Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) announced Tuesday a major boost for its flagship Macmillan Pass property in Yukon, with the striking of an agreement in principle worth C$71 million to upgrade roads in the area.
The Yukon government and the Ross River Dena Council (RRDC) First Nation has reached an agreement in principle as part of the so-called Yukon resource gateway project, said Fireweed.
It includes bridge replacement and safety improvements on the North Canol Road and resurfacing of 59.5km of the Robert Campbell Highway.
READ: Fireweed Zinc eyeing maiden resource for Boundary Zone at flagship Yukon project
The North Canol Road is the access road to the firm's Macmillan Pass project, while the Robert Campbell Highway is part of the route from the site to a shipping port.
"This announcement is a major step forward toward eventual mine development at Macmillan Pass," said Fireweed CEO Brandon Macdonald.
"I want to thank the Yukon Government and the Ross River Dena Council for their efforts to get this agreement in principle done as well as their ongoing cooperation and support for our project over the years.”
Chief Jack Caesar of the First Nation RRDC added: "Our community has been in need of improvements to the North Canol and paving for the Campbell Highway for many years.
"We have some of Yukon’s largest prospective mineral and remediation projects but we had been the only community in Yukon without a paved highway. This important project will finally see our members have a safe road to drive to and from work, a road that helps ensure we are connected to opportunity."
The North Canol Road (Yukon Highway 6) was originally built by the US Army between 1942 and 1944 as part of the construction of the Alaska Highway during the war.
The district-scale 544 sq km Macmillan Pas project hosts the 100%-owned Tom and Jason zinc-lead-silver deposits, which have current large mineral resources and a PEA (preliminary economic assessment) study.
Shares in Toronto soared over 25% to C$0.57 on the day.
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Contact the author at giles@proactiveinvestors.com