Drilling Report

Brancote Holdings PLC
5 February 2002



Date:             5th February 2002


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

                          Esquel Gold Project (76.4%)

               Progress Report on the Phase V Drilling Programme.



Feasibility infill drilling.



Infill drilling on the central section of Galadriel Sur has confirmed the
continuity of this wide, high-grade vein and, with drill-hole GD 330, has
extended the 600 gram/metre zone a further 25 metres down dip.

Additional step-back drilling is now planned for this section.



Results from the central section of Galadriel Sur include;



                                    Table 1

                      Galadriel Sur Diamond Core Drilling
    Hole        Easting        Northing        Depth           From         Intersection       Grade
  Ndegrees        156            525           metres         metres           metres         g/t gold

GD 319               4903.2         2537.8           97.2           60.6               11.5         10.4
GD.328               4899.2         2387.3           86.6           46.4                8.7         18.4
GD 329               4882.4         2367.9          103.6           41.7               36.8         10.6
GD 330               4812.3         2368.1          201.2          114.8               30.0         21.3
GD.331               4872.8         2329.3          131.4           73.1               12.9         26.3





Close spaced drilling, using two diamond drill-rigs, is continuing in the 120
metres 'inferred' section of Julia and has established the presence of a large,
sigmoidal pod. Assays results are awaited.



To date, 7413 metres of the programmed 10080 metres of Feasibility infill
drilling has been completed.





La Joya Del Sol Resource Drilling



The recently completed drilling programme on the vein Ivana has established the
presence of a high grade gold  zone close to surface extending for in excess of
160 metres along strike.

In addition drill-hole AR5 on the vein Anastasia has returned the highest gold
grade intersection in this current programme to date, 10 metres @ 28.1 gpt
(grams per tonne). Including 3 metres @ 71.1 gpt



Results received include;



                                    Table II

                Ivana and Anastasia Reverse Circulation Drilling
    Hole        Easting        Northing        Depth           From         Intersection       Grade

  Ndegrees        156            525           metres         metres           metres         g/t gold
         IR5         5720.7         8624.6           36.0            3.0               11.0          9.7
         IR9         5714.8         8644.5           36.0            6.0                9.0         16.4
        IR10         5705.3         8672.7           33.0            6.0               12.0         22.2
        IR11         5693.0         8719.0           25.0           11.0                6.0         23.0
        IR13         5698.2         8781.1           54.0         21.0                  7.0          9.8
         AR5         5786.4         8807.5           25.0            7.0               10.0         28.1



Results are currently being compiled for submission to Independent Mine
Engineering Consultants for resource estimation.





                                    - ENDS -





Geological information in this report has been compiled by Marc J. Sale, who:

•         Is a consultant to Brancote Holdings plc;

•         Has relevant experience in relation to the mineralisation being
          reported on to qualify as a Competent Person as defined in the 
          Australian Code for Reporting of Identified Mineral Resources and Ore 
          Reserves;

•         Is a member of the Australian Institute of Mining and Metallurgy and
          has more than five years experience in this field of activity reported 
          herein;

•         Has consented to the inclusion of this data.



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