I have been duped in the past by buying juniors that wewre in proximity to other producers as well, and I have even followed this rationale not only in mining but also in oil and gas producers as well. The problem is this. The JUNIOR MARKET IS DEAD. The market cap of the biggest commodity companies , the heavy weights are at multi year lows, look at TCM, TCK, K, and you get the picture. The junior market has completely capitulated to the 2009 levels in many aspects. Interest rates are slowlyyyyyyyyyyyyy rising and banks in Canada , with a real estate bubble on the cusp, are sure as sh&& not gonig to lend to any juniors. This is a terrible space to be in now unless u have a 5 year horizon. I would suggest peopel selluot of these underperforming sectors and jump in whats hot now, biotech, pharma, and technology stocks.
Do your research on the juniors and see who can survive without diluting. Whenyou see the big companies start to move off their lows with conviction volume , then u know for sure money is returning to the sector and eventually will trickle down to the junior space. This is along time away from happening.