UPDATE 1-First Majestic Silver shares rise on output news

Tue Jan 11, 2011 11:54am EST

* Reports production up 62 pct in 2010 to 7 mln ounces

* Plans to boost 2011 production to 7.5 mln ounces

* Shares up 5.99 pct at C$13.62 on TSX

TORONTO, Jan 11 (Reuters) - First Majestic Silver (FR.TO) said on Tuesday that it would boost production in 2011 slightly after reporting a 62 percent increase in output in 2010.

The company produced 7 million ounces of silver equivalent in 2010, up from 4.3 million ounces in 2009, and said it would produce 7.5 million ounces in 2011.

First Majestic's total equivalent ounce production represents 6.5 million ounces of silver, 6.4 million pounds of lead and 2,152 ounces of gold.

Shares of First Majestic were up 5.99 percent at C$13.62 on Tuesday on the Toronto Stock Exchange.

The Vancouver-based miner said it will spend C$7.1 million ($7.2 million) on exploration in 2011 and plans to release new resource estimates for its projects in late 2011 or early 2012.

First Majestic said that expansion of its Parrilla mine in Mexico and operational improvements at two other mines would boost output in 2011.

Spot silver prices have soared over the past year, hitting a 30-year high of $31.22 an ounce earlier this month.

($1=$0.99 Canadian) (Reporting by Julie Gordon; editing by Peter Galloway)

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