The statement refers to continued drilling & general co. expense However when you build a mine things change & begin in 2008 as from the CIBC report the total of $500 mill begins in 2008.

Capex Requirements

One of the most disappointing events for investors has been the incredible climb

in capex requirements to start mines. Relatively fresh feasibility studies (less

than one year) have shown more than 100% error as more detailed engineering

is done. While we have no evidence of any misrepresentation, empirically we

note that small companies tend to be much more optimistic of their

requirements compared to major companies who quite often have participated in

the project after initial numbers have surfaced.

No capex figures have been released for FDN as yet, nor do we expect any until

late in 2008 when scoping studies are likely to be completed. Our estimates to

build the mine are about $500 million. The figure is arrived at as follows:

1. Underground access to the deposit 3.5 km at $5,000/m = $20 million

2. Shaft sinking (400 metres) = $15 million

3. Underground development for production = $15 million

4. Processing plant for 4,000 TPD mill = $150 million

5. Reserve definition drilling = $30 million

6. Tailings facility = $80 million

7. Equipment and support facilities = $60 million

8. Power and reticulation = $50 million

9. Camp and administration = $40 million

 10. Road and bridges = $35 million