Premium Exploration Inc. Seeks to Expand Idaho Resources

Gold is here to stay. It’s time to embrace all its sheen and glory.  
 
Thanks to op-ed pieces published on Forbes.com and Business Insider, the public has once again become warmer to the idea of gold investing. Gold is currently the best thing in the stock market, with recent price increases indicative of its high potential. Posting a 9.7 percent increase last month, and with gold futures for April forecasted to have risen by 1.4 percent to settle at $1,318.60 per ounce, there’s no better time for gold investing than now.

Furthermore, as the fish-moccasin, fish-salt and moccasin-salt analogies in the said Forbes.com article suggest (Forbes.com columnist and Gold Standard Institute president Keith Weiner used salt to represent gold, which has a narrower spread, and moccasin and fish to represent commodities that have a wide and narrow spread respectively), gold is the most marketable good to anyone, commands a higher exchange rate, and has a narrower spread (difference in exchange rate). Echoing Weiner, we cannot agree more—gold is the best good to trade and it’s the best one to use as money. You have got to have rocks in your head the size of Gibraltar to think it’s not.

The renewed focus on gold has provided miners and investors great momentum to revisit deposits. In the case of Premium Exploration Inc. (PEM), it provided the company an opportunity to reevaluate old and new deposits and be able to provide investors value.

“We’ve re-evaluated our deposits, remodeled high grade intervals, and came up with a potentially minable resource that the company is focusing on now,” President and CEO John Ryan said in an interview with The Korelin Economics Report, on the sidelines of the Vancouver Resource investment Conference last January. According to Ryan, Premium had begun drilling operations in the middle of December and had completed four holes around the time.

“But the plan is for a small but high-grade underground mine...We are not losing focus for our 30km of trend where there are many Friday-sized deposits. Over the next three to four months we will be we will be talking about news releases about  drill results but also preliminary ideas for a production scenario for the project,” Ryan added.

Premium’s Friday resources reflect a high expansion potential with a multi-million oz target. Strike length has also a potential to increase from 1.6 km to 4.0 km. So far, assay results from drilling the upper gold zone at the Friday Gold Deposit in Idaho County, Idaho revealed that high grade gold mineralization occurs in a zone drill with widths of 18 to 6 meters and that extension is possible. Ryan noted in a company news release that the results “continue to support a mineable resource at the Friday deposit.”  

Premium Exploration Inc. fills in the ranks of most watch lists on top growth companies associated with gold mining. It was also one of the growth companies featured by several media outlets and online communities such as Seeking Alpha, Stockhouse.com, Yahoo Finance, and Bloomberg for its growth potential in the North American mining sector. Located in the mining town of North Idaho, the company enjoys little geopolitical risks due to the state’s 7th ranking in the US on Fraser Institute’s Policy Index; the state’s pro-mining congressional delegation, leaders, and legislations ,the state’s long established mining history; and streamlined permitting via Joint Review Process.

Premium Exploration Inc.’s Idaho County site also covers a large land package, has good infrastructure and a large resource base that include the Buffalo Gulch Deposit, the Friday-Petsite Deposit, and Deadwood Zone. It has all the signs of a gold district: it’s three deposits are open for expansion (as mentioned earlier); and it covers more than nine priority targets and over 20 prospects. Targets include Baner, which it forecasts to have a multi-million oz potential and Spotted Deer, which houses an untested high grade zone.

Premium has re-priced its unit which a few, select investors can avail through private placement. The new price per unit is now pegged at $0.20 for up to 5,000,000 units ($1,000,000). Units are composed of one common share and one-half of a common share’s purchase warrant. The said re-pricing increases the number of Units to be issued to 6,666,667 units with a reduced subscription price of $0.15. The unit for this one includes a full warrant and an exercise price reduced to $0.25. The warrants come with a forced exercise clause wherein the company would reduce the exercise period to a period of no less than a month from the date of issuance of a written notice. This will be the case if the shares trade at more than $0.60 for over 10 consecutive days. The net of the proceeds will be used by the company to pursue its Idaho Gold Project and for additional working capital.