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.