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Posts tagged ‘nova scotia’

Where the money is

June 10th, 2016

Joe Martin sees a fundamental transformation coming to junior financing

by Greg Klein

The old system’s not only broken, it can’t be fixed. The world of finance for mineral exploration is changing and juniors must learn new rules and master new tools to survive. That’s the message from Joe Martin, a former business journalist, the founder of Cambridge House International and a prominent advocate for investment regulatory reform.

Well, better scratch that last designation. He’s no longer advocating reform. “There’s no sense trying to change the existing rules because no one at the executive level wants to,” Martin says. “So we have to look at new opportunities emerging, primarily through electronic media.”

Joe Martin sees a fundamental transformation in junior financing

The reform movement failed, he says, despite encouraging response to an open letter by the Venture Capital Markets Association last August. The status quo prevailed—and for that, Martin blames political indifference, bureaucratic intransigence, the self-serving agendas of Canada’s fragmented securities commissions and banks that wield power over the TSX Venture. “Nobody wants to take action and we don’t have the money to fund a multi-million-dollar campaign,” he says.

Now he’s addressing the juniors, not the regulators, and he’s urging them to recognize new financing opportunities in crowdfunding, peer-to-peer transactions and the U.S. JOBS Act.

Crowdfunding has already prompted considerable buzz, especially with the arrival of Australian mine-funder Mineral Intelligence in late 2015, followed by Canada’s Red Cloud Klondike Strike after Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia laid down a regulatory framework in January. Investors register with Klondike under the ordinary, eligible or accredited category.

Klondike’s first listing, Banyan Gold TSXV:BYN put up a $750,000 offer on March 2. The company closed a more conventional private placement of $200,000 the previous January. By press time, Banyan had yet to update the progress of its online offer.

Following that company by six days, Radisson Mining Resources TSXV:RDS offered up to $1 million on Klondike after completing a $324,000 private placement in December. Radisson expected to complete its offer by April 8. But it wasn’t until June 6 that the company announced closing of the second and final tranche, with a total $675,010 raised.

Joe Martin sees a fundamental transformation in junior financing

Joe Martin: “You’d better get in
this game and learn the new rules.”

Klondike’s biggest involvement so far might be IDM Mining TSXV:IDM, which raised a total of $10.85 million in April with Rob McEwan participating. But IDM didn’t divulge how much crowdfunding contributed. The company had said a portion of the placement would be brokered through a syndicate of Klondike, Haywood Securities and Medalist Capital.

Current offers listed on Klondike come from GoviEx Uranium CSE:GXU (up to $2 million), Sarama Resources ($2.25 million) and Brixton Metals TSXV:BBB ($1 million and $1.3 million).

Martin foresees a fairly gradual transformation but a definite change nevertheless with crowdfunding, peer-to-peer lending and the U.S. JOBS Act “all blending together to bring in a new world of financing. P2P, for example, is becoming very big in England.”

With last month’s Tier III enactment of JOBS (Jumpstart Our Business Startups), American crowdfunding has “opened up big time,” Martin says. “Less than 1% of Canadians are accredited investors who can take part in private placements.” The new U.S. regulations allow crowdfunding participants to invest a portion of their income or net worth, up to a percentage that depends on the individual’s financial circumstances.

“Those rules are changing. Canada isn’t changing, so we may be going to the States for financing.”

Martin also sees hope for Canadian juniors on foreign exchanges, as well as the Venture’s rival. “The CSE is doing a pretty good job. They’re a lot easier to deal with.”

Having despaired of fixing the existing system, he sees new opportunities elsewhere—provided juniors adapt. “You’d better get in this game and learn the new rules,” he emphasizes. “But don’t try to change the old ones because we’re not going to get it done.”

Joe Martin addresses the Vancouver Commodity Forum on June 14. Click here for free registration.

Lights. Camera. Action—Ontario students put mining on video

June 3rd, 2016

by Greg Klein | June 3, 2016

How do you get high school students enthusiastic about mining? One way is to encourage them to create videos on the topic. Then sweeten the enticement with some cash. That was enough to draw 200 entries to the Ontario Mining Association’s So You Think You Know Mining contest. Twelve winners and five honourable mentions brought their casts and crews a total of $48,000 in prizes at a June 1 Toronto event attended by mining professionals, government officials, teachers, parents and students.

Lights. Camera. Action. Mining—Ontario students put the industry on video

A screengrab from her winning entry
shows future geologist Mia Tullio.

Contestants used a number of approaches including research, interviews, poetry and music to express their perspectives on mining’s past and future, its benefits to the economy and to society. That’s not to mention some helpful tips on How to Survive the Zombie Apocalypse.

Judged best overall entry, a video called Technology–the Future of Ontario Mining brought Sudbury’s Mia Tullio $7,500 in prizes, along with another grand for her school. The sophisticated three-minute documentary briefly outlines developments in remote operation of mine equipment, game-style simulation for mine rescue training and how flying drones can be used in underground accidents. The video includes a visit to Norcat, the Northern Centre for Advanced Technology, “like the offices of Google, a hotbed of creative, innovative thinking.”

The entries “offer a fresh look at the important role that mining plays in our modern lives,” said OMA president Chris Hodgson. “They also help us imagine what the future might hold—for our industry and our society.”

The contest was the final of eight annual events that drew nearly 1,000 videos and handed out $272,000 in prizes. In April the Mining Association of Nova Scotia announced winners of its Mining ROCKS! video contest.

Video contest fosters mining awareness among Nova Scotian students

April 11th, 2016

by Greg Klein | April 11, 2016

Okay, there was a cash incentive. But the enthusiasm’s genuine. The Mining Association of Nova Scotia asked high school students to research a brief topic on mining and quarrying, then find a way to portray it on video. The results were not only informative but inventive and entertaining. And they brought contest winners a total of $8,000 in prizes, MANS announced April 11.

Mining ROCKS! video contest gets Nova Scotia students excited about mining

Now in its second year, Mining ROCKS! pulled in 22 entries from students across the province. Judges included film and media pros as well as Minister of Natural Resources Lloyd Hines and Membertou Chief Terry Paul, among others. Another 1,848 people cast votes for the People’s Choice Award.

The winners (shown here) use wide-ranging approaches to explain, illustrate, dramatize and emphasize the many uses of minerals and the industry’s importance to Nova Scotia. This is, after all, a province where coal mining dates back to 1672—and coal’s a relative newcomer. MANS says Canada’s oldest mine, possibly North America’s oldest, would be Davidson Cove, where Mi’kmaq extracted jasper and agate for arrowheads and cutting tools 1,500 years ago.

Mining and quarrying now provide around 5,500 jobs and put $420 million into the provincial economy each year.

As for the Ontario Mining Association, it now has judging underway for its student video contest, So You Think You Know Mining. Winners will be announced June 1.

See the winning entries for Mining ROCKS!

Are miners denigrating Canadian geology?

March 4th, 2016

by Greg Klein | March 4, 2016

Are miners denigrating Canadian geology?

 

A look at Canadian jurisdictions in this year’s Fraser Institute Survey of Mining Companies suggests perceptions of the country’s geology have declined. The survey emphasizes two main indexes, one addressing matters of government policy, the other considering geology as well as policy. The biggest changes from the previous year showed up in the latter index.

Called the Investment Attractiveness Index, it weighs responses from mining and exploration professionals, giving 60% for their answers on questions about mineral potential and 40% on questions about public policy. The 60/40 split reflects the way companies generally base their investment decisions, according to the survey.

The IAI ranked New Brunswick 11th out of 12 Canadian jurisdictions (Prince Edward Island wasn’t included) and 45th out of 109 jurisdictions worldwide. That’s a steep fall from the previous year, when New Brunswick came in 19th out of 122 jurisdictions.

But the survey’s Policy Perception Index was less dramatic, showing the province fell from third place in 2014 to ninth place in the current poll.

The IAI dropped Manitoba from fifth to 19th place globally. But the PPI actually raised the province two notches, from 15th to 13th.

Then there’s Nova Scotia, with Canada’s worst IAI score. But the province gets a middling sixth place in Canada for public policy. (Globally, the province ranked 59 on IAI and 17 on PPI.)

Obviously public policy can change significantly and quickly. But, barring dramatic new discoveries, widespread mine depletion or plunging commodity prices, wouldn’t mineral potential undergo more gradual transformation?

When rating geology, companies “have downgraded Canada a bit and they’re saying it’s less attractive this year,” says Fraser Institute policy analyst Taylor Jackson, who co-authored the survey with Kenneth Green. “This is the reason we saw Australia surpass Canada as the region that’s the most overall attractive in the world.”

Jackson adds, “It could be that they’re factoring in that certain commodities are less attractive to them than in the past. It is tough to say, though, what they’re thinking. It could be a combination of things.”

Strangest of all Canadian rankings was Nunavut. The territory showed strong IAI improvement, moving from 34th to 23rd place. That contrasted with its PPI score, which declined from 51st to 54th.

Despite Canada’s slump, Saskatchewan held on to its second-place global IAI position and moved from fifth to fourth place on the global PPI. Apparently the potash gloom failed to overshadow mining-friendly policies and high Athabasca Basin uranium grades.

Download the Fraser Institute Survey of Mining Companies 2015.

Read about the previous week’s Fraser Institute report on permitting times across Canada.

Nearly $1.9 billion for 2015 Canadian exploration: Where goes the money?

November 6th, 2015

by Greg Klein | November 6, 2015

Newly released numbers offer a glimpse of how exploration money’s being spent in this country by location and commodity. The info comes from a Natural Resources Canada survey asking companies about this year’s spending intentions for exploration and deposit appraisal. The feds then compared their responses with figures going back to 2010. Not surprisingly, we’re at a six-year low.

Total spending intentions for 2015 sunk to $1,879.8 million, almost 6.7% lower than last year and (read and weep) a nearly 56% plunge from the heady days of 2011. This year’s total breaks down to $1,037.3 million for exploration and $842.5 million for deposit appraisal.

Nearly $1.9 billion on 2015 Canadian exploration: Where goes the money?

Each jurisdiction’s share of nearly $1.9 billion planned
for Canadian exploration and deposit appraisal in 2015.

Ontario gets the most, $399.8 million or 21.3% of Canada’s total. Nearly 73% of the province’s outlay will go to the pursuit of precious metals.

British Columbia comes second, with $355.8 million, or 18.9% of the total. Precious metals will get nearly 41% while base metals get about 29%.

About $297.1 million, or 15.8% of the national total, goes to third-place Saskatchewan. Uranium gets nearly 52% of that.

Quebec’s share comes to $280.9 million, or 14.9%, with nearly 40% of that being spent on precious metals.

Nunavut places fifth nationally with $202.5 million or 10.8% of Canada’s total. Precious metals projects attract almost 80% of the territory’s spending this year.

Several jurisdictions improved over last year’s performance. This year’s plans show increases of 21% for Saskatchewan (from $245 million to $297.1 million), 27% for Alberta (from $26.1 million to $33.2 million), 28% for Nunavut (from $158 million to $202.5 million), 30% for Manitoba (from $28 million to $36.4 million) and 44% for Nova Scotia (from $7 million to $10.4 million).

Nor do all minerals have spending on six-year lows. Although coal sits at a five-year low of $113.1 million, that’s nearly double the amount spent in 2010. Uranium exploration and appraisal gets $172.1 million in 2015, a bit better than its 2013 low of $167.4 million. Diamond spending should reach a six-year high of $119.6 million. The Northwest Territories gets $76.7 million of that, which accounts for just over 81% of the NWT total.

Of the national total, majors plan to put up $1,130.9 million this year and juniors the other $748.9 million. Ontario has the greatest major/junior disparity, in which the big guys plan $308.8 million, compared to $91.1 million from their smaller cap cousins. The gap’s narrowest in Quebec, where majors plan $145.3 million, followed closely by the juniors’ $135.6 million.

Natural Resources Canada defines exploration and deposit appraisal as “on-mine-site and off-mine-site activities, field work, overhead costs, engineering, economic and pre- or production feasibility studies, environment and land access costs.”

See the Natural Resources Canada data.

How fares Canada in the Fraser Institute’s global mining survey?

February 25th, 2015

by Greg Klein | February 25, 2015

Saskatchewan’s number two worldwide, Quebec’s back in the top 10 and Manitoba climbed 17 notches. But Alberta, Ontario and British Columbia took a beating in the latest Fraser Institute survey of mining jurisdictions. Released February 24, the study rates 122 jurisdictions (including provinces and states in Canada, the United States, Australia and Argentina) based on 485 returned questionnaires. Drawing on their 2014 experience, mining and exploration companies provided numerical ratings for a number of factors, which the institute tracked on separate indexes.

Most important is the Investment Attractiveness Index, which combines two other indexes—Best Practices Mineral Potential (geology) and Policy Perception (government attitudes). The institute weighs the IAI 60% for geology and 40% for public policy, roughly the same consideration companies reported for their investment decisions.

Here’s the top 10 IAI globally, with 2013 rankings in brackets:

1 Finland (4)
2 Saskatchewan (7)
3 Nevada (2)
4 Manitoba (13)
5 Western Australia (1)
6 Quebec (18)
7 Wyoming (11)
8 Newfoundland and Labrador (3)
9 Yukon (8)
10 Alaska (5)

Here are the Canadian runner-ups:

15 Northwest Territories (25)
21 New Brunswick (23)
22 Alberta (10)
23 Ontario (14)
28 British Columbia (16)
29 Nunavut (27)
42 Nova Scotia (47)

Prince Edward Island wasn’t included.

As for the bottom 10:

113 Sudan
114 Nigeria
115 Bulgaria
116 Guatemala
117 Egypt
118 Solomon Islands
119 Honduras
120 Kenya
121 Hungary
122 Malaysia

The 122 jurisdictions totalled 10 more than in 2013. For inclusion, the institute requires a minimum of 10 responses per jurisdiction.

The anonymous replies also included comments which, for Canadian provinces and territories, note serious but unsurprising concerns.

But for some people, the rankings rankled. B.C.’s 10th-place finish out of 12 Canadian jurisdictions doesn’t jibe with the province’s second-place status for mining investment, according to the Association for Mineral Exploration British Columbia. Citing data from Natural Resources Canada, AME BC credited Ontario as Canada’s favourite for attracting investment. Fraser Institute respondents stuck that province with ninth place in Canada.

“Furthermore, one of the best indicators of success in exploration is seeing discoveries move through to mine development,” said AME BC president/CEO Gavin Dirom. “In recent years, we have seen a number of new major metal mines constructed in our province, including Copper Mountain in 2011, New Afton in 2012 and Mount Milligan in 2013. Also, Red Chris is being readied for commercial operations, and the KSM and Kitsault mine development projects have received environmental assessment certificates.”

The NWT and Nunavut Chamber of Mines noted the Northwest Territories’ considerable improvement and its breakaway territory’s slight slump. The organization vowed to continue working with federal and territorial governments “to improve the investment climate for exploration and mining in the two territories.”

Download the Fraser Institute Survey of Mining Companies 2014.

Yellowknife’s Giant mine bomber gets extended leave

January 26th, 2015

by Greg Klein | January 26, 2015

Sentenced to life imprisonment for killing nine strikebreakers in 1992, Roger Warren has been granted extended medical leave, Canadian Press reported January 26. Now 71, he had been on day parole since June after being released from a minimum security prison near Vancouver.

Yellowknife’s Giant mine bomber gets extended leave

In 1993 Warren, after agreeing to an RCMP lie detector test, admitted planting a bomb that killed the men during an acrimonious strike at Yellowknife’s Giant mine. He stated that he climbed down an unguarded shaft and connected explosives to a trip wire. A passing man car carrying nine workers detonated the bomb. Warren later tried to recant his confession but was convicted in 1995 of nine counts of second-degree murder. The judge called his actions “nothing less than an act of terrorism.”

Employees had walked off the job after the owner, Royal Oak Mines, called for cutbacks in wages and benefits due to a declining gold price. The bitterly divided town of 17,000 then experienced vandalism, arson, brawls and a near-riot following the company’s decision to bring in replacement workers and a private security force.

The union told media it was willing to tie wages to gold prices but wanted improvements in safety. “We just don’t want to see [Westray] happen here,” one striker told reporters, referring to the Nova Scotia mine accident that killed 26 underground workers in May 1992. Warren’s bomb went off three months later.

On behalf of the victims’ families, the Workers’ Compensation Board launched a $10-million lawsuit against Royal Oak, the security company, the union and the Northwest Territories government. In 2010, after 16 years of litigation, the federal Supreme Court dismissed the action.

The mine shut down in 1999 after Royal Oak went into receivership. The company left Canadian taxpayers with an estimated $903-million bill for a yet-to-begin plan to clean up 237,000 tonnes of arsenic trioxide.

“Giant was built before northern miners were required to post environmental cleanup bonds,” stated CP in March 2013. “In fact, the mess left at Giant is one of the reasons such legislation was drafted.”

Alberta most attractive mining destination in Canada, third worldwide

March 3rd, 2014

by Cecilia Jamasmie | March 3, 2014 | Reprinted by permission of MINING.com

Alberta most attractive mining destination in Canada, third worldwide

Oilsands development in northern Alberta.

 

For the second consecutive year, Alberta—home to the booming and controversial oilsands industry—ranked first in the country and third worldwide as the most attractive jurisdiction for mining investors in the Fraser Institute’s annual global survey of mining executives.

The study, released March 3 as the Prospectors and Developers Association of Canada convention kicked off in Toronto, is based on input from 690 mineral exploration and development company executives.

Sweden and Finland scored the top places in this year’s survey, which spotlighted 112 jurisdictions worldwide. Kyrgyzstan and Venezuela were named the worst two countries to venture.

“Miners praise Alberta for its transparent and productive approach to mining policy. The province offers competitive taxation regimes, sound legal systems and relatively low uncertainty around land claims. That’s what miners look for,” said Kenneth Green, Fraser Institute senior director of energy and natural resources.

Two other Canadian jurisdictions—New Brunswick (7), and Newfoundland and Labrador (9)—ranked in the top 10 worldwide, followed by Saskatchewan (12), Yukon (19), Quebec (21), Manitoba (26), Ontario (28), Nova Scotia (29), British Columbia (32), Nunavut (44) and the Northwest Territories (47).

Quebec, once the darling of mining investors, continued to fall down the rabbit hole. From 2007 to 2009, the French-speaking district topped the survey, then dropped to fifth in 2011, 11th in 2012 and finally 21st worldwide in 2013, due in part to amendments to Quebec’s mining act and recent tax policy changes.

“If Quebec wants to renew confidence in the global mining sector, it should reduce red tape, minimize the risk associated with policy changes and tax increases, and respect negotiated contracts,” Green said.

B.C. dropped to 32nd from 31st in 2012, though the survey recorded improved perceptions regarding the western province’s political stability and availability of labour and skills.

The Canadian public policy think tank also identified the 10 places mining enthusiasts should avoid. From the bottom, they are Kyrgyzstan, Venezuela, Philippines, Argentina (La Rioja and Mendoza), Angola, Zimbabwe, Ivory Coast, Indonesia and Madagascar.

Reprinted by permission of MINING.com

Week in review

March 1st, 2013

A mining and exploration retrospect for February 23 to March 1, 2013

by Greg Klein

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Another spring fever for graphite?

As one of Chris Berry’s “energy minerals”, graphite had an energetic week with the biggest news coming from Energizer Resources TSX:EGZ. The company’s Molo graphite deposit in Madagascar reached another milestone Tuesday with its preliminary economic assessment.

But to start with Monday, Rock Tech Lithium TSXV:RCK released drill results from the Plumbago area of its Lochaber project in southern Quebec. The same day Nevado Resources TSXV:VDO did the same thing for its Fermont property in the province’s northeast.

A mining and exploration retrospect

Coinciding with Energizer’s Tuesday release, Pistol Bay Mining TSXV:PST announced an option on the Portland graphite property in southeastern Ontario. Also on Tuesday, Canada Strategic Metals TSXV:CJC released metallurgical tests from its La Loutre property back in southern Quebec.

More metallurgical news came the following day from Standard Graphite’s TSXV:SGH Mousseau East deposit, again in southern Quebec. Then on Thursday Mason Graphite TSXV:LLG weighed in with drill results from Lac Gueret in northeastern Quebec.

No graphite news on Friday, however. Presumably everyone was en route to PDAC 2013, where they’ll conspire to pump up a repeat of last spring’s graphite mania.

No wait, this is the hottest new commodity

“Rhodium, the scarcest precious metal used in making catalytic converters, is outperforming platinum and palladium for the first time in seven years as global car sales rise to a record,” stated a Thursday Bloomberg report.

“The metal, used with palladium and platinum in pollution-control devices, rose 16% this year, about three times the increase of the other two ingredients and 20 times more than the benchmark commodities index (MXWD). Output will trail demand for four more years after the first deficit since 2007 [took place] last year [and eroded] inventories, Standard Bank Plc’s SBG Securities … forecasts.”

It seems to be gaining safe haven status too. “Baird & Co., a UK precious metals dealer, sold about 10,700 one-ounce rhodium bars … more than 10 times the amount planned when production began in May 2012,” the news agency added. “The London-based company expanded with bars that weigh one-tenth an ounce to five ounces to meet increased demand.”

A Baird spokesperson told Bloomberg, “At the moment we can’t make them quick enough so we are stepping up production. The market is so thin that it just needs a car company to buy a year’s worth of production or a hedge fund to pull out a little bit of loose change. It doesn’t take a lot to create quite sharp price movements.”

De Beers blockade: Cops’ lack of resolve resolves nothing

At press time Friday, De Beers’ Victor diamond mine in northern Ontario had gone seven (7) days without an illegal native blockade. The most recent roadblock ended late February 22 when the five or six protestors simply left. Then, and only then, did police move in.

So far the company has lost nearly half of an approximately 45-day opportunity to haul a year’s worth of heavy supplies over a seasonal ice road. As a result, the mine might face a temporary shutdown, the Timmins Daily Press reported on Tuesday.

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Up north and Down East

February 20th, 2013

NSGold drills Nova Scotia, Northern Freegold reaches PEA in Yukon

by Greg Klein

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News from Nova Scotia shows open pit potential for the province’s oldest known gold mine, the Mooseland project. On February 20 NSGold Corp TSXV:NSX released a batch of assays from a 15-hole, 948-metre, near-surface West zone campaign. Some highlights include:

NSGold drills Nova Scotia, Northern Freegold reaches PEA in Yukon

Earlier core samples came from deeper drilling, while
Mooseland’s most recent campaign stayed above 75 metres.

  • 36.8 grams per tonne gold over 0.6 metres
  • 15.21 g/t over 1.7 metres
  • 9.93 g/t over 1 metre
  • 7.1 g/t over 1 metre
  • 6.25 g/t over 1 metre
  • 11.49 g/t over 1 metre
  • 8.44 g/t over 1 metre
  • 9.44 g/t over 1 metre
  • 18.76 g/t over 1 metre.

A 0.5 g/t cutoff grade was applied. True widths were estimated between 91% and 93%. The top-most interval started at 5 metres from surface while the deepest stopped at a down-hole depth of 79.4 metres.

Two of the 15 holes were abandoned after hitting historic workings. The other 13 “all encountered the expected, relatively sulphide-rich, quartz-bearing argillite zones,” NSGold stated. The West zone’s relatively shallow overburden and the geometry of the near-surface saddle veins are “of particular significance from a potential open pit mining perspective,” the company added. The West zone extends about a kilometre along strike. Unlike the most recent campaign, the zone was previously drilled at deeper depths.

Mooseland’s June 2012 resource estimate uses a 2.6 g/t gold cutoff showing:

  • a West zone inferred estimate of 1.46 million tonnes averaging 5.52 g/t gold for 259,000 gold ounces
  • an East zone inferred estimate of 1.06 million tonnes averaging 5.72 g/t for 195,000 ounces
  • a total inferred resource of 2.52 million tonnes averaging 5.6 g/t for 454,000 ounces.

Apart from drilling its flagship Mooseland project, NSGold last December announced gold-silver-polymetallic sampling at its Cheticamp property, also in Nova Scotia. In January the company optioned the Silver Hill property, a potential gold or gold-silver project in Nevada. The same month Phase II drilling began at the Dios Padre silver project in Sonora state, Mexico, by NSX Silver TSXV:NSY. A spinout of an NSGold subsidiary, NSX Silver holds Dios Padre under option from NSGold.

NSGold’s chart had flattened out at $0.085 since February 12, but slipped to $0.075 on February 20 before closing on $0.085 again.

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