Work is due to begin on March 31 and will consist of drilling seven cored holes.

Drilling will be on unmined areas on the mining lease in two separate zones. Testing for coal potential will get underway in the northern part of the concession and a major east-west zone in the southern part of the concession.

The producer is currently undertaking a resource investigation based on geological data which has derived a coal exploration target ranging from 2.5 million tonnes to 3.7Mt.

This exploration target is set to be tested by Orpheus, and the company will announce a JORC-compliant resource by late April.

Orpheus executive chairman Wayne Mitchell said the JORC drilling program at ADK would assist in the company’s understanding of the mine’s resource potential.

“Together with the production plans we announced on 20 March, this new information will assist us in longer term mine planning for ADK,” he said.

“We would like to reassure shareholders that the company is unaffected by the recent commentary on the Indonesian Government’s plans to limit foreign ownership to 49% over 10 years.

“With our strategic local JV partner, PT Mega Coal, our strategy has always been to maintain our 50 or 51% equity in each project via a local Indonesian PMA company,” he said.

Orpheus recently announced plans to increase the production of ADK to 50,000 tonnes per annum, which is tipped to begin next week.

The mine is currently producing at a monthly rate of approximately 30,000t.

Orpheus is a subsidiary of Australian explorer Coalworks and has projects in both Indonesia and Australia.