From the 2008 pre feasibility study Sept. 2008

http://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=319027

For a mill capacity at Schaft Creek of 100,000 tonnes per day, the estimated Initial Capital Expenditure is (US)$2.95 billion. This sum includes a contingency allowance of $536.5 million (US) dollars (22%). The Exchange Rate used throughout the report and this News Release is one Canadian dollar = one US dollar.

Would the contingency allowance formulated in 2008 go towards such expenditures such as:

A number of factors affected cost included in the CAPEX and OPEX estimates from the PEA to the PFS, such as increased planned mill capacity (from 65,000 to 100,000 tpd), market, metal price, volatilities of construction material costs and comparable studies about rising OPEX and CAPEX costs from other parties working in the area. These, in turn, led to a review of forecasts and estimates for labour, construction material, sustaining capital and working capital.

Therefore if this contingency allowance was specifically added to the capex for such forseen future increases as stated above wouldn't the capex concern be at most a small red herring going forward.

Add to that an increasing value to the Canadian dollar and we could actually be close to target as far as capex is concerned.

Not as much in the know as a lot of posters here but would like to see posters opinions on the contingency allowance.