Exhibit 10.1


                           EMPLOYMENT  AGREEMENT

             THIS AGREEMENT made as of the 22nd day of May 1997

BETWEEN:

                         ARCTIC PRECIOUS METALS, INC.
                         5501 Lakeview Drive
                         Kirkland, Washington 98033
                         (Fax No. 206-822-3552)
                         (hereinafter called "Arctic")

                                                            OF THE FIRST PART

                         - and -


                         EDMUND SZOL

                         4206 E. Lake Sammamish Parkway S.E.
                         Issaquah, WA 98029
                         (hereinafter called the "Employee")

                                                          OF THE SECOND PART

                         - and -


                         ROYAL OAK MINES INC.
                         BCE Place, Suite 2500
                         181 Bay Street
                         Toronto, Ontario
                         M5J 2T7
                         (Fax No. 416-365-1719)
                         (hereinafter called "Royal Oak")

OF THE THIRD PART


WHEREAS Arctic and the Employee wish to enter into a written agreement to 
record the terms and conditions of the Employee's continued employment with 
Arctic;

AND WHEREAS Arctic's parent company, Royal Oak, has agreed to assume certain 
obligations herein and to guarantee the performance by Arctic of its 
obligations to the Employee hereunder;

NOW THEREFORE, in consideration of the mutual covenants and agreements herein 
set out, the parties agree as follows:

1.     EMPLOYMENT

       Employee commenced employment with Arctic on February 27, 1995 and hereby
       accepts continued employment with Arctic from and after May 22, 1997 on
       the terms and subject to the conditions herein set forth.


2.     DUTIES

       Subject to instructions which may be received from time to time by the 
       Employee from the Chief Executive Officer of Arctic, the Employee is
       hereafter engaged by Arctic as Executive Vice-President and Chief
       Operating Officer and in such other executive capacities as may be
       determined by the Chief Executive Officer of Arctic from time to time;
       and,in furtherance of his duties, the Employee shall do the following:

       (a)     serve Arctic faithfully;

       (b)     observe all policies of Arctic and perform all services 
               associated with his position to the best of his ability;

       (c)     devote substantially all of his working time and attention to the
               business of Arctic, except to the extent otherwise permitted by
               the Chief Executive Officer;

       (d)     carry out all lawful instructions given to him by the Chief
               Executive Officer; and

       (e)     endeavour to further the best interests of Arctic.

       The Employee will be based in Kirkland, Washington but may from time to
       time be called upon and hereby agrees to perform services elsewhere.


3.     TERM
     
       The term of this Agreement shall commence May 22, 1997 and continue
       thereafter indefinitely unless earlier terminated in accordance with the
       provisions of this Agreement.


4.     ANNUAL SALARY AND BONUS 

       In consideration for services rendered hereunder, Arctic shall pay to the
       Employee the following:

       (a)     Salary: Employee's salary shall be US$200,000 per annum.  Arctic 
               agrees to review the salary at least every twelve (12)months and
               may make adjustments, in its discretion, based on changes in
               market pay rates for jobs similar to the Employee's, cost of
               living and such other factors as Arctic deems relevant.

       (b)     Bonus:  Employee will be eligible for an annual bonus award to a
               maximum value of 50 percent of the salary unless Arctic, in its
               discretion, determines to pay a higher maximum value.  The amount
               of the bonus is based on achievement of predetermined annual
               performance objectives set for the Employee by the Chief
               Executive Officer of Arctic and communicated to the Employee at
               the beginning of the year.  


5.     OTHER BENEFITS

       In addition to the annual salary and bonus award provided in paragraph 4
       of this Agreement, Arctic shall provide the following benefits to the
       Employee:

       (a)     Fringe Benefits

               Arctic shall furnish to the Employee at Arctic's expense such
               insurance (including, without limitation, medical, dental,
               vision, hospitalization, life and disability insurance), pension,
               and other benefits as are provided to senior executives by Arctic
               including participation in the Company's supplementary executive
               retirement plan and/or split dollar life insurance program. 

       (b)     Stock Options

               The Employee shall be entitled upon execution of this Agreement
               to receive 65,000 new options to purchase shares of Arctic's
               parent company, Royal Oak, which options are exercisable
               following shareholder approval on a one-third (1/3) basis per
               year commencing on the first anniversary of the date of this
               Agreement and valid for a term of seven years with the price of
               those options fixed at US $2.50.  The terms of the option shall
               be stipulated by Royal Oak in a separate Stock Option Agreement
               to be executed by Royal Oak and the Employee prior to any options
               being exercised thereunder.  The Employee shall also be eligible
               for future grants of stock options for shares in Royal Oak on
               terms applicable to other senior officers of Arctic.

       (c)     Business Expenses

               Arctic agrees to reimburse the Employee quarterly for all
               ordinary and necessary business expenses incurred by the Employee
               in the performance of his duties under this Agreement and the
               Employee shall provide vouchers and statements in respect of
               all such expenses in a timely manner.

       (d)     Membership

               Arctic agrees to provide the employee with one reasonably priced
               business club membership for the purposes of personal and family
               use and for entertaining.  All meals and sundry expenses for
               personal use will be to the account of the employee, with Arctic
               responsible for and paying all reasonable expenses incurred by
               the Employee for the purpose of entertaining clients and business
               associates.

       (e)     Vacation

               The Employee shall be entitled to four weeks of paid vacation
               during each full calendar year in which he is employed by Arctic
               pursuant to this Agreement, the timing of such vacation being
               mutually agreed upon between the Employee and Arctic.  Vacation
               entitlement is non-cumulative and must be taken in the year in
               which it is earned unless otherwise agreed to in writing by the
               Chief Executive Officer. 

       (f)     Demand Loan

               The Employee will be eligible to borrow from Arctic an aggregate
               maximum amount of US $90,000.00 interest free for the purpose of
               financing a home.  Repayment of such loan in the amount of US 
               $15,000.00 per year shall be guaranteed by the Employee and
               security, in the form of a second mortgage on the said home,
               shall be provided by the Employee to secure repayment of the 
               loan to Arctic.  The terms of the loan shall be stipulated by
               Arctic in a separate written Loan Agreement to be executed by the
               Employee and Arctic prior to any advances being made thereunder
               and shall include a requirement for repayment of any amount then
               outstanding within 120 days of cessation of the Employee's
               employment hereunder for any reason whatsoever.

6.     TERMINATION AND COMPENSATION AT TERMINATION

       Notwithstanding anything herein contained to the contrary, this Agreement
       shall terminate in the following manner and the Employee shall be
       compensated as indicated:

       (a)     Termination by Arctic for Cause

               This Agreement and the employment of the Employee may be
               terminated effective immediately for cause by the giving of
               written notice of dismissal by Arctic to the Employee.  As
               used herein, "cause" includes, but shall not be limited 
               to, competing with or publicly denigrating the business of
               Arctic, unauthorized disclosure or use of Confidential
               Information in breach of paragraph 7 herein, repetition of
               conduct subject and subsequent to progressive discipline, gross
               misconduct or gross negligence by the Employee in the performance
               of his duties hereunder, the commission by the Employee of an 
               act of theft, dishonesty, embezzlement or vandalism against
               Arctic, its parent Royal Oak or any of their respective related,
               associated or subsidiary companies, or the conviction of the
               Employee for any indictable criminal offence or a felony or
               criminal offence of moral turpitude.  

               If this Agreement is terminated by Arctic for cause, the
               Employee shall continue to accrue and receive his salary and
               benefits through to the date of termination indicated in the
               notice of dismissal only.  No additional compensation or payment
               shall or need be made by Arctic to the Employee.  

       (b)     Termination by Arctic Without Cause

               This Agreement and the employment of the Employee hereunder may
               be terminated by Arctic effective at any time without cause by
               giving the Employee at least 24 months' prior written notice of
               termination.  In the event such notice is given, the employment
               of the Employee shall terminate on the date specified in the
               said notice.  In lieu of notice, Arctic may, in its discretion,
               terminate the employment of the Employee immediately by making 
               payments to the Employee of all salary and bonus, equal to the
               salary and bonus received by the Employee with respect to the 
               last completed fiscal year of Arctic prior to such notice and
               continuing (if possible, and in accordance with applicable
               statutory provisions, or if not, paying the present value of) 
               all benefits which would have accrued to the benefit of the
               Employee to the date of termination had the period of notice of
               termination required by this Agreement been given.  The parties
               hereto acknowledge that this Agreement and the period of notice
               referred to herein are fair and reasonable in all the
               circumstances.

               The Employee hereby acknowledges and agrees that, should Arctic
               or its parent company, Royal Oak, subsequently take over or
               otherwise acquire control of additional properties and/or 
               projects which substantially increases the duties and
               responsibilities of the position of Executive Vice-President
               and Chief Operating Officer herein assumed, then any
               reassignment of the Employee by Arctic to the position of Chief
               Operating Officer of North American Operations or some like
               position, at a salary and benefits comparable to those held by 
               the Employee prior to any such takeover or acquisition, will
               not constitute or be deemed to constitute constructive dismissal
               or termination of the employment of the Employee hereunder.

       (c)     Termination of Change of Control

               For purposes of this Agreement, "Change in Control" means any one
               or more of the following:
               (i)     the acquisition by any person or group of related persons
                       or persons acting jointly or in concert of more than 30%
                       of the issued and outstanding common shares of Arctic or
                       its parent company Royal Oak (calculated on a
                       non-diluted basis), whether acquired in a single
                       transaction or a series of transactions, whether or not
                       one or more of those transactions occurred before the
                       date hereof;

               (ii)    the election to the Board of Directors of Arctic or its
                       parent company Royal Oak of persons employed by or
                       representing any one person or group of related persons
                       or persons acting jointly or in concert and 
                       constituting 40 percent or more of the Board.

               Should a Change of Control occur, the Employee's employment with
               Arctic or any successor corporation shall be hereby guaranteed
               to age 62 in such senior management or consulting capacity as
               may be determined by Arctic or its successor corporation at a 
               salary and bonus equal to the salary and bonus received by the
               Employee with respect to the last completed fiscal year of 
               Arctic, and benefits (on a fully vested basis) comparable to
               those accorded the Employee prior to such Change of Control.

               Should the Employee elect to pursue such guaranteed employment to
               age 62, he hereby agrees to fully and capably perform all duties 
               assigned to him by Arctic or its successor corporation and waives
               any subsequent right to or claim for constructive dismissal
               during the course of such employment and compensation on
               termination after age 62 beyond the minimum required by law.

               Conversely, should the Employee elect to reject such guarantee of
               employment to age 62 and to terminate his employment with Arctic
               or its successor corporation within the period for election
               specified below, then the Employee shall be entitled to the
               compensation and benefit package outlined in subparagraph (b)
               above and shall be further given the right to immediately 
               exercise all approved outstanding options, subject to
               confirmation of Exchange approval as specified in each Stock
               Option Agreement.

               The Employee shall have three (3) months from the date of any
               Change of Control to make the election whether to pursue or
               reject the aforesaid guarantee of employment.

               The parties hereto acknowledge that this Agreement and the 
               compensation packages proposed in lieu of notice in
               subparagraphs (b) and (c) herein are fair and reasonable in all
               the circumstances.

       (d)     Termination by the Employee

               This Agreement and the employment of the Employee hereunder may
               be terminated by the Employee upon at least three (3) months'
               prior written notice to Arctic given at any time.  If the
               Employee so terminates this Agreement and his employment
               hereunder, he shall continue to accrue and will receive his
               annual salary and benefits (excluding bonus entitlement) through 
               to the date specified in his notice of termination and no more. 
               Upon receipt of such notice, Arctic may, in its discretion, 
               immediately terminate the employment of the Employee by making
               payment to the Employee of all salary and continuing (if
               possible, and in accordance with applicable statutory 
               provisions, or if not possible, paying the present value of)
               all benefits which would have accrued to the benefit of the
               Employee to the date of termination specified in his notice of
               termination.

       (e)     Termination by Mutual Agreement

               This Agreement and the employment of the Employee hereunder may
               be terminated by mutual agreement in writing of the parties
               hereto.  The Employee shall continue to accrue and receive his
               annual salary and benefits through to the date of termination
               settled upon pursuant to such mutual agreement. 

               The fact of termination of the Employee's employment in
               accordance with subparagraphs (d) and (e) herein and the terms
               of such termination shall be maintained as confidential by the
               Employee and shall not be disclosed to anyone other than
               Employee's legal and financial advisors until the Employee 
               is so authorized by the Chief Executive Officer of Arctic.

       (f)     Termination by Death

               The Agreement and the employment of the Employee hereunder shall
               be terminated by the death of the Employee.  All compensation
               to the Employee shall cease at his death.

       (g)     Termination by Permanent Disability

               For the purpose of this Agreement, "Permanent Disability" means:

               the Employee is unable to perform any and every duty of his
               employment, and such disability may reasonably be expected to
               exceed a period of six months.


       If the Employee's employment is terminated due to Permanent Disability,
       the following compensation shall be paid:

       1.      salary shall stop at the end of the month in which termination
               occurs;

       2.      all employee benefits, except Arctic sponsored medical, 
               accidental and life insurance, shall cease with termination. 
               The medical insurance (with premium waiver for accidental and
               life insurance) shall continue for the Employee and his
               dependents for two (2) years under the same cost sharing 
               arrangement as between Arctic and its other employees. 
               Accidental and life coverage shall continue for as long as the
               Employee remains disabled under the disability plan.  The
               Employee will be given the option, consistent with then 
               existing legislation, to convert medical coverage upon
               cessation thereof to an individual policy;

       3.      the bonus payable under paragraph 4 (b) of this Agreement will
               be payable at year end on a pro rata basis based on the period
               of employment as a percentage of the full year.

       If the parties cannot mutually agree upon whether the Employee has a 
       Permanent Disability or when the Employee became Permanently Disabled
       for the purposes of this Agreement, then Arctic and the Employee shall
       each appoint one doctor of medicine licensed to practice in the State 
       of Washington and the two doctors so appointed shall determine if the
       Employee has a Permanent Disability and the time at which he became so
       Permanently Disabled for the purposes of this Agreement.  If the two 
       doctors so appointed cannot agree upon whether the Employee is or when
       the Employee became Permanently Disabled, they shall appoint a third
       doctor of medicine licensed to practice in the State of Washington and
       the decision of the majority shall be binding on both parties 
       hereto and shall not be subject to appeal.


7.     CONFIDENTIAL INFORMATION AND TRADE SECRETS

       The Employee acknowledges that he has a fiduciary obligation to Arctic
       and that, in the course of providing services hereunder, he will be
       entrusted with confidential information and trade secrets ("Confidential
       Information") concerning the present and contemplated projects, services
       and techniques involved and used by Arctic, its parent company Royal Oak
       and their respective associated, related and subsidiary companies in
       connection with their respective businesses, the disclosure of any of
       which to competitors of Arctic, Royal Oak or the general public would
       be highly detrimental to the best interests of Arctic and not 
       compensable by damages.  The Employee further acknowledges that the
       right to maintain all such Confidential Information as confidential
       constitutes a proprietary right which Arctic, its parent company 
       Royal Oak and their respective associated, related and subsidiary
       companies are entitled to protect by way of injunctive relief in 
       addition to other remedies available to each on breach of such
       confidentiality.  

       The Employee further acknowledges that the restrictions and prohibitions
       set out herein are reasonable and proper based on the nature of the
       business of Arctic, its parent company Royal Oak and their respective
       associated, related and subsidiary companies, which businesses as of
       the date hereof are to a significant extent carried on in Canada and
       the United States.  Accordingly, the Employee agrees that: 

       (a)    he will not, during the term of this Agreement or at any time 
              thereafter, disclose any of such Confidential Information to any
              person or use any of such Confidential Information for any
              purpose other than those of Arctic and Royal Oak; and

       (b)    he will not, during the term of this Agreement or at any time
              thereafter, disclose any information concerning the business of  
              Arctic, its parent company Royal Oak or their respective 
              associated, related and subsidiary companies which could
              adversely affect the image or reputation of any of them.

       The Employee agrees that the provisions of this paragraph 7 will, in
       their entirety, survive termination of this Agreement by any party for
       any reason and in any manner whatsoever.

     
8.     PERFORMANCE GUARANTEE

       In consideration of the Employee agreeing to transfer to and continue his
       employment with Arctic, Royal Oak hereby guarantees to the Employee the
       full performance by Arctic of each and every obligation hereunder
       assumed by Arctic and further indemnifies and agrees to hold harmless
       the Employee from and against any and all loss, damage, injury and
       expense (including recovery of all legal fees and disbursements) 
       incurred by the Employee as a result of any breach by Arctic of its
       obligations hereunder or in enforcing and securing to 
       the Employee all of his rights and entitlement hereunder.


9.     NOTICES

       Wherever this Agreement requires or permits any consent, approval, 
       notice, request or demand from any party to another, the consent, 
       approval, notice, request or demand (including, without limitation,
       telecopied communications) must be in writing to be effective and shall 
       be deemed to have been given on the earlier of receipt or five business
       days after it is enclosed in any envelope, addressed to the party to be 
       notified at the address first above written (or such other addresses as 
       may be designated by written notice from time to time), properly stamped,
       sealed and deposited in the mail system, in the case of Arctic, to the
       attention of the Chief Executive Officer and in the case of Royal Oak to 
       the attention of Mr. W. J. V. Sheridan, Secretary.  Any consent,
       approval, notice, request or demand aforesaid if delivered or 
       telecopied shall be deemed to have been given on the day of such
       delivery or telecopied transmission.  Any such delivery shall be
       sufficient, if left with any person at the above address of the Employee
       in the case of the Employee, and with the receptionist at the above 
       addresses of Arctic and Royal Oak in the case of Arctic and Royal Oak
       respectively.


10.    ENTIRE AND BINDING AGREEMENT

       The provisions contained herein and in any Stock Option Agreement or Loan
       Agreement created in accordance with paragraphs 5 (b) and (f) herein 
       constitute the entire Agreement between the parties and supersede all 
       previous communications, representations, understandings and agreements, 
       whether oral or written, between the parties with respect to the subject 
       matter hereof.

       Subject to the provisions hereof, this Agreement shall be binding upon
       and shall enure to the benefit of the parties hereto and upon their
       respective heirs, legal representatives, successors and permitted 
       assigns.


11.    AMENDMENTS

       No alteration or amendment to this Agreement will take effect unless the
       same is in writing duly executed by each of the parties in the same 
       manner as this Agreement.


12.    WAIVERS

       One or more consents to or waivers of any breach of the terms or 
       provisions of this Agreement by any party shall not be construed as a 
       consent or waiver of a subsequent breach of the same term or provision,
       nor shall it be considered a consent to or waiver of any other then 
       existing or subsequent breach of a different term or provision.  The
       consent or waiver by any party to or of any act by any other party
       requiring such consent or waiver shall be deemed not to waive or render 
       unnecessary consent to or waiver of any subsequent similar act.  No
       custom or practice of any party shall constitute a waiver of any 
       other party's right to insist upon strict compliance with the terms and 
       provisions hereof.


15.    SEVERABILITY

       If any term or provision of this Agreement shall be or shall become 
       illegal or unenforceable, the remaining terms and provisions shall
       nevertheless be valid, binding, and subsisting.


16.    INTERPRETATION

       For purposes of this Agreement, "person" includes any body corporate, 
       government or any subdivision or department thereof, trust, 
       unincorporated association, joint venture and/or partnership.


17.    HEADINGS

       Headings are for convenience of reference only and shall not affect the 
       interpretation of this Agreement.

18.    ASSIGNMENT

       Neither the rights nor obligations under this Agreement shall be assigned
       or otherwise disposed of without the prior written consent of the
       non-assigning party, except that Arctic may assign this Agreement to
       any successor or related corporation without such consent.

19.    APPLICABLE LAW

       Whether pursuant to court proceedings or otherwise, the rights and 
       obligations of the parties under and pursuant to this Agreement shall be
       construed under and governed by the laws of the State of Washington and
       the parties hereby agree to submit to the exclusive jurisdiction of its 
       courts.

IN WITNESS WHEREOF this Agreement is executed by the parties as of the date 
first above written.


                                   ARCTIC PRECIOUS METALS, INC.



                                   By:/s/ Margaret K. Witte      c/s
                                     ----------------------------
                                     Margaret K. Witte
                                     (authorized signing officer)




SIGNED, SEALED AND DELIVERED     
IN THE PRESENCE OF:
                              
                              

/s/ Hien DeYoung                          /s/ Edmund Szol        l/s     
---------------------                     -----------------------
Hien DeYoung                              Edmund Szol
Witness                                   





                                   ROYAL OAK MINES INC



                                   By:/s/ Margaret K. Witte       l/s
                                      ---------------------------
                                       Margaret K. Witte
                                      (authorized signing officer)