Canada's Fortuna Silver Mines Inc said its 2011 silver production jumped 31 percent and forecast nearly 50 percent jump in the metal's output this year.

Vancouver-based Fortuna said expansion at its San Jose mine in Mexico will continue to lower its silver production cost in 2012 and 2013.

For 2012, the company expects to produce 3.7 million ounces of silver and 17,400 ounces of gold, it said in a statement.

In 2011, it produced 2.5 million ounces of silver and 7,000 ounces of gold.

Fortuna, which began commercial operations at the San Jose mine in September last year at 1,000 tonnes per day (tpd) capacity, said it plans to expand that the capacity to 1,500 tpd this year.

For 2012, Fortuna expects the mine to produce 1.7 million ounces of silver and 15,000 ounces of gold.

Last year, the mine had produced 490,555 ounces of silver, at a cash cost of $4.51 per ounce, and 4,622 ounces of gold.

Shares of the company closed at C$6.56 on Wednesday on the Toronto Stock Exchange.