Looking very good, I hope to get Montana shares very soon and this stock will go to 1$, no brainer. This newsletter say everything what we shoud do, 10-Bagger for sure!

HOLD (or BUY ON WEAKNESS) —Premium's Orogrande Shear Zone projects, site of the above-mentioned hydraulic mining, were impressive as well, though in a different way. Cutting right to the chase, the company has one deep, well-mineralized hole, including 25.3 meters of 9.2 g/t gold (PFR2009-10) that hit below the current half-million-ounce 43-101-compliant resource in the Friday-Petsite zone, and is now drilling a fence of holes at that level that could double the size of the resource down-dip . They also have holes permitted to extend the mineralization to the north, in a close enough pattern to be included in a new resource estimate, and some more aggressive holes planned to the south, to test for potential extensions in that direction.

I saw drill core from completed holes in the current fence that looked identical to the drill core that ran high-grade in hole 2009-10 . That included some samples with visible gold that have yet to be assayed . It also included core just coming out of the ground where the drill was turning when I visited. It's possible that these holes could disappoint – I've seen it happen, even in holes with visible gold in them, but I have to say that the odds look pretty good for some excellent results coming up – results that will add a lot of ounces .

But that's just the beginning. The goal here is not just to drill off the Friday-Petsite zone, but to prove up four or more zones management believes have similar potential along the Orogrande Shear Zone, which stretches over 26 miles, mostly through land controlled by Premium. The Buffalo Gulch area has a historic oxide gold resource on surface, and indications of the same kind of mineralization as at Friday-Petsite below, plus other areas with strong surface indications of more of the same (one, amusingly, called Deadwood). That's all "untested potential," of course, but the point is that it's potential on a scale that matters – if nature cooperates, the Orogrande Shear Zone could easily host a major, multi-million-ounce gold district, all within short trucking distance of one central processing facility.

Speaking of central processing facilities, the almost-ghost-town of Elk City Idaho, where Premium's field office is located, has both gold mining and timber history. There's an available industrial site with three-phase power where the lumber mill used to be, paved highway access, and trained people nearby who want jobs. This is good because, while most of the Friday-Petsite zone is on private land (greatly reducing the risk to the current main resource area in case of a new federal mining royalty), the rest of the area is covered by the Nez Perce National Forest. It's a multi-use forest, not a national wilderness area, but the cooperation of the boys in green will be required for the bigger picture scenario to move ahead. No one can say how that will play out, but the area is economically devastated, not just depressed, and mining is the only realistic hope for recovery.

The bad news is that shareholders have suffered a great deal of dilution to get to this point. Premium could truly be right at the cusp of something major, but with the latest financing just bumped up to C$10-million, the company's once-tight share structure has bloated threefold since we first bought. We took profits early on (this is the play mentioned in last week's CWC with Rick Rule , on which we've been able to double our money twice, even though the shares are close to where we first started), so this has not harmed us. However, a bloated share structure and lots of cheap paper out in the market can become a real drag on a stock's performance.

That said, the value proposition comes from comparing the company's current MCap to the value of the multi-million-ounce goal ; if PEM is successful, the shares will have to go up substantially . And, while the C$10-extra-large being raised now is enough to deliver a million-ounce resource at Friday-Petsite and test the potential for more of the same along the Orogrande Shear Zone, it's not enough to deliver the potential multi-million-ounce resource, so there will be more dilution ahead, if the company is successful. Of course, that success could justify the dilution, as CIA subscribers who bought Romarco Minerals (V.R) with us will remember – that took a lot of patience, but we eventually were able to close our position with a 696.2% gain .

What to do now?

Hold . The chances look very good for excellent drill results in the immediate future, and then good results going forward, but there will be hits and misses, and plenty of market volatility to prompt the holders of cheap paper to dump their shares. Sticking with our risk-free positions in PEM makes sense to me, but I would find the shares very tempting if the company delivers the good news I think it will , and then the stock goes on sale on a bad day for gold. Say, 15 cents. If Premium's dreams come true, that could hand us another 10-bagger , which would justify the additional risk, and then some.