Caylloma Mine, Peru

Steady performance from our smallest mine

Overview

Our Caylloma Mine in the Caylloma District of Arequipa, Peru, produces silver, gold, zinc, and lead. The underground mine is operated by Compania Minera Bateas S.A.C. (Bateas), a Peruvian subsidiary 100% owned by Fortuna. The deposit is a low to intermediate sulfidation epithermal vein system, and, based on December 31, 2024 reserves the operation has a mine life of five years.

People have historically mined silver in the Caylloma District for over 500 years. Fortuna acquired the Caylloma Mine in 2005 and relaunched operations the following year after expanding and modernizing the processing plant in 2006. In 2016, the processing plant was upgraded to process 1,430 tonnes per day. In 2024, the mine produced 1.18 million ounces of silver, and base metal production of 39.6 million pounds of lead, and 51.9 million pounds of zinc.

For more than 16 years, our Caylloma Mine has provided jobs and economic benefits to support sustainable development in the district of Caylloma. In 2024, we employed 1,112 direct employees and contractors. We also partnered with 40 local suppliers.

Caylloma Mine Video

Commodities

Silver, zinc, lead

Ownership

100%

Operation

551,430

tonnes milled in 2024

Claim block area

36,000

hectares

Deposit type

Intermediate sulphidation epithermal deposit

Mining method

Underground cut-and-fill

Operating highlights	2024¹	2025E²
Tonnes milled (000)	551	500
Average milled (tpd)	1,549	1,370
Silver production (Moz)	1.2	0.9 – 1.0
Gold production (koz)	–	–
Lead production (Mlbs)	39.6	29 – 32
Zinc production (Mlbs)	51.9	45 – 49
AISC³ (US$/oz AgEq)	21.72	21.70 – 24.70

Notes

Refer to Fortuna news release dated March 5, 2025, “Fortuna Reports Results for the Fourth Quarter and Full Year 2024”
Refer to Fortuna news release dated January 21, 2025, “Fortuna reports record production of 455,958 Au Eq ounces for 2024 and provides 2025 outlook“
Cash Cost and all-in sustaining cost (AISC) are non-IFRS financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to the note under “Non-IFRS Financial Measures” on this website.

Location

Our Caylloma mine is located in the Caylloma mining district, approximately 225 kilometers northwest of Arequipa, Peru (Latitude: 15° 12’ 15” S, Longitude: 71° 51’ 40” W). The site is 4,500 meters above sea level and includes the mine, a processing plant, and related infrastructure. The mine is connected to the national power grid, and mining occurs year-round.

At Caylloma, our freshwater source is the Santiago River. We focus on minimizing water collection and maximizing water reuse and include the local authorities and community members in participatory monitoring multiple times per year.

The mine is located 14 kilometers northwest of the town of Caylloma, our nearest neighbor. Our relationship with the residents and local government in Caylloma is built on dialogue, engagement and transparency.

Learn more Learn more about our relationship with the Caylloma community

Geology and mineralization

More than 15 major silver and base metal-rich epithermal vein sets have been identified within the Caylloma district. The veins are hosted by Tertiary calc-alkaline andesitic volcanic sequences that unconformably overlie folded marine sediments. The veins are one to 25 meters wide, up to four kilometres long, typically trending north-easterly and dipping moderately to steeply to the southeast or northwest.

Mineral reserves

2.4 million tonnes

averaging 82 g/t Ag, 2.73% Pb, and 4.15% Zn

Refer to Mineral Reserves and Resources table below for full disclosure

Brownfields exploration

The Brownfields exploration program budget for 2025 at Caylloma is $4.8 million which includes $2.2 million for 9,000 meters of resource extension drilling, in addition to $2.6 million for 1,600 meters of drill testing regional targets.

Technical reports

Download the latest Caylloma Technical Report, effective date: December 31, 2023 (18 MB)

Mineral reserves and resources

							Contained Metal
Property	Classification	Tonnes (000)	Ag (g/t)	Au (g/t)	Pb (%)	Zn (%)	GEOs (000)
Mineral Reserves – Proven and Probable
Caylloma, Peru
	Proven	34	201	0.67	2.51	2.98	6
	Probable	2,407	81	0.14	2.73	4.16	301
	Proven + Probable	2,441	82	0.15	2.73	4.15	307
Mineral Resources – Measured and Indicated
Caylloma, Peru
	Measured	234	95	0.27	1.47	2.52	23
	Indicated	766	84	0.19	1.27	2.34	66
	Measured + Indicated	1,000	86	0.21	1.31	2.38	89
Mineral Resources – Inferred
Caylloma, Peru	Inferred	3,794	106	0.55	2.13	3.10	480
	Inferred	3,794	106	0.55	2.13	3.10	480

Notes:

Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
Mineral Resources are exclusive of Mineral Reserves
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
Caylloma Mineral Resources and Reserves are reported as of December 31, 2024
Mineral Reserves for the Caylloma Mine are reported above NSR breakeven cut-off values based on underground mining methods including; mechanized (breasting) at US$ 91.85/t; mechanized (Uppers) at US$ 73.33/t; semi-mechanized at US$ 93.05/t; sub-level stoping at US$82.77/t;and a conventional method at US$153.40/t; using assumed metal prices of US$23/oz Ag, US$1,880/oz Au, US$2,000/t Pb and US$2,700/t Zn; metallurgical recovery rates of 82 or 86% for Ag, 22 or 58% for Au, 90 or 88% for Pb and 89 or 87% for Zn. Mining, processing and administrative costs used to determine NSR cut-off values were estimated based on actual operating costs incurred from July 2023 through June 2024. Mining recovery is estimated to average 95% with average total mining dilution of 17% depending on the mining method. Mineral Resources are reported at an NSR cut-off grade of US$75/t for veins classified as wide (Animas, Animas NE, Nancy, San Cristobal) and US$130/t for veins classified as narrow (all other veins) based on the same parameters used for Mineral Reserves, and a 15% upside in metal prices.
Eric Chapman, P. Geo. (EGBC #36328) is the Qualified Person for resources and Raul Espinoza (FAUSIMM (CP) #309581) is the Qualified Person for reserves,both being employees of Fortuna Mining Corp.
Totals may not add due to rounding procedures