The subsidy will help fund three underground holes for a total of 280 metres targeting the area below the current mine.
Drilling is expected to intersect at least two of the three veins already identified at Kochang, though Bluebird added the aim is to pinpoint their position and any high-grade intersections will be a bonus.
The junior has also located a further six old adits entering the mine around 100 metres to the north-east of the current entrance with evidence of historic mining in two of these.
These adits underline potential to increase the resource at Kochang, Bluebird said, adding construction of the processing plant is scheduled to start in September and take 4-5 months to complete.
Colin Patterson, chief executive, said he was delighted with the Kores grant, which underlines the support in the country for the project.
“The funds will subsidise the drilling of three holes and enable the completion of drilling by 30 September 2019.
“This is hugely exciting for Bluebird and its shareholders, especially as our work continues to yield evidence of prospectivity, such as the location of two previously mined adits.”