This really jumped out for me as a chartered accountant/auditor.

Public companies are required to follow IFRS (international financial reporting standards). IFRS requires that you (the company's accountants and the auditors) test assets for impairment each year. I am simplifying here, but essentially we have an impairment of the mineral properties when the net realizable value of the revenue that those assets will eventually generate dwindles below the carrying cost of those assets. With that in mind:

During the first quarter of October 31, 2009 , the Company wrote down the carrying value of its mineral property by $31 million based on the implied fair value of a proposed board approved transaction which was subsequently terminated due to non-performance by the other party. As at November 1, 2010 , there were significant increases in the market value of the Company when compared to the first quarter of October 31 , 2009. The Company considered this to be an indicator of impairment reversal for its mineral properties. Based on this assessment, the Company determined that $31 million of previous impairment should be reversed.

In the quote we see the discussion of fair value and carrying value. Essentially their auditors determined that the carrying value of the mineral properties to be higher than the fair value - thus the writedown was required as the assets were deemed to be impaired.

What I want to know is what this proposed board approved transaction was?

From the 2009 year end audit statements:

During the first quarter the Company wrote down the carrying value of its mineral property by $31,000,000 based on the implied fair value of the proposed transaction with Lions Gate Metals Inc. This proposed transaction was terminated in April 2009.

So what was the proposed transaction with Lions Gate Metals Inc?

http://www.lionsgatemetals.com/s/NewsReleases.asp?ReportID=428418&_Type=News-Releases&_Title=Lions-Gate-Metals-Copper-Fox-Metals-inc.-Announce-Business-Combination

So in 2009 Lions Gate Metals tried to buy out Copper Fox Metals.

Lions Gate will acquire all of the issued and outstanding common shares of Copper Fox through a plan of arrangement or other form of business combination (the "Business Combination").

So why would this cause a writedown? I guess based on the negotiations the agreed amount that Lions Gate Metals would "pay" was essentially the mineral costs less $31million? Which led to the impairment?

I don't know the history of this offer and when it was taken off the table. 2009 is quite a while ago and the economics have significantly changed for CUU. What was CUU trading at back in 2009? Wasn't that when some of you guys bought in at ~10 cents? I guess with CUU trading at a price that low there would be concern in regards to their ability to continue as a going concern (essentially be able have $$ to operate going forward).

The question that I have then is why is this reversal of the writedown just happening now? In any event it shows that the future outlook of the company is significant to warrant the reversal of the writedown while I am puzzled as to why it would just happen now and not say a year ago. You'll note that in the news release they say this changed in 2010, so why was it just reversed now? 31 million is certainly material.

This is all my opinion.