SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 7, 1998
ROYAL OAK MINES INC.
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(Exact name of registrant as specified in its charter)
Commission File Number 1-4350
ONTARIO, CANADA 98-0160821
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(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
c/o Royal Oak Mines (USA) Inc.
5501 Lakeview Drive
Kirkland, Washington
U.S.A. 98033
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(Address of principal executive offices) (Postal/Zip Code)
(425) 822-8992
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Registrant's telephone number, including
area code
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Item 5. Other Events
On October 7, 1998, the Registrant issued the following
press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND, WASHINGTON
October 7, 1998
Royal Oak's Kemess South Mine Reaches Commercial Production
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that it's
new Kemess South gold-copper mine in north central British Columbia
has reached commercial production after meeting design criteria at
the open pit mine and concentrator on separate campaigns mining and
processing hypogene and supergene ore types.
Royal Oak commenced construction of the Kemess facilities in July
1996 and started limited production in the concentrator on May 19,
1998. During the hypogene ore campaign from May 19 to August 14,
recoveries of 86% copper and 74% gold were achieved when milling an
average head grade of 0.194% copper and 0.015 ounces of gold per
ton (opt). During this campaign, approximately 1.8 million tons of
ore were processed from which approximately 10,600 tons of
concentrate were produced assaying between 25% and 26% copper and
between 1.3 opt and 1.7 opt of gold. Mill availability of 84% was
achieved in August.
The campaign mining and processing supergene ore from September 7
to the end of the month produced approximately 5,800 tons of
concentrate of similar grade from processing approximately 1.2
million tons of ore. The average mill head grade of supergene ore
was 0.270% copper and 0.021 opt gold. Recoveries of 70% copper and
75% gold were achieved. Mill availability was 92% in September.
In the transition period between the hypogene and supergene
campaigns from August 15 to September 7 the concentrator processed
a blend of hypogene and supergene ores.
In the startup and shakedown period from start-up in mid-May to the
end of September, the Kemess South operation produced approximately
38,300 ounces of gold and 11.2 million pounds of copper contained
in concentrates which are smelted and refined in the Far East to
recover metal values. The Kemess South Mine is designed to produce
an average of approximately 250,000 ounces of gold and 60 million
pounds of copper per year over a mine life of approximately 16
years based on current mineable ore reserves and planned production
rates.
In 1998, the Company plans to produce a total of approximately
278,000 ounces of gold at an estimated cash cost of US$240 per
ounce, net of copper by-product revenue credit of US$0.75 per
pound. In 1999, production is forecast to be between 422,000 and
432,000 ounces of gold at an estimated cash cost of US$190 per
ounce, net of copper by-product revenue credit of US$0.80 per
pound.
Royal Oak's president and chief executive officer, Margaret K.
Witte said, "The Company has built this major project and has now
brought the mine to commercial production with its own team of
professionals. The board of directors and senior management are
proud of these accomplishments and look forward to a long low cost
mine life which has turned Royal Oak into a low cost gold
producer."
For further information, contact: or in Europe contact:
Investor Relations Mr. David Williamson
Royal Oak Mines Inc. David Williamson Associates
International Investor Relations
Voice mail: (425) 822-8992, or 15 St. Helen's Place, 3rd Floor
Facsimile: (425) 822-3552, or London, England EC3A 6DE
Web site: http//www.royal-oak-mines.com
Telephone: 011-44-171-628-3989
Facsimile: 011-44-171-920-0563
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SIGNATURE
Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly
authorized.
ROYAL OAK MINES INC.
Date: October 7, 1998 By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
