Well, here's a tutorial which actually describes both how to do it as well as how to do it as fast as possible using bitwise operators AND, OR and shift.
Basically you first make a bit-mask of the two sprites, so that each bit represents 1 pixel. Then when the two bounding boxes intersect (a quick test) i guess you calculate the common area of the two colliding bit-masks and using the shift operator for aligning the two bit-masks you can test the area of intersection very quickly. It's maybe a little complicated.
Here's a little quote:
The idea is to identify the common area of the two masks, and then perform a bitwise AND to check if they share a common ’1’- bits. This way we can check 32 bits at a time which speeds up the test enormously
Personally i would rather creating a polygon around each of my objects and then test if these collide mathematically. Doing so allows me to rotate my sprites easily without it effection collision detection.
I have a great book about real time collision detection, so if you want to try this, let me know :)