In a statement last week, the company - headed by former Geodynamics managing director Bertus de Graaf - announced it had exercised an option to form a geothermal joint venture with Kentor Gold.

"This central Asian country is endowed with widespread occurrences of thermal springs as well as high heat producing granites," Panax said.

"It is a net exporter of hydro electric power to neighbouring countries and has a well-developed high voltage transmission grid in close proximity to geothermal areas of interest."

The decision follows a detailed six-month evaluation program, including technical, regulatory and commercial assessments, by Panax in the region.

Panax said the occurrence of extreme geothermal gradients (greater than 100C per kilometre) had been confirmed in the Sary Jaz granite in eastern Kyrgyz Republic.

In addition, the company said it has held discussions with the regional head office of the International Finance Corporation in Istanbul regarding support from the World Bank's Geofund.