Large land position acquired by Royal Oak in Timmins area

It has gone by almost unnoticed. With the exception of mining insiders, no one seems to have recognized that Royal Oak Mines (TSE) now holds one of the most impressive tracts of mining property ever in the history of the Porcupine camp, perhaps the best ever.

In the company’s recently released annual report, Royal Oak highlights its ownership of a 16-mile tract of land that straddles the famous Porcupine-Destor Fault, the geological anomaly that is the backbone of Timmins’ existence.

“The property lines don’t exist,” said Margaret Witte, president and chief executive officer, during a recent visit.

“We have our eyes on a number of other things,” she added.

Royal Oak’s stable of properties includes deposits that once housed such well-known Timmins mining operations as the Coniaurum mine, Porcupine Peninsular, Broulan and Hallnor.

Long before the creation of Royal Oak through an amalgamation including former gold producers Giant Yellowknife and Pamour, the company was eyeing a major land position in the Timmins camp.

“Through 40 years of acquisitions, the original Pamour-Giant Yellowknife group positioned itself with a land package which covers the majority of Canada’s premier gold camps: Timmins, Ont., and Yellowknife, N.W.T. As a result of the recent amalgamation, these two property positions have for the first time become consolidated within one company,” states the company. “Discoveries of new deposits and extensions to past-producing orebodies on our properties, over the past few years, have provided Royal Oak with a stable of attractive potential mines which will assure the steady growth of the company.

“Extensive underground development on a number of these properties, in combination with the existing transportation, power and milling infrastructure, will ensure that these deposits can be brought into production without large capital outlays or excessive preproduction periods. “As the majority of these smaller deposits are of a higher grade than the ore currently being milled, Royal Oak can expect its collective cost of production to fall as it develops these deposits.”

In the Timmins area, Royal Oak’s properties have already produced some 42 million oz. gold. At present, the company estimates it has more than 1.5 million oz. of proven minable reserves from 14 former producing properties. Despite the impressive land position, Witte is still counting on a change in government attitudes that will allow the company to raise enough money through enhanced flow-through share incentives.

“We’re certain those orebodies have potential to allow us to continue to operate for at least another 20-30 years in Timmins,” said Witte. Royal Oak is currently analyzing and computerizing the incredible amount of data that already exists on the various properties.

Witte says the company is paying particular attention to the old high-grade Hallnor mine property which contained ore that once averaged in excess of 0.4 oz. gold per ton.

As for the “other” things Royal Oak has its eyes set on, Witte is coy. “All I’ll say is we’re aggressively pursuing other areas in the camp,” she said. The Timmins division of Royal Oak has 57 exploration properties covering 73,000 acres. Royal Oak is spending about 75% of its 1992 $2.5 million exploration program in Timmins.