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when do you think this will come out, how mutch is done

We plan to release a few updates to the starting island first, improving based on suggestions - which will take a week or two. We've only had some design and mockup work for the second island, but we hope to release it next month!

ok cool

is there any plans to alow players to regenerate the under ground of there island useing like 100 dragons blood or something like that

Not really, but it wont be needed once we add more content to the game (and one plan is procedurally generated caves/dungeons that you can visit, mine and leave as many times as you want).