In the rugged landscape of the Atacama Desert, a prospective venture led by the Chilean explorer José Díaz Gana unearthed substantial deposits of silver ores in the Caracoles area within Bolivia. This discovery, made on March 24, 1870, was pivotal, as it attracted miners and prospectors searching for lucrative silver. The Caracoles region quickly became the focal point of prospecting endeavors, leading to a renewed wave of excitement reminiscent of past silver rushes in the region. Chileno and Bolivian miners flocked to the area, eager to stake their claims and tap into the wealth buried beneath the arid soil.

However, the riches obtained from Caracoles did not come without complications. The discovery triggered a contentious debate between Chile and Bolivia over the governance of the new mining territory and the extraction of resources. Both nations claimed rights over the silver found within the bounds of their respective territories. This dispute escalated into heated discussions about taxation rights, as Chile sought to impose taxes on the newly discovered ores, leading to a diplomatic clash that would have lingering effects on bilateral relations. Both countries were keen to control the significant economic opportunities presented by the find, intensifying their rivalry in the region.

Amidst this backdrop of exploration and exploitation, the silver rush in Caracoles represented not just an economic opportunity but also highlights the geopolitical tensions of the era. The battle over resources in the Atacama Desert would later play a crucial role in shaping the ensuing conflict between Chile and Bolivia, ultimately influencing the history of both nations.