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EXHIBIT 10.54

                               SERVICES AGREEMENT


THIS AGREEMENT Effective as of January 1, 1998

BETWEEN:

        GLAMIS GOLD LTD., A British Columbia company having an address at 3324
        Four Bengal Centre, 1055 Dunsmuir Street, Vancouver, British Columbia,
        V7X 1L3

        ("Glamis")                                             OF THE FIRST PART

AND:

        C. KEVIN MCARTHUR, having a mailing address at
        5190 Neil Road, Suite 310
        Reno, Nevada
        89502

        ("McArthur")


                                                              OF THE SECOND PART

WHEREAS:

(A)     McArthur is currently the Chief Operating Officer, North America of
        Glamis;

(B)     Glamis wishes to engage McArthur to perform the duties of President and
        Chief Executive Officer of Glamis effective the date hereof.


NOW THEREFORE THIS AGREEMENT WITNESSES that the parties mutually agree as
follows:

ENGAGEMENT

1)      The Services Agreement between McArthur and Glamis dated August 1, 1997
        is terminated as of the date hereof and Glamis hereby engages (the
        "Engagement") McArthur as and McArthur agrees to serve as, the President
        and Chief Executive Officer ("CEO") of Glamis and as President of Glamis
        Gold, Inc., and it subsidiaries and to perform the duties described in
        Section 3, on the terms and subject to the conditions set out herein.



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TERM

2)      The term ("Term") of the Engagement will commence on the date hereof and
        will continue thereafter on a month basis until terminated by either
        party pursuant to the terms hereof.


DUTIES AND OBLIGATIONS OF MCARTHUR

3)      McArthur will consent to stand as a director of Glamis at Annual General
        Meetings of the Shareholders of Glamis held during the Term and as
        President and CEO of Glamis, will perform those duties and functions
        (the "Duties") that are described in Schedule A hereto, together with
        such other functions and duties as may be specified from time to time by
        the Board of Directors (the "Board") of Glamis.


PERFORMANCE OF DUTIES

4)      McArthur will perform the Duties as follows:

        a)  subject to ill-health and subsection 4(c), McArthur will perform the
            Duties during each day that is a Business Day in the Term (a
            "Business Day" being a day, other than a Saturday or a Sunday, on
            which the main branch of Glamis Gold, Inc.'s banker in Reno, Nevada
            is open for the transaction of business);

        b)  subject to subsection 4(c), McArthur will devote substantially all
            of his time and energy during normal business hours on each working
            day during the Term to performing the Duties to the best of his
            skill and ability; and

        c)  notwithstanding subsections 4(a) and 4(b), McArthur will not be
            required to perform the Duties on statutory holidays and during
            periods of holidays, which will be not less than four weeks in the
            aggregate in respect of each calendar year, provided however, that
            if McArthur does not take his full entitlement to vacation days in a
            year he may use such vacation days during the next 2 succeeding
            calendar years and if such unused vacation days are not taken by the
            end of such 2 year period, McArthur will forfeit the right to take
            such days as vacation days.


REMUNERATION

5)      In consideration of the performance of the Duties by McArthur, Glamis,
        through Glamis Gold, Inc., will:

        a)  pay McArthur a salary ("Salary") of U.S. $182,500 (or such other
            amount as the parties may mutually agree in writing) per calendar
            year during the Term by paying 1/24 thereof on the 15th of each
            month and 1/24th thereof on the last day of each month or, if such
            days are not Business Days, on the first prior day that is a
            business day, such payments to be




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            reduced by the amount of applicable withholding and other
            requirements of the Internal Revenue Code (United States) and any
            other applicable United States legislation in respect of
            remuneration paid to employees;

        b)  reimburse McArthur for all reasonable expenses incurred by McArthur
            in carrying out his functions as President and CEO of Glamis and
            will provide Glamis such particulars as Glamis may reasonably
            require;

        c)  permit McArthur to participate in medical, dental and other employee
            benefit plans of Glamis Gold, Inc. as they are from time to time
            initiated, if and to the extent that participation is permitted by
            the plans, such plans to include, without limitation, the Glamis
            Gold, Inc. Profit Sharing and Retirement Plan and the Glamis Gold,
            Inc. Group Insurance Benefits Plan;

        d)  indemnify and hold McArthur harmless from and against any and all
            costs, damages or losses resulting from the performance by McArthur
            of the Duties and as a result of McArthur acting as Director,
            President and CEO of Glamis and its direct and indirect
            subsidiaries;

        e)  perform a review of the Salary on an annual basis, as a minimum;

        f)  grant to McArthur share purchase options from time to time on an
            aggregate of not less than 200,000 common shares of Glamis
            ("Shares") under Glamis' Incentive Share Purchase Option Plan (the
            "Plan"), in accordance with the rules and regulations of applicable
            regulatory authorities and the Plan, it being understood that 50% of
            such options shall be exercisable immediately upon grant and that
            the remaining 50% of the options may be exercised in 4 equal
            installments on or after each of the 1st, 2nd, 3rd and 4th
            anniversaries of the date of grant of the options; and

        g)  notwithstanding the provisions of subsection 5(f), Glamis shall,
            through its Executive Compensation Committee, continuously monitor
            the performance of McArthur and of Glamis and shall grant McArthur
            additional share purchase options if, in the sole discretion of the
            Executive Compensation Committee, such is warranted.


TERMINATION OF ENGAGEMENT

6.      The following will govern termination under this Agreement:

        a)  McArthur may deliver to Glamis a notice to terminate the Engagement
            on a day not less than 60 days after the day of such delivery and
            the Engagement will terminate at the expiration of such 60-day or
            longer period and in such case any outstanding share purchase
            options held at such time by McArthur will expire on the 30th day
            after the effective date of the termination;




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b)      Glamis may terminate the Engagement without notice and without any
        payment in lieu of notice if

        i)  McArthur is guilty of any willful act, neglect, or conduct that
            causes substantial damage or discredit to Glamis; or

        ii) McArthur is convicted of any offence involving fraud,

        and in such case any outstanding share purchase options held at such
        time by McArthur will expire on the 30th day after the effective date of
        termination;

        c)  Except for those matters referred to in subsection 6(b), Glamis may,
            at its sole option, terminate the Engagement for cause by providing
            three months written notice to McArthur and in such case any
            outstanding share purchase options held at such time by McArthur
            will expire on the 30th day after the effective date of the
            termination;

        d)  Glamis may, at its sole option, terminate the Engagement without
            cause by notice (the "Termination Notice") to McArthur, in which
            case McArthur will be paid any remuneration due hereunder to the
            date of termination, together with an aggregate amount equal to 2
            times the Salary which is in force at the time of delivery of the
            Termination Notice and the cash value of 24 months of full benefit
            coverage under subsection 5(c), less applicable withholding and
            other requirements of the Internal Revenue Code (United States) and
            any other applicable United States legislation in respect of
            remuneration paid to employees and in such case any outstanding
            share purchase options held at such time by McArthur will expire on
            the 30th day after the effective date of the termination;

        e)  If McArthur becomes permanently disabled prior to termination of the
            Engagement hereunder the provisions of subsection 6(c) will not
            apply, however, Glamis may terminate the Engagement pursuant to
            subsection 6(d), provided however that such termination will not
            affect any benefits which McArthur would be entitled to as a
            disabled employee under the plans described in subsection 5(c).
            McArthur will be deemed to be permanently disabled if he is unable
            to perform the material and substantial portion of the Duties
            because of sickness or injury. For the purposes hereof "sickness"
            means an organic disease, including without limitation mental
            illness, and the medical or surgical treatment of the disease and
            "injury" means bodily injury caused directly by external, violent
            and purely accidental means;

        f)  On termination of the Engagement, McArthur will deliver to Glamis in
            a reasonable state of repair all property of Glamis used by or in
            the possession of McArthur; and

        g)  Termination of the Engagement will not terminate Glamis' obligation
            under subsection 5(d), which obligation will survive such
            termination.




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DISCLOSURE

7.      McArthur undertakes to refrain, both during the Term and thereafter,
        except so far as may be necessary or proper in performing the Duties,
        from making public or disclosing to any person who is not an employee,
        officer or director of Glamis or one of its subsidiaries, any
        confidential information that may come to the knowledge of McArthur
        during the Term including any information in respect of the business
        dealings of Glamis or its subsidiaries or in respect of any of the
        contractual agreements of Glamis or its subsidiaries and McArthur will,
        at the request of Glamis, enter into a separate agreement with respect
        to such matters.


MISCELLANEOUS

8.
        a)  Each party will, on the request of the other, execute and deliver
            such other agreements, deeds, documents and instruments, and do such
            further acts and things as the other may reasonably request in order
            to evidence, carry out and give full force and effect to the terms,
            conditions, intent and meaning of this Agreement.

        b)  If any provision of this Agreement is invalid or unenforceable for
            any reason whatsoever, such provision will be severable from the
            remainder of this Agreement, the validity of the remainder will
            continue in full force and effect and this Agreement will be
            construed as if it had been executed without the invalid or
            unenforceable provision.

        c)  No consent or waiver, express or implied, by either party to or of
            any breach or default by the other party in the performance by the
            other of any or all of its obligation under this Agreement.

            i)   will be valid unless it is in writing and specifically stated
                 to be a consent or waiver pursuant to this subsection,

            ii)  may be relied upon by the other as consent or waiver to or of
                 any other breach or default of the same or any other
                 obligation,

            iii) will constitute a general consent or waiver under this
                 Agreement, or

            iv)  will eliminate or modify the need for a specific consent or
                 waiver pursuant to this subsection in any other instance.

        d)  Notices, requests, demands or directions to one party to this
            Agreement by another will be in writing and will be delivered as
            follows:



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        If to Glamis at:

        5190 Neil Road, Suite 310
        Reno, NV 89502-8502

        Attention: Mr. C.F. Millar, Chairman

        If to McArthur at;

        5190 Neil Road, Suite 310
        Reno, NV 89502-8502

        Attention: Mr. C. Kevin McArthur

or to such other address as may be specified by one party to the other in a
notice given in the manner provided in this subsection.

        e)  This Agreement is made in British Columbia with the intention that
            its construction and validity and all other issues related to its
            administration will in all respects be governed by the laws
            prevailing in that province.

        f)  In the event of any dispute between the parties in respect of the
            interpretation of this Agreement or any matter to be agreed on, such
            dispute will be determined by a single arbitrator appointed and
            acting pursuant to the Commercial Arbitration Act (British Columbia)
            and the decision of the arbitrator shall be final and binding on the
            parties.

        g)  This Agreement constitutes the entire agreement between the parties
            and there are no representations or warranties, express or implied,
            statutory or otherwise, and no agreements collateral hereto other
            than as expressly set forth or referred to herein.

        h)  This Agreement will ensure to the benefit of and be binding upon the
            respective legal representatives and successors and permitted
            assigns of the parties.

        i)  None of the parties may assign any right, benefit or interest in
            this Agreement without the written consent of the others and any
            purported assignment without such consent will be void, save and
            except that Glamis may assign any or all of its rights and
            obligations hereunder to Glamis Gold Inc.



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IN WITNESS WHEREOF the parties hereto have executed the Agreement on the day
first above written.

The Common Seal of GLAMIS GOLD LTD.           )
Was hereunto affixed in the presence of:      )
                                              )
Signed:  "C. F. Millar"

-----------------------------------


Signed Sealed and Delivered by
C. KEVIN MCARTHUR in the presence of:         )
                                              )
-----------------------------------           )
Name                                          )
-----------------------------------           )
Address                                       )    Signed:  "C. Kevin McArthur"
-----------------------------------           )    C. KEVIN MCARTHUR
                                              )
-----------------------------------           )
Occupation                                    )