* First rescued miner is a father of two
* Men trapped for record 69 days after cave-in
* Men will be hoisted out one at a time (Updates with first miner rescued)
By Cesar Illiano and Terry Wade
COPIAPO, Chile, Oct 13 (Reuters) - The first of 33 trapped miners was pulled to safety in a capsule barely wider than a man&${esc.hash}39;s shoulders early on Wednesday, an emotional breakthrough as a two-month ordeal inside a Chilean mine neared its end.
Rescuers, relatives and friends broke into jubilant cheers as father-of-two Florencio Avalos emerged on the surface to breathe his first fresh air in 69 days after a claustrophobic ascent of around 2,050 feet (625 meters) through thick rock.
A rescuer earlier descended the shaft and was hugged by the waiting miners. He then took just minutes to buckle Avalos into the capsule and send him to the surface.
Relatives rushed to hug and kiss Avalos, 31, who walked out looking very healthy after his nearly 16-minute ascent. He was then embraced by President Sebastian Pinera as the surrounding crowd chanted "Chile! Viva Chile!"
"This is a miracle from God," said his jubilant uncle, Alberto Avalos, who rushed to the capsule&${esc.hash}39;s platform as it arrived shortly after midnight.
The men have spent a record 69 days in the hot, humid bowels of the gold and copper mine in Chile&${esc.hash}39;s northern Atacama desert, and rescuers hope to bring them all to safety over the next two days.
For the first 17 days of the miners&${esc.hash}39; ordeal, they were all believed to be dead, and their story of survival as well as the extraordinary rescue operation has captured the world&${esc.hash}39;s attention.
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Full coverage: [ID:nN14104048]
Insider TV report http://link.reuters.com/pez67p
Graphic of preparations http://link.reuters.com/ryn97p
Graphic of rescue shaft http://link.reuters.com/fat77p
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The men, who set a new record for the length of time workers have survived underground after a mining accident, have been doing exercises to keep their weight down for their ascent.
Nervous wives, children, parents and friends waited on an arid, rocky hillside above the San Jose mine waiting for their loved ones to be evacuated in an operation expected to take up to 48 hours.
The specially-made steel cages are equipped with oxygen masks and escape hatches in case they get stuck.
A LONG, AGONIZING WAIT
Jessica Salgado&${esc.hash}39;s nerves jangled as she waited for her husband Alex to emerge.
"The first thing I&${esc.hash}39;m going to do is hug him hard, tell him how much I love him and how I&${esc.hash}39;ve missed him all this time," she said.
Rescuers were finally able to deploy the capsule, dubbed "Phoenix" after the mythical bird that rose from the ashes, after reinforcing part of the narrow escape shaft with metal casing to prevent rocks falling and blocking the exit.
Engineers said the final stage of the rescue still has its risks but that the capsule was handling well in the shaft, and they expected a smooth extraction.
Each man&${esc.hash}39;s journey to safety should take about 15 minutes. The capsule travels at about 3 feet (1 meter) per second, or a casual walking pace, and can speed to 10 feet (3 meters) per second if the miner being carried gets into trouble.
The miners can communicate with rescue teams using an intercom in the capsule.
They have been told to keep their eyes closed and will be given dark glasses to avoid damaging their eyesight after spending so long in a dimly lit tunnel. They will then be under observation at a nearby hospital for two days.
Rescuers originally found the men, miraculously all alive, 17 days after the mine&${esc.hash}39;s collapse with a bore hole the width of grapefruit. It then served as an umbilical cord used to pass hydration gels, water and food, as well as letters from their families and soccer videos to keep their spirits up.
Medics say some of the men are psychologically fragile and may struggle with stress for a long time after their rescue.
Pinera ordered an overhaul of Chile&${esc.hash}39;s mine safety regulations after the accident.
Every Chilean TV station was saturated with coverage of the rescue operation.
"Everyone is following the rescue step by step. We are a Catholic country and we see this as a real miracle," said Maritza Gonzalez, a 50-year-old housewife in the capital city, Santiago.
Many relatives held vigils over the past two months at a tent settlement dubbed "Camp Hope" above the mine, and more people joined as the climax neared.
One of the 33 miners is a Bolivian national and Bolivian President Evo Morales was expected to visit the mine in the early morning hours of Wednesday. (Additional reporting by Antonio de la Jara, Juana Casas and Brad Haynes in Santiago; Writing by Simon Gardner and Hugh Bronstein; Editing by Kieran Murray)
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