I will not blame the market, economy or exterior factors for the current state of affairs. Those are issues beyond the control of management.
The current state is that we have a company that has no market value, a company that is tarnished by past performance, and no clear idea of what management wants to do.
Here are some ideas to condiser:
Buffalo Gulch Mine.
Premium said at one point that the project was permitted to go into production. It was just a matter of changing the name on the paperwork. It never happened. There are no permits to put Buffalo Gulch into production.
In 2010, I believe Premium drilled three holes into Buffalo Gulch. One was a dud ant the results of the other two were just OK. Rain reportedly haulted drilling and no drilling has been done since.
From what I understand it would normally take about a two years to permit if all the studies and BS needed by the government is completed.
Petsite Friday
This was Premium´s big show. Drilling had progressed slowly with almost all of the holde drilled on the five patteneted claims. There appears to have been issues with permitting because I do not understand why there was not more drilling beyond from where all of the historic work was done. The claim that the deposit is much larger should be supported by drilling.
I think a systematic plan for expanding the resource, with measurable and deliverable objectives is needed.
Marketing
Premium was promoted like a VSE company of the 1980s. Expectations were always raised to high and the company kept promoting the next hole, not comprehensive results of a campaign. This throwing the market lab results rather than illustrating how results appear to relate to the existing resource made the stock a day traders favourite for flipping. There was always news. The percived value of an assay did not translate clearly into a measurable increase in value of the resource.
The promotion of the play was overhyped. The association made with the Carlin trend was not clearly justified and certainly was not supported by the compny's results or similarities. A string of dots on a map comparing the placement of mines along some strike is not enough. Again, it comes of sounding like a VSE pump and dump.
The geological model of stringer zones and feeder zone was not illustrated using the results of drilling. I have no diea if there is any real validity to the concept.
Big picture generalizations of how much gold was in the ground did not help. I reflect back upon Del´s interview in 2009 stating that there was probably 5 to 10 million ounces of gold along the trend was good arm waiving but resulted in high expectations that would be difficult to meet. Again anonther VSE type promotion.
The company needs to illustrate clearly what it wants to do, how it is going to do it and a means by which the market can measure success.
Premium exploration is a tainted brand and I think it is time to rename the company and to create a new market image. No signs of old Premium managment or IR.
Value & Liabilities
I went into this in a previous post. Premium only owns 75.1% of Premium USA, holder of all Premium´s properties. Further there is a dispute over the ownership of roughly 37% of the 5 pateneted claims which meant that Premium only holds a roughly 46% stake in the Pesite resource?
There remains questions about the secured debenture and payouts that have to be made to old management.
This has to be cleaned up before the company moves forward.
