UPDATE 1-Pan American Q3 profit up, meets consensus

* Q3 basic shr $0.20, meets consensus

* Q3 sales up 49 pct at $118.6 mln

* Silver production up 31 pct; gold rises 331 pct

* Expects to meet forecast annual production target for 2009

Nov 11 (Reuters) - Canadian silver miner Pan American Silver (PAA.TO) saw third-quarter profit almost triple as the expansion of two mines boosted silver and gold production.

Pan American, which operates mines in Mexico, Peru, Bolivia and Argentina, earned $17.4 million, or 20 cents per basic share, in the quarter ended Sept 30, compared with a profit of $6.4 million, or 8 cents per basic share, in the year-before period.

Analysts, on average, were expecting a profit of 20 cents a share, before items, according to Thomson Reuters I/B/E/S.

"The main drivers of our third-quarter performance were a well-executed start up of the San Vicente mine expansion, which has been producing silver beyond our expectations, and a solid quarter at Manantial Espejo," Chief Executive Geoff Burns said.

Quarterly sales rose 49 percent to $118.6 million, with silver sales accounting for 63 percent of total revenue, the company said.