Resource Generation announced exploration drilling for thermal coal on its Woodbury tenement in the Midlands region of Tasmania. Studies to date have identified Woodbury as potentially the most attractive of the company’s exploration tenements in the region as there is known mineralization in the area.

The exploration program encompasses 24 holes, 12 of which will be fully cored and is designed to confirm historical data and provide coal quality information. The company expects the program to cost approximately USD 500,000, take 10 weeks and will be followed by laboratory analysis of the samples.

Mr Paul Jury MD of Resource Generation said that "Depending on the results of the drilling, we will evaluate the potential for an open cut mine producing thermal coal for the export market. Assuming these progresses it will provide diversification for the company. Meanwhile we are continuing with our plans to develop the Boikarabelo mine in South Africa which remains our main focus."