Vancouver-based Goldcorp increased its proven and probable gold reserves by 9% last year, to 43,4-million ounces, while silver reserves rose 37%, to 1,1-billion ounces, as of January 1, 2008.

The biggest increases in gold reserves were an addition of 3,1-million ounces at the company's Penasquito project and 1,1-million ounces at the Los Filos mine, both located in Mexico.

The company also took full ownership of two Ontario mines, Porcupine and Musselwhite, in an asset swap with fellow Canadian Kinross Gold, which had added nearly 2-million gold ounces to reserves.

However, this was offset by the sale of stakes in the Peak, Amapari and La Coipa mines.

Goldcorp, Canada's second-biggest gold-miner after world-number one Barrick Gold, spent $134-million on exploration in 2007, and has budgeted some $150-million this year to boost reserves and resources.

Reserves indicate metal which can be economically and feasibly mined.

Goldcorp, like other gold-miners around the world, is scrambling to firm up gold reserves and accelerate mine development to take advantage of record prices for the yellow metal.

Earlier this month, Goldcorp announced that it had sold its 48% stake in silver reseller Silver Wheaton for about C$1,56-billion.

The company plans to spend more than $3,9-billion on new and existing mines over the next five years, not including the possible construction of the Pueblo Viejo project in the Dominican Republic (jointly-owned with Barrick Gold) which is still being studied.

The company has mines in Canada, the US, Mexico, Guatamala, Honduras, the Dominican Republic, Argentina and Chile, but more than 50% of the company's production in 2008 will come from Canada, where it is expanding output at its Red Lake mine.

The group's total capital expenditure for this year is estimated at $1,2-billion.

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