I've been following Pediment Exploration (TSX-V: PEZ), a tiny gold exploration stock trading on the TSX Venture Exchange, in Secret Stock Files since the company went public in fall 2005.

At the time of my original buy recommendation to Secret Stock Files members, PEZ was trading for C$0.68. Since then, share prices have rocketed over 350%, opening this morning at C$3.12.

The Tiny Gold Exploration Stock That Could

Since the company's humble beginnings, Pediment Exploration has developed into what many investors playing the junior Canadian markets now consider to be the most exciting junior precious and base metals explorer working in Mexico.

From the company's recent runaway success at its San Antonio gold project to the strategic joint venture with Inmet Mining, Pediment's five-star management team and unparalleled geologic expertise continues to add value to the company's nine 100%-owned mineral properties while increasing shareholder equity.

Of Pediment's nine properties, the San Antonio Project is of particular interest to me with recent exploratory drill results that suggest a massively profitable gold resource.

Gold Exploration at the San Antonio Project

Pediment's San Antonio project is located near the southernmost tip of the Baja Peninsula, Mexico, about 40 kilometers southeast from the port city of La Paz. The project consists of three concessions that collectively cover 40,200 hectares of favorable geology.

As part of the planned 10,000-meter reverse circulation drill program focusing on the Los Planes zone of Pediment's San Antonio project, the company has released six sets of drill results so far, covering over 30 drill holes.

The first came in the Summer of 2006 when Pediment reported sample assays from three drill holes recovered at the Los Planes zone. The results were simply brilliant.

• Hole PLRC-07 returned an impressive 3.79 grams per ton (g/t) of gold (Au) over 84.12 meters, which included 12.19 meters of very high-grade rock that assayed a whopping19.87 g/t Au.
• Hole PLRC-05 recovered an average of 1.60 g/t Au over a deep 100.58 meters and included gold grades of 4.87 g/t, 7.27 g/t, and 7.68 g/t.
• Hole PLRC-01 assayed an average of 1.47 g/t Au over 83.82 meters and included gold grades of 3.08 g/t and 3.14 g/t.

These results were the biggest news of the day from the Canadian mining sector. And of course, Pediment's stock traded like crazy-1.34 million shares-even though the stock had been halted until 11 A.M.

During the months that followed, further drill results continued to expand the potential resource at the Los Planes zone. Some of these results included:

Most recently-last Tuesday to be exact-Pediment released their latest batch of seven new drill results from Los Planes

New drill results include 13.3 g/t Au over 10.6 meters within 50.3 meters of 4.0 g/t Au in hole PLRC-62. Another 64 meters of 1.0-1.1 g/t gold material was also intercepted only 6 meters deeper in hole 62.

Holes PLRC-29, 33, and 36 recovered quite impressive mineralized widths of 57.8 meters of 1.13 g/t Au, 72.5 meters of 1.31 g/t Au, and 56.4 meters of 1.17 g/t Au respectively. These results continue to confirm the northeast extension of the Los Planes mineralized zone.

And last but certainly not least, Pediment reported assay results for holes PLRC-52 and 55, which continued to extend the mineralized zone another 50 meters to the south including 65.5 meters of 0.92 g/t Au in hole 52. (see Pediment's press release) Over the past few weeks alone, Pediment has expanded the Los Planes zone over 150 meters to the south.

From the results that the company has reported so far, I calculate that the average gold grade recovered from sample thicknesses over 30 meters is about 1.64 g/t.

This is very interesting because Vista Gold's 2 million ounce Paredones Amarillos gold deposit-located adjoining Pediment's San Antonio project to the southwest-has an average gold grade of only 0.82 g/t.

Moreover, the largest gold mine in Mexico, La Herradura open-pit gold mine, owned in a joint venture between Newmont Mining and Industriales Peñoles of Mexico has an average gold grade of 0.85 g/t. So Pediment's results are looking really good.

Aside from the raw numbers, it's also very important to recognize that the material recovered in many of the holes is oxidized. This is meaningful to the development of this project because oxidized rock is much cheaper to process than sulfuric rock. And when you get down to the nitty-gritty of what the San Antonio project is developing into-a large-scale, open-pit deposit-it's all about the cost of gold production.

This year, Pediment says that it expects to drill another 10,000-15,000 meters into the San Antonio project. The company will focus exploration on the Los Planes Zone as well as three other zones: La Coipa, La Virgen, and Fandango. So drilling results will be streaming in throughout all of 2008.

When it's all said and done, I expect Pediment to have drilled nearly 200 holes into the San Antonio project by the end of 2008, more than enough for an NI 43-101 resource estimate to be calculated.

Pediment Exploration has everything a junior mineral exploration firm needs to become a mega-success: a tight share structure, top-notch management, superb technical team, plenty of cash in the bank, and extreme untapped potential on it's nine 100%-owned precious and base metal properties. I expect the company and the stock to continue doing very well in 2008.

More Information

Because I know that you probably don't have the time to to read through pages of Gold World, I've painted some very broad strokes with you today and left out a lot of details. And if you want more details on Pediment Exploration, please visit their website at: www.PedimentExploration.com. I also urge you to call Gary Freeman, President and CEO, or Michael Rapsch, Pediment's in-house IR guy, at 604-682-4418 for more information on Pediment.

Until next time

Luke Burgess
www.GoldWorld.com