Premium Exploration is a junior miner that invests in robust deposits with significant potential for near-term production and growth. Their two projects of interest are the Buffalo Gulch and Friday-Petsite gold projects along the Orogrande Shear Zone in Idaho. The Orogrande Shear Zone is a 28 km high-grade mineralizing conduit and potential feeder system hosting over 681,000 oz of known gold to date. Utilizing a new model based on the high-grade gold mineralization hosted in the geology of the Shear Zone, Premium’s geologists are the first to interpret the numerous gold resources and targets along the Shear Zone as being the result of a potential high-grade feeder model.
The most northern property on the Orogrande Shear Zone, Buffalo Gulch, is currently being permitted for production. The property is an open-pit heap leach project with 100,000 oz Au (Non 43-101). Projected production on this project is 25,000 oz Au/year – 35,000 oz Au/year.
Premium’s Friday-Petsite property is a 531,890 Au oz Inferred Resource (NI 43-101) on the southern-end of the Shear Zone and is open along strike and at depth. The property also hosts historic high-grade drill results, which support the potential high-grade conduit theory.
Historic high-grade HQ drilling by Cypress-Amax and Kinross Gold Corp include:
Core Hole PC008: 7.33 g/t gold over 16.7 meters including
> 52.05 g/t gold over 1.6 meters
Core Hole PC010: 4.58 g/t gold over 68.6 meters including
> 12.11 g/t gold over 19.8 meters
> 75.09 g/t gold over 1.5 meters
Premium Exploration just completed a drill program on the Friday-Petsite property and is expected to announce results this week. In total, they are looking at an estimated deposit of 4-10 million ounces of gold and are looking to move into production as soon as possible. They also have a silver project in Mexico with an estimated 10-12 million ounces of silver.
Premium recently brought on board geological engineer Wilf Struck, which gives me further confidence in their ability to move into production in the near term. Mr. Struck has in-depth knowledge of Premium’s Buffalo Gulch and Friday-Petsite properties from serving as the Project Engineer with Idaho Gold Corporation; Supervisor – Exploration Properties with Bema Gold Corporation and as VP and Chief Operations Officer with Idaho Consolidated Metals Corporation. He developed and permitted the Champagne Mine, an open-pit, heap leach gold and silver mine in Idaho, for Bema. Mr. Struck was also involved in the exploration of the Buffalo Gulch project and helped develop and permit the project for production.
In addition, Premium’s president Del Steiner was involved in the development of over 600,000 oz Au on the Orogrande Shear Zone in Idaho, USA. He was also instrumental in helping Bema Gold obtain the original permitting for the Buffalo Gulch Gold Mine in 1992, prior to the mine being put on care and maintenance. Mr. Steiner took Premium Exploration public in the Spring of 2006 and is a Director of SNS Silver Corp.
Click here to watch a video interview with Premium Exploration President Del Steiner.
The charts above suggests that we might be a little late to the game, as Premium Exploration’s stock price has doubled in the last month and is up nearly 10X since its low in December of 2008. Still, I believe there is further upside and the stock should get a bump when drill results are released this week or next. Plus, I expect an additional advance as the company moves their first mine into production later this year. The stock dipped in the last few days and I believe is offering an excellent buying opportunity.
The longer term chart below shows a beautiful v-shaped recovery and the potential for the stock price to appreciate another 50% before reaching its previous high in 2008. The resource picture, management team and production outlook have all improved since the previous high, so I expect that level to be easily eclipsed. With a market cap of just $14 million, any positive drill results should send the stock price absolutely soaring. And as they have continued to extend mineralization zones, I believe we have a good chance of seeing that happen.
We notified premium subscribers about Premium Exploration a few weeks ago at much lower prices. If you would like to view the Gold Stock Bull Portfolio and receive our buy/sell email alerts, click here to sign up now. It is only $35 per month and you can cancel at anytime if you aren’t 100% satisfied.
Disclosure: I own shares of Premium Exploration
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Nice run, but very overbought at this time. If you are in this stock, I would advise you to take some money off the table. If you don’t own it, wait for a pullback to get in. I have no PEM.V
After NR this up coming week it will go to $1.00 with ease.
PEM has had several consolidations along the run up and is poised for a solid run on news. Word is news will be very good indeed as expected.
This stock is not overbought~ a $20,000,000 market cap is chump change compared to the AMAZING projects they have now. Talking about minimum 500,000 oz. of gold in just one of their areas, they are set to profit atleast 500$ per ounce, that is IF gold does not go up in price. With all the Fed’s Monopoly money floating around the economy, gold is set to push up atleast 50% in the next year or two. A mine opening up later this year, and good news coming soon in the next week or two. They also produce platinum and silver in other states and Mexico.
WOW! Do NOT sell this stock, ever. I am still a buyer at this level!
This a great company with alot of potential,i feel comfortable buying more at .50/.60
The NR this up coming week is going to be great as expected and yes 1.00 buy this friday is more then possible.Tuesday maybe wednesday at best will be the last days to get in.