Based on a three-year trailing average gold price assumption of US$1,275 per ounce, the PEA has calculated a base-case pre-tax net present value of $55.7 million, an internal rate of return of 31% and average annual gross revenue of $43.4 million.

With an average head grade of 8.34g/t, the project is expected to produce up to 288,000oz over its nine-year mine life, with an average LOM all-in sustaining cost of $852/oz.

Once fully ramped up, Coringa is expected to produce on average 38,000oz/y for the first five years.

The initial capital requirement to achieve sustained positive cash-flow has been pegged at $24.7 million, with the base-case operating scenario offering a 2.25-year payback.

A NI43-101-compliant indicated resource of 334,000 tonnes grading 11.65g/t for 125,000oz contained gold underpins the PEA, with additional inferred resources of 178,000oz held in 473,000t at 11.7g/t providing potential future production upside.

Subject to permitting approvals and project financing, the mine development could start from late June next year, with initial processing of the run-of-mine ore to start nine months later.

"The publication of these very encouraging results of the Coringa PEA is a major milestone in achieving this objective," said CEO Mike Hodgson.

"The PEA supports an initial nine-to-10-year mine life and, after the initial ramp up, mine production is projected to initially average around 38,000oz/y once the ramp up is complete. This will add to our existing annual 40,000oz/y production from our Palito operations."

Hodgson was quick to point out PEA did not reflect the longer-term growth potential of Coringa, nor did it factor in how the increased level of gold production might change the investment case for Serabi as a whole.

Serabi (LSE:SRB) achieved a new 12-month high on Friday at 90p, up 9.75%, which capitalises it at about £52.43 million.