For investors to take note of...my due diligence post from a...

For investors to take note of...my due diligence post from a while back [updated]..
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Fellow investors,

once again i advise all to do a good deal of due diligence on this firm and not forsake an obvious opportunity.

The June Quarterly [i.e. in 2010], solidifies the management's resolve in moving to mining production. This is a company maker and the general market is not getting into it due to the lack of promotional expertise from the company's representatives.

For your perusal, in the last 6 months, the management have done the following;

1] Hired the lead engineering consultant firm [i.e. Sacre Davey] to compile all the documentation and deliver a feasibility study. This firm does work for Barrick, Placer Dome, Teck resources and Chevron among other majors. It also does most government contracts for the State of Vancouver. Once the DFS is completed, the share price will be way north of the current price and probably at 45cps - 60cps. This is THE MAJOR PUSH INDICATOR due to happen in the next 4-8 months.

2] Hired Golder Associates to design the tailings storage facility for production. If you are not informed on how strong a firm Golder is, then i suggest you do a proper DD. As such, all water monitoring wells around the project area have also been completed.

3] Hired Aero Metric Inc to acquire more detailed aerial photography over the project to facilitate and support the engineering design and construction scheduling of the project.

4] Hired McEhanney Consulting to survey and design road access to the project. Re-aligning of the road route now means lower cap costs. Field work to be completed shortly and final design work completed by next quarterly.

5] Hired Merit Consultants to provide an estimate of the capital cost to develop the project. Work will commence immediately once the final design and engineering components are completed.

6] SGS Lakefield to complete metallurgical test work and to incorporate it into the flow sheet and plant design. Test work to be completed by next quarter.

7] OVR, since last quarterly, have utilised the diamond drilling to install water monitoring wells that have now been completed. The firm will now focus totally on expanding the reserve base that is open in all directions and at depth. [OVR have recently announced a resource upgrade to be released when they compile all their latest drilling results and intersections].

Comments;

Investors need to understand that, historically, 92 percent of exploration companies never move a discovery into production. This is a fact. Most companies either do the exploratory work [funded by major companies in their industry] and upon a discovery, are instead bought out or taken over at a premium.

Although there is major money to be made with a buyout, the huge share price surges usually come from the various push indicators available from moving a discovery to mining production.

Potential investors need to ask themselves if OVR has intentions on moving this discovery to production. The activity of OVR in the last quarter and for the last year [i.e. 2010] have shown quite clearly their intentions. They now seem to be accelerating their activities and will probably be producing sometime in 2012.

There is a huge upside if this happens and upsides on the way towards that goal. The undiscounted present value [without the latest cost savings of met work and capital work incorporated] of the project is above 174 million USD. They have 145 million shares on issue. This gives a potential of above a dollar. Once preliminary off-take agreements are signed, it will be too late to make the big profits on this play.

Their current price is 30 cents. Investors will need to address their investment horizons and look towards a potential five bagger easily.

Situations like these do not present themselves often.

One thing to note is that the company is 72 percent in the hands of the top 20 of which include Glencore, Macquarie Bank [who have agreed to debt finance 50% of the project] and several funds that have been increasing their position in the last 6 months [Officium Capital].

The only issue with this firm is that management are not too good with proclaiming their accomplishments and instead tend to keep a low profile. They let their actions do the talking BUT this is not helping in the current volatile environment. I must admit,however, that they are starting to pick up the frequency of their updates. They are also in the midst of presenting their findings at one of the biggest resource conferences in the world - Vancouver.

On the macro side, there will be a supply side issue in Zinc [forecasted by authorities] from 2011 - 2012. In this respect, the management might have indeed timed their mining schedule to perfection. Their recent pre-feasibility study showed a 174 million undiscounted cashflow...this figure however will be increasing when their new figures come into play and we should see numbers over 200 million USD conservatively.

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Investors should understand their risk/reward proposition and put in their hard earned money only upon proper due diligence in junior plays.