A company looking at reviving an old zinc mine in the Mackenzie Mountains now has the go-ahead to mine ore at the site.

The Mackenzie Land and Water Board has issued Canadian Zinc two key land use permits for the Prairie Creek Mine. The mine is surrounded by Nahanni National Park Reserve.

Alan Taylor, Chief Operating Officer of Canadian Zinc, says there are still more hurdles ahead before the mine can go into production.

"We can start mining… but we can't do any processing without the consumption of water. So we're still waiting for that type A water license," he said.

The company expects to get the type A water license soon.  It's currently with the federal government for approval.

The other permit allows Canadian Zinc to build a transfer station. It would be located at the junction of the mine's existing access road and the Liard Highway.

Earlier this month, Aboriginal Affairs Minister John Duncan wrote the Mackenzie Valley Environmental Impact Review Board a letter saying an environmental review of the project isn't necessary.

He said it's unlikely the development will cause negative impacts on the environment or cause significant public concern.

The company has five years to do the work with a possible two year extension.