Premium Exploration has run up a lot recently from .10 to .55 intraday today. They are expecting positive results from their most recent drill campaign at Petsite. Is this what they call a blowoff top for Premium at .50? Or is the cat out of the bag and the worst kept secret on the venture? The next few days will be crucial in answering this question.

Premium Exploration: PEM.V
39.44M shares outstanding
$20M market cap

Premium Exploration has been on the watch list lately as a very prospective gold exploration company that could add lots of value. It has already done a steady rise since the last week of May from .10 to the lofty .48 cents but with good reason. As investors get wise to this project and start seeing the true value here and potential which is about to be unlocked.

Premium is drilling a high grade gold project called Petsite,which already has an inferred 500,000+ oz’s with 15million tons at 1.1g/t gold. They announced drilling has been completed and extended the strike length of the project by 50% and is still open at both ends, to the north and the south. This has created quite a stir considering Premium believes that there are high grade deposits throughout the 28km strike length of the fault within the area that Premium is exploring. The drill program in what I can guess was so successful, that they added another hole to the project from 6 to 7.

Premium is currently awaiting assays from these 7 holes which all hit mineralization. They also sent out a congratulatory news release to the about the drilling crew and professionalism. It may be all a ruse to create extra hype and promotion, but rarely do companies do that publicly.

From previously reported drill holes, the optimism for great results isn’t unfounded. Previous explorers, including Kinross have had some exceptional results for this little explored high grade project…

• 7.33g/t gold over 16.7 meters
• 4.58g/t gold over 68.6 meters
• 8.29g/t gold over 13 meters

If PEM can improve upon or at least match these results in the holes that extend south and north, the theories of this project for the potential of a 2M to 5M oz deposit that Kinross initially envisioned , start to have a lot more ground. The stock has run up a lot in anticipation of great results, so if they don’t impress there could be a sell off into news. But if they do impress, then this stock will catch fire with a market cap less than$20MM.

Now my not be the time to buy from a risk reward perspective, but there will be a good opportunity to get into this company if the results do impress.

From the last news release, results are expected by July 30.

Happy Investing