NICO mine takes step forward
Saskatchewan approves proposed processing plant
Daron Letts
Northern News Services
Published Monday, March 3, 2014
SASKATCHEWAN/NWT
Fortune Minerals Inc. achieved approval from the Saskatchewan Government for a proposed metals processing plant, which is key to the development of its NICO project in the NWT.
An aerial view of Fortune Minerals' NICO gold-cobalt-bismuth-copper project in the NWT. The project got the go-ahead from the Saskatchewan government to construct a metals processing plant, should the mine proceed. - photo courtesy of Fortune Minerals Inc. |
"This is another major milestone completed towards bring NICO into commercial operations," Robin Goad, Fortune Minerals president and CEO, told News/North late last month.
The company's proposed $200 million Saskatchewan Metals Processing Plant, a hydrometallurgical refinery planned near Langham, Sask., 27 kilometres northwest of Saskatoon, is designed to process metal concentrates from the company's proposed NICO gold-cobalt-bismuth-copper mine and concentrator facility, to be located 50 kilometres north of Whati and 160 kilometres northwest of Yellowknife.
Saskatchewan Environment Minister Ken Cheveldayoff signed off on the province's Environmental Assessment Branch recommendation on Feb. 11, which is subject to certain conditions, such as the implementation of an independent community monitoring program.
The company was also granted approval from the Wek'eezhii Land and Water Board in January to prepare land on its NICO gold-cobalt-bismuth-copper project, located 50 kilometres north of Whati, for potential future development.
The permit allows for the expansion of existing staging areas and storing large equipment, prior to the issuance
of a water permit, expected later this year, according to Goad.
"The other critical element for the NWT is certainty on the all-weather road," he added.
The proposed publicly-funded all-season road the company is asking for would link Whati and Behchoko year-round.
The project would represent a collaborative effort between the Tlicho Government, the GNWT and Fortune Minerals.
"We're still awaiting information from the NWT government about whether (infrastructure financing) is forthcoming," he said.
The 103-km Tlicho winter road system currently links Behchoko with Gameti and Whati. If converted into an all-season road, the company would extend the year-round road by 50 kilometres at its own expense to link Whati and the proposed mine site.
By way of comparison, the 90-kilometre Inuvik-to-Tuktoyaktuk Highway, currently under construction, is projected to cost $300 million.
The Transportation Department is working with the Tlicho Government to develop studies on the road Fortune Minerals desires, but at this time there is no plan established for construction, according to Earl Blacklock, department spokesperson.
"We have identified this as one of the long-term strategies for continued development of the road system in the Tlicho," he added. "In the capital budget, we have funding to complete studies and the project description report required for environmental permitting for an all-weather road to Whati."
The department is working with the Tlicho Government on studies toward an all-weather road to Whati to support the environmental permitting processes. There is currently no funding in the GNWT capital plan to construct the road, Blacklock said, but suggested the new federal infrastructure program may provide opportunities to pursue construction of the route in future.
"At this point, in terms of current activity and what we are focusing on, that is not something that is immediate," he said.
Meanwhile, in Saskatchewan the final hurdle for the proposed refinery involves an application to rezone the land with the rural municipality of Corman Park.
"We expect it shortly, within the time frame of the (NWT) water licence," Goad said.
The proposed refinery is adjacent to the Canadian National Railway, which the company plans to use to transport 180 tonnes of bulk concentrate daily from the NWT throughout its estimated 20-year-minimum lifespan.
Project financing then needs to be achieved before the company proceeds with mine and mill construction in the NWT and refinery construction in Saskatchewan.
The company plans to release an updated bankable feasibility study this month that will outline current economics of the project.
"We hope to be in commercial construction of this project later this year," Goad said, as long as an all-weather road can be committed to. "Without a road, no mine. Without a mine, no refinery."
