MEXICO CITY(BullionStreet): Major silver producer Mexico's Fresnillo said the company is on track to produce 65 million ounces of silver and target of 500,000 attributable ounces of gold annually by 2018.

In a statement, Fresnillo said it's annual attributable silver production was 41Moz while gold production hit a new record at 473,034 ounces in 2012.

This is up 5.4% year on year and exceeds the full-year target of 460,000 ounces. The company says this was mainly due to the successful first year of operations at Noche Buena and continuous ramp-up at Saucito.

2013 attributable silver production to remain stable at 41Moz, including 4Moz from the Silverstream, with expected ramp-up to 8.5Moz at Saucito offsetting the expected decrease in silver ore grade at Fresnillo.

Fresnillo also said it expects 2013 attributable gold production to reach 490,000 ounces due to ramp-up at Noche Buena.

The companay said annual attributable silver production was in line with guidance and the ramp-up at Saucito offset the anticipated natural decrease in silver ore grade at the Fresnillo mine.

Exploration budget to be increased to $270 million (excluding capitalized exploration expenses), up 15% above the $234 million spent in 2012, the company added.