loantech, it's the on-going credit crisis story. I'm sure you've read much about it already as applied to the junior mining sector. In summary, it means the following:
Companies low on cash and without advanced projects are likely to die in the near future, or to sell cheaply if they have good properties. In fact, some companies share prices look as if they are being manipulated just for taking over company assets at less than market value. And, having a world class ore body is no protection in itself. Look at Yukon Zinc for an example of a mine given away, and Liberty Star Uranium (now 4 cents) for another company with lots of excellent prospects, but a lack of progress, and no cash. Stories like these are about to become commonplace in this environment.
On the other hand, juniors with advanced projects and world-class assets may survive, or even do well, if they have the strength to work certain types of JVs, or other corporate transactions adding cash to their balance sheets.
In the meantime, the market is not rewarding juniors just entering production, even as they continue adding assets from blue sky. Look at Minera Andes and Excellon. However, companies like these will probably do very well, once their ability to get through this period is shown, or earlier if metals prices soar.
What it all means is that mostly it is the majors, and mid-tier producers who are in a position to finance mine development these days, and they had better bring a lot of their own cash to the projects as well.
For these reasons, and as much as I may like their properties long term, I've exited just about all explorers/juniors without near-term prospects for deals (negotiated from strength), or cash flow from production. My only major exception is Dorato, which I believe may benefit as a area play, and a possible combination with a stronger, friendly company.
...all IMHO.
VP in AZ
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