pick up in volumes, page-10

Neddo,
i am quite certain that we might both be on the substantial shareholder list.

Indeed, the more one delves into their projects, the more it fits. The management are quietly and confidently moving along with their jobs and restricting giving themselves high salaries and exorbitant incentive options. My money is safe with these guys and the projects coming online will reap me the profit margins i am looking for.

Neddo, i have been investing in many firms as a shareholder for a while now and though i am no expert in most industries, i do ensure that i incorporate an extensive due diligence process into my investments. My experience [among other variables] tends to dictate my actions and as such, i have been rewarded with many plays over the years. Of course, not everything pans out as they may on certain occasions too...

I can say that most money is made when we take up positions and drink upstream from the herd. Waiting for the price to come to a built in safety margin and then positioning oneself accordingly.

The economics of the Andrew Zinc project will be the catalyst into which the firm will be rated upon. One of the interesting questions is in trying to figure out the type of deposit the Andrew is... Sedex, VHMS or even a MVT. My guess is that it is most definitely a Sedex.

Being in this field for such a long time, i am usually willing to bet my money based on just one or two drill holes; provided those holes indicate that a discovery has been made. Of course, it does take some level of understanding of geology to be able to grasp the significance of any drill results and to assess whether or not those results indicate a serious discovery. As such, if you can buy into the company before the market actually grasps the full significance of a discovery hole [and that can sometimes take months] the investment results can be stunning. The assay results are, of course, important and easy to understand, but what is much more important is to understand the setting of the mineralization.

An example if you will....

I vividly recall Aurelian resources, which declared assay results from four holes in early Apr 2006, as well as from four holes in early Jun 2006 from the Condor project in Ecuador. The results catapulted ARU's share price from around C$0.80 (in early Apr 2006) to a peak of around C$23 (in mid-Jun 2006). In this case, those who understood the geology and therefore anticipated where this project was going bought heavily before the share price took off.

What i am trying to imply from the above is to learn and understand the mechanics behind the industry. This is extremely important and gives one a HUGE competitive advantage when positioning for investments. Now i am not saying that OVR will afford me those profit margins again, but i am certain that there is a 5-10 bagger in this. If OVR ticks off on the DFS, all bets are off.

My guess is that we will see another resource upgrade soon. With the Andrew mine slated to produce in 2012, they will be able to focus on their other major drill ready deposit just kilometres north - the Myschka Copper-Gold project. They will also have other discoveries to drill that are within kilometres of the Andrew Zinc project. Indeed if they build this mine, i might have to keep my holdings and wait on the dividends. At this moment in time, the only thing that might stop OVR in its tracks would be for the zinc price to drop below their bottom-line figures and make the project uneconomical [i.e. 0.43/lb]. In that case, the firm will just sit on their reserves, wait for the market to recover and probably focus on the copper-gold deposit.

I see no downsides....


cheers

ps...I assure you that the rerating will happen.