Riversdale chairman and CEO Michael O’Keeffe said exploration and drill results to date were most encouraging for the company, which recently posted a first-half 2006 net profit of $A1.1 million, below analyst forecasts of $3 million.

“We are observing Chipanga Seam widths up to 16m and whilst we are still only at the initial stages of our drilling program and have more analysis to complete, we are already getting results that are consistent with a commercially viable hard coking coal,” O’Keeffe said.

“This initial analysis indicates a high ranking, mid-volatile, highly reactive coking coal, and a product that is highly sought after. I’m confident that further exploration and analysis will support this view.”

Last month, O’Keeffe said the company would pump $10 million into work at Moatize this year as it expedited a bankable feasibility study over the project.

In a further show of confidence, the company has already begun the preparation of environmental and community impact statements over Moatize.

The addition of another two drill rigs onsite has helped along Riversdale’s plans to fast-track the development of the project.

“With the doubling of drilling capacity, we will significantly reduce the time to initial definition of a substantial and recognised coal resource in Mozambique,” O’Keeffe said.