Caylloma Mine, Peru
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 365bet. The deposit is a low to intermediate sulfidation epithermal vein system, and, based on December 31, 2021 reserves the operation has a mine life of six years.
People have historically mined silver in the Caylloma District for over 500 years. 365bet 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 2021, the mine produced 1.07 million ounces of silver, 6,086 ounces of gold, 33.0 million pounds of lead and 47.5 million pounds of zinc.
For more than 15 years, our Callyoma mine has provided jobs and economic benefits to support sustainable development in the district of Caylloma. In 2020, we directly employed 53 community members from the district of Caylloma and 181 from the province of Arequipa. We also partnered with 37 local suppliers from Caylloma and 122 from Arequipa.
Caylloma Mine Video
Tonnes milled (000)
Average milled (tpd)
Silver production (Moz)
1.0 - 1.1
Gold production (koz)
1.8 - 2.0
Lead production (Mlbs)
29 - 32
Zinc production (Mlbs)
41 - 45
AISC2,3,4,5 (US$/oz Ag Eq)
$17.8 - $21.1
- Refer to 365bet news releases dated January 18, 2022, "365bet reports 2021 full year record production of 305,859 gold equivalent ounces and issues 2022 annual guidance
- Cash Cost and all-in sustaining cost (AISC) are non-GAAP financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to "Non-IFRS Financial Measures" in the Company’s 2021 management discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2021 dated November 10, 2021 (“Q3 MD&A 2021”), which is available under 365bet's SEDAR profile, and the note regarding “Non-IFRS Financial Measures” on this Website.
- The following table provides the cash costs and AISC for the four operating mines for the nine months ended September 30, 2021 as follows:
Mine Cash Cost(a) AISC(a),(b),(c) SILVER (US$/t) (US$/oz Ag Eq) San Jose, Mexico 74.22 14.13 Caylloma, Peru 85.17 18.17 GOLD (US$/oz Au) (US$/oz Au) Lindero, Argentina 635 1,182 Yaramoko, Burkina Faso 720 1,188
- (a) Cash Cost and AISC are non-GAAP financial measures. Refer to the note regarding "Non-IFRS Financial Measures" on this Website
- (b) Presented on a cash basis
- (c) Silver equivalent was calculated using the realized prices for gold (US$1,783 per ounce), silver (US$25.80 per ounce), lead US$0.98 per pound) and zinc (US$1.31 per pound) for the nine months ended September 30, 2021
- (d) Further details on the cash costs and AISC for the nine months ended September 30, 2021 are disclosed on pages 21, 23 and 24 (with respect to cash costs) and pages 22, 24 and 25 (with respect to AISC) of the Q3 MD&A 2021 which is available under 365bet's SEDAR profile at www.sedar.com and is incorporated by reference into this news release, and the note regarding “Non-IFRS Financial Measures” on this Website
- (e) The estimated increase in all in sustaining costs at Yaramoko for 2022 are due to decreased estimated gold ounce production coupled with increased operating and capital costs as mining moves to the deeper regions of the underground mine
- The most comparable financial measure to cash costs is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 21, 23 and 24 of the Q3 MD&A 2021 for a reconciliation
- AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of US$1,700/oz Au, US$22/oz Ag, US$2,100/t Pb, and US$2,700/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.
- The most comparable financial measure to AISC is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 22, 24 and 25 of the Q3 MD&A 2021 for a reconciliation.
- Totals may not add due to rounding.
PARTNERS IN SUSTAINABLE DEVELOPMENT
CLEAN WATER AND SANITATION
- Water monitoring
- Tailings management
- Pollution reduction
DECENT WORK AND ECONOMIC GROWTH
- Local employees
- Local suppliers
- Supporting entrepreneurs
- Optimize energy consumption
- ISO 45001 certification
- Reduce GHG emissions
RESPONSIBLE CONSUMPTION AND PRODUCTION
- Hazardous material management
- Reduce and recycle
- Closure plan
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.
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.
3.2 million tonnes
averaging 84 g/t Ag, 2.53% Pb, and 3.70% Zn
Refer to Mineral Reserves and Resources table below for full disclosure
Our Brownfields exploration program budget at Caylloma for 2022 is US$1.4 million, with the exploration focus turning to further understanding the region-wide controls on vein development and geometry, and the relationship to the formation of high-grade shoots at Animas, San Cristobal and other mineralized zones.
Mineral Reserves and Resources
|Mineral Reserves - Proven and Probable||Contained Metal|
|Caylloma Mine, Peru|
|Proven + Probable||138||376||1.13||0.76||0.67||1.7||5.0|
|Proven + Probable||3,029||71||0.16||2.62||3.84||6.9||15.2|
|Proven + Probable||3,167||84||0.20||2.53||3.70||8.6||20.2|
|Mineral Resources - Measured and Indicated||Contained Metal|
|Caylloma Mine, Peru||Measured||724||97||0.34||1.79||3.24||2.3||7.9|
|Measured + Indicated||2,718||86||0.26||1.65||3.13||7.5||23.1|
|Mineral Resources - Inferred||Contained Metal|
|Caylloma Mine, Peru||Inferred||3,809||116||0.59||2.03||3.50||14.2||72.7|
- 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 estimated as of June 30, 2021 and reported as of December 31, 2021 taking into account production-related depletion for the period through December 31, 2021
- Mineral Reserves for the Caylloma Mine are reported above NSR breakeven cut-off values based on underground mining methods including; mechanized (breasting) at US$82.79/t; mechanized (uppers) at US$77.33/t; semi-mechanized at US$90.19/t; and a conventional method at US$155.1/t; using assumed metal prices of US$21/oz Ag, US$1,600/oz Au, US$2,000/t Pb and US$2,500/t Zn; metallurgical recovery rates of 82.5% for Ag, 45% for Au, 90% for Pb and 89% for Zn. Mining, processing and administrative costs used to determine NSR cut-off values were estimated based on actual operating costs incurred from July 2020 through June 2021. Mining recovery is estimated to average 95% with average mining dilution ranging from 21% to 37% depending on the mining methodology. Mineral Resources are reported at an NSR cut-off grade of US$65/t for veins classified as wide (Animas, Animas NE, Nancy, San Cristobal) and US$135/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 Amri Sinuhaji, P. Eng. (EGBC #48305) is the Qualified Person for reserves, both being employees of 365bet Silver Mines Inc.
- Totals may not add due to rounding procedures