Results from drilling at the Elimatta project, completed in November, will form the basis of a new resource statement that will be released this quarter. Preparation carried out in the fourth quarter will make it possible for Northern Energy to begin developing an environmental impact statement and mining lease application in this quarter.

A coal handling and preparation plant study and infrastructure studies carried out last quarter will feed into the next stage of drilling and analysis, which in turn will be used to develop a bankable feasibility study.

Approval for Stage 2 of an exploration project at the Yamala Coal joint venture project was given in October, with drilling starting in December. Although recent heavy rainfall and flooding in Queensland did not have a significant impact, access to the project was restricted. Northern Energy said drilling is scheduled to begin again in the first week of February.

Another project impacted by severe weather conditions is Northern Energy's Maryborough project on the east coast of Queensland. Short drilling programs intended to begin at the project in November had to be delayed due to the weather, and will commence in February.