http://www.stockhouse.com/blogs/viewdetailedpost.aspx?p=147532

Sometimes the best investment strategy is to find an explorer that has discovered something but isn't being given credit by the market. Premium Exploration (PEM-X) is a strong contender for this category.

Of course the market is low right now, but where can you find a junior trading under
.10 ($14 million market cap) with drill results like this?

• 1.8 g/t over 275 m.
• 22.2 g/t over 14.9 m.
• 2.2 g/t over 157.9 m.
• 3.7 g/t over 74.4 m.

Need I say more? Premium Exploration's Friday-Petsite deposit is tremendously undervalued by the market, and the release of the metallurgical test results on tuesday revealing 93% recoveries takes even more of the risk away.

Sometimes companies don't get credit for "district scale" opportunities because there's not alot of hype around them. After all, when one company controls everything, there's not nearly as many Investor Relation's guys at conferences, or speakers talking about different companies, or newsletter writers writing about the area play, or that sort of thing. The Friday-Petsite deposit is 30 km long and prospective along virtually its entire length, although the above drill results are from one single deposit. That deposit looks like a million ounce accumulation, and they are currently infill drilling it to determine the deposit size.

The management team has experience at producing mining companies and particularly in the area of the deposit. The geological expertise appears to be strong within the company.

Now, some people might say there's always a reason when a company is undervalued, and in this case there is one. The deposit is in Idaho, which is not known for being gold country. It is a few hundred miles south of the silver belt Idaho is known for, but it's not a silver deposit. Not many people talk about big gold deposits in Idaho, and Premium Exploration has 30 km of land consolidated into one massive property (including what looks like a million ounce deposit, at healthy grades, in the drill results above). I've always thought that they would get more value if they carved up the property and joint ventured out the pieces. There would be so many more people advertising it at conferences and promoting it in newsletters than Premium Exploration could do all by themselves. That being said however, investing in this company has very little downside today. The value of the stock is heavily underpinned by the underlying property value.

To put it another way, the reason for the big share price discount is not the heavy millstone that investors usually have to accept.