Strongly suggest longs review this article which explains history behind the incredible demise of junior explorer/small mining sector. Also advances case for capitulation being close at hand. As a side note, assume share prices for our sector remain at current levels or detriorate even further. Many junior explorers and small PMs would estentially be forced to cease operations as the cost for new equity capital required to fund operations would become prohibitive. Thus large miners would lose a critical source to replenish reserves with resulting inevitable decrease in global production. Couple this with central banks no longer are supplementing the market with sales equates to lower supply while long-term demand remains brisk (just read an article which states extremely strong Indian demand during past several days as retailers restock early for fall festive season).

Granted short term trends in any market can extend well beyond any logical scenerio (ie: dot com bubble). However, long-term junior explorers IMO are mandatory for industry supply.

http://www.resourceinvestor.com/pebb...