@mrhunt,
Why not just enjoy her company and continue hanging out with her. It's better than sitting home alone, isn't it?
Nothing wrong with having female friends. If you share some common interests, a real friendship might blossom. If not, you'll probably both tire of spending time together, and that will be the end of it.
Perhaps you shouldn't let it just drift into an intimate relationship, particularly if you aren't all that physically attracted to her. Hold off until some real chemistry develops, and don't do something simply because it's expected, or just to satisfy your needs in that department. If no chemistry does develop, but you still enjoy her company, you can just go on being friends. I'd talk with her about not wanting to rush into something. She may share your feelings, if not, and she does want more out of the relationship, she'll let you know, and you can make your graceful exit then.
Continuing to date is a good idea. Eventually you'll meet someone who really lights your fire. Until then, you might meet some interesting women, or make some good female friends, or simply have someone to share a meal with, or share an experience with. Nothing wrong with casual dating--you never know what doors might open. Use online dating services if it is hard to meet women, join a library book discussion group, get involved with some political organizations, or consider taking adult ed courses, or extension courses at a community college, because that's a good way to meet people, particularly women (or women with unmarried adult daughters who'd be happy to make introductions.
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