Step 1: Picture the triangle.
Point $P$ is the observer, $A$ is west and $B$ is north, with $PA=60$, $PB=80$, and the angle $\angle APB=60^\circ$ between them. We want side $AB$.
Step 2: Choose the right tool.
Two sides and the included angle are known, so the Law of Cosines fits perfectly: $AB^2=PA^2+PB^2-2(PA)(PB)\cos(\angle APB)$.
Step 3: Insert the numbers.
$AB^2=60^2+80^2-2(60)(80)\cos 60^\circ$.
Step 4: Use $\cos 60^\circ=\frac12$.
$AB^2=3600+6400-2(60)(80)\cdot\frac12=3600+6400-4800$.
Step 5: Simplify.
$AB^2=10000-4800=5200$.
Step 6: Take the square root.
$AB=\sqrt{5200}=\sqrt{400\cdot13}=20\sqrt{13}$ metres.
\[ \boxed{20\sqrt{13}} \]