The TCM project is located in Indonesia’s coal-rich region of South Kalimantan and has the potential to produce 1.5-2Mt per annum of coal over an initial 15-year mine life.

Pan Asia initiated a drilling program at TCM in early April with the aim of either extending the TCM mine plan to the north or establishing a second independent mine.

Pan Asia said the latest upgrade at TCM was evidence it could continue to up the resource at the tenement.

The resource upgrade undertaken by industry group Kopex Mining Contractors also increased the measured coal resource to 50.2Mt.

A total of 55 boreholes were used in the latest JORC resource update.

Pan Asia chief executive officer Alan Hopkins said the resource upgrade confirmed the company’s confidence in the project.

“The positive results keep coming on TCM and we now look forward to completing drilling in the north to see just how big a resource we can build there,” he said.

Pan Asia is in the process of drilling a further six boreholes to finalise the present drilling program.

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

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