Fireweed Zinc (TSXV: FWZ) announced Tuesday a major boost for its flagship Macmillan Pass property in Yukon, with an C$71 million agreement to upgrade roads in the area.
The Yukon government and the Ross River Dena Council (RRDC) First Nation have agreed on bridge replacement and safety improvements on the North Canol Road and resurfacing of 59.5 km (about 37 miles) of the Robert Campbell Highway. The project has an estimated capital cost value of about C$71 million.
The agreement brings the North Canol Road upgrades under the umbrella of the Yukon Resource Gateway Project, which is a C$360 million commitment by Canadian Federal and Yukon Territorial Governments to fund building and upgrading of resource project roads in Yukon, Fireweed said.
Shares in Fireweed surged over 25% in Toronto on Tuesday. The company has a C$21.54 million market capitalization.
The North Canol road is the access road to the firm’s Macmillan Pass 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.
“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,” said Chief Jack Caesar of the RRDC. “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.”