The Songea coal project covers a total area of 2,600sq km in the Ruhuhu Coal basin.

The company drilled 20 RC and diamond drill holes as part of its drilling programme, which confirmed coal intercepts in the third and fourth drill holes.

Drilling results have confirmed an interpretation of a down dip extension of outcropping coal near the boundary of the coal prospect.

The current drilling programme is expected to be complete in early December.

The company intends to send the RC chip samples to Johannesburg, South Africa for an indicative suite of coal analyses.

Initial results are expected in December 2011.

In addition, a diamond hole will be completed to obtain high quality samples for a comprehensive suite of coal analyses in Brisbane, Australia.

Results for the diamond hole are expected in January 2012.