SCZ: Soracaya Advancing with Mine Planning and Permitting
What you need to know:• Santacruz has initiated development and full production permitting at its 100%-owned Soracaya Project in Bolivia’s Potosí Department, following the completion of the $40M accelerated option with Glencore that consolidated full ownership of its Bolivian portfolio.
• The high-grade, silver-rich Soracaya Project hosts an Inferred Resource of 4.14MT grading 31.6% ZnEq, 1.23% Zn, 7.23% Pb, and 260 g/t Ag, supported by ~29km of drilling across 90+ holes.
• We are increasing our target price to C$3.10/share based on multiple expansion in the sector.
This morning, Santacruz Silver (SCZ:TSXV) announced it has begun development work and initiated full production permitting at its wholly owned Soracaya Project in Bolivia’s Potosí Department, marking an important milestone toward a construction decision. The Company highlighted Soracaya as a cornerstone growth asset, underpinned by a high-grade, silver-rich resource and strong synergies with its existing Bolivian operations. This follows the completion of the $40M accelerated option with Glencore in early September, which granted Santacruz full ownership of its Bolivian portfolio and allows the Company to now advance Soracaya with 100% interest (click here for more details). We are maintaining our BUY rating and increasing our target price to C$3.10/share (previously C$2.50/share) on SCZ.
At the Soracaya Project, mineralization occurs along reactivated faults with replacement and brecciated sulphides, a hallmark of some of the world’s most productive silver deposits. Since 1999, more than 29km of drilling across over 90 holes has provided a strong geological foundation supporting resource modelling and mine planning.
In October 2024, SCZ published a Technical Report outlining an Inferred Resource of 4.14Mt grading 31.6% ZnEq, 1.23% Zn, 7.23% Pb, and 260 g/t Ag, as seen in the figure below. Santacruz expects to provide further details on the full construction decision at a later stage. For more information on the Soracaya Project, see our initiation report here.
Santacruz Silver Mining is engaged in the operation, acquisition, exploration and development of mineral properties in Mexico, with a primary focus on silver, but also including gold, zinc and lead. Co. is focused on meeting and maintaining its primary production objective of producing approximately 1.5 million silver equivalent ounces on a yearly basis at its producing property, the Rosario Mine. In addition, Co. is exploring three other mineral properties, being the San Felipe Project (an advanced stage project), the Gavilanes Project (an exploration project), and the El Gachi Property (an early stage exploration project).
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