JMP Daily Drill Bits: $GRK $HGO $ADD

A Ukrainian coal miner smiles, after finishing his shift at a coal mine outside Donetsk, Ukraine, Tuesday, May 20, 2014. While steel worker in Mariupol joined anti-separatist actions, miners refused to take part in a planned protest against the Donetsk People's Republic. (AP Photo/Vadim Ghirda)

Gray Rock Resources (GRK, $0.14 +27.3%)
Shares Outstanding: 16,394,961
Gray Rock, which has been inactive for years, has finally started showing signs of life with the recent acquisition of the Surprise Lake gold project near Atlin, B.C. Before the acquisition, GRK held the Silver Stream project in Bralorne, B.C.  Last activity on Silver Stream was announced in 2008, right before the company went into a prolonged hibernation.  Back in action, president David Wolfen picked up 2.5 million shares in a PP @ 0.02 in July; this was followed by another small PP @ 0.05 for $52,000; this was followed by the Surprise Lake acquisition on September 30th.  A cursory look at both projects reveal good exploration potential based on proximity to high grade operations and high grade early exploration.  A 2017 exploration budget for Surprise Lake is being prepared, no doubt to be preceded by a larger financing.  With only 16 million shares outstanding, the stock has a chance at a revival if the first round of exploration yields results in line with existing data (grab samples, etc).

Hawkeye Gold and Diamond (HGO, $0.26 +26.8%)
Shares Outstanding: 15,998,000
Recently a shell, Hawkeye has spent a large part of the past year searching for a suitable project.  The company has been financed largely by insiders via private placements in Nov 2015 ($249,590 @ 0.05/share), July 7 ($153,000 @ 0.05/share) and most recently $360,000 @ 0.12/share.  In late July 2016 the company announced its intentions to acquire a near-production project with infrastructure and milling in place.  No details were given at the time.  On October 26th the company informed shareholders it has narrowed down its acquisition targets to three, all of which are in Mexico.  Investors seem delighted by the news, however it remains to be seen how long it takes for the three to be narrowed down to one.

Arctic Star Exploration (ADD, $0.07)
Shares Outstanding: 24,340,768
Howe Street veteran Patrick Power’s weathered down Arctic Star seems to be in line for a renewal of hope and interest.  Shares of ADD were consolidated 4:1 with a private placement in the works for 20 million shares at 0.06/share for proceeds of $1.2 million.  This follows the acquisition of yet another diamond project, this one called Diamond Dunes, acquired from Frank Callaghan’s private Standard Drilling & Engineering.  Callaghan is one of the last of Howe Streets old time promoters.  Mr. Powers is known to have a solid rolodex and is capable of raising money and creating liquidity when required.  Diamond Dunes is located in the Athabasca Basin, on either side of DeBeers/Canalaska $20 million joint venture.