Progress Report

Brancote Holdings PLC
30 October 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

*   Phase  III  drilling, commenced in  mid  September,  continues to
    produce  outstanding  results  further expanding  the established
    resource Galadriel Sur, down-dip  and south  along strike towards
    the Julia - Elena vein systems;

*   Preliminary   metallurgical  investigations have indicated that a
    standard  whole-ore  C.I.L. recovery  method  yields  high   gold         
    recoveries ranging from 92 to 94 percent in less than 24 hours.

Drilling  on  the Esquel  Gold  Project recommenced on September 14th
using  a  UDR 650 multipurpose drill  rig  to complete a programme of
diamond core step-back drilling on the established resource Galadriel
Sur.

Pincock  Allen  &  Holt, in  their resource statement of August 18th,
stated:

*   The plus 20 metre wide, high grade zone located between 5,252,500
    N and 5,252,300 N (200 metres strike length) is open at depth.  A
    line of holes should be drilled towards the east to intersect the
    down-dip extension of the zone, 25 metres below the deepest holes.
  
This line of holes  has  now  been  completed  and clearly  shows the
continuation of this high grade zone down-dip.

In  addition  the  results  from  GD206, (20 metres @ 18.9  g/t gold,
including 4.5 metres @ 57.7 g/t gold) now extend this high grade zone
further to the south.

A further line of step-back holes will now be  drilled  below the new
holes.

A second UDR 650 multipurpose drill rig commenced September 20th  and
is  being used to complete a programme of exploration  R.C.  drilling
to test prominent I.P.and resistivity geophysical anomalies discovered
earlier  this year in the core area.

Two  east-west 'fences' each consisting of R.C drill  holes 50 metres
apart and 150  deep  have  been  drilled  to the  west  and  south of
Galadriel  Sur.   On  the  southern  line,  RC  151, intersected  the 
projected Galadriel Sur  vein  80  metres  along  strike  towards the
Julia vein system, (14 metres @ 14.1 g/t gold and 15 metres @ 4.4 g/t
gold).   Two  further  holes  drilled  25 metres behind RC 151 and 40
metres to  the  north  of  RC 151 have both intersected the structure
with promising veining and textures (results pending).

In  a  recent visit to the Esquel Gold Project, Dr  Richard Sillitoe,
a consulting  geologist,  experienced  with  Andean  epithermal  gold
occurrences, stated:

*   The  greatest potential  for  discovery  of  additional major ore
    shoots in the Esquel district is believed to lie beneath the high
    ridges separating Galadriel Sur  and  Antonia Norte and Galadriel
    Sur and Julia - Elena Norte.  Any ore shoots will be contained in         
    concealed veins that  are  likely to have the same orientation as
    the known veins;

*   There is reason to believe that one or more untested  veins could
    exist beneath the Galadriel Sur vein.

The success  of  the  Phase  III  drilling  to  date  has  encouraged
MED  to engage a third UDR  650  drill rig to accelerate the step-out
drilling on the Galadriel  Sur  and  Julia veins with exploration for
blind veins in the central area.     This  rig  is  due  to  commence 
drilling  in  mid November.


                                Table 1
      Galadriel Sur Diamond Core and Reverse Circulation Drilling
               Summary of Significant Intersections

  Hole    Easting   Northing    Depth     From    Intersection  Grade
   No      1564       5252      Metres   Metres      Metres      G/T
                                                                Gold
--------------------------------------------------------------------
 GD 202   4800.2     484.4      172.5     129.5        30.2      6.8
--------------------------------------------------------------------
 GD 203   4759.5     402.6      217.5     172.6        24.5     10.4
--------------------------------------------------------------------
                               Including                5.1     20.2
--------------------------------------------------------------------
 GD 204   4763.6     348.2      224.6     169.3        27.7      9.5
--------------------------------------------------------------------
                               Including                3.5     29.0
--------------------------------------------------------------------
 GD 205   4752.5     310.5      251.2     174.0        31.4      5.9
--------------------------------------------------------------------
 GD 206   4726.4     275.8      229.8     160.1        20.0     18.9
--------------------------------------------------------------------
                               Including                4.5     57.7
--------------------------------------------------------------------
 GR 151   4796.4     142.5      150.0      88.0        14.0     14.1
--------------------------------------------------------------------
                               and        116.0        15.0      4.4
--------------------------------------------------------------------

Metallurgical tests were performed at Hazen Research  Inc of  Golden 
Colorado, during July and August  2000  on  samples  collected  from
drill core of the Galadriel and Galadriel Sur  veins.  Pincock Allen
& Holt were contracted to manage the metallurgical testing programme
and provide a  summary of Hazen's results.  Within their summary PAH
reported:

*   The sample composites  used  for  metal  recovery  testing  were
    subjected to conventional laboratory - scale crushing, grinding,
    gravity concentration (by tabling), bottle roll cyanide leaching
    and  whole  bottle  roll  carbon  in  leach  (C.I.L.) processing
    techniques;

*   For the vein materials, testing indicated that a standard whole-
    ore C.I.L. recovery method yields high gold  recoveries  ranging
    from 92 to 94 per cent and moderate  silver  recoveries  ranging
    from 68 to 78 per cent; 

*   Recoveries from mineralised wall rock material, containing 5 g/t
    gold and 9 g/t  silver, using the C.I.L. recovery method,   were
    lower than those from the vein  materials  and ranged from 60 to
    67 per cent of the gold and from 34 to 47 per cent of the silver;

*   One metallurgical test was performed using the  C.I.L.  recovery
    method on a blend of 90 per cent by weight Type A  vein material
    with 10 per cent by weight mineralised wall  rock to observe the
    impact of wall rock dilution on the vein material.  Results from
    the test indicated that the addition  of  activated  carbon  was
    able to overcome the preg-robbing effects  of the organic carbon
    in the wall rock.
    Recoveries  from the blend test were 92  per  cent  for gold and
    about 70 per cent for silver.

Further  metallurgical test work to optimise  grind  sizes,  cyanide
concentration and leach times will commence in  mid November.

Bill Humphries, Managing Director of Brancote Holdings PLC said:

'I  am  pleased to report on the continuing success of  our  current
drilling programme at our Esquel gold  project  in Argentina.'
               _____________________________

Geological information in this report has been compiled by Brancote's
Project Manager, Marc 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         
    Australasian Code for Reporting of  Identified  Mineral Resources
    and Ore Reserves;
*   is a Member of the Australasian Institute of Mining and Metallurgy
    and has had more than five  years'  experience  in  the  field  of        
    activity reported herein;
*   has consented to the inclusion of this data.