Last week the explorer doubled its probable saleable coal reserves to 603 million tonnes on the back of drilling 16% of the tenements.
Resource Generation said further drilling would target an additional 15-20% of this tenement area and it expected the resources and reserves to increase as a result.
This drilling will be in the Kalkpan property and is slated to kick off by the end of January.
The explorer is scheduled to lodge a mining rights application to the South African government in February 2010 and aims to receive approval by early 2011, starting open cut coal production by January 2013.
The Waterberg One joint venture holds 569.5Mt of indicated resources and 302.4Mt in probable reserves.
Resource Generation has spent $US3.3 million of the $5 million required to boost its stake of the JV to 70%.
Meanwhile, the Ledjadja JV hosts 1.74Bt, including 569.5Mt indicated resources along with 603Mt in probable reserves.
Both the JVs fall under the Boikarabelo project umbrella.
Resource Generation ended the December quarter with $A17.69 million cash.
Shares in the company are unchanged at 42c this morning.