Drilling Report

BRANCOTE HOLDINGS PLC
30 September 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]
                                           [e-mail]



                             BRANCOTE HOLDINGS PLC

                         Argentine 60% Joint Venture
                Progress Report on Gold Exploration Programme


Highlights

* SIGNIFICANT DISCOVERIES - New style of veining to the south of Galadriel    
  with the potential to host multimillion ounce deposit

* EXPLORATION DRILL RESULTS - Very encouraging, continuing wide intersections 
  containing high gold values

* PRE-FEASIBILITY STUDIES - Commenced, appointment of engineering consultants 
  for resource estimate

* EXPANDED EXPLORATION PROGRAMME - Project team expanded for increased        
  exploration and drilling requirements


Significant discoveries.  Recent exploration in the Southern tenements has
resulted in the recognition of a new style of epithermal mineralisation, close
to Galadriel and Elena.

Initial exploration concentrated on the prominent, massive quartz and
chalcedony veins with high surface gold values ('type B').  Analysis of the
drill core, assays and thin sections has revealed the presence of a further
style of mineralisation ('type A'), wider and more pervasive than type B, with
silicified and stock-worked andesites.  Type A is characterised by high gold
grades within a wide (+ 30 metres) economic zone with poorly defined surface
expression.  The textural evidence indicates that it is high in the system and
has therefore depth potential.

Type A mineralisation has been identified on the Galadriel main vein adjacent
to type B, becoming the more dominant towards the south, it is then faulted
some 200 metres to the west where it continues to trend southwards for a
further 500 metres with very little surface exposure.  An R.C. drilling
exploratory programme showed the mineralisation becoming wider, with higher
gold values, towards the south.  Hole GR 37 reported 19 metres at 10.0 g/t Au,
and 38 reported 9 metres @ 21.1 g/t Au.

To support these findings a further two holes were drilled to test lateral and
depth extension.

Hole GR58 reported 17 metres @ 7.2 g/t,
Hole GR59 reported 30 metres @ 9.2 g/t, including 11 metres @ 24.4 g/t Au.

With the onset of spring, exploration of this area has been resumed.  Rising
ground to the south of GR59 has virtually no exposure over a distance of 700
metres, except for minor patches of andesite and float fragment of vein. 
However, from then on the type A style of veining is exposed over a strike
length of 800 metres remaining open to the south.  Adjacent to Elena the
mineralisation has good exposure up to 48 metres wide with textures the same
as Galadriel Sur.  The recent exploration work has established the potential
for 1800 metres of continuity of the Galadriel type A mineralisation.

The results from the first 2 drill holes from Julia shows the mineralisation
to be type A.  Reassessment of the mineralisation at the Antonia (vein
discovered earlier this year), suggests that this may also belong to the same
style and generation as Julia and Galadriel Sur.

There is potential for other veins in the Cordon de Esquel to be of this
style.

The long strike lengths, the wide mineralised zone with high grade core, has
the potential to produce a multimillion ounce resource.

Drilling continued throughout the September quarter, for the exploration of
Galadriel Sur, Elena and Julia vein systems.

For the year to date (March 17 commenced):


VEIN                  HOLES         DIAMOND           R.C.         TOTAL
                                     metres         metres        metres

Galadriel                39            1669           2083          3752
Galadriel Splay           8             282            546           828
Galadriel Sur            16               -           1158          1158
Elena Norte              21             311           1447          1758
Elena Sur                15               -           1363          1363
Julia                     6               -            312           312
TOTAL                   105            2262           6909          9171

The current programme will be concluded in early October.

Preparation for next year's drilling, scheduled to commence mid January 2000,
is in progress, with the mapping and sampling of the priority targets Antonia,
(the new discovery), Gandalf and Joya del Sol.  Construction of access tracks
and drill pads will be carried out over the next 2 months.

The Galadriel main vein has been drilled along 300 metres of the 490 metres of
visible strike length, to a depth of approximately 100 metres.  An initial
appraisal of the intersections shows the true width of mineralisation to be 13
metres, with an estimated grade of 13 g/t Au.

As reported previously, preliminary metallurgical test work has confirmed the
free leaching nature of the mineralisation, with gold recoveries averaging 90%
within 24 hours of active leach.

The consulting engineering company Pincock Allen & Holt of Denver, USA have
been engaged to produce a report with a resource estimate by November 1999.

In addition to exploration being carried out over the area south and west of
the Galadriel / Elena corridor, the project team has been interpreting the
recently acquired Land sat imagery, Aerial photographs and magnetics for
target identification.

Three additional field geologists have been engaged to explore the remainder
of the prospects in the southern half of the Cordon de Esquel, whilst Mr John
Stockley, a renown geologist specialising in epithermal gold occurrences, has
been appointed to lead the exploration in the Northern half particularly where
high gold, silver and copper values were recovered from stream sediment
samplings adjacent to prominent colour anomalies.

The existing exploration discoveries, together with the success of our ongoing
drilling programme continues to confirm the potential of the Cordon de Esquel
properties of Minera El Desquite.

DRILLING RESULTS

Assay results received to date include:
(note : does not include previously reported 16 April, 23 June)


Galadriel / Galadriel Sur

Hole               From               Width              Grade (Gold)
GR38               30.0                9.0 metres        21.1 g/t Au
GR50               60.0               27.0 metres         8.6 g/t Au
GR56               38.0               18.0 metres        12.7 g/t Au
                   Including           6.0 metres        33.5 g/t Au
GR58               51.0               17.0 metres         7.2 g/t Au
GR59               38.0               30.0 metres         9.2 g/t Au

Galadriel Cut Channels

GC4                                    6.3 metres        20.0 g/t Au
GC5                                   19.3 metres        21.6 g/t Au
GC8                                   14.8 metres        20.2 g/t Au
GC11                                   7.6 metres        11.2 g/t Au

Elena Norte / Elena Sur

ED3                12.6               16.4 metres         7.3 g/t Au
                   62.9                5.2 metres         5.3 g/t Au
ED5                63.0               12.1 metres         9.6 g/t Au
ER7                 2.0               16.0 metres         6.3 g/t Au
                   73.0                4.0 metres         7.1 g/t Au
ER19               40.0                7.0 metres         8.1 g/t Au
                   54.0               12.0 metres         6.9 g/t Au
ESR4               12.0               11.0 metres         8.9 g/t Au

Julia

JR1                 3.0               15.0 metres         8.1 g/t Au
JR2                 1.0               26.0 metres         6.0 g/t Au
                   39.0               16.0 metres        14.2 g/t Au


Bill Humphries, Managing Director of Brancote Holdings PLC, said:

'I am pleased to report on the exciting new discoveries together with the
continuing success of our current drilling programme at our Esquel gold
project in Argentina'.