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 June 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 June 30, 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 Six Months Ended June 30, 1998 and 1997

                                Three Months Ended       Six Months Ended
                                6/30/98    6/30/97      6/30/98    6/30/97
                                -------    -------      -------    ------- 
Revenues:
  Refined gold specimen &
    jewelry sales            $  294,562  $1,015,187   $  656,997  $1,460,417
  
Operating expenses:
  Salaries and wages            381,551     351,188      807,794     768,407
  Depreciation & amortization    38,040      23,758       62,790      59,395
  Amortization of
    development costs             8,150      36,800       19,142      35,800
  Contract labor                  1,971       4,650        4,732      12,893
  Telephone & utilities          36,009      29,882       68,189      58,897
  Taxes - property & payroll     11,576      13,557       24,437      25,758
  Insurance                      23,533      11,401       36,300      24,267
  Supplies                       44,448      75,703       98,547     139,238
  Drayage                        12,652      13,785       28,723      31,214
  Promotion                       1,873      13,733        3,243      15,516
  Office expenses                 5,877      10,227        8,667      18,488
  Legal and accounting           22,095      21,977       41,597      53,403
  Other expenses                 18,709      29,726       38,958      33,774
                            -----------  ----------   ----------  ----------
  Total operating expenses      606,484     635,387    1,243,119   1,277,050
                            -----------  ----------   ----------  ----------
    Income (loss)
      from operations          (311,922)    379,800     (586,122)    183,367

Other Income & (Expense):
  Other Income                   14,990       5,925       38,070      13,629
  Other Expenses                (25,488)    (48,122)     (26,870)    (69,480)
                            -----------  ----------   ----------  ----------
     Total Other Income
       (Expense)                (10,498)    (42,197)      11,200     (55,581)
                            -----------  ----------   ----------  ----------
Income (loss) before taxes     (322,420     337,603     (574,922)    127,516

Provision for income taxes       (1,671)          -       (2,171)     (1,000)
                            -----------  ----------   ----------  ----------
     Net income (loss)         (324,091)    337,802     (577,093) $  126,516
                            ===========  ==========               ==========
Retained earnings (12/31/97)                             391,846
                                                      ----------
Retained earnings (06/30/98)                          $ (185,247)
                                                      ==========
Gain (loss) per share
     of common stock             ($0.09)      $0.10       ($0.16)      $0.04
                            -----------  ----------   ----------  ----------

                        See Accompanying Notes
                                   
<PAGE>

PART I:  FINANCIAL INFORMATION

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

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

Cash                                  $    28,813            $    64,452
Accounts receivable                        52,033                 97,098
Inventory                                 541,746                632,676
Other current assets                       15,686                 22,581
                                      -----------            -----------
     Total current assets                 638,278                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 $101,107 and $81,965 in 1998 and
  1997, respectively                      797,878                817,020
                                      -----------            -----------
                                        1,395,232              1,414,374
                                      -----------            -----------


Fixed Assets at Cost

Equipment                                 859,864                859,864
Building and Mill                         170,421                164,546
Vehicles                                  188,541                188,541
                                      -----------            -----------
                                        1,218,826              1,212,951
Less accumulated depreciation            (859,988)              (799,601)
                                      -----------            -----------
     Net fixed assets                     358,838                413,350
                                      -----------            -----------
Other assets, net of accumulated
  amortization of $48,198 and
  $46,760 in 1998 and 1997, respectively   21,657                 24,060
                                      -----------            -----------

          Total Assets                $ 2,414,005            $ 2,668,591
                                      ===========            ===========


                               See Accompanying Notes

<PAGE>
PART I:  FINANCIAL INFORMATION

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

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

Accounts payable and
  accrued compensation                $   204,397            $   168,782
Related party advances                    304,000                 23,000
Notes payable due within one year         299,413                298,931
Accrued expenses                            7,680                      -
Deferred income taxes                      94,000                 94,000
                                      -----------            -----------
     Total Current Liabilities            909,490                584,713
                                      -----------            -----------

Noted payable due after one year            5,151                  7,421
                                      -----------            -----------

     Total Liabilities                    914,641                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 June 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                        (185,247)               391,846
                                      -----------            -----------
     Total Stockholders' Equity         1,499,364              2,076,457
                                      -----------            -----------

Total Liabilities and
  Stockholders' Equity                $ 2,414,005            $ 2,668,591
                                      ===========            ===========


                                See Accompanying Notes

<PAGE>
PART I:  FINANCIAL INFORMATION

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

                                                 Six Months Ended
                                         June 30, 1998     June 30, 1997
                                        --------------    --------------
Cash Flows From Operating Activities:

Net loss                                $    (577,093)    $     126,516 
Adjustments to reconcile net loss
  to net cash provided by operating
  activities:
     Depreciation and amortization             81,932            89,398
     (Increase) decrease in accounts 
       receivable                              45,065           (49,352)
     Decrease in inventory                     90,930            96,509
     Decrease in other current assets           6,895             2,469
     Increase in accounts payable
       and accrued compensation                35,615            14,075 
     Increase in accrued expenses               7,680             7,657
                                          ------------      ------------
  Net cash provided (used) by 
    operating activities                     (308,976)          287,272 
                                          ------------      ------------

Cash Flows From Investing Activities:

  Proceeds from sale of fixed assets               -             28,987
  Purchase of fixed assets                     (5,875)          (53,075)
                                          ------------        ----------
  Net cash provided by 
    investing activities                       (5,875)          (24,088)
                                          ------------       -----------

Cash Flows From Financing Activities:

  Payments made on notes payable               (2,270)         (261,956)
  Payments made to employees for advances
    made to the Company                             -           (33,027)
  Proceeds from additional borrowings         281,482            15,698
  Proceeds from sale of common stock                -            39,000
                                          ------------        ----------
  Net cash provided (used) by
    financing activities                      279,212          (240,285) 
                                          ------------        ----------
  Increase (Decrease) in Cash                 (35,639)           22,899  

Cash, beginning of year                        64,452            31,640
                                         ------------        -----------
Cash, end of period                     $      28,813       $    54,639
                                        =============       ===========
Supplemental schedule of other cash flows:

  Cash paid during the period for:
    Interest expense                    $      8,886         $    15,424
                                        ============         ===========
    Income Expense                      $          -         $     1,300
                                        ============         ===========
                         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 include 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 
will 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

The Company has a note payable to the bank amounting to $9,564, bearing 
interest at 9.95% and secured by a vehicle.  The note is payable in 60 monthly 
installment of $442.

At June 30, 1998, the Company has two fully extended revolving lines of credit 
with a bank in the amount of $275,000.  The Company and bank are presently 
renewing the amounts and methods of repayment of the lines of credit.


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


STATEMENT OF INCOME AND RETAINED EARNINGS

Second Quarter Comparisons:

The Company's revenues decreased $720,624 (70.98%) the second quarter of 1998 
compared with the same period of 1997.  The combined gold production of the 
mine and the mill decreased 2,128 troy ounces in this quarter's comparisons 
with 1997. Lack of discovery of any significant pockets of gold contributed to 
the decrease over the 1997 comparisons.  The mill did not operate the majority 
of the second month and into the third month of the second quarter due to a 
broken shaft that had to be replaced.  Milling resumed in July, 1998.

Gold production is measured in fine troy ounces.  During the first six months 
of 1998, production from the mine totaled 1,773.19 troy ounces as follows:

                      MINE           MILL         TROMMEL*         TOTAL
                     ------         ------        -------          -----
     January         402.98         201.52           0.00         604.50
     February         60.54          46.79           0.00         107.33
     March            36.68         302.06           0.00         338.74
                     ------         ------         ------         ------
     Total: 
     First Qtr       500.20         550.37           0.00       1,050.57
                     ======         ======         ======       ========

     April            97.59          31.81           0.00         129.40
     May             221.36           7.63           0.00         228.99
     June            334.73          29.50           0.00         364.23
                     ------         ------         ------         ------
     Total:
     Second Qtr.     653.68          68.94           0.00         722.62
                     ======         ======         ======         ======

The Company continues to identify mine production into three categories:  Mine 
mill and trommel. During the first six months of 1997, production totaled 
3,661.46 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
                  ========         =======        =======       ========

* 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 he three months ended June 30, 1998 compared with 
June 30, 1997 decreased $28,903 (04.54%).  Significant areas of change are as 
follows:

The Company's compensation expenses increased $30,363 (08.65%) the second 
three months of 1998 compared with the same period in 1997.  This reflects 
merit pay increases among the miners as well as increased insurance costs. 

Contract labor decreased $2,679 (57.61%) compared with the same period in 
1997..  The Company utilized more of its own work force during the three 
months ended June 30, 1998. Insurance expense increased $12,132 (106.42%) 
during the second quarter of 1998 versus the same period of 1997.  

Telephone and utilities increased $6,127 (20.51%) for the three month period 
ending June 30, 1998, compared with the same period of 1997.  Increased power 
was required in the de-watering and start-up operation of the Rainbow mine.  
The Company also put an additional electric compressor on line, which 
increased energy consumption. 

Depreciation and amortization of fixed assets increased $14,282 while 
amortization of development costs decreased $28,650 in the second quarter of 
1998 versus the second quarter of 1997 as costs associated with exploration 
and development have been reclassified for 1998 as amortization of development 
costs.

The Company continues to conserve working capital on discretionary expenses, 
thereby reflecting a decrease in Supplies of $31,255 (41.28%), Office expense 
of $4,350 (42.53%), Promotion expense of $11,860 (86.36%) and expenses 
classified as Other expenses in the amount of $11,017 (37.06%).


Six Month Comparisons: 

Revenues decreased $803,420 (55.01%) for the six months ended June 30, 1998 
compared with the same period of 1997. The Company recorded 3,661.46 fine troy 
ounces sold in 1997 and 1,773.19 fine troy ounces sold in 1998.  The 
difference is 1,888.27 fine troy ounces.  The average price per ounce received 
in 1997 was $398.86.  The average price received 1998 was $370.51.

Wages increased $39,398 (05.13%) for the first six months of 1998 compared 
with the same period of 1997.  Increases in the first and second quarters of 
1998 have begun to be off-set by a reduction in the work force.

Depreciation and amortization of fixed assets increased $3,395 (05.74%) while 
amortization of development costs decreased $16,658 (46.53%) following the 
trends of the first quarter comparisons.  

Contract labor decreased $8,161 (63.29%) for the period ending June 30, 1998, 
compared with the same period for 1997 as the Company utilized more of its own 
work force. The $11,806 (22.10%) decrease in legal and accounting expenses for 
the six months ended June 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.  Insurance expense increased $12,033 (49.59%) during the six 
month period ending June 30 of 1998 versus the same period of 1997.

Telephone and utilities increased $9,292 (15.78%) for the first six months of 
1998 compared with 1997 which remains consistent with the comparisons for the 
second quarter.

The Company continues to conserve working capital on discretionary expenses, 
thereby reflecting a decrease in Supplies of $40,691 (29.22%), Office expense 
of $9,821 (53.12%), and Promotion expense of $12,273 (79.09%) for the six 
month period ending June 30, 1998, compared with the same period of 1997.

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


BALANCE SHEET

Assets:

Fine troy ounces of gold in inventory decreased $90,930 (14.31%) from 
December 31, 1997, to June 30, 1998.  Previously mined gold in quartz was
processed and sold for cash.  The spot price for gold increased from $288.40
on December 31, 1997, to $296.30 on June 30, 1998.  Accounts receivable 
decreased $45,065 (46.41%) as year end purchasers of gold paid down their
debts.


Liabilities:

Total current liabilities increased $322,507 (54.47%) from December 31, 1997, 
to June 30, 1998, as the Company chose to borrow money to satisfy its cash 
flow rather than liquidate inventory and slowed its payments to suppliers.


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.

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 $300,000 of outstanding
notes and unaimously 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 August 12, 1998, no additional notes have been issued to accredited
investors.


SUBSEQUENT EVENTS

The general environment for gold mining companies remains poor due to low spot 
prices and a lack of interest with speculators or traders.  While the price of 
gold and the costs of mining influence the Company's financial success, 
locating concentrations or pockets of gold is the Company's most serious 
challenge.

Modest amounts of gold were found in July in an unexplored and untested area 
of the mine, referred to as the 1500 footwall drift.  The area is noteworthy 
due to the size and mineral character of the vein and the hundreds of feet of 
virgin quartz above and below the discovery.

During 1997, a total of 225,400 shares of stock were traded on the Pacific 
Exchange.  In July, 1998, shares traded totaled 158,200.  On July 15, a sale 
of 69,200 shares triggered a drop in price from $1.81 per share to $1.00 per 
share.  On July 28, 1998, the stock closed at $2.00.  The Company is not aware 
of any internal circumstances contributing to the seller's desire to liquidate 
the position.


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:  August 12, 1998