On Feb. 20, the federal department of Indian affairs and northern development (DIAND) said the plan needs more scrutiny.

There are "too many unknowns in the project description" so it must undergo level two environmental screening, DIAND water resources manager David Milburn said.

"There's no clear support from government, public or aboriginal groups to proceed. We need to better understand the environmental impact."

The review could take a year in which public meetings in Yellowknife, Lutselk'e and Hay River will be part of the process.

Despite the decision, Highwood CEO John Smrke said the company is committed to the project.

"We recognize it is new. We understand there are unknowns," Smrke said, adding, he welcomes the call for a level two screening as it will give everyone a bigger forum for dialogue.

Highwood wants to barge the sample to Hay River. Thor Lake is about halfway between Yellowknife and Lutselk'e. Ultimately, Highwood wants to produce a copper beryllium alloy.

Strong and light, beryllium alloys are used in sporting goods, satellites and computers.

Not only is the element rare, so too are the companies that mine it. Brush-Wellman in Utah is North America's only beryllium producer.

A leading critic of the move to develop the beryllium resource is EnviroWatch which has criticized the beryllium plan citing health and environmental concerns.

Beryllium dust is carcinogenic.

"(But) the granite surrounding the Thor Lake beryllium deposit has a radioactive composition similar to the granite underlying many Yellowknife houses," Terry Pepper, a Highwood vice-president said. The deposit itself has two to five times the amount of radioactive materials as the granite surrounding it, he added.

On EnviroWatch's claim that radioactive gases will be released from a proposed Hay River plant, he said air will be removed from the building and replaced with fresh air to prevent naturally occurring radon buildup.

"Neither workers nor the public will be exposed to potentially harmful concentrations of radon."

A health review has concluded workers and public will not be exposed to harmful levels of radiation. A member of the general public would receive less radiation from two cross-country air trips in a year, he said.

Potential exposures are a "fraction" of national standards, he said.

Highwood, which trades on the Toronto Stock Exchange, triggered the environmental review process after a water licence application.