The Ontario government has won an appeal of a landmark ruling involving First Nations treaty rights.

In a decision released Monday, the province's court of appeal said the Ontario government has the authority to issue logging permits on Grassy Narrows First Nation's traditional territory.

The government argued it had "exclusive proprietary jurisdiction over public lands and in forests in the province."  The First Nation maintained a treaty with Canada protected its hunting and trapping rights.

This latest ruling overturns a 2011 Superior Court decision that sided with Grassy Narrows.  

At the time, the community's lawyers held up the ruling as a victory for other First Nations across Canada fighting to protect traditional lands. 

On Monday, a lawyer for Grassy Narrows told CBC News the First Nation is considering whether it will seek to appeal the reversal before the Supreme Court of Canada.

In a statement, Ontario's Ministry of Natural Resources said it is "reviewing the court's decision and remains committed to working with Aboriginal communities."