In response to several inbox messages I have recieved, I am posting my comments. Good, bad and the ugly.

I was not overly impressed with the last news release. It was not as well written as the previous news releases. There was less information presented in terms of drilling results. I was hoping to see more detail. As far as I am concerned it is uninterpretable. The drill sections presented were dumbed down. Previous sections presented individual assays along the drill hole giving us an opportunity to see where the best grades were. The previous news releases indicated that hole intercepts at depth included some very high grade gold intercepts with visible gold. These high grade intercepts are very important at depth and are very important in valuating the economic potential of the resource.

Friday-Petsite should be looked at as three different deposits with different mining and processing methods. The grades that are economic are different for each.

Premium uses 0.5g/t as their ore/waste cut off. Anything less than 0.5g/t Au is waste in terms of the current resource modeling.

Oxide Gold
the current resource has about 100,000oz of gold in this material. The oxide material is near or on surface, requires little stripping and gold recovery is close to 90% through cyanide heap leaching. There is very little stripping required and only a coarse crushing is required in terms of milling. Grades of less than 1g/t can be economic. (strangely premium in releasing the March 23,2010 internal resource estimate made no mention of oxide or sulphide ore in their estimate)

Sulphide Gold shallow and disseminated.
There were about 300,000oz of gold in this material. This material can be mined by an open pit. At depth the amount of waste material that has to be removed increases as do mining costs. Testing by Bema and Kinross indicated that reoveries of this material through heap leach were low (less than 75%) and that more crushing would be required. Comments earlier from Premium technical people suggested that a mill with the recovery of a sulphide concentrate would be required. The sulphide concentrate would be sold to a smelter to recover the gold. Tailings from this operation would be amenable to heap leaching to recover gold at very low grades. We are still looking at 1.7g/t Au for this material.

Sulphide Gold in higher grade veins.
This is the material in the lower block. We do not have a resource estimate of this material as of yet.
This material would have to be processed in the same manner as the above sulphide material.
This material is not open pit mineable. There is too much waste material to remove above for an open pit scenerio. The grades in this type of operation should be greater than 2.5g/t Au and that number is very conservative.

The odd thing is that the drilling results released to the market are low grade averages over huge widths.
There are higher grade intercepts there, but Premium is releasing the news as if they were looking a the thing as a big open pit.

I have recently sold my position in Premium, not because I do not like Orogrande, but I like to take profits when I can.
There is still a great deal of upside to the Orogrande Shear Zone. Future drilling in the area of the Deadwood resource (80,000oz gold in oxide material identified by Bema in about 50 shallow holes) should prove very interesting. There are other gold in soil anomalies that have the same signature as Friday-Petsite and Buffalo Gulch, along the Orogrande Trend, that have not seen drilling. There remains a great deal of potential there! I may buy in again if the share price drops substantially in the near term