Pencrude to earn interest in claims held by Interquest

A letter of intent under which Pencrude Resources will be able to earn a 50% working interest in 257 claims held by Interquest Resources in the Moss Twp.-Powell Lake area of northern Ontario has been signed by the two companies.

Terms of the transaction will see Pencrude spend up to $300,000 on exploration during the next two years. Exploration work is expected to begin immediately.

Exploration activity in the Moss Twp.-Powell Lake area has increased rapidly during the past six months, with active diamond drilling programs on the Ardeen Mine property (adjacent to the Interquest block to the northeast) and on the Tandem Resources property at Snodgrass Lake, Interquest officials report.

A large number of claims in the immediate area of the Interquest block of claims has been acquired by Tamavack Resources, Interquest reports.