RNS Number:4322S
HPD Exploration PLC
25 November 2003


                          HPD EXPLORATION PLC ("HPD")
                        DRILLING AND EXPLORATION UPDATE
                                   HIGHLIGHTS

COYHAIQUE-CHILE
Drilling has commenced at the Coyhaique property. The initial phase of the
10,000 metre drilling programme includes 5,400 metres of reverse circulation
drilling (RC) for: close space drilling (17 holes) on the Adriana vein; fence
exploration drilling across the Valenzuela zone (29 holes) and fence exploration
drilling across the newly defined 'Ridge' mineralisation (22 holes).
The five holes completed to date on Adriana have all intersected massive vein,
of up to 12 metres intersection width, plus associated stock-work veining.
Assays are pending.

Exploration at Coyhaique has identified a new mineralised zone named the
'Ridge', trending from the northern extent of the Valenzuela zone to intersect
the central sector of the Adriana Vein approximately two kilometres further to
the north. The new zone effectively bisects a large circular dome feature that
is suspected as being the by-product of an underlying intrusive. Visible gold
has been observed in several samples including one sample from the 'Ridge' that
contained a cluster of gold flakes up to 4mm long and 0.5mm thick. Assays are
pending.

CERRO CRESPO-ARGENTINA
Cerro Crespo (centred on property No 21) has advanced to 'Project' status.
Exploration of this property has led to the discovery of two large vein fields,
'Cabana' and 'Jasper', each containing swarms of low sulphidation, epithermal
veins with textures indicating that erosion of the system is shallow. To date,
over 4,000 metres of vein have been mapped, with individual veins ranging in
thickness from 0.5 to 5 metres and reporting grades of up to 15.8 g/t gold.
Preparation has commenced for a 5,000 metre RC drilling campaign on the Cerro
Crespo Project in early March.

LANDORE RESOURCES INC. (HPD 37%)-CANADA
Drilling has commenced at Landore's Miminiska Lake property located in northern
Ontario 180 kilometres east of Placer Dome's Musslewhite Gold mine. The initial
phase of the 3,500 metres, NQ core, diamond drill programme, is designed to
further define the highly prospective 'Baseline Z5 shoot', delineated during the
drilling campaign completed in May of this year. Significant high grade gold was
intersected in this shoot including: 40.2g/t Au over 2.1 metres in hole 0603-8
and 34.5g/t Au over 0.65 metres in hole 0603-8
Mineralisation of the Z5 shoot is considered to be analogous to that of
Musslewhite mine.

Coyhaique-Chile.
Mobilisation. The 'Option to Purchase' agreement was formalised with WestMag on
the 18th July allowing preparations for project mobilisation and start-up. This
included: the relocation of senior management from Puerto Madryn-Argentina to
Coyhaique, establishment of an office, infrastructure and field base; calling
for and acceptance of tenders for drilling and assaying and the employment of
geologists and field technicians.

Environmental Impact Study. Prior to commencement of the proposed drilling
campaign, Patagonia Gold was required to submit a comprehensive 'Environmental
Impact Study' to the Provincial Mining Directorate and relevant government
agencies (23 in all). The study is to a 'pre-feasibility' level and covers all
aspects of exploration, including drilling, trenching, water usage, road
construction etc. and their impact on the environment within the project and
environs.
The approval of the study in its entirety on the 10th November was a significant
achievement and an important milestone for the Project.

Exploration. The Project geological team, assisted by Consultant Geologists,
Chris Cooper and Nick Callan, have compiled and reviewed all available
historical data. They are now engaged in field exploration including mapping and
sampling of the veins and zones to be drilled together with reconnaissance
geological mapping of other prospective areas.

Exploration has identified a new mineralised zone, now named the 'Ridge',
trending from the northern extent of the Valenzuela zone to intersect the
central sector of the Adriana vein approximately two kilometres further to the
north. Channel sampling on this zone has exposed high temperature, dogtooth,
crystalline quartz with one sample containing a cluster of gold flakes up to 4mm
long and 0.5mm thick. These features could be caused by a thermal event
resulting in the recrystalisation of quartz and the remobilisation of the gold.
If so there could also be bonanza shoots where gold has been remobilised into
favourable structures.

The new zone effectively bisects a large circular dome feature that is suspected
as being the by-product of an underlying intrusive. In the same area the
volcanic host lithology is distinctly hornfelsed (heat alteration).

This makes the 'Ridge' an exciting and high priority target for drilling.

Drilling. The proposed drill programme to be completed at Coyhaique this
southern summer consists of 8,000 metres of reverse circulation (RC) and 2,000
metres of HQ diamond core drilling. The initial phase will be 68 holes RC for a
total of 5400 metres aimed at the three zones that are currently considered to
have the greatest potential.

   *On the Adriana Vein the central zone will have 11 holes drilled at 40
    metres spacing close to the vein with 6, 25metre step-back holes, at
    80-metre spacing.
   *On the 'Ridge' 4 drill 'fences', for a total of 22 holes, will be drilled
    across the mineralised zone.
   *On the Valenzuela zone 5 drill 'fences', for a total of 29 holes, will be
    drilled across the mineralised zone with two holes aimed at testing breccias
    on the Pollox Fault.

The initial phase drilling is scheduled for completion by the end of January.

Cerro Crespo-Argentina.
The Cerro Crespo project, centred on exploration property No. 21, is located 20
km south of the town Gobernador Costa in the western part of the province of
Chubut. It is approximately 150 km south-east of Esquel and, similarly, is
situated in the foothills of the Andes cordillera.

Reconnaissance exploration, carried out last summer, was successful in
discovering low sulphidation veining, reporting elevated gold grades, in several
locations. Hence it was selected as a high priority property to commence second
pass exploration, including detailed mapping and channel sampling.

To date, three large vein fields have been identified, the most prospective of
which are:

The 'Cabana zone'- covers an area of approximately 1 square kilometre, and
contains a complex radiating swarm of veins ranging from 1 to 5 meters in width
and up to 800 metres in length. The veins exhibit highly variable textures,
possibly due to numerous overprinting vein events, with the most common texture
being chalcedonic quartz, indicating that the erosion of the system is shallow.
Channel sampling has returned grades of up to 11g/t gold, which, at this
elevated level in the system, is extremely promising. The zone is open on all
sides with new veins still being discovered.

The 'Jasper zone'- also covers an area of approximately 1 square kilometre and
contains a parallel set of veins from 0.5 to 2 metres in width and up to 800
metres in length. The surface outcrop is at the top of the system, with opaline
vein exposures representing the uppermost plumes of the underlying fissure
veins. Channel sampling has returned grades of up to 15.8g/t gold. It is unusual
to have >1 g/t Au at this elevation in the system making the target zone below
look extremely promising. This zone is also open on all sides with new veins
still being discovered and, with the poor surface exposure over the entire area,
it is highly likely that extensive trenching will locate even more veins on both
the 'Cabana' and 'Jasper zones'.

     Selection of assay results from channel samples taken on veins in the
                          'Cabana' and 'Jasper' zones.
 SAMP    AU_PPM  AG_PPM  CU_PPM   PB_PPM   ZN_PPM  AS_PPM   SB_PPM   HG_PPM
------  ------- ------- -------  -------  ------- -------  -------  -------
 6126       2.1     6.7     134    11700    99700      176      24      2.0
 6128       5.0     7.8      48      489      398       10      13      0.4
 6129       3.5     6.0      56      628      337       12      16      0.3
 6130       2.5    12.2      70      686      495       -5      18      0.4
 6132       3.3     5.9      46      264      241       11      15      0.2
 6134      11.1     8.4      23      504       48       10      15      0.3
 6136       2.1     4.3      41      391      419       23      21      0.4
 6138       6.5     9.4      22      361      440       -5      13      0.4
 6139       3.1    10.3      25      196      192       11      21      0.3
 6210       3.6    13.9      93      771      520       30      15      0.6
 6287       4.1    11.1      43    29500      322      225      34      2.6
 6288      15.8    13.0     528    46300     2870     7080     118      3.0

Preparations are underway for a 5,000 metre RC drilling campaign to commence in
early March 2004 on the most prospective veins in the 'Cabana' and 'Jasper'
zones. A second Geological team with an excavator is to start in January on
trenching and channel sampling.

Consulting Geologist Chris Cooper, highly experienced in low sulphidation
epithermal gold occurrences and whose involvement in the Esquel discovery and
geological development was crucial, visited the Cerro Crespo Project area to
provide an assessment of its' prospectivity. His conclusion stated:

'The sequence of events resulting in the discovery of a new gold district such
as property 21 is a textbook example of how grassroots mineral exploration
should be conducted. In a very short time this area has reached the stage where
trenching and drilling is now necessary to pursue the development of the
prospects and with continuing favourable results the property will take on the
status of a stand alone project.'

                                      ENDS
For more information please contact
Richard Prickett / Bill Humphries                         Leesa Peters
HPD Exploration Plc                                         Conduit PR
Tel: + 44 (0)20 7409 7444                      Tel: +44(0)20 7936 9095/
                                                  +44 (0) 781 215 9885
www.hpdexploration.com                                
                                                     




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