Item Overlays

[l33tmaan]

This is a pretty straightforward question: Can items even use overlays like blocks can? My items look fine until I add the overlays code, at which point the texture goes all white. I know I'm pointing the overlay at the right texture, so am I trying to do something that isn't even possible right now?

[Spear and Fang]

It doesn't seem to be a common thing, but the vanilla cleaver appears to be a relatively simple example of an item that is successfully using an overlay. 

I've never actually tried it myself.