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  March  31,  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 of                (IRS Employer Identification No.)
 incorporation or organization)


1505  -  1060  ALBERNI  STREET,  VANCOUVER  B.C.  CANADA  V6E  4K2
------------------------------------------------------------------
(Address  of  principal  executive  offices)

(604)  687-4432
---------------
(Issuer's Telephone Number)

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(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  March  31,  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                         6-10

Item  2.     Management's  Discussion  and  Analysis  of
             Financial Condition and Results of Operations                  11

PART  II.    Other  Information

Item  1.     Legal  Proceedings                                             13

Item  2.     Changes  in  Securities                                        13

Item  3.     Defaults Upon Senior Securities                                13

Item  4.     Submission of Matters to A Vote of Security Holders            13

Item  5.     Other  Information                                             13

Item  6.     Exhibits  and  Reports  on Form 8-K                            13

Signatures                                                                  14


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

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

Current
   Cash                                                       $   28,770   $      1,352
   Receivables                                                   106,667             59
   Investments                                                   497,885        693,171
----------------------------------------------------------------------------------------
Total current assets                                             633,322        694,582

Mineral property costs                                            12,250         12,250
----------------------------------------------------------------------------------------
Total assets                                                  $  645,572   $    706,832
----------------------------------------------------------------------------------------

Liabilities and Stockholders' Equity

Liabilities

Current
   Accounts payable and accrued liabilities                   $   62,250   $     53,646
   Notes payable                                                       -            930
----------------------------------------------------------------------------------------
Total liabilities                                                 62,250         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
Deficit accumulated                                             (638,760)      (690,683)
Accumulated other comprehensive (loss)
    unrealized (loss) on securities available for sale          (617,918)      (497,061)
----------------------------------------------------------------------------------------
Stockholders' equity                                             583,322        652,256
----------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                    $  645,572   $    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  three  months  ended  March  31,  2001  and  2000
(Expressed  in  U.S.  Dollars)

-----------------------------------------------------------------------------------------
                                              Cumulative
                                                 June 30    Three months     Three months
                                                 1997 to           Ended            Ended
                                                March 31        March 31         March 31
                                                    2001            2001             2001
-----------------------------------------------------------------------------------------
<S>                                          <C>           <C>             <C>
General and administrative expenses
  Administrative and general                 $    89,680   $      11,293   $       9,843
  Professional fees - accounting and legal        76,519          (2,860)          1,255
  Salaries and consulting fees                   137,146           6,000          18,463
-----------------------------------------------------------------------------------------
                                                 303,345          14,433          29,561

  Exploration expenses                           157,237           4,818           1,135

  Writedown of mineral property costs            297,000               -               -
-----------------------------------------------------------------------------------------
                                                 757,582          19,251          30,696
-----------------------------------------------------------------------------------------

Less: Income (loss)
  Interest income                                 34,399             698              84
  Dividend income                                  2,835               -               -
  Realized gain (loss) on                                                              -
      sale of investments                        100,553          70,588               -
  Interest expense                               (15,246)           (112)           (121)
  Foreign exchange gain (loss)                    (3,719)              -               -
-----------------------------------------------------------------------------------------
                                                 118,822          71,174             (37)
-----------------------------------------------------------------------------------------

Net loss for the period                      $   638,760   $     (51,923)  $      30,733
=========================================================================================

(Loss) per share                                           $       (0.00)  $        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)
Three  months  ended  March  31,  2001  and  2000
(Expressed  in  U.S.  Dollars)
--------------------------------------------------------------------------------------------------
                                                      Cumulative
                                                         June 30    Three months      Three months
                                                         1997 to           Ended             Ended
                                                        March 31        March 31          March 31
                                                            2001            2001.             2000
-------------------------------------------------------------------------------- -----------------
<S>                                                   <C>           <C>             <C>

Cash flows from (used in)
  operating activities
  Net income (loss) for the period                    $  (638,760)  $      51,923   $     (30,733)
  Adjustments to reconcile net loss to net
     cash used in operating activities:
        realized loss (gain) on sale of investments      (104,302)        (70,587)              -
        expenses satisfied with common stock                3,000               -               -
        write-down of mineral properties                  297,000               -               -
--------------------------------------------------------------------------------------------------
                                                         (443,062)        (18,664)        (30,733)

Changes in assets and liabilities:
    decrease (increase) in accounts receivable           (106,667)       (106,608)             (7)
    increase in accounts payable                           62,250           8,604           3,000
--------------------------------------------------------------------------------------------------
                                                         (487,479)       (116,668)        (27,740)
--------------------------------------------------------------------------------------------------

Cash flows from (used in)
  investing activities
  Purchase of available-for-sale securities            (2,244,408)        (64,667)              -
  Proceeds on sale of available-for-sale
      securities                                        1,232,907         209,683               -
  Mineral property costs                                  (12,250)              -               -
--------------------------------------------------------------------------------------------------
                                                       (1,023,751)        145,016               -
--------------------------------------------------------------------------------------------------

Cash flows from financing activities
  Proceeds from issuance of common stock                1,540,000               -               -
  Proceeds from notes payable                                   -            (930)         10,300
--------------------------------------------------------------------------------------------------
                                                        1,540,000            (930)         10,300
--------------------------------------------------------------------------------------------------

Increase (decrease) in cash for the period                 28,770          27,418         (17,440)
Cash and cash equivalents,
  beginning of period                                           -           1,352          22,913
--------------------------------------------------------------------------------------------------
Cash and cash equivalents,
  end of period                                       $    28,770   $      28,770   $       5,473
--------------------------------------------------------------------------------------------------
</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.

     The  Company was inactive until June 30, 1997, when it entered into a share
     exchange  agreement  with  the  shareholders  of  Patagonia Gold Mines Ltd.
     ("PGM"),  an  inactive  company  incorporated  in  1994  under  the laws of
     Bermuda,  whereby  the Company acquired all issued and outstanding share of
     PGM  in  exchange for 5,500,000 common shares of the Company. There were no
     operations  of  the  companies prior to June 30, 1997. At the conclusion of
     the transaction, the former shareholders of PGM controlled the Company and,
     thus,  the  transaction  has been accounted for as a reverse acquisition of
     the  Company  by  PGM.  Consistent with accounting principles governing the
     accounting  for  reverse  acquisitions,  these  consolidated  financial
     statements  are  accounted  for  as a continuation of the legal subsidiary.

     The  acquisition  was  recorded  using the purchase method. As the net book
     value  of  the  Company  at the date of the acquisition was $Nil, a nominal
     value  has  been  assigned  to shares issued pursuant to the share exchange
     agreement.

     Also on July 30, 1997, the Company acquired mineral properties in Argentina
     in  exchange  for  the  issuance  of  3,000,000  common shares. The mineral
     properties  were  valued  at  $300,000.  During the year ended December 31,
     1999,  the  Company  determined  that the carrying value of the Argentinean
     mineral  properties  exceeded  the  future  projected  cash  flows from the
     mineral  properties. Consequently, the mineral properties were written down
     to  their  estimated  fair  value  of  $3,000.

     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  three-month  month  period  ended March 31, 2001 are not
     necessarily  indicative  of  the  results that may be expected for the year
     ended  December  31,  2001.


                                        6
<PAGE>
     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 March 31, 2001 and December 31, 2000, the Company 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 three-months ended March 31, 2001
          and  2000  were  $0  and  $0,  respectively.

     (e)  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.


                                        7
<PAGE>
     (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)  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.

     (i)  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".

     (j)  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.

     (k)  New  Accounting  Pronouncements

          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 derivatives 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
          asset  or  liability  that are attributable to the hedged risk or (ii)
          the  earnings  effect  of  the  hedged  forecasted  transaction. For a
          derivative not 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 June
          15,  2000.

          Historically,  the  Company has not entered into derivatives contracts
          either  to  hedge  existing  risks  or  for  speculative  purposes.
          Accordingly, the Company does not expect adoption of the new standards
          on  January  1,  2000  to  affect  its  financial  statements.

          In  April 1998, the American Institute of Certified Public Accountants
          issued Statement of Position 98-5, "Reporting on the Costs of Start-up
          Activities",  ("SOP  98-5")  which  provides guidance on the financial
          reporting  of start-up costs and organization costs. It requires costs
          of start-activities and organization costs to be expensed as incurred.
          SOP  98-5  is  effective for fiscal years beginning after December 15,
          1998  with  initial  adoption  reported  as the cumulative effect of a
          change  in  accounting  principle.  Adoption  of  this standard has no
          material  effect  on  the  financial  statements.


                                        8
<PAGE>
<TABLE>
<CAPTION>
4.   Investments

Investments  consist  of  available-for-sale  securities  and  are summarized as
follows:
----------------------------------------------------------------------------------------------
                                             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)
----------------------------------------------------------------------------------------------
December 31, 2000
  Equity securities     $ 1,190,232   $   171,222   $    668,283  $     (497,061)  $  693,171

Change during the year      (74,429)      (97,758)        23,099        (120,857)    (195,286)
----------------------------------------------------------------------------------------------
March 31, 2001
  Equity securities       1,115,803        73,464        691,382        (617,918)     497,885
==============================================================================================
</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


                                        9
<PAGE>
     (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.   Share  Capital

     On  April  9,  1997,  the  Company amended its Articles of Incorporation to
     provide  for  the  authorization  of 50,000,000 common shares at $0.001 par
     value.  Previously,  the authorized capital was 200 common shares of no par
     value.

     Also, on April 9, 1997, the Company forward split its common stock 5,000:1,
     thus increasing the number of issued and outstanding common shares from 200
     shares  to 1,000,000 shares. This split has been reflected retroactively in
     these  financial  statements.

7.   Income  Taxes

     (a)  The  Company has estimated net losses for tax purposes to December 31,
          2000,  totalling  approximately $680,000, which may be applied against
          future taxable income. Accordingly, there is no tax expense charged to
          the  Statement of Operations for the years ended December 31, 2000 and
          1999. The Company evaluates its valuation allowance requirements on an
          annual  basis based on projected future operations. When circumstances
          change  and  this  causes a change in management's judgement about the
          realizability  of deferred tax assets, the impact of the change on the
          valuation  allowance  is  generally  reflected  in  current  income.

          The  right  to  claim  these  losses is expected to expire as follows:

              2008                    $ 10,000
              2012                      16,000
              2018                     128,000
              2019                     460,000
              2020                      66,000
              --------------------------------
                                       680,000
              ================================

     (b)  The  tax  effects  of  temporary  differences  that  give  rise to the
          Company's  deferred  tax  asset  (liability)  is  as  follows:

    -------------------------------------------------
                                  2000        1999
    -------------------------------------------------

       Tax loss carry forwards  $ 22,000   $ 157,000
       Valuation allowance       (22,000)   (157,000)
    -------------------------------------------------
                                $      -   $       -
    =================================================

     No  tax  effect  has  been  recorded on the accumulated other comprehensive
     income  unrealized  gains  on  securities  available-for-sale  due  to  the
     existence  of  U.S.  tax  loss  carry  forwards.

8.   Related  Party  Transactions

     Related  party  transactions  not  disclosed  elsewhere  in these financial
     statements  for  the three-months ended March 31, 2001, include salaries of
     $0  (2000  -  $0).


                                       10
<PAGE>
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
     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.

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

     The Company's offices are located at 1505 - 1060 Alberni Street, Vancouver,
     British  Columbia,  Canada,  V6E  4K2.

(B)  Significant  developments  during  the  first  quarter  of  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  three-months  ended  March 31, 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.


                                       11
<PAGE>
     On  May  8,  2001  The  Board  of  Directors  of Patagonia Gold Corporation
     announced  that  Mr. David Jenkins resigned from the Board of Directors and
     as  President  of  the Company to pursue other interests. Mr. Terry Longair
     was appointed to the Board of Directors of the Corporation and President of
     the  Company.

(C)  Financial  Information

     Three-Months  Ended March 31, 2001 versus Three-Months Ended March 31, 2000

     For  the three-months ended March 31, 2001 the Company recorded a profit of
     $51,923  or  $0.00  per  share,  compared to a loss of $30,733 or $0.00 per
     share  in  2000.

     General  and administrative expenses - For the three-months ended March 31,
     2001  the  Company recorded general and administrative expenses of $11,293,
     compared  to  $9,843  in  2000.

     Professional fees - accounting and legal - For the three-months ended March
     31,  2001  the  Company  recorded  accounting  and  legal  fees of $-2,860,
     compared  to  $1,255  in  2000.

     Exploration  expenditures  -  For the three-months ended March 31, 2001 the
     Company  recorded  exploration  expenses  of  $4,818, compared to $1,135 in
     2000.

(D)  Financial  Condition  and  liquidity

     At  March  31,  2001,  the  Company had cash of $28,770 (2000 - $5,473) and
     working  capital  of  $571,072  (2000  working  capital  -  $1,131,046)
     respectively.  Total  liabilities  as  of  March  31,  2001 were $62,250 as
     compared  to $125,179 on March 31, 2000, a decrease of $62,929. During 2001
     financing  activities  consisted  of the following, proceeds from notes and
     advances  payable  $0  (2000  -  $10,300),  repayment of notes and advances
     payable  $930 (2000 - $0). In Fiscal 2001 investing activities consisted of
     additions  to  mineral  properties  $0  (2000  -  $0),  purchases  of
     available-for-sale  securities  $64,667  (2000  - $0) and proceeds from the
     sale  of  available-for-sale  securities  $209,683 (2000 - $0). The Company
     recorded  a  gain  of  $70,587  (2000  -  loss  of  $0)  on  the  sale  of
     available-for-sale  securities.  For  the three-months ended March 31, 2001
     the  Company recorded a profit of $51,923, or $0.00 per share compared to a
     loss  of  $30,733  ($0.00  per  share)  in  2000.

     The  Company  does  not  have  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.


                                       12
<PAGE>
     The  Company  has  not  declared  or  paid  dividends  on  its shares since
     incorporation  and  does not anticipate doing so in the foreseeable future.

                         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

(b)     Reports  on  Form  8-K

None.


                                       13
<PAGE>
                                   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:     May  11,  2001                       BY:  /s/  Terry  Longair
          --------------                            -------------------
                                                    Terry  Longair
                                                    Director  and  President

Date:     May  11,  2001                       BY:  /s/  Cosme  M. Beccar Varela
          --------------                            ----------------------------
                                                    Cosme  M.  Beccar  Varela
                                                    Director


                                       14
<PAGE>