TORONTO (miningweekly.com) – TSX-listed Fortune Minerals has secured a land access agreement for its flagship Nico gold/cobalt/bismuth/copper project, located in the Northwest Territories (NT), which was issued under the Tlicho First Nation government's new land-use plan that came into effect on June 1, and ended a moratorium on development on Tlicho-owned lands.

The company said the permit would allow it to complete geotechnical and other work needed for detailed engineering for the Nico project access road during this summer.

The Nico project was estimated to hold about 15% of global bismuth reserves, with a significant gold co-product.

Fortune said that, subject to receiving the final permits and financing, it planned to start site preparations at Nico this summer, including the construction of laydown areas to receive equipment and materials this winter, which would be required for construction in 2014.

The Tlicho land-use-plan law was initiated by the Tlicho government following completion of the Tlicho land claim and self-government agreement signed with the federal and NT governments in 2005.

This agreement gave the Tlicho government fee simple ownership of about 39 000 km² of lands surrounding the Nico project, representing one of the largest single blocks of privately owned lands in Canada, which is about half the size of New Brunswick, and was believed to host significant mineral potential.

The land use plan law set a framework for development on Tlicho lands, including the planning of transportation corridors, utility and hydropower corridors, and mineral and other developments. Existing mining leases and mineral claims, such as Nico were grandfathered into the Tlicho agreement.

In a letter to Fortune, Tlicho grand chief Eddie Erasmus affirmed that the company was a significant mineral investor in the area. “We are confident that our land-use-plan law will provide guidance to your company with respect to the various requests for access through our lands for the scheduling of mine development,” he said.

The Nico project comprised a proposed underground and openpit mine and mill in the NT that will produce a bulk concentrate for shipment to a refinery and processing to high-value metal products.

The Mackenzie Valley review board completed its environmental assessment report in January and recommended approval of the mine and mill. The report and recommendation were submitted to the Tlicho government and the Minister of Aboriginal Affairs and Northern Development for their approval and signature.

The proposed mine is located 50 km north of the Tlicho community of Whati and 160 km north-west of Yellowknife.

Further, Fortune continued to work with Deloitte & Touche Corporate Finance Canada to attract one or more strategic partners to provide the project financing.