Drilling Report

Brancote Holdings PLC
8 June 2000


Contacts:      Richard Prickett, Chairman
               Bill Humphries, Managing Director
               Brancote Holdings PLC                 020 7493 1002
                                  
               David Bick
               Holborn Public Relations              020 7929 5599
                                        [e-mail]



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

                  Excellent Results From Latest Drilling


High grade zone in Galadriel Sur.

Recently  completed step-back drilling in the central  section
of  the vein Galadriel Sur has established the presence  of  a
higher  grade  zone, some 120 metres long by  25  metres  wide
averaging 24 g/t gold.

Within  this zone is a rich core, 5 to 8 metres width, grading
in  excess  of  60  g/t  gold. The  tenor  and  size  of  this
mineralisation is continuing at depth with bonanza  grades  of
plus 100g/t gold being recorded at 120 to 125 metres down dip.

Core grades within the above zone include:

Drill Hole      From             Width          Grade / Gold
                                                
GD117           113.3 metres      6.0 metres    57.6 g/t
GD119           139.5 metres     11.2 metres    49.1 g/t
GD122           116.9 metres      6.3 metres    73.7 g/t
GR144            97.0 metres      6.0 metres    50.7 g/t
GR145           115.0 metres      9.0 metres    69.7 g/t

Note:  Details of the complete intersections are shown in  the
attached schedule.

Galadriel  Sur  has now been drilled on a pattern,  40  metres
step-along by 25 metres step-back, for 600 metres along strike
and between 100 and 150 metres down-dip.

Mineralisation remains open at depth along the entire length.

The  phase  II programme is now complete, with 3400 metres  of
diamond  core and 9750 metres of reverse circulation  drilling
being carried out since mid January, predominantly on the  two
major systems Galadriel and Julia.

This  brings the total metres drilled on the southern prospect
to  over  22000 since M.E.D. commenced the first  campaign  in
March of last year.

The  data  from Phase II is currently being collated and  when
complete  will  be  forwarded to  Pincock  Allen  &  Holt  for
resource  definition. In addition, metallurgical test-work  is
being  carried out on selected vein and wall-rock material  by
Hazen Resourses of Denver.

The results of both studies are expected by the end of July.

Geophysical Survey

During  May,  an  I.P (induced polarisation)  and  resistivity
survey together with ground magnetics, was carried out  on  an
area,  2 Km long by 1 Km wide, from Galadriel in the north  to
Julia in the south.

The  survey  has been successful in identifying the  Galadriel
Sur  mineralised structure and defining the southern extension
of same towards the Julia vein.

Furthermore the survey has identified two distinct  structures
to the east and west of Galadriel Sur with a similar resistive
response   and   fault  offsets,  indicating   contemporaneous
emplacement.  These targets are yet to be drill tested.

A full interpretation of the I.P. and ground magnetics surveys
is currently being undertaken by Quantec Geofisica Argentina.

Phase lll Drill Programme

Due  to the continuing success of the Esquel Gold Project with
the  very  low 'discovery' costs, together with Galadriel  Sur
remaining  open,  both  at depth and  to  the  south,  the  JV
Partners have decided to conduct a third drilling campaign  of
11000 metres to commence in early September for completion  by
Christmas 2000.
The   short  winter  break  will  be  used  for  planning  and
preparation.
                               
                         Schedule 'A'
     
     
                       Drilling Results*
     
     Galadriel Sur
     
     Drill Hole     From           Width         Grade / Gold
                                                 
     GD115          142.2 metres   41.9 metres    9.5 g/t
     GD116          118.0 metres   26.6 metres   11.1 g/t
     GD117          110.0 metres   30.6 metres   21.4 g/t
     GD119          127.8 metres   40.7 metres   14.7 g/t
     GD120A          95.0 metres   10.8 metres    5.3 g/t
     GD122          108.0 metres   24.1 metres   27.0 g/t
     GR141            5.0 metres   29.0 metres   11.2 g/t
     GR143           86.0 metres   13.0 metres   16.4 g/t
     GR144           94.0 metres   18.0 metres   28.9 g/t
     GR145          103.0 metres   27.0 metres   30.8 g/t
     
         
     Julia
     
     JR40           13.0 metres    34.0 metres   14.4 g/t
     
     
     Note:  Silver grades continue to report approximately  1.5
     to 1 gold.
     
     
     * Press release 8 June 2000