Tough times in the grassroots exploration sector will be a dominant theme as the mining industry converges in Toronto this weekend for the 2013 Prospectors & Developers Association of Canada conference

Early indications are that the crisis in the junior sector will not have much impact on the number of attendees. If the numbers are down from last year’s record-breaking attendance of 30,000, organizers say they won’t be down by much.

But during the four-day conference, which starts Sunday, much of the talk, and key parts of the itinerary will focus on the difficulty that many juniors are having raising money and what PDAC organizers can do to help.

On Tuesday, for example, an all-star panel of experts will discuss revival strategies. Moderated by Salman Partners Inc. senior mining analyst Ray Goldie, it features Sprott Asset Management CEO Eric Sprott, Dundee Corp. President and CEO Ned Goodman and Kaiser Research Online editor John Kaiser.

This year, the schedule also includes Canada 2013: a cross-country check-up of exploration and development successes and potential problems.

PDAC executive director Ross Gallinger said the emphasis on juniors reflects the importance of that part of the industry to mining as a whole. “In terms of the grass roots, that is where we are really concerned because it affects our long term minerals and metals supply chain,’’ he said.

PDAC was sufficiently concerned that it recently formed a “crisis committee” to get a better handle on what is going on.

Among the potential solutions is a move to convince Ottawa to make a greater commitment to providing tax incentives such as the 15% Mineral Exploration Tax Credit to investors in junior mining.

The 15% tax credit was introduced in 2000 and is intended to assist junior companies to raise equity through flow-through shares for high risk exploration. In an average year, METC investors collectively provide junior companies with $500 million to $800 million in new financing to be spent on grassroots exploration in Canada, and PDAC says it should be renewed.

“We also believe the mining industry would benefit from long-term stability, which can be achieved at this time by lengthening the METC approval period from its current one-year time frame to three years,’’ the PDAC said in a discussion paper.

A longer approval time, it said, would provide all players with more confidence at a time when the global economic future is very uncertain.

Gerald Harper, President of Minfocus Exploration Corp. (TSX: V.MFX, Stock Forum) said there is no doubt in his mind that as companies become more conservative with their cash, exploration spending will fall this year.

“Companies without money are going to go to the wall,’’ he said.

Still, industry officials say problems in the junior sector tend to work in the conference’s favour by giving them a greater incentive to attend.

“It is such an internationally renowned conference, you have to be there,’’ explained Tom Schroeter, a veteran B.C. mining executive who has been attending PDAC since the late 1960s.

Schroeter is a technical advisor with Consolidated Woodjam Copper Corp. (TSX: V. WCC, Stock Forum), which has been invited to participate in the convention’s Core Shack program. This provides the Vancouver-based junior with an opportunity to show off drill core and maps from its flagship Woodjam North and South properties in central B.C.

Gold Fields Ltd. (NYSE: GFI, Stock Forum) has an option to earn a 70% stake in the Woodjam properties. But Schroeter said he wants other large companies to be view the drill core just in case his company is seeking a buyer for the other 30%.

Mark Parrish, a communications co-ordinator with KWG Resources Inc. (TSX: V.KWG, Stock Forum) said his company is attending the convention for similar reasons. “It’s a good opportunity to meet with shareholders and other industry types,’’ he said.

Gallinger agreed with that view. “Market caps are low right now and this is an opportunity for investors to get in on the ground floor and ride the elevator to the top,’’ he said.