Lux Metals Strikes Gold With a 343 Gram-Meter Hit in Quèbec
Contributed Opinion

Important Disclosures:

1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lux Metals Corp., Alphabet Inc. Class A, and Nvidia Corp. 
2. Bob Moriarty: I, or members of my immediate household or family, own securities of: Lux Metals Corp. My company has a financial relationship with: Lux Metals Corp. My company has purchased stocks mentioned in this article for my management clients: None.  I determined which companies would be included in this article based on my research and understanding of the sector.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

I see Lux Metals Corp (LXM:TSXV; BBBMF:OTCMKTS) as a standout low-cost entry into a high-grade gold-copper system that could reward patient investors during the current market weakness.

Gold and silver prices remain near their weakest levels of the past ten months. Recent DSI readings show gold at 27 and silver at 14, levels that fall short of the extreme lows seen earlier this year. I view those figures as indicating more downside risk ahead rather than an immediate bottom. Tom McClellan expects the 13.5-month low for the metals to arrive in December, and the current readings support that outlook for me.

The discount on the Sprott Silver ETF at 4.81 percent offers another useful signal. During the sharp selloff in March 2020, the discount reached roughly 10 percent, a level I would consider a clearer sign of capitulation. Silver tends to swing more sharply than gold, so I would prefer to see that wider discount before calling a major low.

I started warning about the broader equity decline a month ago after noting that 59 percent of ordinary stocks had already fallen more than 20 percent and 41 percent had dropped over 30 percent. Those moves go well beyond a normal correction. The sharp single-day loss at Alphabet Inc. Class A (GOOGL:NASDAQ) of roughly 500 billion dollars in market value and the 20 percent intraday drop at Intel confirm the pressure. Further weakness may appear once Nvidia Corp. (NVDA:NASDAQ) reports earnings soon.

The stretch from now into January 2027 could represent the strongest window I have seen in my lifetime to build positions at depressed prices. I called for the start of a market break in October, and that decline is underway. Margin calls are arriving, and many resource names have already reached yearly lows. Those conditions create the environment where bargains appear.

The American Empire has reached a critical juncture, and the dollar faces substantial pressure as a new Congress may expand spending to manage a 40 trillion dollar debt load that cannot realistically be repaid in full. The world stands at a turning point perhaps unmatched in five centuries. Bibi Netanyahu faces removal from office and possible legal consequences. 

Lux Metals reached out recently with a story that deserves attention. On October 14, the company published initial assays from diamond drilling at the La Grande Gold Project in Québec. One hole returned 17.57 grams per tonne gold across 19.5 meters starting at 220 meters depth, including a higher grade section of 39.08 grams per tonne gold over 8 meters. Follow-up copper assays from the same interval showed 1.45 percent copper. Such results stand out on their own and recall earlier successes like Great Bear.

The project sits in a mining-friendly jurisdiction and had not seen drilling for a decade despite available historic data. Management acquired 100 percent ownership last year by issuing shares representing about 20 percent of the company and accepted a 4 percent NSR. The first hole location proved highly effective, and intercepts of this metal factor rarely occur in isolation. The company presentation provides clear visuals of the opportunity.

The shares traded at 21.5 cents on the initial news before easing 40 percent to 12.5 cents, creating an attractive entry for new buyers. Market capitalization stands near 9 million Canadian dollars. Warrants from a February 2025 placement totaling 12.3 million at 5 cents remain outstanding until February 2027. Those warrants will likely limit upside until they are exercised or expire. At current prices, exercising them would still be attractive for holders. I spoke with management at length, found the story compelling, purchased shares in the market, and intend to join the next private placement once terms are set.