Joint Venture Update

Brancote Holdings PLC
14 February 2001

 
 
Date: 14 February 2001 
 
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 
                              Resource Statement 
 
RESOURCE STATEMENT - Results from the Phase III drilling programme carried
out in the second half of year 2000 take the resource defined to date on the
highly prospective Esquel Gold Project to in excess of 4.2 million ounces of
gold and 7.8 million ounces of silver. 
 
Highlights from the Report 
 
*   HIGHGRADE - The resource defined to date in the core area is, at a 2 gram
    per tonne (gpt) cut off, 3.8 million ounces of gold at a grade of 8.0 gpt,  
    of which 3.2 million ounces (82%) have a grade in excess of 10.5 gpt. 
 
*   GALADRIEL SUR - The Galadriel Sur resource has been increased to 1.7
    million ounces of gold of which 1.4 million ounces (81%) have a grade in
    excess of 12.4 gpt. 
 
*   JULIA - Drilling of just 8 additional holes in the Julia vein system has
    doubled the resource to 484,200 ounces of gold at an average grade of 7.5
    gpt. 
 
*   63% of the resource is in the measured and indicated category. 
 
Further to the resource statement published in August 2000, Minera El
Desquite (MED) requested Pincock Allen & Holt (PAH) a leading mine
engineering consulting company based in Denver, Colorado, to produce a
resource estimate incorporating Phase I, 1999 and Phases II and III, 2000
drilling programmes. These programmes comprise approximately 33500 metres and
have defined resources in six deposits namely: Galadriel, Galadriel Sur,
Elena Norte, Elena Sur, Julia and Antonia. 
 
The resource summary reported by PAH is: 
 
                          TABLE 1-1  
                    Brancote Holdings PLC  
                     Esquel Gold Project  
                      Resource Summary  
                  (As of February 9, 2001)  

                                                                       
          Resource           Cutoff Grade    Resource      Gold Grade  
          Category           Gold gpt        Tonnes        gpt         

          Measured           1.0             5,047,000     8.69        
                             2.0             4,525,000     9.52        
                             3.0             3,990,000     10.46       
                             4.0             3,440,000     11.58       
                             5.0             3,004,000     12.61       

          Indicated          1.0             4,534,576     7.07        
                             2.0             4,061,617     7.72        
                             3.0             3,479,762     8.59        
                             4.0             2,879,252     9.65        
                             5.0             2,336,748     10.85       

          Measured           1.0             9,581,576     7.93        
          plus               2.0             8,586,617     8.67        
          Indicated          3.0             7,469,762     9.59        
                             4.0             6,319,252     10.70       
                             5.0             5,340,748     11.84       

          Inferred           1.0             3,157,748     3.96        
                             2.0             1,882,743     5.68        
                             3.0             1,254,498     7.27        
                             4.0             882,813       8.90        
                             5.0             607,737       10.89       

          Inferred*          1.0             4,321,000     7.50        
          (FootballField)    2.0             4,187,000     7.69        
                             3.0             4,087,000     7.81        
                             4.0             3,638,000     8.34        
                             5.0             3,443,000     8.56        

          Total              1.0             7,478,748     6.01        
          Inferred           2.0             6,069,743     7.07        
                             3.0             5,341,498     7.68        
                             4.0             4,520,813     8.45        
                             5.0             4,050,737     8.91        

          Total              1.0             17,060,324    7.08        
          Resources          2.0             14,656,360    8.00        
                             3.0             12,811,260    8.80        
                             4.0             10,840,065    9.76        
                             5.0             9,391,485     10.58       
 

                                                                         
        Resource           Silver Grade    Contained      Contained      
        Category           gpt             Gold Ounces    Silver ounces  

        Measured           14.9            1,410,500      2,419,100      
                           16.2            1,385,000      2,355,800      
                           17.5            1,342,400      2,245,300      
                           19.2            1,280,400      2,118,400      
                           20.7            1,218,000      1,995,600      

        Indicated          13.0            1,031,000      1,892,700      
                           14.0            1,008,000      1,834,100      
                           15.3            960,300        1,713,800      
                           16.9            892,900        1,564,600      
                           18.6            815,000        1,396,900      

        Measured           14.0            2,441,500      4,311,800      
        plus               15.2            2,393,000      4,189,900      
        Indicated          16.5            2,302,700      3,959,100      
                           18.1            2,173,300      3,683,000      
                           19.8            2,033,000      3,392,500      

        Inferred           7.1             402,400        717,500        
                           9.9             343,900        596,800        
                           12.1            293,400        487,500        
                           14.2            252,300        402,900        
                           17.5            212,800        341,400        

        Inferred*          9.9             1,041,900      1,375,300      
        (FootballField)    10.0            1,035,200      1,346,200      
                           10.2            1,026,200      1,340,300      
                           11.0            975,500        1,286,600      
                           11.3            947,500        1,250,900      

        Total              8.7             1,444,300      2,092,800      
        Inferred           10.0            1,379,100      1,943,000      
                           10.6            1,319,600      1,827,800      
                           11.6            1,227,800      1,689,500      
                           12.2            1,160,300      1,592,300      

        Total              11.7            3,885,800      6,404,600      
        Resources          13.0            3,772,100      6,132,900      
                           14.1            3,622,300      5,786,900      
                           15.4            3,401,100      5,372,500      
                           16.5            3,193,300      4,984,800      
 
 
*Inferred - For the area between Galadriel Sur and Julia, locally named the
'football field'. 
 
 
The PAH resource statement will serve as an independent report prepared by a
Competent Person as defined by the Council of Mining and Metallurgical
institution in the UK. PAH has been responsible for the preparation of the
resource estimate contained on this announcement and has more than five years
experience in the estimation, assessment and evaluation of mineral resources
on ore reserves which is relevant to the style of mineralisation under
consideration. 
 
Resource definition, as estimated by PAH is attached as an appendix to this
report. 
 
MED total resources at Esquel now stand at: 
 

                                                                       
                                     Ounces / Gold    Ounces / Silver  
                                                                       
          Esquel Gold Project PAH    3,885,800        6,404,600        
          La Joya Del Sol            209,000          1,413,000        
          Huemules                   114,300          Not available    
                                                                       
          Total Resources            4,209,100        7,817,600        
 
Phase IV Drilling, currently in progress, is concentrating on the upgrading
of the inferred resource on the 'football field' area to measured and
indicated by close spaced pattern drilling. 
 
Julia and the 'football field' remain open at depth with continuing high
grade gold and widths. Galadriel Sur is yet to be closed off. 
 
 
                                  - ENDS - 
 
 
                                  APPENDIX 
 
Resource Definition 
 
The following are definitions of terms relating to various categories of
resources used by PAH in this report. 
 
Resource: A concentration of naturally occurring solid, liquid or gaseous
material in or on the Earth's crust in such form and amount that economic
extraction of a commodity from the concentration is currently or potentially
feasible. Location, grade, quality and quantity are known or estimated from
specific geological evidence. 
 
To be classified as a resource, there must not only be some evidence that the
concentration of materials exists, but there must be sufficient information
available to estimate the quantity of material. 
 
To reflect varying degrees of geological certainty, resources can be
subdivided into measured, indicated, and inferred. 
 
Measured: Quantity is computed from dimensions revealed in outcrops,
trenches, workings, or drill holes; grade and/or quality are computed from
the results of detailed sampling. The sites for inspection, sampling and
measurements are spaced so closely and the geological character is so well
defined that size, shape, depth, and mineral content of the resource are well
established. 
 
Indicated: Quantity and grade and/or quality are computed from information
similar to that used for measured resources, but the sites for inspection,
sampling, and measurements are further apart or are otherwise less adequately
spaced. The degree of assurance, although lower than measured resources, is
high enough to assume geological continuity between points of observation. 
 
Inferred: Estimates are based on geological evidence and assumed continuity
in which there is less confidence than for measured and/or indicated
resources. Inferred resources may or may not be supported by samples or
measurements but the inference must be supported by reasonable geo-scientific
(geological, geochemical, geophysical, or other) data.