixteen to One Mine, Inc.
              Statement of Operations and Retained Earnings
    For the Three Months and Nine Months Ended September 30, 1998 and 1997

                                Three Months Ended      Nine Months Ended
                                9/30/98    9/30/97      9/30/98    9/30/97
                                -------    -------      -------    ------- 
Revenues:
  Refined gold specimen &
    jewelry sales            $  376,640  $  591,652   $1,033,637  $2,052,069
  
Operating expenses:
  Salaries and wages            321,290     468,299    1,095,837   1,236,706
  Depreciation & amortization    33,234      64,222       96,024     123,617
  Amortization of
    development costs            10,763      21,100       29,905      56,900
  Contract labor                 18,497      12,193       23,228      25,086
  Telephone & utilities          29,246      26,709       97,434      85,606
  Taxes - property & payroll     13,589      33,176       38,026      58,934
  Insurance                       5,610       8,535       75,157      32,802
  Supplies                       51,295     120,558      149,842     259,796
  Drayage                        13,392      23,591       42,115      54,805
  Promotion                       2,389       3,144        5,631      18,660
  Office expenses                 5,219       5,008       13,800      23,496
  Legal and accounting            5,028       9,207       46,626      62,610
  Other expenses                 14,796      16,479       59,842      50,253
                            -----------  ----------   ----------  ----------
  Total operating expenses      524,348     812,221    1,773,467   2,089,271
                            -----------  ----------   ----------  ----------
    Income (loss)
      from operations          (147,708)   (220,569)    (739,830)    (37,202)

Other Income & (Expense):
  Other Income                    6,043       2,815        9,823      16,444
  Other Expenses                 (7,182)    (10,113)       6,241     (79,593)
                             ----------  ----------   ----------  ----------
     Total Other Income
       (Expense)                 (1,139)     (7,298)      16,064     (63,149)
                            -----------  ----------   ----------  ----------
(Loss) before taxes            (148,847)   (227,867)    (723,766)   (100,351)

Provision (benefit) for
  income taxes                      917           -        3,088      (1,000)
                            -----------  ----------   ----------  ----------
     Net income (loss)         (149,764)   (227,867)    (726,854) $ (101,351)
                            ===========  ==========               ==========
Retained earnings (12/31/97)                             391,846
                                                      ----------
Retained deficit  (09/30/98)                          $ (335,008)
                                                      ==========
(Loss) per share
     of common stock             ($0.04)     ($0.07)      ($0.21)     ($0.03)
                            -----------  ----------   ----------  ----------

                        See Accompanying Notes
                                   
<PAGE>

PART I:  FINANCIAL INFORMATION

                    Original Sixteen to One Mine, Inc.
                          Condensed Balance Sheet
                 September 30, 1998 and December 31, 1997

ASSETS
                                   September 30, 1998       December 31, 1997
                                   ------------------       -----------------
Current Assets

Cash                                  $     9,658            $    64,452
Accounts receivable                        32,723                 97,098
Inventory                                 469,409                632,676
Other current assets                       41,270                 22,581
                                      -----------            -----------
     Total current assets                 553,060                816,807
                                      -----------            -----------


Mining Property

Real estate and property rights
  net of depletion of $524,145            182,091                182,091
Mineral Property                          415,263                415,263
Development costs, net amortization
  of $109,468 and $81,965 in 1998 and
  1997, respectively                      789,517                817,020
                                      -----------            -----------
                                        1,386,871              1,414,374
                                      -----------            -----------


Fixed Assets at Cost

Equipment                                 861,857                859,864
Building and Mill                         170,722                164,546
Vehicles                                  188,541                188,541
                                      -----------            -----------
                                        1,221,120              1,212,951
Less accumulated depreciation            (895,625)              (799,601)
                                      -----------            -----------
     Net fixed assets                     325,495                413,350
                                      -----------            -----------
Other assets, net of accumulated
  amortization of $49,163 and
  $46,760 in 1998 and 1997, respectively   21,657                 24,060
                                      -----------            -----------

          Total Assets                $ 2,287,093            $ 2,668,591
                                      ===========            ===========


                               See Accompanying Notes

<PAGE>
PART I:  FINANCIAL INFORMATION

                    Original Sixteen to One Mine, Inc.
                          Condensed Balance Sheet
                  September 30, 1998 and December 31, 1997

LIABILITIES & STOCKHOLDERS' EQUITY
                                    September 30, 1998     December 31, 1997
                                    ------------------     -----------------
Current Liabilities

Accounts payable and
  accrued compensation                $   227,100            $   168,782
Related party advances                    302,600                 23,000
Notes payable due within one year         219,473                298,931
Accrued expenses                           11,261                      -
Deferred income taxes                      94,000                 94,000
                                      -----------            -----------
     Total Current Liabilities            854,434                584,713
                                      -----------            -----------

Noted payable due after one year           83,046                  7,421
                                      -----------            -----------

     Total Liabilities                    937,480                592,134


Stockholders' Equity

Capital Stock, par value $.10 - 
  10,000,000 shares authorized:
  3,534,065 and 3,534,065 shares issued 
  and outstanding as of September 30, 1998 
  and December 31, 1997, respectively     353,407                353,407
Additional paid-in capital              1,357,204              1,357,204
Notes receivable from employees           (26,000)               (26,000)
Retained earnings (deficit)              (335,008)               391,846
                                      -----------            -----------
     Total Stockholders' Equity         1,349,603              2,076,457
                                      -----------            -----------

Total Liabilities and
  Stockholders' Equity                $ 2,287,083            $ 2,668,591
                                      ===========            ===========


                                See Accompanying Notes

<PAGE>
PART I:  FINANCIAL INFORMATION

                    Original Sixteen to One Mine, Inc.
                          Statement of Cash Flows

                                         Nine Months Ended September 30,
                                             1998               1997
                                        --------------     --------------
Cash Flows From Operating Activities:

Net loss                                $    (726,854)    $    (101,351)
Adjustments to reconcile net loss
  to net cash provided by operating
  activities:
     Depreciation and amortization            125,930           174,719
     (Increase) decrease in accounts 
       receivable                              64,375           (25,602)
     Decrease in inventory                    163,267           234,123
     Decrease in other current assets         (18,689)           (2,250)
     Increase in accounts payable
       and accrued compensation                58,318            (7,800)
     Increase in accrued expenses              11,261            10,292
                                          ------------      ------------
  Net cash provided (used) by 
    operating activities                     (322,392)          282,131 
                                          ------------      ------------

Cash Flows From Investing Activities:

  Proceeds from sale of fixed assets                -                 -
  Purchase of fixed assets                     (8,169)          (48,395)
                                          ------------        ----------
  Net cash provided by 
    investing activities                       (8,169)          (48,395)
                                          ------------       -----------

Cash Flows From Financing Activities:

  Payments made on notes payable               (3,833)         (238,493)
  Payments made to employees for advances
    made to the Company                             -           (54,000)
  Proceeds from additional borrowings         279,600            17,170
  Proceeds from sale of common stock                -            39,000
                                          ------------        ----------
  Net cash provided (used) by
    financing activities                      275,767          (236,323) 
                                          ------------        ----------
  Decrease in Cash                            (54,794)           (2,587) 

Cash, beginning of year                        64,452            31,640
                                         ------------        -----------
Cash, end of period                     $       9,658       $    29,053
                                        =============       ===========
Supplemental schedule of other cash flows:

  Cash paid during the period for:
    Interest expense                    $     24,100         $    18,954
                                        ============         ===========
    Income Expense                      $      3,088         $    22,007
                                        ============         ===========
                         See Accompanying Notes
<PAGE>
PART I:  FINANCIAL INFORMATION

                        Original Sixteen to One Mine, Inc.

                           Notes to Financial Statements


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


NATURE OF BUSINESS

Original Sixteen to One Mine, Inc., owns and operates mining claims in Sierra 
and Trinity Counties located in Northern California.


REVENUE

Revenue primarily consists of gold and silver mined during the reporting 
period without regard to what was sold or held in inventory.  They are 
recorded at the spot price per ounce on the statement date.  Revenue does not 
include unprocessed high-grade ore mined during the reporting period.  
(Jewelry and gold specimen sales may create a premium over the quoted market 
price of gold.  Such premiums are recognized at the date of sale.)


INVENTORY

Inventory consists of gold and silver bullion, dore, specimens and jewelry.  
Inventory is recorded at the spot price per ounce on the balance sheet date.


FIXED ASSETS

Fixed assets are stated at historical cost.  Depreciation is being calculated 
using straight-line and accelerated methods over the following estimated 
useful lives:
                          Vehicles        3 to 5 years
                          Equipment       5 to 7 years
                          Buildings       18 to 31.5 years


DEPLETION POLICY

The Company has established a depletion policy for its mineral and mining 
properties.  Because of the geological formation in the Alleghany Mining 
District, estimates of ore reserves cannot be calculated; therefore, a cost 
per unit depletion factor cannot be determined.  Management has determined 
that a straight-line method of depletion over a 25 year period would most 
accurately match the estimated production of the mining properties (see Note 
2).  If estimates of ore reserves become available, the units of production 
method of depletion will be used.


DEVELOPMENT

In February 1994, the Company began development of the 2483 winze into 
unexplored ground.  Costs associated with the development have been 
capitalized.  Development was complete at December 1996.  Based upon previous 
mine experience, management estimates that gold production from the new winze 
may approximate 50,000 ounces.  Accordingly, capitalized development costs are 
being amortized using the units of production method.


INCOME TAXES

Differences exist between the amount of income or loss reported for financial 
statements and income tax reporting purposes.  These differences are 
attributable to the use of the cash basis reporting of ore revenues and 
accelerated depreciation and depletion methods for income tax purposes.  No 
provision for income taxes, with the exception of state minimum income tax, 
has been made in the current year due to the uncertainty of revenues for the 
remainder of the year.


NET INCOME OR LOSS PER SHARE

Net gain or loss per share has been computed using the common shares 
outstanding at end of reporting period.  The Company's stock equivalents have 
been excluded from the calculation of shares outstanding.


NOTE 2 - MINING PROPERTY

The Company's original mining property is carried on the books at its March 1, 
1913, value of $379,000 as determined for depletion purposes in connection 
with Federal income taxes.  This value together with the cost of mining 
properties acquired in 1920 and 1924 for the aggregated sum of $145,145 has 
been fully amortized through depletion charges.  During 1994, the Company 
purchased mining properties at a cost of $300,000, and capitalized $86,633 in 
legal costs incurred in defense of certain mining claims.


NOTE 3 - INCOME TAXES

For Federal income tax purposes, the Company has operating loss carryforwards 
which may provide future tax benefits, expiring as follows:

                                     Year of Expiration

                          2006            $345,753
                          2007              48,562
                                          --------
                                          $394,315

For California State income taxes, the Company has no operating loss 
carryforwards.


NOTE 4 - NOTES PAYABLE

At September 30, 1998, the Company has a fully extended revolving line of 
credit with a bank in the amount of $200,000.  The credit line bears interest 
at 10.5% and is due in full in January, 1999.

Long term debt consists of the following:

     Note payable to bank bearing interest at 9.95% due 
     in 60 monthly installments of $442.  The note is
     secured by a vehicle.                                     $  8,681

     Note payable to bank with a variable interest rate
     currently at 11.5%.  The note is due in 60 monthly 
     installments of $2,089 through August, 2003.                93,838
                                                               --------
                                                                102,519
     Less Current Maturities                                     19,473
                                                               --------
                                                               $ 83,046
                                                               ========

Maturities of long term debt are as follows:

            Period Ended September 30,                  Amount
            --------------------------                 --------
                      1999                             $ 19,416
                      2000                               21,227
                      2001                               18,933
                      2002                               21,229
                      2003                               21,714
                                                       --------
                                                       $102,519
                                                       ========

<PAGE>
PART II:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
                              RESULTS OF OPERATION


STATEMENT OF INCOME AND RETAINED EARNINGS

Third Quarter Comparisons:

The Company's revenues decreased $215,012 (36.34%) the third quarter of 1998 
compared with the same period of 1997.  The combined gold production of the 
mine and the mill decreased 324.77 troy ounces in this quarter's comparisons 
with 1997. Lack of discovery of any significant pockets of gold in the months 
of July and September contributed to the decrease over the 1997 comparisons.  
The mill ran on a very limited basis in August and was not in production 
during September of the third quarter.

Gold production is measured in fine troy ounces.  During the first nine months 
of 1998, production from the mine totaled 2,810.35 troy ounces as follows:

                           MINE           MILL            TOTAL
                          ------         ------           -----
          January         402.98         201.52           604.50
          February         60.54          46.79           107.33
          March            36.68         302.06           338.74
                          ------         ------           ------
          Total: 
          First Qtr       500.20         550.37         1,050.57
                          ======         ======         ========

          April            97.59          31.81           129.40
          May             221.36           7.63           228.99
          June            334.73          29.50           364.23
                          ------         ------           ------
          Total:
          Second Qtr.     653.68          68.94           722.62
                          ======         ======           ======

          July            186.06         113.51           299.57
          August          658.41          41.46           699.87
          September        37.72           0.00            37.72
                         -------        -------         --------
          Total:
          Third Qtr       882.19         154.97         1,037.16
                         =======        =======         ========

The Company continues to identify mine production into three categories:  Mine 
mill and trommel. During the first nine months of 1997, production totaled 
4,998.49 troy ounces as follows:

                      MINE           MILL         TROMMEL*         TOTAL
                     ------         ------        -------          -----
     January         46.44           93.12           0.00         139.56
     February        40.41	         205.73         149.13         395.27
     March          163.75          133.93          48.60         346.28
                    ------          ------         ------         ------
     Total: 
     First Qtr.     250.60          432.78         197.73         881.11
                    ======          ======         ======         ======

     April          374.68          155.19          17.64         547.51
     May          1,105.01          100.09          36.41       1,241.51
     June         1,061,33            0.00           0.00       1,061.33
                  --------         -------        -------       --------
     Total:
     Second Qtr.  2,541.02          255.28          54.05       2,850.35
                  ========         =======        =======       ========

     July         1,036.24            0.00           0.00       1,036.24
     August          10.70            0.00           0.00          10.70
     September      160.02          130.07           0.00         290.09
                  --------         -------         ------       --------
     Total:
     Third Qtr.   1,206.96          130.07           0.00       1,337.03
                  ========         =======         ======       ========

* Note:  A trommel is a perforated cylinder used to screen ore.  As production 
from the mine increased in May 1997, the trommel operation was suspended.

Total operating expenses for the three months ended September 30, 1998 
compared with September 30, 1997 decreased $287,873 (35.45%).  Significant 
areas of change are as follows:

The decrease in the Company's compensation expenses represents over half of 
the total decrease in operating expense, decreasing $147,009 (31.40%) the 
third three months of 1998 compared with the same period in 1997.  This change 
occurred as the labor force went from a high during the third quarter of 1997 
of 54 employees to 37 full time employees on September 30, 1998.  Accordingly, 
taxes (property and other), inclusive of payroll taxes also showed a decrease 
of $19,487 (58.74%) for this same period.

The Company continues to conserve working capital on discretionary expenses, 
thereby reflecting a decrease in Supplies of $69,263 (57.46%), Drayage expense 
of $10,299 (43.48%),and Legal and Accounting expense of $4,179 (45.39%).


Nine Month Comparisons: 

Revenues decreased $1,018,432 (49.63%) for the nine months ended September 30, 
1998 compared with the same period of 1997. The Company recorded 5,068.46 fine 
troy ounces sold in 1997 and 2,810.35 fine troy ounces sold in 1998.  The 
difference is 2,258.11 fine troy ounces.  The average price per ounce received 
in 1997 was $398.86.  The average price received for the nine months ending 
September 30, 1998, was $385.37 per ounce.

Total expenses decreased $315,804 (15.12%) for the first nine months of 1998 
compared with the same nine month period of 1997.  Compensation decreased 
$140,869 (11.39%) for the first nine months of 1998 compared with the same 
period of 1997 reflecting a the reduction in work force from 54 full time 
employees to 37 full time employees on September 30, 1998.  This reduction 
simultaneously has an impact on wage related expenses of payroll taxes and 
worker's compensation costs.

The $15,984 (25.53%) decrease in legal and accounting expenses for the nine 
months ended September 30, 1998, compared with the same period in 1997, is 
primarily attributed to the use of in-house employees rather than an outside 
accounting firm. 

The Company continues to conserve working capital on discretionary expenses, 
thereby reflecting a decrease in Supplies of $109,954 (42.33%) and Drayage or 
$12,690 (23.16%).

Other expenses increased or decreased only modestly and were not material.


BALANCE SHEET

Inventory decreased $163,267 (25.81%) from December 31, 1997, to September 30, 
1998.  Gold specimens and gold and quartz slab were sold to provide for 
operating capital.  Accounts receivable decreased $64,375 (66.30%) as debt due 
the Company is paid.

Total current liabilities increased $345,326 (58.32%) from December 31, 1997, 
to September 30, 1998.  Related party advances increased $279,600 during the 
first nine months of 1998 over the same period in 1997.  To alleviate the 
continuing drain on cash, the Company during the second quarter sold 
approximately $300,000 of one year notes due May 1, 1999, which bear interest 
of 10% per annum and are convertible into unregistered shares of its common 
stock at $1.75 per share.  The terms of the transaction were negotiated with a 
significant shareholder, who is not a Director, in an arms length transaction.  
Following his commitment to purchase $100,000 of such notes, other purchases 
were made by some, but not all of the Directors.  All purchasers are 
accredited investors.  Terms were agreed to in a conference call during May 
1998.  The Directors ratified the approximate $300,000 of outstanding notes 
and unanimously approved the following resolution:

BE IT RESOLVED, that the Company is authorized to sell up to $500,000 of notes 
due May 1, 1999, bearing interest at 10% per annum from date of issuance and 
convertible into unregistered shares of the Company's common stock at $1.75 
per share.  The notes may be sold only to accredited investors in a 
transaction exempt from registration. 

As of September 30, 1998, no additional notes have been issued to accredited 
investors.


LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity (i.e., its ability to generate adequate amounts of 
cash to meet its needs for cash) is substantially dependent upon the results 
of its operations.  While the Company does maintain a gold inventory which it 
can liquidate from time to time to satisfy its working capital needs, there 
can be no assurance that such inventory will be adequate to sustain operations 
if the Company's gold mining activities are not successful.  Because of the 
unpredictable nature of the gold mining business, the Company cannot provide 
any assurance with respect to long-term liquidity.  In addition, if the 
Company's mining operation does not produce meaningful additions to inventory, 
the Company may determine it is necessary to satisfy its working capital needs 
by selling gold in bullion form.

The Company is dependent on continued recovery of gold mined and sales of gold 
from inventory to meets its cash needs.  Although the Company has historically 
located at least $1.2 million of gold in each of the last five years, there 
can be no assurance that the Company's efforts in any particular period will 
provide sufficient funding for the Company to continue operations.  The 
Company has a fully extended line of credit with a bank.  If the Company's 
cash resources are inadequate and its gold inventory is depleted, the Company 
may seek debt of equity financing on the most reasonable terms available or 
may terminate its operation.


YEAR 2000 IMPACT

The Year 2000 (Y2K) problem arises as a result of the way most computer and 
process control systems handle dates.  Most systems only store the last two 
digits of the year.  This equipment will not be able to differentiate between 
years at the turn of the century and, if the problem is left uncorrected, may 
result in malfunctions of the equipment.

The use of computers is limited to Windows operating systems on personal 
computers linked to an internal network throughout the Company.  Software 
consists of standardized packages from major developers.  The greatest 
internal impact is anticipated with the Company's accounting software. The Y2K 
issue also relates to other office equipment, such as telephones, voice mail 
and the security system.  The Company is in the process of contacting all 
affected vendors and manufacturers to determine where any updates of 
replacements will be required.  The cost of the project to date has not been 
material and the Company does not expect future costs of the project to be 
material.  An entire system replacement and software programs would total 
approximately $10,000.  Companies providing banking, insurance and other 
administrative services to the Company are being contacted for Year 2000 
compliance.



CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE 
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

From time to time the Original Sixteen to One Mine, Inc. (the Company), will 
make written and oral forward-looking statements about matters that involve 
risks and uncertainties that could cause actual results to differ materially 
from projected results.  Important factors that could cause actual results to 
differ materially include, among others:

     -  Fluctuations in the market prices of gold
     -  General domestic and international economic and political
        conditions
     -  Unexpected geological conditions or rock stability conditions
        resulting in cave-ins, flooding, rock-bursts or rock slides
     -  Difficulties associated with managing complex operations in remote
        areas
     -  Unanticipated milling and other processing problems
     -  The speculative nature of mineral exploration
     -  Environmental risks
     -  Changes in laws and government regulations, including those
        relating to taxes and the environment
     -  The availability and timing of receipt of necessary governmental
        permits and approval relating to operations, expansion of
        operations, and financing of operations
     -  Fluctuations in interest rates and other adverse financial market
        conditions
     -  Other unanticipated difficulties in obtaining necessary financing
     -  The failure of equipment of processes to operate in accordance
        with specifications or expectations
     -  Labor relations
     -  Accidents
     -  Unusual weather or operating conditions
     -  Force majeure events
     -  Other risk factors described from time to time in the Original
        Sixteen to One Mine, Inc., filings with the Securities and
        Exchange Commission

Many of these factors are beyond the Company's ability to control or predict.  
Investors are cautioned not to place undue reliance on forward-looking 
statements.  The Company disclaims any intent or obligation to update its 
forward-looking statements, whether as a result of receiving new information, 
the occurrence of future events or otherwise.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


ORIGINAL SIXTEEN TO ONE MINE, INC.
(Registrant)

/s/Michael M. Miller
President and Director

Dated:  November 13, 1998