Progress Report

Brancote Holdings PLC
22 March 2001









Date:              22 March 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

                          Esquel Gold Project (60%)

      Progress Report on the Phase IV Exploration Drilling Programme

                         And Pre-feasibility Study



Phase IV Drilling



Close spaced drilling, in the area known as the 'Football Field' in between
the two established resources of Galadriel Sur and Julia, has confirmed the
presence of a large, high grade, shallow dipping epithermal vein system
similar in texture, grade and width to Galadriel Sur.



Drilling is being conducted, on a 40 metres along strike by 25 metres down dip
pattern, to progress this inferred resource into the measured and indicated
categories. To date, the 'Football Field' vein system has been drilled for 280
metres along strike and for an average of 75 metres down dip. The vein is
becoming wider and the grade improving with depth. The vein remains open at
depth to the north and to the south.



In addition, drilling has extended the previously discovered steeply dipping
vein, immediately to the south of Galadriel Sur, a further 80 metres
southwards, giving this system a known strike length of 220 metres. The vein
remains open at depth and to the south.



Both vein systems contain a high-grade zone averaging 21g/t gold over 5 metres
width.



Infill drilling has also been completed on sections Ndegrees 22 and 31, the
two lines of drilling at the northern end and in the centre of the 'Football
Field' area, used by Pincock Allen & Holt for their resource estimate released
on February 14th 2001.

This additional drilling has substantially improved the sections both in grade
and tonnage.

There are now only two un-drilled sections of 160 metres in the north and 120
metres in the south, remaining within the inferred 'Football Field' area. At
the present rate of drilling these will be in-filled by mid April.



                                   Table I

                     Summary of Significant Intersections

         Football Field Diamond Core and Reverse Circulation Drilling


  Hole    Easting Northing  Depth    From                Intersection     Grade
Ndegrees    156     525    metres   metres                metres       g/t gold
GR 195     4578.6   1696.9   120.0      91.0                12.0           10.4
GR196      4517.9   1626.2   126.0     101.0                19.0            9.6
GR197      4601.1   1691.8   108.0      75.0                13.0            9.3
GR199      4542.1   1621.8   125.0      86.0                14.0            8.3
GD225      4568.4   1661.8   147.0      95.4                 9.8           11.0
GD226      4520.4   1668.9   175.5     112.7                13.5           25.8
GD227      4469.9   1677.0   202.3     155.7                15.3           11.0
GD230      4554.5   1701.4   154.6     107.9                 9.5           12.1
GD231      4531.0   1704.4   145.7     119.0                13.2           11.6
GD233      4727.1   1993.8   171.7      96.2                11.8            6.7
and                                    133.9                13.3           16.0
GD239      4663.3   1925.8   264.4     168.7                23.1            9.1

Azimuth 90degrees Mag. Dip - 60degrees



Ungoliant



An exploration drilling programme of 712 metres was completed on the northern
exposure of the Ungoliant vein system, over a strike distance of 250 metres.

The results are sufficiently encouraging to carry out further drilling to test
its down-dip and along strike extension later in this current drilling
programme.

The Ungoliant system, trending north - south, situated to the east of the
Elena system, has now been identified through outcrops and float over a
distance of 1.5 kilometres.



                                   Table II

                     Summary of Significant Intersections

                   Ungoliant - Reverse Circulation Drilling


  Hole    Easting Northing  Depth        From       Intersection         Grade
Ndegrees    156     525    metres       metres         metres           g/t gold
UR1        5169.7   1238.9    50.0       6.0                 6.0            4.1
UR2        5176.1   1274.0   100.0       6.0                 8.0           11.1
UR3        5175.1   1313.0   100.0      31.0                19.0            4.1
UR4        5186.0   1351.9   156.0      44.0                11.0            4.5

Azimuth 90degrees Mag. Dip - 50degrees






To date, 7,500 of the programmed 20,000 metres of drilling in Phase IV have
been completed.



Of the remaining 12,500 metres, scheduled for completion by the end of May,
two thirds will be used on resource definition, with the remainder being
allocated for exploration drilling targeting the footwall and, especially, the
hanging wall zones of the Galadriel Sur and 'Football Field' veins, for
possible repetitions of those veins.



Pre-feasibility Studies



In-house conceptual studies show the Esquel Gold Project to be highly
profitable, even at current gold prices, with projected operational cash costs
below US$ 100 per ounce.



The Joint Venture partners have agreed that the project should now be
progressed towards production.



Accordingly, expressions of interest are being sought from Mine Engineering
Companies to carry out a full Pre-feasibility study to commence early May for
completion by October of this year.



Preparation works for pre-feasibility studies have been ongoing since June
2000 with several areas, including metallurgical and environmental base line
studies, well advanced.



Land Acquisition



An option to purchase 2,000 hectares of land covering the surface rights of
the entire project area and potential plant-site, tailings storage and
freshwater dam has been successfully completed.



                                   - ENDS -







Geological information in this report has been compiled by Brancote's Project
Manager, 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.