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NICO gold mine gets green light
Fortune Minterals' gold-cobalt-bismuth-copper mine given go-ahead by Tlicho and federal governments

Lyndsay Herman
Northern News Services
Published Saturday, July 27, 2013

NORTHWEST TERRITORIES
The Tlicho and federal governments have both approved Fortune Minerals' NICO project, only leaving permitting and financing as the only obstacles to the future of the proposed mine.

NNSL photo/graphic

This photo illustration represents what the NICO pit, mill and campsite will eventually look like. - photo illustration courtesy of Fortune Minerals Ltd.

The Mackenzie Valley Environmental Impact Review board recommended approval of the project by Aboriginal Affairs and Northern Development Canada (AANDC) and the Tlicho Government conditional on 13 measures and commitments in January.

Located in the heart of Tlicho territory about 50 kilometres northeast of Whati, the project's approval was unique in the NWT in that it was the first time the Tlicho Government was able to exercise its authority on projects situated in Tlicho lands on par with the federal government.

"We worked jointly with the federal and territorial governments to review the measures. There was excellent collaborations between the governments," said Tlicho Grand Chief Eddie Erasmus, adding the Tlicho government conducted an extensive review involving elders, community members and drawing on knowledge of scientific experts and traditional knowledge holders. "The Tlicho government was involved in the entire process for the first time as decision makers, which means that we were consulted, provided significant input into the outcome of the report of the environmental assessment, and had the authority to give our own approval."

Troy Nazarewicz, Fortune's investor relations manager, said the goal is to start construction on NICO next summer and reach production by late 2015 or early 2016. Approximately 400 people are expected to be employed at the site during the peak of construction.

Erasmus said the Tlicho government is still negotiating with Fortune Minerals about how Tlicho businesses and workers will benefit from the project.

The approval will allow the company to proceed with a timeline in which to begin investing in the project and seeking other partners, said Richard Schryer, the director of regulatory and environmental affairs with Fortune Minerals.

"What (the approval) does for Fortune Minerals is give us a sense of certainty in terms of moving forward with things like scheduling," Schryer said. "Now that this is out of the way, we can do some better planning in terms of how we're going to develop things, when we're going to buy expensive pieces of equipment, things like that.

"It also gives us an advantage in trying to find financing and/or joint venture partners for the project now that they know the project is approved."

During the public hearings last winter, other aboriginal groups expressed their opinions of the project, but most with an eye to the Tlicho's role in the final approval.

"The project is in Tlicho territory and the Yellowknives Dene First Nation respect it's their voice that matters most here," said Todd Slack of the Yellowknives Dene First Nation Land and Environment Department to News/North in an interview on Monday. "If they are are satisfied with the decision, the YKDFN respects that."

Erasmus said the project is being guided by the Tlicho Weneke, or Tlicho Land Use Plan, which was published earlier this year.

"Our people want to protect the environment and also want employment," Erasmus said. "We played a big role in this process. The Tlicho government made sure Tlicho interests were reflected in the report of the environmental assessment. This process signifies important progress of the self-determination of the Tlicho Nation and the importance of consultation and engagement with aboriginal peoples in resource development.

"However, this is just the beginning. There is still much work to be done."

Meanwhile in Saskatchewan

Fortune's NICO project requires a hydrometallurgical plant in northern Saskatchewan in addition to the mine and mill, located 50 kilometres northeast of Whati.

Ore mined and processed in the NWT will be shipped their via rail.

The plant is at a similar regulatory stage in Saskatchewan as the rest of the project is in the NWT.

"We are almost done the environmental assessment process in Saskatchewan," Schryer said. "The basic steps are the same ... It's moving at about the same rate as NICO. There's no point in moving it along faster than NICO because there's not going to be any ore to ship down.

"It would be pointless to have it move forward faster than the mine itself."

- with files from Daron Letts

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