Overview

The Northern Lights mining and extraction project is proposed to be located about 100 kilometres northeast of Fort McMurray, Alberta. Construction of the facility would begin sometime following receipt of regulatory approval and the arrangement of project financing. When completed, Northern Lights will produce 114,500 barrels per day of bituman, over an estimated 28-year period.

A regulatory application for the mining and extraction project was filed in 2006. A supplemental submission - including a project update, an EIA update and responses to Supplemental Information Requests from the regulators was filed in December 2007. Meanwhile, Synenco continues to complete formal responses to statements of concern received from First Nations, Métis and other aboriginal poeple and from stakeholders.

The formal public consultation program is ongoing in support of the Northern Lights mining and extraction project this program is in keeping with regulatory requirements, to ensure opportunities for people affected by the proposed project - including First Nations, Métis and other Aboriginal peoples, interest groups, industry, governments and regulators, have the opportunity to voice their opinions and suggestions and share information.

Regulators are currently in the technical review phase of the regulatory process. Synenco Energy currently is anticipating a hearing into the application in 2008.

December 21, 2007
  > Download Part One (Summary) of the Northern Lights Mining and Extraction Project Supplemental Submission - 1MB PDF

November 30, 2006
  > Download Volume One (Overview) of the Northern Lights Mining and
     Extraction Project Application - 1.6MB PDF

Mining

During bitumen mining, large trucks and shovels will be used to remove overburden and to mine the oil sands ore. About 90 per cent of the sand will be removed at the slurry preparation area using counter-current drum separators for the bitumen extraction process.

A total of eight mine pits will be developed, sequentially, as part of the submitted mine plan. Mining will start on the Western Lease and generally progress from west to east across the Central Lease. The ore will be delivered to the slurry preparation area, which is designed to be relocated twice during the life of the mine. Periodic relocation of the slurry preparation area is expected to reduce truck haul distances, thereby minimizing diesel fuel consumption and the associated air emissions.

By using counter-current drum separators, Synenco expects that a reduced amount of water will be required to extract sand from the oil sands ore. Further, the recycling of process water has been emphasized throughout the Northern Lights Project design, with recycled water used throughout the extraction process. This will result in reduced water demand on the Athabasca River and reduced energy consumption for water heating.

The mining of Pit 1 is expected to last for approximately 12 years. Active mining operations will cover approximately 10,600 hectares. Overburden mining activities and temporary infrastructure requirements at lease boundaries are expected to account for approximately 1,850 hectares of offlease disturbance.

The following diagram illustrates the proposed mine plan, including the sequential development of mine pits and the planned location of the extraction plant site, waste areas and tailings ponds.

Technology

Synenco plans to use counter-current drum separators for the bitumen extraction process. A supplier of the technology has not yet been determined. On behalf of NLP, Synenco in October 2007 began a pilot test of the proposed extraction process at a new testing facility located at Fort MacKay, Alberta and owned by SGS Canada Inc. Results of the pilot testing will be used in design and operations planning.

Tailings Management

The Project design is based on the separation of the coarse sand fraction of the tailings early in the production process enabling the coarse tailings to be deposited as a relatively dry stackable solid. This reduces water demands for processing, alters the need for large conventional tailings ponds to contain coarse tailings and facilitates earlier reclamation of the areas containing dry coarse tailings. The thickening of fine tailings from the extraction and froth treatment processes will allow increased water recycling and reduce the size of the tailings cells required to contain fine tailings.