UPDATE 1-Mexico silver output up 18.6 pct in May

* May silver output 420,629 kg

* May copper output up 4.2 pct to 35,911 tonnes

(Recasts, adds analyst comments and background)

July 31 (Reuters) - Mexican silver output jumped 18.6
percent in May from a year earlier to 420,629 kg, the National
Statistics Institute said on Tuesday, as strong prices continued
to spur production.

Mexican copper output rose by 4.2 percent to 35,911 tonnes
in May as production increased at the massive Buenavista mine --
formerly known as Cananea -- following a three-year strike that
ended in 2010, the institute said.

Fresnillo, Mexico and the world's largest primary
silver producer, expects to meet its 2012 silver targets thanks
to a ramp-up of production at its new Saucito mine.

The precious metals miner reported a 9 percent decline in
first-half profit on Tuesday.

Fresnillo has seen a decline in silver production over the
previous year, suggesting that other Mexican mining companies
were amping up their own production, said RBC analyst Evgenii
Risovich.

"Most of the (silver) mines now operate profitably, so it
makes sense that production is growing because there is money to
be made," Risovich said.

Copper output will likely continue to increase over the next
few months but only moderately, thanks to production running at
full capacity at Grupo Mexico's Buenavista mine,
said Julio Zetina of Vector Casa de Bolsa.

"The jumps will be slight, but toward 2013 we might see
higher capacities at other mines," Zetina said.

Grupo Mexico said it hopes copper production at Buenavista
will reach 488,000 tonnes by 2015.

A breakdown of metals production follows:
Product May 2012 Pct Chge

vs yr ago

Gold 7,746 kgs +3.5

Silver 420,629 kgs +18.6

Lead 16,447 tonnes -8.6

Copper 35,911 tonnes +4.2

Zinc 39,872 tonnes +7.1

(Reporting By David Alire Garcia and Gabriel Stargardter;
Editing by Maureen Bavdek and John Wallace)