Company Interviews

Interview with 
Shane Williams, President & CEO of West Red Lake Gold Mines
Alex Black, Executive Chairman of Rio2 Ltd.

Recording date: 25th April 2025

In a recent panel discussion, Shane Williams, CEO of West Red Lake Gold Mines, and Alex Black, Executive Chair of Rio2, shared valuable perspectives on gold mine development that investors should consider when evaluating mining stocks.

The executives lead distinctly different projects: West Red Lake's Madsen mine is a high-grade underground operation in Canada, while Rio2's Fenix Gold is a large open-pit low-grade project in Chile. This contrast highlights the diverse approaches within the gold mining sector.

Williams described Madsen as a data-driven operation requiring intensive geological understanding through 150,000 meters of detailed drilling. "It's not a visual mine. So you can't visually follow the gold," he explained. The mine employs three levels of geological modeling and will process 800 tons daily with an expected annual production of 65,000-70,000 ounces at full capacity.

In contrast, Black characterized Fenix Gold as "a massive 400 million ton ore body sitting at the top of a hill." Rio2 will move approximately 20,000 tons daily with a grade of about 0.5 grams per ton, compared to Madsen's 8 grams. First gold production is anticipated in January 2026, targeting 100,000 ounces annually by year-end.

Both executives emphasized that successful mine development depends on experienced management teams – a resource increasingly scarce in the industry. "There's been a brain drain in the mining sector over the last 20 years," Black noted, while Williams cautioned investors against taking management credentials at face value.

The discussion highlighted several red flags investors should watch for, including projects with extended development timelines. "A project should take three to four years to build roughly," Williams stated. "If that project is not moving, there's something there that either they can't advance or there's some issues."

The executives advocated for leadership approaches focused on empowerment rather than micromanagement. "If you're a micromanager, you're going to lose," Black emphasized, particularly in project development where numerous workstreams must progress simultaneously.

They also discussed industry challenges including the need for consolidation among junior miners, management ego as a barrier to necessary mergers, and the importance of transparency with shareholders.

For investors, the key takeaways include thoroughly evaluating management credentials, understanding the specific challenges of different mining methods, recognizing timeline red flags, and appreciating the necessity of transparency and appropriate leadership approaches in successful mine development.

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Interview with Philip Williams, Director & CEO of Iso Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/isoenergy-tsxiso-nyse-listing-on-horizon-as-company-expands-athabasca-basin-drilling-6792

Recording date: 25th April 2025

IsoEnergy, led by CEO Philip Williams, has established itself as a diversified uranium explorer and developer with a portfolio spanning Canada, the United States, and Australia. The company is advancing its flagship Hurricane project in Canada's Athabasca Basin, which boasts an exceptional resource of 48.6 million pounds at 34.5% grade, making it one of the highest-grade uranium deposits globally.

The Hurricane deposit's value extends beyond its impressive grade. Strategically located in the eastern Athabasca Basin near existing infrastructure, including the McClean Lake mill, the deposit continues across a property boundary onto land owned by Cameco and Orano. Recent drilling has revealed promising results, with elevated radioactivity detected in multiple locations, including a significant intercept 2.8 kilometers from the main deposit.

Williams employs a "fried egg" analogy to describe their exploration approach: "In the center of the egg is the ultra-high grade. And as you get to the outside of the egg, when you move out of the yolk into the whites, that's where you have lower grade." Recent findings suggest they've identified the "whites" of potentially new deposits and are now searching for the high-grade "yolks."

Beyond Hurricane, IsoEnergy owns past-producing uranium mines in the United States that could restart within 3-6 months when market conditions improve. These conventional mines offer significant operational flexibility, as Williams notes: "You can turn them on, turn them off, batch mine them," unlike larger projects requiring substantial capital investment.

With $50 million in cash and a $30 million equity portfolio, IsoEnergy is well-positioned to advance its business plan despite market volatility. The company's diversified strategy reduces the risks associated with single-asset, single-jurisdiction uranium companies.

Williams highlights a fundamental disconnect in the uranium market: "It costs more marginally to produce uranium than it's trading at right now. So at some point the rubber will hit the road." He believes an eventual price correction is inevitable as producers cannot sustain losses indefinitely.

IsoEnergy's ultimate vision is to build a robust, diversified uranium producer delivering shareholder returns across multiple timeframes. As Williams concludes, "In uranium, if you want to be a relevant long-term bigger player, you need to have multiple assets" – a strategy that positions IsoEnergy to weather the sector's volatility while capitalizing on expected long-term growth in uranium demand.

View IsoEnergy's company profile: https://www.cruxinvestor.com/companies/isoenergy

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Interview with Dr. Mike Jones, MD of Impact Minerals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/impact-minerals-asxipt-developing-critical-high-purity-alumina-project-in-australia-6331

Recording date: 23rd April 2025

Impact Minerals has announced a transformative 50/50 joint venture to acquire Hipura Proprietary Limited, positioning the company to fast-track its entry into the high-purity alumina (HPA) market. The acquisition includes a nearly-completed pilot plant capable of producing at least 25 tons per annum of HPA, requiring just final electrical connections and approximately $500,000 in capital to commission over the next 3-6 months.

The $2.2 million acquisition price is split equally between Impact and its partners, with Impact contributing $1.1 million. Both parties have also committed a further $1 million in working capital ($500,000 each) to bring the pilot plant to operational status.

"This acquisition significantly accelerates our path to production," said Dr. Mike Jones, Managing Director of Impact Minerals. Hipura's solvent extraction technology is similar to that used by Alpha HPA, which has achieved a billion-dollar market capitalization in the HPA space.

The joint venture company, named Alluminous, will operate independently with a board structure consisting of two members from Impact, two from other shareholders, and an independent chairperson who will have the casting vote in case of disagreements.

A key strategic element is the potential integration with Impact's existing Lake Hope project in Western Australia. Impact is exploring whether material from Lake Hope could serve as feedstock for the Hipura process, potentially reducing costs compared to the chemical feedstock currently required.

The acquisition positions Impact as the second most advanced HPA producer in the Australian market behind Alpha HPA. "No one else in the HPA space has either got a pilot plant or can produce anywhere near that kind of quantity. We've taken a huge step forward over our peers," noted Dr. Jones.

The HPA market has seen growing interest, particularly in applications for semiconductors, LED lighting, and batteries. Alpha HPA has reported indicative demand exceeding 30,000 tons for its 10,000-ton plant, suggesting strong market potential.

Unlike Alpha HPA's large-scale approach requiring significant capital expenditure, Impact believes the Hipura process enables a modular approach with smaller, more capital-efficient plants that can be scaled up as demand grows.

With North American investment groups involved in the joint venture, Impact is also eyeing potential geographical expansion, particularly targeting the growing semiconductor industry demand for HPA in North America.

The transaction is described as "clean" with no hidden liabilities or unresolved IP issues, providing a fresh start for the technology under the new joint venture arrangement.

View Impact Minerals' company profile: https://www.cruxinvestor.com/companies/impact-minerals

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Compass, episode 12

Our previous episode: https://www.cruxinvestor.com/posts/gold-shines-while-traditional-safe-havens-falter-7015

Recording date: 23rd April 2025

Mining royalty companies are emerging as an attractive investment option for those seeking commodity exposure with reduced operational risk. Recent market developments, particularly the acquisition of Orogen Royalties' tier one royalty on the Silicon deposit by Triple Flag, have highlighted the value proposition of these unique business models.

Unlike traditional mining operations, royalty companies operate on a fundamentally different model. They hold the right to a percentage of revenue, typically 1-2% of the net smelter return, providing commodity price exposure without the corresponding operational costs or risks. This business model originated in the oil and gas industry but has been successfully applied to mining, particularly in gold where returns are straightforward to calculate.

The key advantage of royalty companies lies in their risk profile. As Samuel Pelaez, President & CEO at Olive Resource Capital explains, these companies have "no exposure to the cost portions or the risk that's attributable to cost overruns and margin compression." Their sole exposure is to commodity prices and production success. Additionally, most royalty agreements include rights to exploration upside, covering new discoveries within the area of interest.

This capital-light business model allows companies like Franco Nevada to operate with minimal staff while commanding a market capitalization of C$46 billion. Once due diligence is complete and royalties are secured, the business essentially involves waiting for royalty checks to arrive.

Royalty companies typically trade at premium valuations of 10-20 times revenue compared to traditional mining companies. This reflects their lower risk profile and appeal to generalist investors seeking gold exposure without the complexity of evaluating individual mining projects.

"Tier one royalties" – those on large-scale assets in good jurisdictions – are particularly valuable but rarely held by small public companies. The recent acquisition of Orogen's royalty on AngloGold Ashanti's Silicon-Merlin project (with approximately 16 million ounces of gold resource) by Triple Flag valued it at approximately 15-16 times projected annual revenue.

When evaluating royalty companies, investors should focus on royalties that are either currently cash-flowing or have a clear path to production. As Derek Macpherson, Executive Chair at Olive Resource Capital notes, "A royalty that isn't producing cash flow or doesn't have a clear path to production is worth zero."

As gold prices remain strong, royalty companies continue to offer an appealing way to gain leveraged exposure to precious metals without taking on the full range of risks associated with mining operations.

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Interview with John Cash, CEO of Ur-Energy Inc.

Our previous interview: https://www.cruxinvestor.com/posts/ur-energy-nyseurg-uranium-producer-targeting-22mlb-output-in-us-6676

Recording date: 23rd April 2025

Ur-Energy, one of North America's few active uranium producers, is making significant operational progress at its Lost Creek facility in Wyoming while preparing to launch its second mine, Shirley Basin, by early 2026. After facing production challenges throughout 2024, the company reported substantial improvements in Q1 2025, now consistently producing at around 400,000 pounds annualized.

CEO John Cash indicates the company has secured seven contracts worth approximately 5.84 million pounds over the next few years, primarily with US utilities. These contracts include inflation escalation provisions, offering protection against rising costs. For 2025, Ur-Energy's contract commitments total 440,000 pounds, increasing to over 1.2 million pounds in 2026.

The company estimates production costs of approximately $45/lb at Lost Creek and $50/lb at Shirley Basin as they achieve economies of scale, well below the current long-term uranium price of $80/lb. This provides healthy margins despite recent operational challenges that resulted in losses of $6.19 per pound in 2024, compared to a profit of nearly $31/lb in 2023.

Development at Shirley Basin appears on schedule, with significant construction already completed. The company has made progress staffing the new operation and plans to hire approximately 40-50 more hourly staff by late summer to ensure proper training before production begins.

As a US-based producer selling primarily to US utilities, Ur-Energy is largely insulated from potential tariffs and trade restrictions. The company could benefit from the recent Section 232 investigation into critical minerals, which explicitly includes uranium and might yield supportive measures for domestic producers.

Cash believes the uranium market remains in a supply deficit, with many promised projects unlikely to materialize. He suggests prices might need to increase by another $10-20/lb to incentivize sufficient new production, highlighting the disconnect between projected and realistic uranium supply in the coming years.

View Ur-Energy's company profile: https://www.cruxinvestor.com/companies/ur-energy-inc

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Interview with VP of Critical Minerals, Debra Bennethum

Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-nyse-uuuu-reshoring-critical-mineral-production-back-to-the-us-6878

Recording date: 23rd April 2025

Energy Fuels stands at a pivotal moment in its corporate evolution, transforming from a 45-year veteran uranium producer into potentially America's premier rare earth elements processor. This strategic pivot capitalizes on the company's existing infrastructure, technical expertise, and unique competitive advantages in an increasingly critical sector. The rare earth oxide produced by Energy Fuels—particularly neodymium-praseodymium (NDPR)—is essential for manufacturing permanent magnets used in electric vehicle motors, wind turbines, and defense applications. Unlike many aspirational rare earth companies, Energy Fuels has already commissioned a 1,000-ton per annum production facility at its White Mesa Mill with plans to expand to 6,000 tons by 2028, demonstrating real production capability rather than conceptual plans.

The company's strategic advantage stems from its approach to processing monazite sand—a byproduct of heavy mineral sand operations—which provides a more favorable cost structure than competitors. Critically, Energy Fuels' uranium processing expertise, existing facilities, and regulatory permits create significant barriers to entry for potential competitors, as monazite contains uranium that must be properly processed and managed. This positions Energy Fuels as potentially the only American company that can economically process this valuable rare earth source at scale, with the company's leadership believing they can compete with Chinese producers on cost—a critical factor for securing automotive contracts.

Recent additions to the leadership team enhance this competitive position. Debra Bennethum, who joined as VP of Critical Minerals in June 2024, brings 13 years of procurement and supply chain experience at General Motors, including direct involvement in sourcing critical minerals for EV batteries and drive units. This automotive industry expertise provides Energy Fuels with invaluable insights into OEM procurement processes and requirements, potentially accelerating customer acquisition and contract negotiations.

The timing for Energy Fuels' strategic pivot appears opportune. Recent Chinese export restrictions on seven rare earth elements have highlighted vulnerabilities in global supply chains, accelerating automotive manufacturers' interest in securing domestic supplies. The semiconductor shortage during the pandemic further prompted OEMs to develop more direct relationships with material suppliers to avoid similar disruptions. These dynamics create strong tailwinds for Energy Fuels as it develops its rare earth business.

For investors, Energy Fuels offers a compelling combination of execution progress and substantial market opportunity. The company has already secured validation partnerships with manufacturers like POSCO International, with potential for product to enter saleable vehicles as early as this year. The automotive industry's typical 5-7 year contract structures for vehicle programs offer visibility for potentially stable, long-term revenue streams. Additionally, Energy Fuels' diversified revenue approach—maintaining its uranium business while developing rare earth production—provides multiple avenues for growth while reducing concentration risk. With a feasibility study update expected by year-end and financial projections to follow in 2025, investors may soon have clearer visibility into the value proposition of what could become America's cornerstone rare earth producer in an increasingly critical mineral-dependent economy.

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Learn more: https://cruxinvestor.com/companies/energy-fuels-inc

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Interview with George Salamis, President & CEO of Integra Resources Corp.

Our previous interview: https://www.cruxinvestor.com/posts/integra-resources-tsxvitr-us-gold-producer-on-path-to-300000-oz-pa-6833

Recording date: 23rd April 2025

Integra Resources (TSX: ITR; NYSE: ITRG) has successfully transformed from a development-stage company into a producing gold miner with the acquisition of the Florida Canyon mine, creating a compelling investment opportunity in the gold sector. The company's recent Q1 2025 results showcased robust production of 19,323 ounces of gold and established a solid financial foundation with $61.1 million in cash, demonstrating the operational and financial strength that underpins its growth strategy.

The company's three-asset portfolio in the western United States creates a clear path to significant production growth. Florida Canyon currently produces approximately 75,000 ounces annually, but with the planned development of DeLamar and Wildcat, Integra aims to reach approximately 300,000 ounces of annual production. This growth trajectory follows a self-funded model where "one asset pays for the second which pays for the third," eliminating the need for dilutive equity financing that has historically constrained the company's ability to create shareholder value.

The timing of Integra's transformation could not be more opportune, with gold prices reaching record levels around $3,400 per ounce. This price environment has dramatically enhanced the economics of Florida Canyon beyond initial expectations when the acquisition was made. While implementing prudent risk management through a put option strategy with a floor of $2,400 for 75% of 2025's expected production, Integra maintains full exposure to gold price upside, creating an attractive risk-reward profile.

Integra has assembled what CEO George Salamis describes as a "builder's team" with the technical expertise to both operate existing mines and develop new projects. Key additions include COO Cliff LaFleur from Silvercrest and VP of Permitting Dale Kerner from Perpetua Resources, strengthening the company's ability to execute its development strategy. The current U.S. administration's supportive stance toward domestic mining projects further enhances Integra's operating environment, potentially accelerating permitting timelines for both DeLamar and Wildcat.

From a valuation perspective, Integra currently trades at approximately 0.35x price-to-net asset value, compared to a junior producer peer average of 0.6x, suggesting significant potential for revaluation as the company executes its growth strategy. This discount largely stems from the market's focus primarily on Florida Canyon's value while attributing little value to the development-stage assets. As Integra advances DeLamar and Wildcat toward production using internally generated funds, this valuation gap should narrow.

The company's strategic focus on optimization initiatives at Florida Canyon, including improvements to the electrowinning circuit, carbon-in-column circuit, and potential fleet upgrades, presents additional opportunities to enhance cash flow beyond current levels. These incremental improvements, combined with a planned 10,000-meter exploration program aimed at extending Florida Canyon's mine life beyond six years, could provide near-term catalysts for share price appreciation.

For investors seeking exposure to gold with a combination of current production and significant growth potential, Integra Resources offers a compelling investment case. The company's transition from a perpetual fundraising cycle to a self-funded growth model, coupled with its experienced management team and strategic asset base in a favorable jurisdiction, positions it well to deliver substantial returns as it executes its clearly defined path to becoming a mid-tier gold producer.

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View Integra Resources' company profile: https://www.cruxinvestor.com/companies/integra-resources

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Interview with Chad Peters, President & CEO of Ridgeline Minerals Corp.

Our previous interview: https://www.cruxinvestor.com/posts/ridgeline-minerals-tsxvrdg-hits-high-grade-gold-validating-nevada-prospect-generator-model-6223

Recording date: 21st April 2025

Ridgeline Minerals, a Nevada-focused exploration company, is leveraging its innovative hybrid business model to execute an ambitious $11 million USD drilling campaign across five projects in 2025, representing nearly 50% of its current market capitalization. The company's unique approach combines major partnerships with self-funded exploration, allowing it to maintain aggressive exploration activity while minimizing shareholder dilution.

Led by President and CEO Chad Peters, Ridgeline has secured strategic partnerships totaling $60 million with industry giants Nevada Gold Mines (Barrick-Newmont joint venture) and South32. These agreements provide full funding for exploration while preserving Ridgeline's carried interests through to commercial production—25% on gold projects—essentially ensuring no shareholder dilution through the development phase.

The company's flagship Swift project, backed by a $30 million deal with Nevada Gold Mines, sits just 4 kilometers from a 23-million-ounce gold mine and has already demonstrated significant potential with drilling results of up to 1.5 meters at 10 grams per ton gold. The Black Ridge project, another NGM partnership worth $10 million, is positioned between the high-grade Leeville mine and the massive 40-million-ounce Goldstrike deposit.

South32's $20 million partnership at the Selena project targets Carbonate Replacement Deposits (CRDs) similar to their $2 billion Taylor acquisition. Recent geophysical surveys have identified identical anomalies to those at Taylor, with Ridgeline managing a $3.5 million deep drilling program in 2025 while earning 10% management fees.

Ridgeline is also advancing two wholly-owned projects: Big Blue, a historic copper mine targeting porphyry mineralization, and Atlas, an oxide gold project with surface values up to 8 g/t along a 3-kilometer trend. The company's 2025 catalyst timeline includes drill results from May through early 2026, providing continuous news flow for investors.

With gold at all-time highs and major mining companies facing reserve replacement challenges, Ridgeline's hybrid model positions it perfectly for current market conditions. Peters notes that majors are "making tons of money right now" but face the prospect of overpaying for assets in the future, creating an ideal environment for exploration partnerships.

Trading at approximately C$30 million market cap, Ridgeline sits in what Peters calls the "pre-discovery sweet spot," comparable to successful companies like Kirkland Lake Gold that followed similar hybrid models before rerating on discoveries. With multiple discovery opportunities, protected upside through carried interests, and continuous drilling catalysts throughout 2025, Ridgeline offers investors compelling leverage to exploration success in Nevada's premier mining districts.

View Ridgeline Minerals' company profile: https://www.cruxinvestor.com/companies/ridgeline-minerals

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Compass, episode 11

Our previous episode: https://www.cruxinvestor.com/posts/gold-shines-amid-tariff-tensions-6961

Recording date: 17th April 2025

Gold and gold mining stocks have emerged as standout performers in today's challenging market environment, according to industry experts Samuel Pelaez and Derek Macpherson of Olive Resource Capital. While traditional safe havens like bonds weaken and equities struggle, gold miners have posted impressive gains of 20-80% from recent lows.

"Everything that has happened right — you've got equities that are weak... bonds that are weak... and the dollar is weak," Macpherson noted, explaining the unusual market conditions driving investors toward gold as a reliable store of value.

The experts identified a predictable pattern currently unfolding in the gold market. Historically, investment capital flows sequentially from physical gold to large-cap producers, then to mid-tier producers, development-stage companies, and eventually exploration firms. This pattern, evident in previous gold cycles (2001-2005 and 2009-2011), appears to be repeating, with large-cap producers already seeing substantial gains.

A significant change in market structure could accelerate this trend. The consolidation of mid-tier producers has created a gap in the industry, potentially allowing capital to flow more directly from major producers to development-stage companies. Resource funds that have profited from large-cap positions are now seeking diversification in smaller companies, as evidenced by VanEck's recent position in Troilus Gold.

The next 60 days represent an opportune "sweet spot" for junior mining companies to raise capital. "They've outperformed over the last six weeks... but there's still a sweet spot where you can raise significant amount of money, set them up for the next 12-24 months, and still lots of upside left for the new incoming investors," Pelaez explained.

For exploration companies that have spent years conducting low-cost groundwork like surface sampling and geophysics, this financing window enables advancement to drilling their most promising targets. When properly deployed, this capital can create value that outweighs dilution concerns.

Despite recent gains, both experts emphasized that the gold market cycle has considerable room to run. "This is a very exciting time... Don't blink, don't miss it... the next couple months are going to be tremendously important for this market," Pelaez stated.

For investors, the message is clear: gold appears well-positioned in the current environment of economic uncertainty, with continued momentum expected until greater clarity emerges about the broader economy.

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Interview with Emanuel Proença, CEO of Savannah Resources PLC

Recording date: 15th April 2025

Savannah Resources is positioning itself to become a leading producer of lithium concentrates in Europe, with its flagship Barroso Lithium Project in Portugal targeting production by 2027. Despite current lithium market volatility, CEO Emanuel Proença maintains a pragmatic outlook, noting that global lithium demand grew by over 25% last year and is expected to continue its strong growth trajectory.

The Barroso project plans to produce approximately 200,000 tons of spodumene concentrate annually at 5.5% lithium content, comparable to successful Australian producers like Pilbara Minerals in their early stages. The project boasts a favorable strip ratio of 6:1, which Proença describes as "top benchmark," along with a 73% recovery rate that is "close to top class." Additional value may come from by-products including quartz, feldspar, and mica, which can be sold to nearby ceramics and insulation industries.

The project has received strategic designation under Europe's Critical Raw Materials Act, opening doors to favorable financing options. The European Commission's rapid implementation of this act demonstrates the urgency attached to securing strategic mineral supplies within Europe. Financial institutions, including the European Investment Bank and the German development bank KFW, have shown strong support for critical minerals projects after decades of avoiding the mining sector.

Savannah has secured its first offtake agreement with AMG Critical Materials, who has also become a shareholder, providing important commercial validation. The company reports being fully funded through its Definitive Feasibility Study stage, expected to complete by the end of 2025, with construction planned for 2026 and production commencing in 2027.

Proença emphasizes that even at current depressed lithium prices, the Barroso project would be profitable, with break-even economics at $600 per ton. The project aims to be "in the middle of the global cost curve while producing in Europe," taking advantage of access to skilled local workforce and abundant renewable energy resources.

The company has prioritized community engagement in the economically challenged region, with Proença noting that no relocations will be required as there are no residential structures within the concession area. With 28 million tons of defined resources and mineralization remaining open in multiple directions, the project offers significant expansion potential beyond its initial production plans, positioning Savannah Resources as a key player in Europe's push for critical minerals autonomy.

View Savannah Resources' company profile: https://www.cruxinvestor.com/companies/savannah-resources

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