We’ve 100% contract mining. And then you have the cost profile of just what labor cost in Tanzania versus elsewhere. What electricity cost? Obviously fuel is a world product versus a local product. And so you have to excel, you’re a cost taker on that front. So I would say in our experience we’ve had a very positive experience in operating in Tanzania versus some of the risks that you have in the supposed Tier 1 jurisdictions of cost overruns, labor disputes. A lot of assets in North America have been picked over. So you get into operational issues too on recovery rates and things of that nature. So, with regards to operating in Tanzania, it’s been nothing but a positive experience. A lot of the noise that you do hear from a Tanzanian perspective is at the national government level on Dodoma.
So I kind of separate what’s in the press versus the actual operating experience on the ground a little bit because we manage the Dodoma atmosphere quite well. And that’s easier to manage than the operational aspects of things on the ground. So on the ground, it’s been very good. At the Dodoma level too, it’s been extremely good. Thus far, it’s been a good experience. Does that answer?
Andrew Cheatle : Illustrated with one very good example, Mike. The reference is made to the old power line being somewhat unreliable. We approached the regional commissioner. The mining commission said, hey like it’s just not working for us as well, as we look like. And in no short order, we were put onto another power line which is extended just a matter of a few kilometers. And now as of November, we’ve been having substantially better power reliability.
Stephen Mullowney: Yes. TANESCO built that line. They built that line. And we didn’t pay for that line.
Andrew Cheatle : Yes. But again, the ability to work with the government was very much there.
Stephen Mullowney: They want to see this be a big, big producer at the end of the day. Lots of royalties, lots of jobs and economic activity around it. That’s our goal, like ours.
Andrew Cheatle : Yes, and Stephen, the other way to think of things is as we continue to work in Tanzania, so it’s consistently de-risking the project.
Mike Niehuser : Well, that’s a very complete answer. It made me want to follow-up. I think that — isn’t the — I was curious with your comment of also about going underground and I’m not really familiar with Buzwagi, but I think that was shutting down. And is that an underground mine or an open pit? And could you talk about your timing with going underground and how that’s going to impact culture at least on an operating level?
Stephen Mullowney: Yes. So it’s a good question, Mike. Look at the end of the day, we are talking about Buckreef Main Zone right now. So I fully expect my gut feel and I’m pretty confident in it is this will be underground Buckreef Main with pits and satellite pits all over the target. And so that will be ultimately where it is, hopefully forms out. Obviously, there’s some exploration and drilling to do that because, I personally don’t like having people go and dig up the earth where there’s no gold and lots of projects do that so it does need to be drilled. And so ultimately that is the case. And Buckreef Main, as you’re familiar, it is a vertical deposit. It is quite wide, so you’re not going to take a lot of dilution on mining of that.
It won’t make sense to go underground. I like underground, it reduces your footprint on surface and it’s easier to manage things like security risk when you’re underground versus being an open pit environment. So over time, I think the project gets de-risked more by going underground than staying open pit. And tailings too have environmental factors as well. It needs backfill, all happens with underground.
Mike Niehuser: Well, I imagine this year as you say, you’re still a 100% focused on mining Buckreef Main. But by the end of the year with you coming on with the additional ball mill in the last quarter, you’re probably going to be really leaning heavily into making sure there’s enough mine development from either Buckreef Main underground to the South or these other pits, to make sure that it’s fed and with more growth in mine. I know it’s too early to say, but how do you see prioritizing the resource development outside of Buckreef Main?
Andrew Cheatle: Mike, I can quickly answer…
Stephen Mullowney: Well, actually, I think the question goes into — so the priority right now is expansion. Taking that cash flow expansion into a robust exploration program, which Andrew has delineated, the targets of where we believe to be most prospective around the property. Did I get that right?
Andrew Cheatle: You got that right. And, again, Mike, you look at the slide that we have, the Anfield Zone is only about 200 to 250 meters to the East of our Main Zone. Very early stages, we’ve got some spectacular grades results there. If you remember, just over 3 meters at 14 grams a tonne. That’s sitting in a much broader zone of mineralization as well. But this — you ask your priorities, you obviously go for the most attractive results to start off with.
Mike Niehuser: I missed the last sentence you said.
Andrew Cheatle: You go up to the most attractive results and that’s why I put them up there, Mike, is Eastern Porphyry and Anfield, our main focus and then the South extensions of the main pit.
Mike Niehuser: Excellent. So really, for the dense analyst like myself, and it’ll become more apparent as we move through the year that the priorities will naturally emerge. Well, that’s pretty much the questions I had. I just wanted to say one more thing about Jim Sinclair to add is that his involvement in Tanzania back to Sutton, really was making him, not just Mr. Gold, but Mr. Tanzania in terms of bringing exploration to this part of the country, and I’m sure he was very pleased with your activities in the last year and probably, they are well priced on it. But I’ll stop there and thanks for taking my questions.
Operator: The next question is from Craig Sutherland with Conceptual Solutions Limited.
Craig Sutherland: Majority of the questions I had have already been answered. But first and foremost, congratulations on the progress. It’s really been amazing to see how much you guys have fast-tracked this in a way that we were all hoping for. But I guess the question that I had was, our focus is on the Buckreef Main, but also now looking out into future possibilities, like you said, with the Anfield and the Eastern Porphyry, are you identifying anything beyond gold in your drilling or what you’re looking for such as silver, copper? Are there any other possibilities that would increase the value of the property or not change the scope but enhance the scope as we go forward, do the geologicals and the rest?
