INSIDER TRADING Royal Oak’s Witte holds three million

Royal Oak Resources (TSE) President Margaret Witte is strongly positioned to benefit from cost- cutting measures at the Pamour Group of companies, acquired recently by Royal Oak. Figures released by the Ontario Securities Commission’s OSC Bulletin reveal that Witte, through Witteck Developments, recently bought 28,500 Royal Oak shares for 80-95 cents to hold 3.04 million.

After completing the $33-million purchase of Pamour and affiliate Giant Yellowknife Mines (TSE) in November, Royal Oak announced recently that it would be laying off 121 employees within the group. Hardest hit is the Timmins, Ont., division where 48 jobs have been axed.

According to Royal Oak, the Giant Yellowknife, Pamour No. 1, Hoyle and Timmins heap leach mines are expected to produce 195,000 oz. gold in 1990 at an average cost of US$360 per oz.

However, due to the cost-cutting measures which will eventually involve an amalgamation of all the companies in the group, the cost of producing 45,879 oz. in the first quarter of 1991 will drop to US$324 an oz. Of that amount, 33,600 oz. have been sold forward at US$460.

Royal Oak’s 24.7 million issued shares traded recently at 65 cents in a 52-week range of $1.12 and 34 cents.

Other mining insiders who were active in the stock market recently include:

Black Hawk Mining’s (TSE) director Leslie Gord was granted 40,000 options at 60 cents.

Golden North Resources (TSE) affiliate Corona (TSE) cancelled its entire 1.45 million share holding in the company.

Minera Rayrock (TSE) affiliate Rayrock Yellowknife Resources (TSE) bought 116,899 series B preferred shares for $13.80 to hold the same amount. Rayrock also purchased 3,101 series C preferred shares of Minera for $14 to hold that number.

Prime Resources’ (VSE) director Jacob Brouwer sold 10,000 options for $4.60 to hold 30,000.

South American Gold Fields’ (TSE) director William Fillmore exercised his right to buy 24,000 options for 50 cents to hold 145,370.

Trimin Resources (TSE) Chairman Brian Fraser bought 21,800 shares for $1.75-1.95. He also sold 46,300 to hold 44,828.