The funding will take the project up until the completion of its final feasibility study, which is expected to end in March next year.

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

“Kopex’s strong commitment to the TCM project supports its rapidly rising potential with the final feasibility study continuing to make good progress,” Pan Asia chief executive Alan Hopkins said.

In October 2011, Pan Asia upgraded its initial JORC resource for the project to 114.6Mt.

The coal quality model will be further updated when all the results are in for the drill program.

Washability tests and subsequent analysis of the results have been undertaken on a 500kg bulk sample to develop a conceptual coal handling and preparation plant design.

The company said further testwork and analysis of all the quality data would lead to a specification of a saleable product with good yield.

Pan Asia is well positioned to capitalise on its TCM underground coal project in Indonesia’s South Kalimantan because of its close proximity to energy-hungry countries, according to a new evaluation.

It acquired the project along with a pipeline of other prospective coal tenements from Innovation West in 2010.

The evaluation by RM Research said Pan Asia’s Indonesia portfolio exposed the company to the burgeoning demand for thermal coal in various parts of Asia.

“The outlook for thermal coal demand in the Southeast Asia, India and China region is very robust,” the evaluation said.

“Due to its proximity to the developing nations of Asia, Indonesia has a freight advantage over the Australian export market.”