DRILLERS are close to finding hot water 1,000 metres below North-East hills, raising hopes that an energy centre could revive the economy of remote dales communities.

After three months of drilling, an investigation team working near the former cement works site in Eastgate, Weardale, County Durham, is approaching its target depth, with early results indicating they will find a viable source of geothermal energy or "hot rocks".

The drilling team is looking for natural hot water that can be pumped up to heat buildings on the surface.

The hot rocks energy idea would be a key element in a model village fuelled entirely by renewable sources, which could attract thousands of visitors a year.

The concept came from a task force set up to offset the damage to the Weardale economy caused by the closure of the works by Lafarge Cement in 2002.

Task force chairman John Hamilton said last night: "It is looking promising. We have not got the final figures yet because they are still working, but it is looking good."

The full results are due to be presented to the force at a meeting next Tuesday, and they will be made public the same day.

Geothermal energy is a cheap source of heat because recovery costs involved are negligible.

Bosses said current plans are to extract water through the same boreholes that were drilled for the £400,000 study.

If hot rocks are found, it would confirm Eastgate as the only place in the country combining five natural energy sources, with wind, hydro-electric and solar power available, as well as electricity produced from burning woodland waste.