UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB

(Mark One)
[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
     OF  1934

     For the quarterly period ended September 30, 2001
                                    ------------------

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT

     For the transition period from ________________ to __________________

     Commission  file  number  0-26531
                               -------

PATAGONIA  GOLD  CORPORATION
----------------------------
(Exact name of small business issuer as specified in its charter)

Florida                                   65-0401897
-------                                   ----------
(State or other jurisdiction              (IRS Employer Identification  No.)
of incorporation or organization)

P.O. Box 48525, 595 Burrard Street, Vancouver, B.C., Canada V7X 1A2
-------------------------------------------------------------------
(Address of principal executive offices)

(604) 687-4709
--------------
(Issuer's  Telephone  Number)

Suite 1400 - 1500 West Georgia Street, Vancouver, B.C., Canada V6G 2Z6
----------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

Check  whether  the  issuer  (1)  has  filed all reports required to be filed by
Section  13 or 15 (d) of the Exchange Act during the preceding 12 months (or for
such  shorter period that the registrant was required to file such reports), and
(2)  has  been  subject  to  such  filing  requirements  for  the  past 90 days.

YES [ X ]   NO [  ]

APPLICABLE  ONLY  TO  ISSUERS  INVOLVED  IN  BANKRUPTCY  PROCEEDINGS  DURING THE
PRECEDING  FIVE  YEARS

Check,  whether  the  registrant  filed all documents and reports required to be
filed  by Section 12, 13 or 15 (d) of the Exchange Act after the distribution of
securities  under  a  plan  confirmed  by  court.

YES [  ]   NO [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of  the  latest practicable date: 13,000,000 shares of Common Stock
were  outstanding  as  of  September  30,  2001.

Transitional Small Business Disclosure Format (check one);

YES [  ]   NO [ X ]


<PAGE>
                           PATAGONIA GOLD CORPORATION

     This  quarterly  report contains statements that plan for or anticipate the
future  and  are  not  historical  facts.  In  this Report these forward looking
statements  are  generally  identified  by  words  such as "anticipate", "plan",
"believe",  "expect",  "estimate",  and  the  like.  Because  forward  looking
statements  involve future risks and uncertainties, these are factors that could
cause  actual  results  to  differ  materially from the estimated results. These
risks and uncertainties are detailed in Part 1 - Financial Information - Item 1.
"Financial Statements", Item 2. "Management's Discussion and Analysis or Plan of
Operation".

The  Private  Securities  Litigation  Reform Act of 1995, which provides a "safe
harbor"  for  such  statements,  may  not  apply  to  this  Report.



                         PART 1.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL  STATEMENTS

                                                                            PAGE
                                                                            ----

         Consolidated  Balance  Sheets                                       3

         Consolidated  Statements  of  Operations                            4

         Consolidated  Statements  of  Cash  Flows                           5

         Notes  to  the  Consolidated Financial Statements                   6

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations                       9

PART II. Other Information

Item 1.  Legal Proceedings                                                   12

Item 2.  Changes in Securities                                               12

Item 3.  Defaults Upon Senior Securities                                     12

Item 4.  Submission of Matters to A Vote of Security Holders                 12

Item 5.  Other Information                                                   12

Item 6.  Exhibits and Reports on Form 8-K                                    12

Signatures                                                                   13


                                        2
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
PATAGONIA  GOLD  CORPORATION  &  SUBSIDIARY
(An  exploration  stage  enterprise)

Consolidated Balance Sheets  - (unaudited)
September 30, 2001 and December 31, 2000                       September 30    December 31
(Expressed in U.S. Dollars)                                        2001           2000
-------------------------------------------------------------------------------------------
<S>                                                           <C>             <C>
ASSETS

Current
   Cash                                                       $         624   $      1,352
   Receivables                                                       39,822             59
   Investments                                                    1,013,228        693,171
-------------------------------------------------------------------------------------------
Total current assets                                              1,053,674        694,582

Mineral property costs                                               12,250         12,250
-------------------------------------------------------------------------------------------
Total assets                                                  $   1,065,924   $    706,832
-------------------------------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current
   Accounts payable and accrued liabilities                   $     111,857   $     53,646
   Notes payable                                                          -            930
-------------------------------------------------------------------------------------------
Total liabilities                                                   111,857         54,576
-------------------------------------------------------------------------------------------

Stockholders' Equity

   Share capital,
         Authorized
           50,000,000 common shares, par value $0.001each
         Issued
           13,000,000 common shares                                  13,000         13,000
Additional paid-in capital                                        1,827,000      1,827,000
Accumulated deficit                                                (619,831)      (690,683)
Accumulated other comprehensive (loss),
    unrealized (loss) on securities available for sale             (266,102)      (497,061)
-------------------------------------------------------------------------------------------
Stockholders' equity                                                954,067        652,256
-------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                    $   1,065,924   $    706,832
-------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
PATAGONIA  GOLD  CORPORATION  &  SUBSIDIARY
(An  exploration  stage  enterprise)

Consolidated  Statements  of  Operations  (Unaudited)
For  the  nine  months  ended  September  30,  2001  and  2000
(Expressed  in  U.S.  Dollars)
------------------------------------------------------------------------------------------
                                                Cumulative
                                              September 30     Nine months    Nine months
                                                   1997 to           Ended          Ended
                                              September 30    September 30   September 30
                                                      2001            2001           2000
------------------------------------------------------------------------------------------
<S>                                          <C>             <C>             <C>
General and administrative expenses
  Administrative and general                 $     108,722   $      30,335   $     21,817
  Professional fees - accounting and legal          88,203           8,824          6,760
  Salaries and consulting fees                     155,289          24,143         26,978
------------------------------------------------------------------------------------------
                                                   352,214          63,302         55,555

  Exploration expenses                             160,170           7,751          1,135

  Writedown of mineral property costs              297,000               -              -
------------------------------------------------------------------------------------------
                                                   809,384          71,053         56,690
------------------------------------------------------------------------------------------

Less : Income (loss)
  Interest income                                   34,594             893            140
  Dividend income                                    2,835               -              -
  Realized gain (loss) on
      sale of investments                          171,423         141,458         31,840
  Interest expense                                 (15,580)           (446)          (305)
  Foreign exchange gain (loss)                      (3,719)              -            233
------------------------------------------------------------------------------------------
                                                   189,553         141,905         31,908
------------------------------------------------------------------------------------------

Net gain (loss) for the period               $    (619,831)  $      70,852   $    (24,782)
==========================================================================================

Gain (loss) per share                                        $        0.01   $      (0.00)
==========================================================================================

Weighted average number of
     common shares outstanding                                  13,000,000     13,000,000
==========================================================================================
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
PATAGONIA  GOLD  CORPORATION  &  SUBSIDIARY
(An  exploration  stage  enterprise)

Consolidated  Statements  of  Cash  Flows  (Unaudited)
Nine  months  ended  September  30,  2001  and  2000
(Expressed  in  U.S.  Dollars)
---------------------------------------------------------------------------------------------------
                                                         Cumulative
                                                       September 30     Nine months     Nine months
                                                            1997 to           Ended           Ended
                                                       September 30    September 30    September 30
                                                               2001            2001            2000
<S>                                                   <C>             <C>             <C>
---------------------------------------------------------------------------------------------------
Cash flows from (used in)
  operating activities
  Net income (loss) for the period                    $    (619,831)  $      70,852   $    (24,782)
  Adjustments to reconcile net loss to net
     cash used in operating activities :
        realized loss (gain) on sale of investments        (175,173)       (141,458)       (31,840)
        expenses satisfied with common stock                  3,000               -              -
        write-down of mineral properties                    297,000               -              -
---------------------------------------------------------------------------------------------------
                                                           (495,004)        (70,606)       (56,622)

Changes in assets and liabilities:
    decrease (increase) in accounts receivable              (39,822)        (39,763)        (7,375)
    increase (decrease) in accounts payable                 111,857          57,281        (67,013)
---------------------------------------------------------------------------------------------------
                                                           (422,969)        (53,088)      (131,010)
---------------------------------------------------------------------------------------------------

Cash flows from (used in)
  investing activities
  Purchase of available-for-sale securities              (2,469,554)       (289,813)             -
  Proceeds on sale of available-for-sale
    securities                                            1,365,397         342,173        134,767
  Mineral property costs                                    (12,250)              -              -
---------------------------------------------------------------------------------------------------
                                                         (1,116,407)         52,360        134,767
---------------------------------------------------------------------------------------------------

Cash flows from financing activities
  Proceeds from issuance of common stock                  1,540,000               -              -
---------------------------------------------------------------------------------------------------
                                                          1,540,000               -              -
---------------------------------------------------------------------------------------------------

Increase (decrease) in cash for the period                      624            (728)         3,757
Cash and cash equivalents,
  beginning of period                                             -           1,352         22,913
---------------------------------------------------------------------------------------------------
Cash and cash equivalents,
  end of period                                       $         624   $         624   $     26,670
---------------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        5
<PAGE>
Notes  to  Interim  Consolidated  Financial  Statements  (Unaudited)
--------------------------------------------------------------------

1.   Nature  of  Business  and  Going  Concern

     The  Company  was  incorporated  under  the laws of the State of Florida on
     March  31,  1993  and  is in the business of exploration and development of
     mineral  properties.  On  October 13, 1997, the Company changed its name to
     Patagonia  Gold  Corporation.

     These  consolidated  financial  statements have been prepared in accordance
     with  generally  accepted  accounting  principles  applicable  to  a  going
     concern,  which contemplates the realization of assets and the satisfaction
     of  liabilities  and  commitments  in  the  normal  course of business. The
     continued  operations  of  the  Company  and  the recoverability of mineral
     property  costs is dependent upon the existence of economically recoverable
     mineral  reserves, confirmation of the Company's interest in the underlying
     mineral claims, the ability of the Company to obtain necessary financing to
     complete the development and upon future profitable production. The Company
     has  incurred  recurring  operating losses and requires additional funds to
     meet  its  obligations  and  maintain its operations. Management's plans in
     this  regard  are  to  raise  equity  financing  as  required.
     These  conditions  raise  substantial  doubt about the Company's ability to
     continue  as a going concern. These financial statements do not include any
     adjustments  that  might  result  from  this  uncertainty.

     The  Company  has  not  generated  any  operating  revenues  to  date.

2.   Basis  of  Presentation

     The accompanying unaudited condensed consolidated financial statements have
     been  prepared  in accordance with generally accepted accounting principles
     for interim financial information and with the instructions for Form 10-QSB
     and  Article 10 of Regulation S-X. Accordingly, they do not include all the
     information  and  footnotes  required  by  generally  accepted  accounting
     principles for complete financial statements. In the opinion of management,
     all  adjustments  (consisting  only  of  normal  recurring  adjustments)
     considered  necessary for a fair presentation have been included. Operating
     results  for  the  nine-month month period ended September 30, 2001 are not
     necessarily  indicative  of  the  results that may be expected for the year
     ended  December  31,  2001.

     The  balance  sheet  at December 31, 2000 has been derived from the audited
     financial  statements  at  that date. The consolidated financial statements
     and  footnotes  thereto  included  in the Patagonia Gold Corporation Annual
     Report  on  Form  10-KSB  for  the  year  ended December 31, 2000 should be
     reviewed  in  connection  with  these  condensed  consolidated  financial
     statements.

3.   Significant  Accounting  Policies

     (a)  Basis  of  Consolidation

          These  consolidated  financial statements, prepared in accordance with
          accounting principles generally accepted in the United States, include
          the accounts of the Company and its wholly-owned subsidiary, Patagonia
          Gold  Mines  Ltd.,  a  company  incorporated in 1994 under the laws of
          Bermuda. Significant inter-company accounts and transactions have been
          eliminated.

     (b)  Mineral  Properties  and  Exploration  Expenses

          Exploration  costs are charged to operations as incurred as are normal
          development costs until such time that proven reserves are discovered.
          From  that  time forward, the Company will capitalize all costs to the
          extent that future cash flow from reserves equals or exceeds the costs
          deferred.  As at September 30, 2001 and December 31, 2000, the Company


                                        6
<PAGE>
          did  not  have proven reserves. Cost of initial acquisition of mineral
          rights  and  concessions  are  capitalized  until  the  properties are
          abandoned  or  the  right  expires.

          Exploration  activities conducted jointly with others are reflected at
          the  Company's  proportionate  interest  in  such  activities.

          Costs  related  to site restoration programs are accrued over the life
          of  the  project.

     (c)  Investments

          Available-for-sale  securities  are  carried at fair market value with
          unrealised  holding gains and losses included in stockholders' equity.
          Realized gains and losses are determined on an average cost basis when
          securities  are  sold.

     (d)  Advertising  Expenses

          The  Company expenses advertising costs as incurred. Total advertising
          costs charged to expenses for the nine-months ended September 30, 2001
          and  2000  were  $0  and  $0,  respectively.

     (e)  Long-Lived  Assets  Impairment

          Certain  long-term  assets of the Company are reviewed when changes in
          circumstances  require  as  to whether their carrying value has become
          impaired,  pursuant  to guidance established in Statement of Financial
          Accounting  Standards ("SFAS") No. 121, "Accounting for the Impairment
          of  Long-Lived  Assets  and  for Long-Lived Assets to be Disposed of".
          Management  considers  assets  to  be  impaired  if the carrying value
          exceeds  the  future  projected  cash  flows  from  related operations
          (undiscounted  and  without interest charges). If impairment is deemed
          to  exist,  the  assets  will  be  written  down  to  fair  value.

     (f)  Accounting  Estimates

          The  preparation  of financial statements in conformity with generally
          accepted  accounting  principles requires management to make estimates
          and  assumptions  that  affect  the  reported  amounts  of  assets and
          liabilities and disclosure of contingent assets and liabilities at the
          date  of the financial statements and the reported amounts of revenues
          and  expenses during the reporting period. Actual results could differ
          from  those  estimates  and  assumptions.

     (g)  Fair  Value  of  Financial  Instruments

          The  respective  carrying  value of certain on-balance-sheet financial
          instruments  approximated  their  fair  values.  These  financial
          instruments  include  cash,  receivables,  investments  and  accounts
          payable  and  accrued  liabilities.  Fair  values  were  assumed  to
          approximate  carrying  values  for these financial instruments, except
          where  noted,  since  they are short term in nature and their carrying
          amounts  approximate  fair values or they are receivable or payable on
          demand.  Management  is of the opinion that the Company is not exposed
          to  significant  interest, credit or currency risks arising from these
          financial  instruments.

     (h)  Accounting  for  Derivative  Instruments  and  Hedging  Activities

          In June 1998, the Financial Accounting Standards Board issued SFAS No.
          133  "Accounting  for  Derivative Instruments and Hedging Activities".
          SFAS  No. 133 requires companies to recognize all derivative contracts
          as  either  assets  or liabilities in the balance sheet and to measure
          them at fair value. If certain conditions are met, a derivative may be
          specifically designated as a hedge, the objective of which is to match
          the  timing of gain or loss recognition on the hedging derivative with
          the  recognition  of  (i)  the changes in the fair value of the hedged


                                        7
<PAGE>
          asset  or  liability  that are attributable to the hedged risk or (ii)
          the designated as a hedging instrument, the gain or loss is recognized
          in  income  in the period of change. SFAS No. 133 is effective for all
          fiscal  quarters  of  fiscal  years  beginning  after  June15,  2000.

          Historically,  the  Company  has not entered into derivative contracts
          either  to  hedge  existing  risks  or  for  speculative purposes. The
          Company  does  not  anticipate that the adoption of the statement will
          have  a  significant  impact  on  its  financial  statements.

     (i)  Income  Taxes

          The  Company  has  adopted Statement of Financial Accounting Standards
          (SFAS")  No.  109,  "Accounting  for Income Taxes", which requires the
          Company  to  recognize  deferred  tax  liabilities  and assets for the
          expected  future  tax consequences of events that have been recognized
          in  the  Company's  financial  statements  or  tax  returns  using the
          liability  method.  Under  this  method,  deferred tax liabilities and
          assets  are  determined based on the temporary differences between the
          financial  statement  and  tax  bases  of assets and liabilities using
          enacted  tax rates in effect in the years in which the differences are
          expected  to  reverse.

     (j)  Loss  Per  Share

          Loss per share is computed using the weighted average number of shares
          outstanding during the year. Effective for the year ended December 31,
          1997,  the  Company  adopted  SFAS  No.  128,  "Earnings  Per  Share".

     (k)  Comprehensive  Income

          In  1998,  the  Company adopted SFAS No. 130, "Reporting Comprehensive
          Income",  which  establishes  standards  for  reporting and display of
          comprehensive  income,  its  components  and accumulated balances. The
          Company  is  disclosing  this  information  on  its  Statement  of
          Stockholders'  Equity.  Comprehensive  income  comprises equity except
          those  resulting  from  investments  by  owners  and  distributions to
          owners.  SFAS No. 130 did not change the current accounting treatments
          for  components  of  comprehensive  income.

4.   Investments

     Investments  consist of available-for-sale securities and are summarized as
     follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                                           Gross         Gross      Accumulated
                                      unrealized    unrealized       unrealized       Market
                              Cost         gains        losses    gains (losses)       value
---------------------------------------------------------------------------------------------
<S>                     <C>          <C>           <C>           <C>              <C>
January 1, 1997
  Equity securities     $        -   $         -   $         -   $            -   $        -
Change during the year     225,463       151,673             -          151,673      377,136
---------------------------------------------------------------------------------------------

December 31, 1997
  Equity securities        225,463       151,673             -          151,673      377,136
Change during the year   1,092,234       223,556       125,470           98,086    1,190,320
---------------------------------------------------------------------------------------------

December 31, 1998
  Equity securities      1,317,697       375,229       125,470          249,759    1,567,456
Change during the year     (26,156)     (352,795)      267,173         (619,968)    (646,124)
---------------------------------------------------------------------------------------------

December 31, 1999
  Equity securities      1,291,541        22,434       392,643         (370,209)     921,332
Change during the year    (101,309)      148,788       275,640         (126,852)    (228,161)
---------------------------------------------------------------------------------------------


                                        8
<PAGE>
December 31, 2000
  Equity securities     $1,190,232   $   171,222   $   668,283   $     (497,061)  $  693,171
Change during the year      89,098        26,382      (204,577)         230,959      320,057
---------------------------------------------------------------------------------------------

September 30, 2001
  Equity securities     $1,279,330   $   197,604   $   463,706   $     (266,102)  $1,013,228
=============================================================================================
</TABLE>


     Unrealized  gains totalling $0 (December 31, 2000 - $0; December 31, 1999 -
     $7,949;  December 31, 1998 - $174,043; December 31, 1997 - $151,673) relate
     to investments held by the Company's Bermuda subsidiary and are not subject
     to  income  tax.

5.   Mineral  Property  Costs

     (a)     Argentina

             Mineral  concessions  in  the  Province of La Rioja, Argentina,
             are as follows:

     -    Piloncho  1,  Sierra  de  Chepes
     -    Piloncho  2,  Sierra  de  Chepes
     -    Piloncho  20,  Sierra  de  Chepes
     -    Piloncho  21,  Sierra  de  Chepes
     -    Carmelita  16,  Sierra  de  Chepes
     -    Carmelita  17,  Sierra  de  Chepes
     -    Carmelita  18,  Sierra  de  Chepes

     (b)     Guatamala

          Pursuant  to  an agreement dated October 1, 1999, the Company has paid
          $9,250  of  acquisition  cost,  spent  $18,617  towards  the  required
          exploration program and earned a 50% interest in the San Diego Mineral
          Exploration  Reconnaissance  License.

6.   Outstanding  Options

     At  September  30,  2001  and  December 31, 2000 the Company had No options
     outstanding.

7.   Related  Party  Transactions

     Related  party  transactions  not  disclosed  elsewhere  in these financial
     statements  for  the nine-months ended September 30, 2001, include salaries
     of  $0  (2000  -  $0).

8.   Reclassifications

     Certain  reclassifications of prior-year balances have been made to conform
     to  current  year  classifications.



ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATIONS

(A)  General

     Patagonia  Gold Corporation (the "Company" or "Patagonia") was incorporated
     under  the  laws  of the State of Florida on March 31, 1993, under the name
     "Cayman  Purchasing  &  Supply,  Inc."  The  Company  was inactive until it


                                        9
<PAGE>
     redirected  its  business  efforts  in  mid  1997  following  a  change  of
     management,  which  occurred  on  June  25,  1997,  to  the  acquisition,
     exploration  and,  if  warranted,  the  development  of  mineral  resource
     properties.  The  Company changed its name to Patagonia Gold Corporation on
     October  13,  1997  to  more  fully  reflect  its  business  activities.

     The  Company  is  engaged in the location, acquisition, exploration and, if
     warranted,  development  of  mineral  resource  properties.  The  Company's
     primary  objective  is  to  explore  for  gold,  silver,  base  metals  and
     industrial  minerals  and,  if warranted, to develop those existing mineral
     properties.  Its  secondary  objective  is to locate, evaluate, and acquire
     other  mineral properties, and to finance their exploration and development
     either  through  equity  financing,  by  way  of  joint  venture  or option
     agreements  or  through  a  combination  of  both.

     Currently,  the  Company's  activities  are  centered  in  Argentina  and
     Guatemala.

     The  Company's  common  stock  is  traded on the NASD's OTC Bulletin Board.

(B)  Significant  developments  during  the nine-months ended September 30, 2001

     The  Company  is  currently  concentrating  its  exploration  activities in
     Argentina  and  Guatemala.  The Company is also examining other exploration
     properties  in  Mexico.

     An  exploration  work  program  on  the  San  Diego reconnaissance license,
     Guatemala,  started  in the fourth quarter of 1999 was completed during the
     first quarter of 2000. The program included geological mapping and soil and
     rock  sampling. The aim of the preliminary exploration work was to identify
     a  number  of  highly  prospective areas for which applications for mineral
     exploration  licenses  will  be  made,  and  subsequently  undertake  more
     comprehensive  work.  The  Company's  exploration work program in 2001 will
     entail  surface  mapping  of  geology, sampling of soils on a grid basis to
     delineate  geochemical  anomalies, stream sediment sampling and geophysical
     surveying.  The  data  assembled  from  this work will be used to determine
     whether:  (i) further exploration is warranted; or (ii) whether the mineral
     reconnaissance  license  should  be  surrendered.

     During  the nine-months ended September 30, 2001, the Company continued its
     preliminary  field  assessment  and  sampling  programs  on  its  Argentina
     properties. The fieldwork consisted of reconnaissance, mapping and sampling
     of individual outcrops. The Company's exploration work program in 2001 will
     entail  surface  mapping  of  geology, sampling of soils on a grid basis to
     delineate  geochemical  anomalies, stream sediment sampling and geophysical
     surveying.  The  data  assembled  from  this work will be used to determine
     whether:  (i)  further  exploration  is  warranted; or (ii) whether mineral
     exploration  concession  licenses  should  be  surrendered.

     All  of the Company's properties are in the exploration stages only and are
     without  a  known  body  of Mineral Reserves. Development of the properties
     will  follow only if satisfactory exploration results are obtained. Mineral
     exploration  and  development  involves  a  high  degree  of  risk  and few
     properties that are explored are ultimately developed into producing mines.
     There  is  no  assurance  that  the  Company's  mineral  exploration  and
     development  activities  will  result  in  any  discoveries of commercially
     viable  bodies  of  mineralization.  The  long-term  profitability  of  the
     Company's  operations  will  be,  in part, directly related to the cost and
     success  of  its exploration programs, which may be affected by a number of
     factors.

     On  March  9,  2001  Aurora  Gold Corporation distributed 653,817 shares of
     Aurora  Metals (BVI) Limited to the Company as a stock dividend. On May 19,
     2000  the  Board  of  Directors  of  Aurora  Gold  Corporation approved and
     authorized  a  stock  dividend,  on  a  one to one basis, of the 13,000,000
     common  shares  of  Aurora  Metals  (BVI) Limited then owned by Aurora Gold
     Corporation,  payable  to  the stockholders of Aurora Gold Corporation. The
     stock  dividend was payable to the Aurora Gold stockholders of record as of
     the  close  of  business  on  June  15, 2000.  On June 15, 2000 the Company
     owned  653,817  shares  of  Aurora  Gold  Corporation.


                                       10
<PAGE>
     On  May  4, 2001 Mr. David Jenkins resigned from the Board of Directors and
     as  President  of the Company to pursue other interests. On May 4, 2001 Mr.
     Terry  Longair  was  appointed to the Board of Directors of the Corporation
     and  President  of  the  Company.

     On  June 13, 2001 the Company agreed to settle $113,521 in debt owed to the
     Company  by  La Plata Gold Corporation by the issuance to the Company of an
     aggregate of 173,070 common shares of La Plata Gold Corporation at a deemed
     price  of  $0.66  per  share. The shares were issued to the Company in July
     2001.

(C)  Financial  Information

     Nine-Months Ended September 30, 2001 versus Nine-Months Ended September 30,
     2000

     For  the nine-months ended September 30, 2001 the Company recorded a profit
     of  $70,852  or $0.01 per share, compared to a loss of $24,782 or $0.00 per
     share  in  2000.

     General  and  administrative expenses - For the nine-months ended September
     30,  2001  the  Company  recorded  general  and  administrative expenses of
     $30,335,  compared  to  $21,817  in  2000.

     Professional  fees  -  accounting  and  legal  -  For the nine-months ended
     September  30,  2001  the  Company  recorded  accounting  and legal fees of
     $8,824,  compared  to  $6,760  in  2000.

     Exploration expenditures - For the nine-months ended September 30, 2001 the
     Company recorded exploration expenses of $7,751 compared to $1,135 in 2000.

(D)  Financial  Condition  and  liquidity

     At  September  30,  2001, the Company had cash of $624 (2000 - $26,670) and
     working capital of $941,817 (2000 working capital - $578,988) respectively.
     Total  liabilities  as  of  September 30, 2001 were $111,857 as compared to
     $44,866  on  September  30,  2000,  a  increase  of $66,991. In Fiscal 2001
     investing  activities consisted of additions to mineral properties $0 (2000
     -  $0), purchases of available-for-sale securities $289,813 (2000 - $0) and
     proceeds  from  the  sale of available-for-sale securities $342,173 (2000 -
     $134,767). The Company recorded a gain of $141,458 (2000 - gain of $31,840)
     on  the  sale  of  available-for-sale securities. For the nine-months ended
     September  30,  2001 the Company recorded a profit of $70,852, or $0.01 per
     share  compared  to  a  loss  of  $24,782  ($0.00  per  share)  in  2000.

     The  Company  has  sufficient working capital to (i) pay its administrative
     and  general  operating  expenses  through  December  31,  2001 and (ii) to
     conduct  its  preliminary  exploration  programs.  Without  cash  flow from
     operations,  it  may  need  to  obtain additional funds (presumably through
     equity  offerings  and/or  debt  borrowing)  in  order,  if  warranted,  to
     implement  additional  exploration  programs  on its properties. Failure to
     obtain such additional financing may result in a reduction of the Company's
     interest  in  certain  properties or an actual foreclosure of its interest.
     The  Company has no agreements or understandings with any person as to such
     additional  financing.

     None  of  the  Company's properties has commenced commercial production and
     the  Company  has  no history of earnings or cash flow from its operations.
     While  the  Company  may  attempt  to  generate  additional working capital
     through  the  operation,  development,  sale  or  possible  joint  venture
     development of its properties, there is no assurance that any such activity
     will  generate  funds  that  will  be  available  for  operations.

     The  Company  has  not  declared  or  paid  dividends  on  its shares since
     incorporation  and  does not anticipate doing so in the foreseeable future.


                                       11
<PAGE>
                         PART 11.     OTHER INFORMATION


ITEM 1.   Legal  Proceedings

          The  Company  is  not party to any litigation, and has no knowledge of
          any  pending  or  threatened  litigation  against  it.


ITEM 2.   Changes  in  Securities

          Not  Applicable


ITEM  3.  Defaults  Upon  Senior  Securities

          Not  Applicable


ITEM  4.  Submission  of  Matters  to  a  Vote  of  Security  Holders

          Not  Applicable


ITEM  5.  OTHER  INFORMATION

          None.


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)  Exhibits:

3.1  Article of Incorporation of Cayman Purchasing & Supply, Inc.              *

3.2  Company By-laws for Cayman Purchasing & Supply, Inc.                      *

3.3  Notice of reinstatement for Cayman Purchasing & Supply, Inc.              *

3.4  Amendment to the Articles of Incorporation of Cayman
       Purchasing & Supply, Inc.                                               *

3.5  Notice of filing of Amendment to the Articles of
       Incorporation of Cayman Purchasing & Supply, Inc.                       *

3.6  Notice of filing of Amendment to the Articles of
       Incorporation of Cayman Purchasing & Supply, Inc. changing
       its name to Patagonia Gold Corporation                                  *

10.1 Agreement dated July 30, 1997 between The Company and Carrington
       International Limited                                                   *

10.2 Joint Venture Agreement between the Company and
       Aurora Gold Corporation                                                 *

--------
* Previously  Filed


                                       12
<PAGE>
(b)  Reports  on  Form  8-K

     None.


                                   SIGNATURES

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
Registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunder  duly  authorized.

Date:  November  12,  2001              BY:  /s/  Terry  Longair
       -------------------                   -----------------------------
                                             Terry  Longair
                                             Director  and  President

Date:  November  12,  2001              BY:  /s/  Cosme  M.  Beccar Varela
       -------------------                   -----------------------------
                                             Cosme  M.  Beccar  Varela
                                             Director


                                       13
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