Argentine 60% Joint Venture Drilling Report

BRANCOTE HOLDINGS PLC
20 October 1999



Contacts:  Richard Prickett, Chairman
           Bill Humphries, Managing Director
           Brancote Holdings PLC                              0171 493 1002

           David Bick/Becky Jewers
           Holborn Public Relations                           0171 929 5599
                                               [e-mail]



                            BRANCOTE HOLDINGS PLC
                              
                        Argentine 60% Joint Venture
                Progress Report on Gold Exploration Programme


Outstanding drilling results

   Hole     From         Width          Grade Gold     Silver
   GR60     67 metres    39 metres      18.8 g/t       17.9 g/t
                                                    
            Including    13 metres      34.2 g/t       47.7 g/t
                         4 metres       30.1 g/t       47.8 g/t


Hole GR60 was drilled as a 60 metres step-back to GR 37 (20 metres @ 10 g/t)
at the southern end of Galadriel Sur to confirm indications from earlier
drilling that the mineralisation was improving, both in width and grade,
towards the south and with depth.

Results have also been received from the sawn channel across the only clear
surface exposure of this new style of mineralisation.

   Sawn channel          Width          Grade Gold      Silver
   GC14                  13.9           19.1 g/t        NA

The project team is currently engaged in target definition and location,
construction of access roads and drill pads, in preparation for the 11,000
metres drilling programme scheduled to commence after the Christmas break.

Major drilling - Toronto, has once again been awarded the contract to provide
the diamond and R.C drill machines together with staff to complete the
programme before the winter of 2000.


                                                          
                     MINERA EL DESQUITE GALADRIEL VEIN
                
                
  E.o.H. 129m                                    -60 deg.     80deg Azi (mag)
 
    Au                           GR     60                           Ag     
                                                          
 Sample No. From     To   Interval   Grade Au   Grade Ag  Wt.Ave.Au  Wt.Ave.Ag
   
  17258    62.00    63.00     1.00       0.21      12.00       0.21      12.00
  17259    63.00    64.00     1.00       1.04      22.30       1.04      22.30
  17261    64.00    65.00     1.00       0.37       7.00       0.37       7.00
  17262    65.00    66.00     1.00       0.14       1.30       0.14       1.30
  17263    66.00    67.00     1.00       0.82       2.80       0.82       2.80
  17264    67.00    68.00     1.00       7.51      23.20       7.51      23.20
  17265    68.00    69.00     1.00      13.80      51.70      13.80      51.70
  17266    69.00    70.00     1.00      13.60      31.50      13.60      31.50
  17267    70.00    71.00     1.00       2.96      17.60       2.96      17.60
  17268    71.00    72.00     1.00      11.40      25.50      11.40      25.50
  17269    72.00    73.00     1.00      29.70      50.50      29.70      50.50
  17270    73.00    74.00     1.00      45.40      73.40      45.40      73.40
  17271    74.00    75.00     1.00      17.00      40.40      17.00      40.40
  17272    75.00    76.00     1.00      28.30      26.60      28.30      26.60
  17273    76.00    77.00     1.00      14.20      15.40      14.20      15.40
  17274    77.00    78.00     1.00       7.41       9.60       7.41       9.60
  17275    78.00    79.00     1.00      10.40      13.50      10.40      13.50
  17276    79.00    80.00     1.00       9.47       7.80       9.47       7.80
  17277    80.00    81.00     1.00      18.40       6.90      18.40       6.90
  17278    81.00    82.00     1.00      39.40      11.10      39.49      11.10
  17279    82.00    83.00     1.00      58.80       8.70      58.80       8.70
  17281    83.00    84.00     1.00      17.90      20.40      17.90      20.40
  17282    84.00    85.00     1.00      20.70      24.80      20.70      24.80
  17283    85.00    86.00     1.00      22.80      16.40      22.80      16.40
  17284    86.00    87.00     1.00      58.00      16.40      58.00      16.40
  17285    87.00    88.00     1.00      57.20      59.90      57.20      59.90
  17286    88.00    89.00     1.00      30.80      16.30      30.80      16.30
  17287    89.00    90.00     1.00      27.20      17.10      27.20      17.10
  17288    90.00    91.00     1.00      20.30      12.00      20.30      12.00
  17289    91.00    92.00     1.00      36.20      13.50      36.20      13.50
  17290    92.00    93.00     1.00      19.20      11.30      19.20      11.30
  17291    93.00    94.00     1.00      36.20      19.40      36.20      19.40
  17292    94.00    95.00     1.00      10.40       8.40      10.40       8.40
  17293    95.00    96.00     1.00      14.10      10.00      14.10      10.00
  17294    96.00    97.00     1.00      14.90       9.60      14.90       9.60
  17295    97.00    98.00     1.00       1.98       3.30       1.98       3.30
  17296    98.00    99.00     1.00       2.79       4.80       2.79       4.80
  17297    99.00   100.00     1.00       2.17       8.60       2.17       8.60
  17298   100.00   101.00     1.00       1.66       2.70       1.66       2.70
  17299   101.00   102.00     1.00       2.07       3.10       2.07       3.10
  17301   102.00   103.00     1.00       0.48       1.60       0.48       1.60
  17302   103.00   104.00     1.00       1.10       1.80       1.10       1.80
  17303   104.00   105.00     1.00       3.03       2.10       3.03       2.10
  17304   105.00   106.00     1.00       2.48       2.40       2.48       2.40
  17305   106.00   107.00     1.00       0.58       0.90       0.58       0.90
  17306   107.00   108.00     1.00       0.33       0.70       0.33       0.70
  17307   108.00   109.00     1.00       0.44       1.30       0.44       1.30
  17308   109.00   110.00     1.00       1.92       2.80       1.92       2.80
                    Total    39.00                699.30     731.41     699.30

                                    
                  Au INTERSECTION   39.0 m  @  18.8       g/t Au
                                                           
                  Ag INTERSECTION   39.0 m  @  17.9       g/t Ag
                                                           
                  INCLUDING         40.0 m  @  30.1 Au & 47.8 Ag
                                                           
                  INCLUDING         13.0 m  @  34.2 Au & 47.7 Ag

  
  intersections are not true thickness
  intersection quoted are >1g/t >2m