Fortuna Silver Mines Inc. is engaged in silver mining and related activities, in Latin America, including exploration, extraction, and processing. The Company operates the Caylloma zinc/lead/silver mine in southern Peru and the San Jose silver/gold mine in Mexico. Its mineral properties include Caylloma Mine, San Jose Mine, Mario Property, Don Mario Property, Tlacolula Property and Taviche Property. The Company owns a 100% interest in the Caylloma Mine. The Caylloma mine is located in the Caylloma Mining District, 225 road-kilometers north-northwest of Arequipa, Peru, and 14 kilometers northwest of the town of Caylloma. The Caylloma Mine consists of mineral rights in three acumulaciones and 26 mining concessions for a total surface area of 8,171.3 hectares. It also owns a 100% interest in the San Jose Mine. The San Jose Project is located in the central portion of the state of Oaxaca, Mexico. During the year ended December 31, 2011, a total of 10,551 meters were drilled in Caylloma.