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By Dave McCracken

“Planning to Get it Right the First Time”

Dave Mack

Planning for a mining program largely involves the following elements:

1) Legal
2) Location and accessibility of the project site
3) Politics with government and local people
4) Timing
5) Operational considerations
6) Shelter and living-support
7) Specialized equipment
8) Supply of food, fuel, supplies and other needs
9) Security
10) Medical and/or emergency support
11) Communications
12) Personnel

All of these elements are vitally important and each must be managed well to make a mining program successful. I’ll just briefly discuss each element in general terms.


Sometimes, it is necessary to construct your own road into a remote location.

Because every project is different, relative levels of importance will change depending upon local circumstances. To give you some idea about this, I encourage you to read several articles about the challenges we have faced on different types of projects from our own past experience. Reading through the stories will give you insight into why good planning in advance vastly increases the potential for success in any project:

Legal

The serious part begins with acquisition of the legal right to pursue a mining project. While this is always important, the need to protect your own interest increases in proportion to the magnitude of your investment. It also increases in proportion to the potential for valuable success. My best advice would be to make sure your legal rights are secure during the very early part of the development-stages in your mining program.


Because gaining the legal rights to a mineral property can sometimes require substantial investment in itself, it is not uncommon to perform the preliminary evaluation, or even a preliminary sampling operation, before negotiation of legal rights are finalized. In this case, it can be wise to negotiate the final terms in advance, pending the outcome of your preliminary evaluation or sampling.

In other words, you might not want to buy or lease a mineral property until you are certain for yourself that a commercial opportunity exists for you there. And you also probably will not want to invest the resources to prove-out a deposit unless you are certain you can develop a project if something valuable is found. Balancing these two needs is a challenge that must be overcome.

Note of caution: In the event that you will invest your own resources into some preliminary field-work to evaluate a property before final negotiations are completed, some consideration should be given to keeping the results of your initial observation and results confidential. This is so that the information does not undermine your position in the negotiation. While this is not always appropriate (depends upon your agreement with the property-owner), it is definitely something that should be considered during planning.

The bottom line is that you will want to make sure that your investment into a project is going to be secured by legal agreements in advance.

In some countries, dealing with the officials can be the biggest challenge to your project manager.

Another note of caution: One has to be particularly careful when negotiating agreements with private parties and/or government officials in developing countries. Sometimes corruption will undermine the rule-of-law. Under these circumstances, legal agreements may not be enforceable. The U.S. State Department usually publishes a brief risk-assessment about doing business in most countries.

In any event, if you decide to proceed, it is wise to secure the services of competent legal professionals residing in the country where you will do business.

Location and Accessibility


The location of your potential project site(s) will substantially affect the cost and difficulty of pursuing a mining program. Equipment, fuel, supplies and personnel must be transported to the site, and withdrawn when the project is complete. This will need to be accomplished either over land (using roads or trails), by water (using boats) or by air (using airplanes or helicopters).

“Remoteness,” these days, often has more to do with the cost of transport, than the distance things need to be moved. For example, a project site that is accessible by a 2-day river trip on a sizable transport-boat can be much-more easily accessible, than a site that is much closer to civilization, but requires everything to be transported via a 45-minute helicopter ride.

  

As every situation is different, important consideration and cost-analysis must be given to how you will move gear, supplies and people to and from your project site.

The more remote the location, the higher-grade the mineral deposits will need to be to justify a mining project.

Politics with Officials and Local People

Any mining program will find itself interacting with government officials and people who reside in the area where the activity will take place. The politics involved with these various relationships is important to maintain, and always will depend, in large part, upon good judgment and emotional flexibility by the project manager. This is even more true when local people will be hired to help support the mining project.

Environmental considerations fall into this element. Not just the true environmental consequences; but just as importantly, the perceived potential impacts that local people, various NGO’s and government officials worry about — even if their perceptions are not based upon reality. You have to manage the real environmental considerations, and you also have to respond to the way people are reacting to your mining program.

Managing relationships with officials in developing countries is a very challenging and risky business.

Because each situation is entirely different, no matter where you do your mining, the best advice I can give concerning this important element is to make sure you have a level-headed project manager that has some vision and understands that every action will have a consequence.

 

Timing

It takes very specialized people to recover good samples off the bottom of a muddy river.

Effective dredging operations require underwater visibility. Visibility is necessary to execute a planned excavation of a dredge-hole, and also for more than one diver to work underwater in the same excavation.

Muddy water turns visibility to pitch black just inches below the surface. Submersible lights do not help, because they will not penetrate through suspended sediments. So a dredger’s progress in dirty water is reduced to whatever he can or she do by feel. It is a very slow process, and safety-margin for the diver is radically-reduced.

Many mineral-rich areas on the planet have distinct wet and dry seasons. It is important to look into this. Because waterways most-often flow at higher, faster levels during the wet periods – and can also run with poor or no underwater visibility.

More often then not, Rainy seasons create conditions that prevent dredging operations from being effective. It is very wise to plan your sampling and production programs to begin at the beginning of the dry season.

  

Besides making dredging conditions nearly impossible, the rainy season can also turn road-access into a nightmare! As an example of this, check out the following video sequence that I captured on a road in Cambodia during the rainy season:

When operating in developing countries, unanticipated delays can often delay start-up times by weeks or months. So it is better to time such programs to have all the legal matters resolved, important relationships in good order, and equipment ready to go well in advance of the dry season. While this may sound obvious, more often than not, our Pro-Mack Team has been called in to help with dredging programs just as the rains were beginning and the river was turning muddy. The water was so dirty in the following video sequence, that it was pitch dark only inches below the surface:

Starting a dredge-sampling or production program during the rainy season is near to creating a mission-impossible scenario for the project manager. And your divers, no-matter how enthusiastic they are in the beginning, are likely to lose some of thier motivation to continue once they experience the nightmare of a dark and mucky river-bottom..

Still, sometimes you are forced to do preliminary sampling when conditions are not ideal. In this case, it is important to make safety the primary concern and also realize that results will only be a fraction of what can be accomplished under more suitable conditions.

Project operational considerations

This is all about how you are going to do the sampling or production-part of the program. This is the mission-plan. What are you going to do? Where? For how long? Exactly how are you going to accomplish it? Who is going to participate? With the use of what gear and supplies?

Are you going to need a boat to move your equipment, fuel and people around on the river, or are you going to use roads or trails? Will your access to different places along the river be challenged by extreme fast-water areas, or water that is too shallow to float the dredge?

Are you going to set up a single base camp and return there at the end of each day? Or are you going to move the camp as you make progress sampling along the river?

How deep is the water and streambed material? This will affect the type and size of dredge you will need to accomplish the job, how much dredge-power you will need, and how long the suction hose and air lines need to be.

Will you be dredging in fast water areas? This might require you to bring longer hoses to extend your reach while keeping the dredge tucked into slower-water pockets along the edge of the river.

Are there any critters in the water, or along the edge, that you have to defend against? What special gear is needed for this?

In some places, equipment to move big rocks is even more important than the dredge you will use. Are their big boulders that will require special winching gear to move?

Will you need to bring along special tools to cut a trail or to build living platforms in the jungle?

How are you going to recover the gold (or gemstones)? This is a big question that should be resolved as well as possible during the preliminary evaluation, and entirely confirmed during sampling. If a specialized recovery system or process is required, you will need to bring the gear and supplies along with you so you can perform those tasks.

Shelter and living-support

How you will feed and shelter the people who are part of your project largely depends upon the nature of the people involved, how dangerous or uncomfortable the environment is, and how long they will be there.

  

Generally, you will find that helpers from the local village have their own way of providing shelter for themselves and the food that they eat along the river. Sometimes, they don’t require much more from you than a plastic tarp and some rice. I have been in a lot of jungle environments where the local help either brought along their own hammocks and a cooking pot, or already had small shelters set up along for themselves the river.

It is important to address the needs of the local help (which are usually not much) during the preliminary evaluation, and not impose conditions (or food) upon them that they are not comfortable with.

Bringing specialists into a harsh environment from the comforts of civilization requires careful planning. While this may not be true everywhere, it is my own experience that while local helpers are somewhat amused by the special requirements of westerners, they usually do understand that we are not jungle-dwellers like they are. However else they may feel, there is always respect (and desire) for the nice toys and tools that we bring along.

Sometimes, the most important part of shelter is to get off the ground.

The bottom line is that you must bring along whatever is necessary to shelter your personnel from the dangers and any severe discomforts of the environment. Every place is different. A tent goes a long way to keep bugs and (smaller) critters separated from people. Sometimes (often) it is necessary to set up camp off the ground, even when tents are being used. This may require bringing along some wooden boards to put up a platform. Sometimes the platforms already exist, made out of lumber, bamboo or small trees. Sometimes they can be constructed from materials that are present on site. For example, the following video sequence shows a preliminary base camp where tent platforms were constructed from hardwood lumber sawed out of trees on site (with a chain saw):

The locals will know what you need to do to keep your personnel safe from the more serious threats. You will have to use your own judgment how to provide people with support that will keep them reasonably comfortable under the circumstances. It is important to figure this out during the preliminary evaluation.

On many of the projects that I have been involved with, we hired several helpers from the local village that were also good at hunting and fishing. This reduced the amount of food that we needed to bring along.

A word of caution: When hunters bring dogs, it is wise to avoid making very much contact with them. These jungle dogs are loaded with critters that would much-prefer a human host! Hunting dogs generally increase the need to reside off the ground.

Another word of caution: When living with jungle-dwellers, you must be especially vigilant at imposing strict sanitary measures with anything to do with the food and water that you will consume. This is not easy; because your jungle helpers will not understand, and it is near-impossible to overcome normal routines that are part of their life and culture.

There is a lot to be said about bringing along a special cook who will look after the food and water-needs for the personnel on the team that come from non-jungle environments. This must be a person who already understands basic sanitary principles; and ideally, who normally resides within an environment where such measures are practiced. We have found from past experience that it is too late to try and teach sanitary measures to someone (who will prepare your food) after you arrive in the jungle. And since you cannot watch everything that is done to prepare your food, you can find yourself with a whole crew of sick (sometimes seriously) people even before you hardly get started!

The bottom line is that you have to plan on providing food and water that will not make your people sick, and it is important to provide them with a reasonably comfortable, safe environment to sleep at night.

Specialized equipment

As we have discussed equipment needs in other articles, I will not go into them here. The main point is that you must bring along the gear that will allow you to accomplish the mission.

When accurate samples are required where special recovery equipment is needed, and the sampling must be accomplished with portable dredging equipment, it is sometimes necessary to dredge the samples into special, floating catch-containers. Then the samples can be carefully processed on land.

Here is where you can buy Gold Prospecting Equipment & Supplies.

 

Supply of food, fuel, and other needs

It is important during the preliminary evaluation to establish where you will acquire fuel, food and other supplies to support your program. There are many primitive areas in the world that do not have structures, services and supplies like we do in the west, so you cannot just assume operational needs will be readily available. For example, the following video segments show areas where we have had to supply mining projects where even small corner food markets are not present, much less Safeway or Albertsons:

Sometimes, access is such that you can plan for a continuing supply of essentials and other needs as the program moves forward. Sometimes, difficult access requires that you bring everything in at the beginning, or plan on occasional deliveries. To keep costs down, deliveries must often be arranged by local boat traffic or by cart over primitive trails. The following video sequence was captured on a project we did in Madagascar, where local deliveries were made by ox cart:

Occasional or regular deliveries increase the need for dependable communications and financial arrangements so that you can better-coordinate with those who will provide the support from a distance.

As there is no refrigeration in the jungle, it is usually true that hunters will need to come up with something every day to keep meat or fish on the table. Even if local help will provide a local supply of protein, we have found that it is a good idea to bring in a supply of freeze-dried meals or canned goods – just in case the hunters have a dad day. Being hungry is hard on morale!

Security

Security is always a concern on a mining operation, on multiple levels. There is the gear out on the river, the gear and supplies at the base camp, the personnel involved with the operation, and the product that is being accumulated. Understandably, every situation is different; so flexibility and good judgment is required.

Under a lot of circumstances, many security concerns can be resolved by investing some advanced-effort and goodwill into the politics with the village(s) in the surrounding area, and with the local people that are hired to help you. A good manager will strive to find the balance between helping a little with the needs of local people, with getting the job accomplished that he is there to do within the budget he has to work with.

One of the first key people to hire in a mining program is a good interpreter. This must be a person whose politics are not in conflict with the local villages. It is important that you enquire about this, because sometimes there are politics going on that you cannot see on the surface.

One of the first priorities during a preliminary evaluation is to pay a respectful visit to the village chief or elder(s). Bringing along a bottle or two of whiskey to present as a gift (unless it is a Muslim community) is almost always a great inroad, and eliminates the requirement that you drink the local brew (which can make you sick) when making friends.

I always make a strong effort to bond with the leaders of the local village(s). For the most part, it is accurate to predict that politics with the local people will go just about as well as you have made friends with the local leaders. Here is a place where a little time can be invested well.

When visiting with local leaders during the preliminary evaluation, I look around to see what I might bring as meaningful gifts that can be shipped over with the sampling gear if we decide to take things to the next level. I am not talking about spending a lot of money on gifts. Flowers don’t cost very much, but look how much they are appreciated when you present them in a meaningful relationship! Thoughtful gestures go a long way in a new relationship, especially when there is a wide gap between the cultures and the toys being played with.

Being thoughtful in advance can be far less costly than the loss of key gear or equipment by theft, once you are committed to a sampling program.

Some mountain-river environments have very limited access, and not very many people or traffic are moving around. These communities can be rather small, and there are not many secrets. If the general consensus amongst the local people is to support you and/or leave you alone, you will usually not have very many problems with security.

Sometimes you have to resign yourself that there will be a continuous audience of onlookers watching the mining activity along the river. This is mostly because local people have never seen anything like that before. So it may be necessary to work out some reasonable boundaries with the village elders.

  

Whenever possible, we set up camp some distance away from the local village. This is good practice for a number of reasons. But mainly, it sets up a natural boundary (by distance), creating some degree of privacy. I have never been on a project where local villagers did not respect the privacy we created by setting up our camp some distance away.

I have also found that bringing along some small gifts (like extra pocket knives or Leatherman tools) goes a very long way with the most productive helpers. Although, I keep those out of site, and only pass them out after I have managed some initial bonding with some of the helpers. Special rewards to the most enthusiastic supporters can help build productive relationships.

Generally, we have found that if you treat them with respect and kindness, helpers from the local village understand that we are not the same, have special needs that are different from theirs, and possess desirable belongings from another world – which belong to us. If something turns up missing, I usually make an issue of it right away. This can cause the item to turn back up a little later and eliminate future problems in this respect.

Places where your personnel are in danger from other human beings will require site-specific security measures. Some mineral-rich areas have ongoing civil wars, separatist groups or insurgencies to worry about. Some places have people or groups that kidnap outsiders and hold them for ransom as a means of supporting themselves and their political movements. Needless to say, these are concerns that are important to discover during the preliminary evaluation. Such concerns will almost always be outlined within the State Department’s information about the country. The following video segment was taken in Cambodia on a project where it was necessary to maintain our own local security force:

Increased security problems raise the level of cost. Therefore, the mineral deposits must be richer to justify the risk.

Some careful thought needs to be given to how you will secure money, gold or gemstones, sample results and the other valuable possessions during a mining project. This should probably involve a security safe during an extended production program.

During a sampling program, it just might be that the project manager needs to keep the valuables in his personal possession. Waterproof bags are good to have along for this.

A word of caution about this: If you are making payments to others in the field during a project, it is unwise to pay directly from the source of where you are keeping the valuables. For example, opening up the day-pack where you are keeping all the valuables to pay a vender in the village. Because secrecy is the only security you have protecting those valuables, it is better that outsiders do not see where they are being kept. Keep the bigger money-stash a secret from anyone who does not need to know. In a private place, pull out enough to pay for things, holding that money in a pocket, wallet, belt-pack, or whatever.

This secrecy-concept also extends to the gold you recover on a mining program. Especially during production! We always set up the final processing structure well away from local traffic, and only allow those near that should or must be involved. The product is never shown or advertised around. It is also hidden like the money, if there is not a well-anchored security safe where it can be locked up.

Showing large amounts of money or other valuables (relative to local levels of income and wealth) is a sure-way to increase security-risk on any mining or sampling operation.

As long as we are on this subject, you also should be careful with your valuables in hotel rooms within developing countries. Keep valuables out of sight, locked up in a suitcase, on your person – or sometimes the hotel provides a safety deposit box. You have to use your own judgment what is the best way to keep things safe. It can be a big mistake to assume the hotel staff, or even the manager, will not go through your room and belongings when you are not present!

 

Medical and/or emergency support

When setting up a mining program, it is important to establish how and where your personnel are going to receive medical care if they need it, and also emergency support if there is any kind of serious problem.

A lot depends upon how inaccessible the project site is. When there are villages nearby, you can sometimes find some local medical assistance for matters that are not of a serious nature.
The villages sometimes will have a method worked out to manage medical emergencies.

Sometimes you can locate an emergency-evacuation service from a larger town or city that will send a helicopter or small plane to recover someone who needs emergency medical care. It is a good idea to arrange this service in advance, and work out how you will communicate with them in the event that you need their help (at any hour). It is a good idea to arrange a medical-evacuation service, even if there are local medical services available. This is because medical care generally is better as you get to larger hospitals that provide service to bigger populations

   

There is also international emergency medical evacuation insurance available at relatively low cost. This service will send a medical team out to recover you in a medical emergency anywhere in the world when competent medical assistance is not available where you are located. We always require any and all personnel who accompany me on a project outside of America to obtain this type of insurance.

While there are probably many other options for this type of insurance, I have personally had good luck with Travelex Insurance Services (800 228-9792). They provide $50,000 in world-wide medical evacuation/repatriation insurance, plus other benefits, at a cost of around $260 per year. And I happen to know that they make good on it. One of my guys was critically injured in an automobile accident during a project in Madagascar several years ago. Local medical care was poor. So the insurance company immediately arranged to send an airplane with a medical team on board. They evacuated my guy to La Reunion Island (France), where they proceeded to save his life. As soon as he was safe to move again, they repatriated my friend to a hospital in San Francisco. He survived only because of this insurance.

The type of work, and the environment where we perform it, is already dangerous enough. Preventative measures are the best way to avoid medical emergencies. The more remote the location, the more careful everyone has to be.

During preparation for a project, one of the first things we do is have all my helpers go into the local county health department (America) and bring themselves up to date on every inoculation that makes good sense for the location where we will do the project. Because we work in the water, it is important that my guys are up to date on their hepatitis, typhoid and tetanus shots. In addition, county health departments have written guidelines (put out by the World Health Organization) for all areas of the world, listing other concerns (and preventatives) for specific areas.

The three primary ways to get into a medical situation during a project are:

A) Accidents: While accidents do happen, they mostly can be avoided by planning things out well in advance and having responsible people involved who are being careful. Good management and responsible people can generally stay a few steps ahead of Murphy’s Law (Anything that can go wrong, will go wrong, at the worst possible time!).

 

No matter how good they are at what they do, we never include “wild and crazy guys” in projects where I am asked to participate or provide a team. The risks to the project are too high.

B) Critters: The local people will know what they are and how to deal with them. It is important to find out what the threats are, especially within the water-environment where we work.

Because we dredge in the water during the sampling phase, it is vital to find out what the critter-problems are (if any) during the preliminary evaluation.

When I first visit a potential project site, one of the most important things I look for is to see if local villagers are bathing, doing laundry and swimming in the river (especially the children). It is always a good sign if they are. Life revolves around the water along these river-communities. So if you do not see people in the water, it is important to find out why.

There are plenty of things to worry about in the water – like snakes, flesh-eating fish, flesh-eating reptiles, electric eels, different types of aggressive mammals, and smaller critters that make you sick in different ways. The local villagers will know about them all (if any). They will also know how to avoid danger. When talking to the locals about the potential dangers to divers in the water, I cannot over-stress the importance of having along a really good interpreter – who will take his time and do his absolute-best to establish some dialog and understanding on this important subject.

If there are local villages within the vicinity of where we will do a project, during the preliminary evaluation, I try and visit each and every one of them. Besides the other things that I do during these visits, I also try and find out if there are sick people in the village – and what they are sick from. In addition to gaining an idea if the sickness might be something that could impact upon our project, it also creates an opportunity to return with medical supplies to help the village if and when we follow up with a sampling program. Helping the sick people in a village is a sure-way to make friends.

C) Sanitation: During my visit to the local villages, I also look to see what they are doing for toilet facilities. If they are going right out into the river, we will need to bring along our special full-face dive helmets to reduce exposure to dangerous bacteria.

Often, the primary sanitation-concern is inside your own base camp. Not to get too graphic about this; but it is common practice all throughout the developing world (especially in the remote areas) for people to wipe themselves with their hand, not wash well (if at all), and then go directly into food-preparation. Locals normally can drink water (with apparent impunity) from the river (or a well having ground water exposed to unsanitary conditions from the village); water that would put an outsider into a good hospital for a week (and there probably won’t be a good hospital around under those circumstances)! They use that water for drinking and cooking. Because these are practices everyone does in their community, and they are part of their everyday world, it is nearly impossible to have locals do food preparation for you without substantial risk to your personnel.

The best way to avoid continuous problems with sanitation (can be very serious), is to set up your own camp some distance away from local communities and bring in your own cook. This can be someone from the same country who lives in an environment where sanitary-measures are a normal way of life. Then, your cook must insist that he or she is the only person that comes in contact with the food that you will eat and the water you will drink (and that will be used for cooking). This can be a little tricky when there are hunters or fishermen involved, but it can be worked out.

When initially setting up a base camp, it is important for the project manager to walk through and review all the vital elements that will affect sanitation. How and where are the toilet facilities set up? Does everyone know where to go? Is there tissue paper — and will people actually use it? Is there a place to wash up (with soap)? Where is the drinking water coming from and being stored? Is that being kept well-separated from unsanitary water? Do all your personnel know where to find the good water? How about the cooking water? Where are the cooking and eating-utensils being cleaned up and then stored? Who is cleaning game animals, how and where?

We also always bring a medical kit along. Besides the standard items included in an emergency medical kit, here is a list of items that we also include:

Aspirin
Anti-Rash powder/spray
Domeboro-ear preventative
Ear antibiotics
Eye wash
Hydrogen peroxide
Antibiotic ointment
Pain pills
Internal antibiotics for wounds
Antibiotics for respiratory-infection
Diarrhea antibiotics
Lip balm
Salt tablets
Thermometer
Malaria medicine
Alka Seltzer
Tums (anti acid)

While all of these items can be purchased over the counter in many places outside of America, it is wise in today’s world to obtain a doctor’s written prescription for any items that would require it during international travel.

 

Communications

Several levels of communication are necessary in a mining operation. Communication is usually necessary between project personnel and local helpers, between the different personnel involved with the project, and between the project and the outside world.

For communication with locals, I cannot overstress the importance of finding someone who knows each of the languages very well, who is honest, helpful and genuinely interested in your project. This is just as true when dealing with government officials.

An enthusiastic interpreter will dig for the information that you want to obtain. When communicating with local people on the river, sometimes it is necessary to ask many questions in different ways, to different people, to bring them around to the same concepts that you are trying to express. When you work with people from different cultures who have radically-different backgrounds, often you find that they just do not conceptualize things the same way that you do. A good interpreter is able to bridge this gap and help you get the information you want with some degree of accuracy. He will also help you avoid misconceptions or misunderstandings that can build up stress with locals along the river.

There are plenty of low-cost weatherproof walky-talkies available today which can be very helpful in a field environment where personnel are separated by relative short distances – like between the base camp and where some mining or sampling is being done along the river.

Longer-range radios are often used between the base camp and civilization. Although atmospheric conditions sometimes make this mode of communication unreliable.

Satellite phones keep getting more portable and easier to use as time moves forward.

The cost of satellite telephone systems has come down dramatically during the past few years, and is probably the best solution for a remote base camp’s link to the outside world. Many satellite systems will allow a laptop computer to be connected for data-transfer. This is particularly useful for sending progress reports and images. It is also useful for sending supply lists to whoever is supporting the operation. A satellite telephone is very valuable in dealing with emergencies!

Personnel

I saved this section for last, because it is really the most important. If you study all of the material on this web site, you should realize over and over again that it is the personnel on your project that determine the final outcome. They are the key factor that makes it all happen.

Mining projects are not easy. There are many challenges to overcome. Every decision made by the manager and others involved with your project will move the world in a direction that either contributes or subtracts from the momentum necessary to reach key objectives. Ultimately, the people you choose to play in your band will determine exactly how the music sounds. I have discussed this very important element in other articles:

There are so many details that must be put in their proper place and managed correctly to accomplish a successful sampling program, or a production mining operation, that there is little chance of ultimate success unless the program is managed and implemented by experienced, responsible, enthusiastic people that are strongly motivated to make it all come out the right way.

 

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