The TCM project has the potential to produce 1.5-2 million tonnes per annum of thermal coal over an initial 15-year mine life.

A feasibility study for an underground longwall operation at TCM is progressing.

Pan Asia said it completed four exploratory drillholes in the north of the concession area along with drill core and geophysical logging.

It confirmed continuity of the same coal seams from the TCM north deposit with the TCM project, which contains a 114Mt JORC resource.

The spacing of the drillholes extended 1.5km north of the previously drilled limit of the TCM south deposit and it remained open for another 4km to the north.

Pan Asia chief executive officer Alan Hopkins said it was encouraging to confirm the possibility of another underground deposit at TCM.

“This is an excellent result confirming the probability of a similar deposit in the northern half of the concession,” he said.

Pan Asia has a 75% interest in the TCM project, with local partners acquiring the remaining 25% stake.

Work for the March quarter is focusing on all inputs required to complete the feasibility study for the TCM project.

It includes work on mine design and planning, updating the geological model, coal handling and processing and validating all data from the phase 3 drilling program.

Last year, Polish mining and technology group Kopex increased its commitment to the TCM project by agreeing to provide an extra $US1 million to cover all the costs of the expanded drill program.

Kopex’s total commitment to date towards the project’s drilling program stands at $1.6 million.

The development of the TCM mine is on track to be completed at the end of 2012.