Progress Report

Brancote Holdings PLC
14 August 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

Highlights

*  RESOURCE STATEMENT  -  Results   from   the   Phase II
   drilling programme carried out  in the first  half  of
   year 2000 take the  resource  defined to date  on  the
   highly prospective  Esquel  Gold  Project to in excess
   of 2.45 million ounces  of gold and 5.4 million ounces
   of silver.

*  GEOPHYSICAL SURVEY -  The Induced  Polarisation (I.P).
   and  Resistivity  survey carried out over the southern
   core area of the Cordon de Esquel has produced a large
   quantity  of anomalous  resistive features with trends
   similar  to several of the known silicified structures
   and  has shown the possible extension of the Galadriel
   Sur vein towards the Elena and Julia vein systems.

*  LAND - The acquisition  of  the Willemanco and Leleque
   exploration concessions completes the consolidation of
   M.E.D.'s  land  position  on  the  highly  prospective
   Cordon de Esquel and Cordon Leleque bringing the total
   area   held  in  the Esquel region to excess of 140000
   hectares.

*  PHASE III DRILLING -  Preparations  are  on  target to
   commence the  Phase III 12000 metre drilling programme
   in early September aimed at extending  the  two  major
   resources   Galadriel  Sur  and  Julia  together  with
   exploration   drilling   on    the    newly    defined
   I.P.Resistivity targets.

Bill Humphries,  Managing  Director  of Brancote Holdings
PLC said:

'The  excellent drilling and exploration success achieved
over the past 18 months has established the presence of a
world class gold resource at Esquel.'

Resource Statement

Further  to the resource statement published in  February
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 both the Phase I, 1999 and Phase  II,  2000
drilling    programme.    These    programmes    comprise
approximately 22000 metres and have defined resources  in
five  deposits  namely: Galadriel, Galadriel  Sur,  Elena
Norte, Elena Sur and Julia.

The resource summary reported by PAH is:


                                  TABLE 1-1
                           Brancote Holdings PLC
                            Esquel Gold Project
                      Total Project Resource Summary
                           (as of August 2, 2000)
------------------------------------------------------------------------     
                                  Gold     Silver   Contained  Contained
Resource    Cutoff    Resource    Grade    Grade      Gold      Silver
Category   Grade gpt   Tonnes      gpt      gpt      Ounces     Ounces
------------------------------------------------------------------------
Measured      1.0     3,695,000    9.87     18.99   1,173,000  2,255,600
              2.0     3,331,000   10.79     20.64   1,155,000  2,210,100
              3.0     3,003,000   11.69     22.29   1,129,000  2,151,700
              4.0     2,696,000   12.63     23.90   1,094,700  2,071,300
              5.0     2,437,000   13.50     25.46   1,057,400  1,994,600
------------------------------------------------------------------------      
Indicated     1.0     2,628,000    8.98     16.94     759,100  1,431,000
              2.0     2,347,000    9.88     18.53     745,700  1,397,900
              3.0     2,143,000   10.59     19.74     729,500  1,360,300
              4.0     1,893,000   11.52     21.44     701,400  1,304,700
              5.0     1,661,000   12.51     23.17     668,000  1,237,400
------------------------------------------------------------------------      
Measured      1.0     6,323,000    9.50      18.1   1,932,100  3,686,700
Plus          2.0     5,678,000   10.41      19.8   1,901,000  3,608,000
Indicated     3.0     5,146,000   11.23      21.2   1,858,500  3,512,000
              4.0     4,589,000   12.17      22.9   1,796,100  3,376,000
              5.0     4,098,000   13.10      24.5   1,725,400  3,232,000
------------------------------------------------------------------------      
Inferred      1.0     1,867,000    3.27      4.97     196,400    298,300
              2.0       846,000    5.53      7.52     150,400    204,500
              3.0       593,000    6.84      8.73     130,400    166,400
              4.0       435,000    8.07     10.04     112,900    140,400
              5.0       593,000    9.87     12.27      91,700    114,000
------------------------------------------------------------------------
Total         1.0     8,190,000    8.08      15.1   2,128,400  3,985,000
Resources     2.0     6,524,000    9.78      18.2   2,051,000  3,812,000
              3.0     5,739,000   10.78      19.9   1,988,900  3,678,000
              4.0     5,024,000   11.82      21.8   1,908,000  3,516,300
              5.0     4,387,000   12.88      23.7   1,817,100  3,346,000
------------------------------------------------------------------------

A  full  report describing the work performed by  PAH  is
being  prepared. The scope of work included a  review  of
the  geology  and data collection methods  used  by  MED,
including mapping, drilling, sampling, assaying,  quality
control procedures and data base compilation.


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   2,128,400        3,985,000
  La Joya Del Sol             209,000        1,413,000
  Huemules                    114,300      Not Available
---------------------------------------------------------
  Total Resources           2,451,700        5,398,000

Highlights of PAH's resource estimate are:

  *  90% of the resource is in the measured and indicated
     category.
  
  *  The  Galadriel  Sur  deposit  contains 1.33  million
     ounces  of  gold of  which 1.2 million ounces have a
     grade in excess of 14 grams/tonnes.

Both  Galadriel  Sur  and Julia are open  at  depth  with
continuing high grade gold and widths. To date, Galadriel
Sur  has  been drilled to an average of 125  metres  down
dip,  along 500 metres of strike and remains open to  the
south.

Julia  has  been drilled to an average of 70 metres  down
dip,  along 250 metres of strike and remains open to  the
north.

Geophysical Survey

Quantac  Geofisica Argentina has reported on the  Induced
Polarisation, Resistivity and Total Field Ground Magnetic
Surveys conducted over the southern area of the Cordon De
Esquel, centred on the Galadriel Sur and Elena systems.

Electrical  resistivity proved to be the  most  effective
measured  geophysical parameter to detect  and  delineate
silicified structures in the survey area.

The  gradient  surveys  produced  a  large  quantity   of
anomalously  resistive features with  similar  trends  to
several of the known silicified structures.

A  comparison  between mapped veins (Galadriel  Sur)  and
resistive lineaments shows a high correlation.

Three  'Real'  sections  conducted  over  the  high  area
between the veins Galadriel and Julia indicate a trend of
much  stronger  resistivity anomalies and shows  possible
extension of the Galadriel Sur vein under a tuff unit.

In  addition there are many similar resistive  lineaments
and  broader  resistive areas that do not  correspond  to
known  veins, in particular, data indicates that at least
two  resistive trends occur at depth in the  vicinity  of
the Galadriel Sur vein.

Land

Negotiations have been successfully concluded with Minera
Andes  for  the  'option  to  purchase'  its  exploration
'cateos'   adjacent  to   the  Cordon  De  Esquel.   This
acquisition gives MED strategic control over  the  entire
70Km  long range from Cordon Leleque in the north to  the
Sierra Colorada in the south.

                                                  Ha
  Land Acquired  Cateo Willemanco  13105/97    3,249
                 Mina Leon 1       13107/97    2,047
                 Mina Leon II      13108/97    1,749
                 Cateo Leleque     13123/97    9,924
  Also by MED    Mina Esperanza    12909/96    1,004

  Sub total                                    18018 Has

  Total area held by MED in Esquel            140952 Has


Phase III Drilling

Preparation  is well advanced to commence the  Phase  III
drilling and exploration programmes in early September.

Major  Drilling has been awarded the contract  to  supply
two  650 multipurpose (Diamond and R.C.) drill rigs,  one
of  which  has  already been mobilised to site  with  the
second due by 10th September. Contingencies are in  place
for a third and larger drill if required.

Drilling  will target down dip and along strike extension
of  the two main resources Galadriel Sur and Julia, where
drilling  in  the last programme finished in  high  grade
(+30g/t Au).

Exploration  drilling will target the highly  prospective
Antonia and Ungoliant vein systems together with the  new
I.P.  resistivity interpreted structures to the south  of
and adjacent to Galadriel Sur.

This  programme  is  scheduled  for  completion  by   mid
December.


                        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.