MOSCOW(BullionStreet): Russia's Polymetal International said it is expected to produce 23-million to 24-million oz of silver next year.

The London listed company also expect to produce 1.2-million oz of gold equivalent in 2013, including 760 000 oz to 800 000 oz of gold. Gold equivalent is a measure of gold and other metals expressed in units of gold.

The company in a statement also said it will double estimates at their eastern Russia Albazino goldmine and are considering doubling production capacity.

In a statement, Polymetal said exploration results at Albazino highlight the tremendous potential of this asset and pave the way for the expansion decision to be taken in the second half of 2013.

As of 1 August 2012, resources at Albazino were estimated at 37 million tonnes with the average grade of 4.8 g/t of gold. This estimate more than doubles the size of the asset’s mineral resources compared to the previous estimate (19 MT at 4.5 g/t gold containing 2.8 Moz of Au as of 1 January 2012).

The cost of discovery was approximately $12 dollars per ounce of resources. Polymetal’s Mineral Resource estimate now includes five ore zones: Olga, Anfisa, Nadezhda, Ekaterina 1 and Ekaterina 2. Anfisa is currently subject to open pit mining.

The development plan for other zones will be determined after the completion of the optimisation study, currently expected in Q2 2013.

Exploration at Albazino is ongoing with further Mineral Resource potential identified, most importantly along a strike at Ekaterina 2 and at the new Tatyana zone. In-fill underground drilling in 1H 2013 is expected to lead to a substantial upgrade of inferred resources and allow meaningful resource-to-reserve conversion.