Spoke with MH today. He said he couldn't answer all my questions and will get H.Bresser to call me tomorrow. Main points of conversation; * They could have continued with permitting, however it would incur further costs associated with the permitting process, combined with difficult market conditions (Zinc price etc…) it was decided to suspend the process * The lead time to finalise the permitting process when it is recommenced is a few months. * The two major shareholders (Macquarie bank and Glencore) had in the past expressed interest in funding the project. * It’s no coincidence that D.Oestreich who works for Glencore was appointed as a non-executive director, part of the deal with Glencore to get involved with OVR was to have a representative appointed to the board to look after their vested interest. I asked about what Zink price was used in the feasibility study and what Zinc price would make the resource economical. He said the company announced the operating cost and funding required, and that should be enough to work out what he Zinc price should to be to make an economical mine. I disagreed because it doesn’t factor in smelting/refining, shipping, taxes and government and community fees (all from their announcement bty). Reminded him IBG put out the full feasibility report. He said he doesn’t know and will speak to HB to call me tomorrow.
OVR Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
