Vancouver-listed Aurun Mines and Equinox Resources have signed an agreement to lease eight patented claims covering the sunlight Basin sulphur deposit located in Wyoming.
The lease also provides for the staking of 51 lode claims in Shoshone National Forest, Park Cty., Wyg., area.
Under the lease agreement, Auran and Equinox will receive 100% of production proceeds subject to a 4% net smelter return royalty for surface sulphur mined and preproduction annual cash payments to the lessor.
Surface sulphur deposits on the property, which is potentially North America’s largest “volcanic” sulphur source, contain an estimated 1.2 million tons grading approximately 40% elemental sulphur. According to President John Chapman, reserves of over five million tons of surface sulphur are possible.
The sulphur is free of deleterious substances and is marketable for fertilizer use, according to metallurgical work conducted by General Sulphur Corp. from 1948-52.
World consumption of sulphur for fertilizer and industrial use currently exceeds production by between two and three million tonnes annually. Current prices range from $90 to $135(US) per tonne.
Permitting for an $85,000 development program comprising mapping, sampling and trenching has now commenced.
In other news, to test some promising anomalies on the company’s Contwoyto Lake, N.W.T., gold and silver claims, a 10-hole diamond drilling program is scheduled to begin this year.
In April, 1986, Aurun’s new perlite processing plant in Surrey, B.C. was completed and started operations. It is capable of processing 30,000 litres of expanded aurolite perlite annually. The company sold 10.8 million litres of perlite in 1986, up from 7.5 million litres last year.
During April, Aurun also acquired control of the Hail-Harper Creek copper/molybdenum deposit in B.C. from Quebec Cartier Mining. In July, Placer Inc. optioned the company’s Huntington mineral property in Nevada and conducted exploration drilling.
Aurun’s long-term debt position stood at $1.07 million for the year ended Feb 27, 1987, compared with $987,600 last year. The company also reported a net loss of $420,947, up from $66,938 in 1986.
Aurun’s shares were trading recently at 30 cents on the Vancouver Stock Exchange.
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