<PAGE>   1
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


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

                 [X] Quarterly Report Pursuant to Section 13 or
                  15(d) of the Securities Exchange Act of 1934
                       For the period ended March 31, 1999

                                       or

            [ ] Transition Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

   For the transition period from ___________________ to ___________________


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

                         Commission file number 1-11887

                          CANYON RESOURCES CORPORATION

                            (a Delaware Corporation)


                I.R.S. Employer Identification Number 84-0800747


                      14142 Denver West Parkway, Suite 250
                                Golden, CO 80401
                                 (303) 278-8464


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X    No
                                       ---      ---        

Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of the latest practicable date: 46,152,074 shares of the
Company's Common Stock were outstanding as of May 1, 1999.



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<PAGE>   2


                          PART I FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

         The following consolidated financial statements have been prepared by
Canyon Resources Corporation ("the Company") pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such SEC rules and regulations.

         These consolidated financial statements should be read in conjunction
with the financial statements and accompanying notes included in the Company's
Form 10-K for the year ended December 31, 1998.


<TABLE>
<S>                                                                                     <C>
      Consolidated Balance Sheets...................................................... Page 3

      Consolidated Statements of Operations ........................................... Page 4

      Consolidated Statements of Cash Flows............................................ Page 5-6

      Notes to Interim Consolidated Financial Statements............................... Page 7-14


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS .................................. Page 15

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
                 MARKET RISK........................................................... Page 18
</TABLE>



                                       2
<PAGE>   3
CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                 (Unaudited)
                                                                   March 31,      December 31,
                                                                     1999             1998
                                                                 ------------      ------------
<S>                                                              <C>               <C>         
ASSETS

Cash and cash equivalents                                        $    953,600      $  1,985,700
Restricted cash                                                     3,087,800         4,887,200
Accounts receivable                                                    94,200           173,800
Inventories                                                         5,620,900         5,372,200
Prepaid and other assets                                              929,800         1,165,000
                                                                 ------------      ------------
   Total current assets                                            10,686,300        13,583,900
                                                                 ------------      ------------

Property and equipment, at cost
   Mining claims and leases                                        24,528,400        24,508,100
   Producing properties                                            51,233,400        51,124,700
   Other                                                              994,200           994,200
                                                                 ------------      ------------
                                                                   76,756,000        76,627,000
   Accumulated depreciation and depletion                         (13,268,900)      (11,639,500)
                                                                 ------------      ------------
     Net property and equipment                                    63,487,100        64,987,500
                                                                 ------------      ------------

Other Assets                                                        3,616,200         3,300,300
                                                                 ------------      ------------

     Total Assets                                                $ 77,789,600      $ 81,871,700
                                                                 ============      ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                                 $  2,606,600      $  3,134,300
Notes payable - current                                            16,745,000        18,708,400
Accrued taxes, other than payroll and income                           69,000            60,800
Accrued reclamation costs                                             964,000           964,000
Deferred income                                                     3,984,600         4,090,700
Other current liabilities                                             941,600           961,700
                                                                 ------------      ------------
   Total current liabilities                                       25,310,800        27,919,900

Notes payable - noncurrent                                             33,300                --
Accrued reclamation costs                                           2,629,900         2,704,900
Deferred income                                                     3,399,700         4,489,500
Other noncurrent liabilities                                        1,441,700         1,458,500
                                                                 ------------      ------------
     Total Liabilities                                             32,815,400        36,572,800
                                                                 ------------      ------------

Commitments and contingencies (Notes 9 and 10)

Common stock ($.01 par value) 100,000,000 shares authorized;
   issued and outstanding: 46,152,100 at March 31, 1999, and
   46,137,100 at December 31, 1998                                    461,500           461,400
Capital in excess of par value                                     95,349,600        95,293,500
Deficit                                                           (50,836,900)      (50,456,000)
                                                                 ------------      ------------
     Total Stockholders' Equity                                    44,974,200        45,298,900
                                                                 ------------      ------------

     Total Liabilities and Stockholders' Equity                  $ 77,789,600      $ 81,871,700
                                                                 ============      ============
</TABLE>

        The accompanying notes are an integral part of these consolidated
                             financial statements.



                                       3
<PAGE>   4

CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

<TABLE>
<CAPTION>
                                                                           Three months ended March 31,
                                                                            1999               1998
                                                                         ------------      ------------
<S>                                                                      <C>               <C>          

     REVENUE
Sales                                                                    $  7,335,700      $  7,391,600
                                                                         ------------      ------------

     EXPENSES
Cost of sales                                                               5,880,600         4,885,600
Depreciation, depletion, and amortization                                   1,617,500         1,267,200
Selling, general and administrative                                           352,400           753,400
Exploration costs                                                              32,900           218,100
                                                                         ------------      ------------
                                                                            7,883,400         7,124,300
                                                                         ------------      ------------

     OTHER INCOME (EXPENSE)
Interest income                                                                45,300            53,800
Interest expense                                                             (194,500)         (533,700)
Gain on partial prepayment of gold loan                                       339,300                --
Gain (loss) on asset disposals                                                (26,800)           59,800
Other                                                                           3,500           (17,600)
                                                                         ------------      ------------
                                                                              166,800          (437,700)
                                                                         ------------      ------------


Loss before cumulative effect of changes in accounting principles            (380,900)         (170,400)

Cumulative effect of changes in accounting principles                              --        (8,928,100)
                                                                         ------------      ------------

Net loss                                                                 $   (380,900)     $ (9,098,500)
                                                                         ============      ============

Basic and diluted loss per share:
   Loss before cumulative effect of changes in accounting principles     $      (0.01)     $      (0.01)
   Cumulative effect of changes in accounting principles                           --             (0.19)
                                                                         ------------      ------------
   Net loss                                                              $      (0.01)     $      (0.20)
                                                                         ============      ============

Weighted average shares outstanding                                        46,142,100        46,107,100
                                                                         ============      ============
</TABLE>

        The accompanying notes are an integral part of these consolidated
                             financial statements.



                                       4
<PAGE>   5



CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

<TABLE>
<CAPTION>
                                                                        Three months ended March 31,
                                                                            1999             1998
                                                                        -----------      -----------
<S>                                                                     <C>              <C>        

Cash flows from operating activities:
  Net loss                                                              $  (380,900)     $(9,098,500)
                                                                        -----------      -----------
  Adjustments to reconcile net loss to net cash used in operating
  activities:
    Cumulative effect of changes in accounting principles                        --        8,928,100
    Depreciation, depletion and amortization                              1,617,500        1,267,200
    Amortization of financing costs                                          44,500           74,300
    (Gain) loss on asset dispositions                                        26,800          (59,800)
    Other                                                                        --           13,700
  Changes in assets and liabilities,
    (Increase) decrease in receivables                                       79,600         (303,000)
    (Increase) in inventories                                              (248,700)        (804,800)
    (Increase) in prepaid and other assets                                 (227,200)        (312,600)
    (Decrease) increase in accounts payable and accrued liabilities        (359,600)         407,800
    (Decrease) increase in other liabilities                             (1,270,900)          83,500
    (Increase) decrease in restricted cash                                  149,400         (492,500)
                                                                        -----------      -----------

    Total adjustments                                                      (188,600)       8,801,900
                                                                        -----------      -----------

    Net cash used in operating activities                                  (569,500)        (296,600)
                                                                        -----------      -----------

Cash flows from investing activities:
  Purchases of property and equipment                                      (124,800)      (1,998,800)
  Proceeds from asset sales                                                  22,200           69,800
                                                                        -----------      -----------

    Net cash used in investing activities                                  (102,600)      (1,929,000)
                                                                        -----------      -----------

Cash flows from financing activities:
  Issuance of stock, net                                                     56,200        2,228,600
  Restricted cash utilized for debt payments                              1,650,000               --
  Payments on debt                                                       (1,989,300)      (1,292,500)
  Payments on capital lease obligations                                     (76,900)         (37,400)
                                                                        -----------      -----------

    Net cash provided by (used in) financing activities                    (360,000)         898,700
                                                                        -----------      -----------

Net decrease in cash and cash equivalents                                (1,032,100)      (1,326,900)
Cash and cash equivalents, beginning of year                              1,985,700        3,111,000
                                                                        -----------      -----------

Cash and cash equivalents, end of period                                $   953,600      $ 1,784,100
                                                                        ===========      ===========
</TABLE>

        The accompanying notes are an integral part of these consolidated
                             financial statements.



                                       5
<PAGE>   6

CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)

Supplemental disclosures of cash flow information:

1.   The Company paid $150,400 of interest during the first three months of 1999
     and $432,700 during the corresponding period of 1998.

2.   The Company paid no income taxes during the first three months of 1999 and
     the corresponding period of 1998.

Supplemental schedule of noncash investing and financing activities:

1.   The Company financed an equipment lease buy-out in the amount of $59,200 in
     1999.

2.   The Company acquired equipment with a fair market value of $53,000 by
     exchange of certain assets in 1999.


        The accompanying notes are an integral part of these consolidated
                             financial statements.



                                       6
<PAGE>   7

                          CANYON RESOURCES CORPORATION
               NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   BASIS OF PRESENTATION:

     During interim periods, Canyon Resources (the Company) follows the
     accounting policies set forth in its Annual Report to Stockholders and its
     Report on Form 10-K filed with the Securities and Exchange Commission.
     Users of financial information produced for interim periods are encouraged
     to refer to the footnotes contained in the Annual Report to Stockholders
     when reviewing interim financial results.

     The Company's financial statements have been prepared on a going concern
     basis, which contemplates the realization of assets and settlement of
     liabilities and commitments in the ordinary course of business. The
     Company's liquidity, however, has been adversely impacted by a sustained
     period of low gold prices and high debt service requirements. Moreover,
     since December 31, 1998, the Company has not been in compliance with
     certain covenants relating to the Briggs Mine loan facility and has been
     unable to achieve resolution of these matters with the lenders to date. As
     a result, the covenant violations constitute events of default and the
     lenders may, by notice to the Company, terminate the commitment and declare
     all amounts immediately due and payable. The Company is in continuing
     discussions with the lenders on these matters; however, there can be no
     assurances that a satisfactory resolution can be achieved nor that the
     lenders will not exercise any remedies available to them during the
     intervening period. Accordingly, the Company has reclassified all of the
     debt as current on its Balance Sheet since December 31, 1998. In addition,
     in March 1999, the Company received a demand notice for an increase in
     collateral of approximately $1.2 million from the Sureties who issued
     certain bonds for reclamation obligations at the Briggs Mine, Kendall Mine
     and McDonald Gold Project. All of these matters raise substantial doubt
     about the Company's ability to continue as a going concern. The Company has
     curtailed all discretionary expenditures, is currently attempting to sell
     its African properties, and has retained investment banking counsel to
     assist in the evaluation of potential merger or other alliance
     opportunities. There can be no assurances, however, that the Company will
     be successful in this regard.

     In June 1998, the Financial Accounting Standards Board issued Statement of
     Financial Accounting Standards No. 133 Accounting for Derivative
     Instruments and Hedging Activities (SFAS 133). SFAS 133 requires that all
     derivatives be recognized as assets or liabilities and be measured at fair
     value. Gains or losses resulting from changes in the values of those
     derivatives would be accounted for depending on the use of the derivatives
     and whether they qualify for hedge accounting as either a fair value hedge
     or a cash flow hedge. The key criterion for hedge accounting is that the
     hedging relationship must be highly effective in achieving offsetting
     changes in fair value or cash flows of the hedging instruments and the
     hedged items. SFAS 133 is effective for fiscal years beginning after June
     15, 1999 but earlier adoption is permitted. There are many complexities to
     this new standard and the Company is currently evaluating the impact that
     SFAS 133 will have on



                                       7

<PAGE>   8

                          CANYON RESOURCES CORPORATION
          NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                   (Unaudited)

1.       BASIS OF PRESENTATION: (CONTINUED)

         its reported operating results and financial position and has not yet
         determined whether it will adopt SFAS 133 earlier than January 1, 2000.

         In the opinion of management, the accompanying interim financial
         statements contain all material adjustments, consisting only of normal
         recurring adjustments necessary to present fairly the financial
         position, the results of operations, and the cash flows of Canyon
         Resources and its consolidated subsidiaries for interim periods.

         Certain prior period items have been reclassified to conform with the
         current period presentation.

2.       PRIOR YEAR CHANGES IN ACCOUNTING PRINCIPLES:

         In the second quarter of 1998, the Company changed its method of
         accounting for exploration costs on unproven properties from
         capitalizing all expenditures to expensing all costs, other than
         acquisition costs, prior to the establishment of proven and probable
         reserves. This brought the Company's accounting method in accordance
         with the predominant practice in the US mining industry and better
         reflects operating income and cash flow. The $5,625,400 cumulative
         effect of the change on prior years is included in the loss for 1998.
         The effect of the change on the first quarter of 1998 was to increase
         the loss before extraordinary item and cumulative effect of changes in
         accounting principles by $189,800, or $0.01 per share.

         In the fourth quarter of 1998, the Company elected early adoption of
         Statement of Position No. 98-5, Reporting on the Costs of Start-Up
         Activities (SOP 98-5). SOP 98-5 is otherwise effective for financial
         statements for fiscal years beginning after December 15, 1998 and
         requires costs of start-up activities and organization costs to be
         expensed as incurred. The $3,302,700 cumulative effect of the change on
         prior years is included in the loss for 1998. The effect of the change
         on the first quarter of 1998 was to decrease the loss before
         extraordinary item and cumulative effect of changes in accounting
         principles by $134,300 which had no impact on per share amounts.



                                       8
<PAGE>   9
                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


2.       PRIOR YEAR CHANGES IN ACCOUNTING PRINCIPLES: (CONTINUED)

         The following table summarizes the effect of the accounting changes on
         the first quarter of 1998:

<TABLE>
<CAPTION>
                                                               Per Share
                                                 $ Amounts      Amounts
                                                -----------     -------
<S>                                             <C>              <C>    
Net loss as originally reported                 $  (114,800)    $   --
Effect of exploration accounting change            (189,900)     (0.01)
Effect of start-up costs accounting change          134,300         --
                                                -----------     ------
Loss before cumulative effect of changes in
   accounting principles                           (170,400)     (0.01)
Cumulative effect on prior years                 (8,928,100)     (0.19)
                                                -----------     ------
Net loss as restated                            $(9,098,500)    $(0.20)
                                                ===========     ======
</TABLE>

3.       INTERIM RESULTS:

         The foregoing interim results are not necessarily indicative of the
         results of operations for the full year ending December 31, 1999.

4.       USE OF ESTIMATES:

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements and the reported amounts of revenues
         and expenses during the reporting period. Actual results could differ
         from those estimates.



                                       9
<PAGE>   10
                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


5.       RESTRICTED CASH:

         Restricted cash consisted of the following:

<TABLE>
<CAPTION>
                                                   MARCH 31,   DECEMBER 31,
                                                     1999         1998
                                                  ----------   ----------
<S>                                               <C>          <C>       
Collateral for Letter of Credit (a)               $2,118,000   $2,118,000
Proceeds from asset sales reserved for debt
   payments (b)                                      750,000    2,400,000
Unexpended proceeds from gold sales (c)              219,800      369,200
                                                  ----------   ----------
                                                  $3,087,800   $4,887,200
                                                  ==========   ==========
</TABLE>


         (a)      In connection with the issuance of certain bonds for the
                  performance of reclamation obligations at the Kendall Mine,
                  Briggs Mine, and McDonald Gold Project, a bank Letter of
                  Credit has been provided in favor of the Sureties as partial
                  collateral for such bond obligations. The Letter of Credit is
                  fully collateralized with cash and will expire no earlier than
                  December 31, 1999. At the bank's option, the Letter of Credit
                  may be renewed for successive one-year periods.

         (b)      In connection with the sale of the Company's industrial
                  minerals assets on December 31, 1998, certain proceeds are
                  required to be utilized for debt reduction on the Briggs Mine
                  loan facility.

         (c)      The Briggs Mine loan facility requires all proceeds from gold
                  sales to be held in trust and disbursed from the collected
                  credit balance in certain orders of priority.

6.       INVENTORIES:

         Inventories consisted of the following at:

<TABLE>
<CAPTION>
                               MARCH 31,   DECEMBER 31,
                                 1999         1998
                              ----------   ----------
<S>                           <C>          <C>       
Gold-in-process (a)           $5,230,300   $4,962,200
Materials and supplies           390,600      410,000
                              ----------   ----------
                              $5,620,900   $5,372,200
                              ==========   ==========
</TABLE>

         (a)      Includes all direct and indirect costs of mining, crushing,
                  processing, and site overhead expenses.



                                       10
<PAGE>   11
                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


7.       NOTES PAYABLE:

         Notes payable consisted of the following at:

<TABLE>
<CAPTION>
                                   MARCH 31,      DECEMBER 31,
                                     1999            1998
                                  -----------     -----------
<S>                               <C>             <C>  
Briggs Facility (a)
   o Gold Loan                    $16,719,100     $18,058,400
   o Credit Line                           --         650,000
Caterpillar Finance (b)                59,200              --
                                  -----------     -----------
                                  $16,778,300     $18,708,400
Current portion (1)                16,745,000      18,708,400
                                  -----------     -----------
Notes Payable - Noncurrent        $    33,300     $        --
                                  ===========     ===========
</TABLE>

         (1)      Since December 31, 1998, the Company has not been in
                  compliance with certain covenants of the Briggs loan facility
                  and has been unable to achieve resolution of these matters
                  with the lenders to date. As a result, the covenant violations
                  constitute events of default and the lenders may, by notice to
                  the Company, terminate the commitment and declare all amounts
                  immediately due and payable. Accordingly, the Company has
                  classified all of the debt as current on its Balance Sheet
                  since December 31, 1998.

         (a)      On December 6, 1995, the Company's wholly owned subsidiary, CR
                  Briggs Corporation, obtained a $34.0 million loan facility to
                  finance the capital requirements of mine construction and
                  working capital for its Briggs Mine in California. Drawings on
                  the facility include $25.0 million principal in the form of a
                  gold loan and $9.0 million principal as dollar loans. The gold
                  loan portion was monetized at $388.05 per ounce, or 64,425
                  ounces. At March 31, 1999, there were 43,085 ounces
                  outstanding on the gold loan and no amounts outstanding on
                  dollar loans. Weighted average interest rates on the loans
                  during the first three months of 1999 were (i) 2.7% on the
                  gold loan, and (ii) 8.0% on the cash loan. For the comparable
                  period in 1998, weighted average interest rates on the gold
                  loan and dollar loans were 3.8% and 10.6%, respectively.
                  Interest payments of $116,300 and $421,400 were made during
                  the first three months of 1999 and 1998, respectively. During
                  the first quarter of 1999, the Company utilized $1,650,000 of
                  proceeds from the December 1998 sale of its industrial
                  minerals assets to (i) pay off a credit line amount of
                  $650,000, and (ii) purchase 3,451 ounces of gold at a market
                  price of $289.75 per ounce which was applied to the gold loan.
                  As a result of the partial prepayment on the gold loan, the
                  Company recognized a gain of



                                       11
<PAGE>   12

                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


7.       NOTES PAYABLE: (CONTINUED)

                  $339,300 (3,451 ounces of principal repaid by open market
                  purchase at $289.75 per ounce; corresponding reduction in debt
                  at $388.05 per ounce). This amount is shown as an other income
                  item on the Statement of Operations for the three months ended
                  March 31, 1999.

         (b)      In March 1999, the Company arranged to finance an equipment
                  lease buy-out with Caterpillar Finance in the amount of
                  $59,200. Terms of the financing require equal monthly payments
                  over two years at an interest rate of 8.5%.

8.       SITE RESTORATION COSTS:

         Reclamation spending at the Kendall Mine for the first three months of
         1999 was $192,100. For the comparable period of 1998, spending totaled
         $202,100.

9.       CONTINGENT LIABILITY:

         On September 25, 1997, the Company, together with its wholly owned
         subsidiary, CR Montana Corporation (CR Montana), purchased a 72.25%
         participating interest and underlying assets in the Seven-Up Pete
         Venture (Venture) from CR Montana's partner in the Venture, Phelps
         Dodge Corporation (Phelps Dodge). The Company and its wholly owned
         subsidiary now own 100% of the Venture. The Venture includes the
         McDonald Gold Project near Lincoln, Montana.

         The Company made an initial payment of $5 million as part of a total
         purchase price which will be no less than $100 million and no more than
         $150 million, assuming all applicable permits for the McDonald Gold
         Project are obtained. The largest part of the purchase price, $30 per
         mineable reserve ounce attributable to the Phelps Dodge ownership is to
         be paid after all permits for mine development are obtained. Due to the
         contingent nature of the transaction, the Company has recorded only the
         initial payment of $5 million as additions to mining claims and leases
         during 1997.

10.      OTHER CONTINGENT MATTERS:

         On September 24, 1998, the Montana Department of Natural Resources
         (DNRC), the entity that administers state mineral leases, unilaterally
         decided to cancel the permitting extension of the 10-year lease term of
         the state leases that pertain to the McDonald Gold Project. This was
         provoked by Canyon's inability to continue permitting at McDonald due
         to the anti-cyanide initiative, I-137, and would require the Company,
         after a period of approximately seventeen months, to commence paying a
         delay rental of $150,000 per



                                       12
<PAGE>   13

                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


10.      OTHER CONTINGENT MATTERS: (CONTINUED)

         month in order to maintain the leases. The Company has challenged the
         DNRC's action in Montana District Court and believes it will prevail in
         this matter.

         In September 1998, the Montana Department of Environmental Quality
         (DEQ) filed a complaint in District Court alleging violations of the
         Montana Water Quality Act for unpermitted discharges at the Kendall
         Mine. The DEQ initially proposed a civil penalty in the amount of
         $330,000, which was subsequently modified to $302,000, in connection
         with the complaint. The Company is currently preparing a response to
         the complaint and believes the penalty as currently assessed is without
         substantial merit.

         In November 1998, the Montana electorate passed an anti-cyanide mining
         initiative (I-137) by a vote of 52% to 48%. I-137 bans development of
         new gold and silver mines and expansions to existing mines which use
         cyanide in the treatment and recovery process. For most of the campaign
         period, mining companies were prevented from campaigning due to a
         previously passed initiative (I-125) which prohibited
         campaign-expenditures by "for-profit" entities. Ten days prior to the
         election, a federal judge declared the prohibition "unconstitutional".
         The mining community has filed lawsuits against I-137, based on (i)
         having been denied the opportunity to campaign due to the effectiveness
         of I-125 until the last few days, and (ii) due process considerations,
         in that I-137 results in a taking of property without any compelling
         public policy interest, since environmental safety concerns are well
         protected and monitored with existing laws and regulations. The
         Company's legal counsel believes that it is likely that I-137 will be
         declared unconstitutional, or at a minimum, be overturned.

         In March 1999, the Company received a demand notice for an increase in
         collateral of approximately $1.2 million from the Sureties who issued
         certain bonds for reclamation obligations at the Briggs Mine, Kendall
         Mine and McDonald Gold Project. The Company is not presently able to
         honor the demand due to its financial position and is unsure what
         remedies, if any, the Sureties may seek for resolution on the matter.

11.      CONTINGENT SALE OF EXPLORATION PROPERTY:

         The Company executed an agreement during the third quarter of 1997 to
         sell the Aeropuerto property in Chubut Province, Argentina for $2.0
         million, payable over a sixty month period. At any time, the buyer,
         upon proper notice, may terminate the agreement and its then remaining
         obligations, and relinquish its interest in the property. Due to the
         contingent nature of the transaction, gain will be recognized only upon
         receipt of cash in excess of basis over the sixty month period.
         Accordingly, the Company recorded a gain



                                       13
<PAGE>   14

                          CANYON RESOURCES CORPORATION
         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                  (Unaudited)


11.      CONTINGENT SALE OF EXPLORATION PROPERTY: (CONTINUED)

         of $22,200 during the first three months of 1999 and $59,800 during 
         the comparable period in 1998.

12.      DEFERRED INCOME:

         In May, 1998, the Company liquidated a gold hedge position consisting
         of forward contracts which resulted in proceeds of $11.1 million. The
         gain on the liquidation was initially deferred and is being recognized
         in operations based on the original settlement dates of the forward
         contracts. For the three months ended March 31, 1999, $1.2 million of
         the gain was recognized in operations.

13.      INCOME TAXES:

         The Company has not recorded a tax benefit for the current period as
         the benefit is not expected to be realized during the year. The benefit
         is also not expected to be realizable as a deferred tax asset at year
         end as the Company anticipates recording a full valuation allowance for
         all deferred tax assets, except to the extent of offsetting reversals
         of expected deferred tax liabilities.

14.      EARNINGS PER SHARE (EPS):

         The Company computes EPS by applying the provisions of Financial
         Accounting Standards No. 128, Earnings per Share. As the Company
         reported net losses for the periods presented, inclusion of potential
         common shares (options and warrants) would have an antidilutive effect
         on per share amounts. Accordingly, the Company's basic and diluted EPS
         computations are the same for the periods presented.



                                       14
<PAGE>   15


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.

         The matters discussed in this report on Form 10-Q, when not historical
matters, are forward-looking statements that involve a number of risks and
uncertainties that could cause actual results to differ materially from
projected results. Such factors include, among others, the speculative nature of
mineral exploration, commodity prices, production and reserve estimates,
environmental and government regulations, availability of financing, force
majeure events, and other risk factors as described from time to time in the
Company's filings with the Securities and Exchange Commission. Many of these
factors are beyond the Company's ability to control or predict. The Company
disclaims any intent or obligation to update its forward-looking statements,
whether as a result of receiving new information, the occurrence of future
events, or otherwise.

RESULTS OF OPERATIONS

         The Company recorded a net loss of $0.4 million on revenues of $7.3
million for the three months ended March 31, 1999. For the comparable period of
1998, the Company recorded a loss before cumulative effect of changes in
accounting principles of $0.2 million and a net loss of $9.1 million on revenues
of $7.4 million.

         For the three months ended March 31, 1999, the Company sold 19,900
ounces of gold and 3,900 ounces of silver at an average price of $369 per
equivalent gold ounce. For the comparable period of 1998, the Company sold
14,179 ounces of gold and 3,500 ounces of silver at an average realized price of
$423 per ounce. The New York Commodity Exchange (COMEX) gold price averaged $287
and $295 per ounce for the three months ended March 31, 1999 and 1998,
respectively.

         Cost of sales was $5.9 million for the three months ended March 31,
1999, as compared to $4.9 million in the prior period. Per ounce cost of gold
sold at the Briggs Mine, as computed under the Gold Institute's Production Cost
Standard, was as follows:

<TABLE>
<CAPTION>

                            Three months ended March 31,
                                   1999     1998
                                   ----     ----
<S>                                <C>      <C> 
Cash operating (1)                 $284     $272
Total cash costs (2)               $290     $278
Total production costs (3)         $376     $374
</TABLE>


     (1)  All direct and indirect costs of the operation, excluding royalties
          and accruals for site restoration. Includes inventory changes and
          adjustments for deferred stripping. 

     (2)  Cash operating costs plus royalties.

     (3)  Total cash costs plus depreciation, depletion, amortization and
          accruals for site restoration.



                                       15
<PAGE>   16

         Operating costs were higher and ore grades were lower at the Briggs
Mine during the first quarter of 1999, resulting in higher unit costs as
compared to the first quarter of 1998.

         Depreciation, depletion and amortization was higher in the current
period due to higher ounces sold. Selling, general, and administrative expense
was lower in the current period due to the sale of the Company's industrial
minerals business in December 1998 and to reduced corporate office expenses.
Exploration costs were lower in the current period due to curtailment of all
discretionary expenditures.

LIQUIDITY & CAPITAL RESOURCES

         The Company's financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and settlement of
liabilities and commitments in the ordinary course of business. The Company's
liquidity, however, has been adversely impacted by a sustained period of low
gold prices and high debt service requirements. Moreover, since December 31,
1998, the Company has not been in compliance with certain covenants relating to
the Briggs Mine loan facility and has been unable to achieve resolution of these
matters with the lenders to date. As a result, the covenant violations
constitute events of default and the lenders may, by notice to the Company,
terminate the commitment and declare all amounts immediately due and payable.
The Company is in continuing discussions with the lenders on these matters,
however, there can be no assurances that a satisfactory resolution can be
achieved nor that the lenders will not exercise any remedies available to them
during the intervening period. Accordingly, the Company has classified all of
the debt as current on its Balance Sheet since December 31, 1998. In addition,
in March 1999, the Company received a demand notice for an increase in
collateral of approximately $1.2 million from the Sureties who issued certain
bonds for reclamation obligations at the Briggs Mine, Kendall Mine and McDonald
Gold Project. All of these matters raise substantial doubt about the Company's
ability to continue as a going concern. The Company has curtailed all
discretionary expenditures, is currently attempting to sell its African
properties, and has retained investment banking counsel to assist in the
evaluation of potential merger or other alliance opportunities. There can be no
assurances, however, that the Company will be successful in this regard.

         Net cash used in operating activities during the three months ended
March 31, 1999, was $0.6 million as compared to $0.3 million used in operating
activities for the same period in 1998. Cash and cash equivalents at March 31,
1999 was $1.0 million.

         The Company spent a nominal $0.1 million on capital programs for the
three months ended March 31, 1999.

         During the first quarter of 1999, the Company used $1,650,000 of the
proceeds reserved from the December 1998 sale of its industrial minerals assets
to (i) pay off a credit line amount of $650,000, and (ii) purchase 3,451 ounces
of gold at a market price of $289.75 per ounce which was applied to the gold
loan. As a result of the partial prepayment on the gold loan, the Company
recognized a gain of $339,300 (3,451 ounces of principal repaid by open market
purchase at $289.75 per ounce; corresponding reduction in debt at $388.05 per
ounce). This amount is shown as an other income item on the Statement of
Operations for the three months ended March 31, 1999.



                                       16
<PAGE>   17

OTHER MATTERS

Year 2000 Issue

         Many computer programs utilize a two digit format to identify the
applicable year. Without modification, any date sensitive software may recognize
a date using "00" as the year 1900 rather than the year 2000. This could result
in a system failure or miscalculations causing, among other things, disruptions
to operations and inability to process financial transactions.

         The Company has completed its inventory of systems which utilize
information technology. Noncompliant software at the Briggs Mine will be
upgraded or replaced as appropriate by June 30, 1999. Certain financial
reporting software and voice communications systems at the Company's corporate
headquarters are not year 2000 compliant and will be upgraded or replaced in the
third quarter of 1999. The associated costs are not expected to be material for
either location.

         The Company continues to gather data regarding equipment used in its
operations which may have embedded chip technology. Equipment that is not year
2000 ready could fail causing a disruption to the Company's operations. The
Company expects to determine year 2000 compliance for such equipment by June 30,
1999 and to complete remediation efforts by September 30, 1999. At this time,
the Company does not expect the cost of year 2000 compliance to be material for
its non-information technology systems.

         The Company relies on third parties to supply certain materials,
utilities, transportation, and other services necessary for its business
operations. During the first quarter of 1999, the Company initiated a process to
ascertain their stage of year 2000 readiness through questionnaires, interviews
and other means and is currently assessing the information gathered. The Company
expects to complete its third party assessment by June 30, 1999. As part of the
Company's contingency planning, alternate suppliers, where practical, will be
identified to reduce the risks of interruption due to third party failures.

         Although the Company believes it has adequate resources and personnel
to complete its remediation efforts prior to December 31, 1999, the Company
remains at risk with respect to its ability to complete its own program and/or
to a failure by one or more of its third party suppliers to achieve year 2000
compliance within the required time frame.

McDonald Gold Project, Anti-Cyanide Mining Initiative

         In November, 1998, the Montana electorate passed an anti-cyanide mining
initiative (I-137) by a vote of 52% to 48%. I-137 bans development of new gold
and silver mines and expansions to existing mines which use open-pit mining and
cyanide in the treatment and recovery process. For most of the campaign period,
mining companies were prevented from campaigning due to a previously passed
initiative (I-125) which prohibited campaign-expenditures by "for-



                                       17
<PAGE>   18

profit" entities. Ten days prior to the election, a federal judge declared the
prohibition "unconstitutional". The mining community has filed lawsuits against
I-137, based on (i) having been denied the opportunity to campaign due to the
effectiveness of I-125 until the last few days, and (ii) due process
considerations, in that I-137 results in a taking of property without any
compelling public policy interest, since environmental safety concerns are well
protected and monitored with existing laws and regulations. The Company's legal
counsel believes that it is likely that I-137 will be declared unconstitutional,
or at a minimum, be overturned by the courts.

Environmental Regulation

         In September, 1998, the DEQ filed a complaint in District Court
alleging violations of the Montana Water Quality Act for unpermitted discharges
at the Kendall Mine. The DEQ initially proposed a civil penalty in the amount of
$330,000, which was subsequently modified to $302,000, in connection with the
complaint. The Company is currently preparing a response to the complaint and
believes the penalty as currently assessed is without substantial merit.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Prices

         The Company's earnings and cash flow are significantly impacted by
changes in the market price of gold. Gold prices can fluctuate widely and are
affected by numerous factors, such as demand, production levels, economic
policies of central banks, and producer hedging. During the last five years, the
average annual market price has fluctuated between $294 per ounce and $388 per
ounce. Moreover, in late 1997 and early 1998, gold prices declined to their
lowest level in eighteen years and have remained at or near that level since.

         The Company currently utilizes two types of commodity instruments to
protect the selling price of a portion of its anticipated production. At March
31, 1999, approximately 43% of the recoverable reserves at the Company's Briggs
Mine was hedged through (i) short dated forward contracts totaling 163,900
ounces at an average price of approximately $309 per ounce, and (ii) a
commodity-based loan totaling 43,085 ounces at a monetized price of $388.05 per
ounce. With regard to the forward contracts, the Company can selectively extend
maturity dates and has the opportunity to deliver all of its estimated 1999 gold
production not otherwise reserved for its commodity loan repayment at prices
that exceed the March 31, 1999 market price of gold by an average of
approximately $33 per ounce. However, for purposes of illustrating the potential
impact of a change in gold price on the Company's annual profitability and cash
flow, if only 75% of its estimated production was delivered against the forward
contracts and the commodity loan, a $10 change in the price of gold would have
an impact of approximately $0.2 million. Similarly, a hedge position of only 50%
with a $10 change in the price of gold would impact the Company's profitability
and cash flow by approximately $0.4 million. The Company's commodity-based loan
was established in December 1995, by borrowing 64,425 ounces from certain
counterparties, selling the ounces in the marketplace at a price of $388.05 per
ounce, and using the proceeds of $25 million to develop and construct production
facilities at the Briggs Mine. (See Note 6 to the 



                                       18
<PAGE>   19

Company's Consolidated Financial Statements for a complete discussion of the
financing arrangements for the Briggs Mine). As the gold is repaid with
production from the Briggs Mine, the Company records revenue at the monetized
amount of $388.05 with a corresponding reduction in debt. An implicit hedging
gain or loss exists at the time of repayment depending on whether the market
price of gold at the repayment date is below or above the monetized amount.

         There are certain market risks associated with commodity instruments.
If the Company's counterparties fail to honor their contractual obligation to
purchase gold at agreed-upon prices, the Company may be exposed to market price
risk by having to sell gold in the open market at prevailing prices. Similarly,
if the Company fails to produce sufficient quantities of gold to meet its
forward commitments and commodity loan obligation, the Company would have to
purchase the shortfall in the open market at prevailing prices.

         In May 1998, the Company liquidated a forward position that was
originally established in December 1995, resulting in proceeds of $11.1 million.
As of December 31, 1998, $8.6 million of the gain had not been recognized in
operations. During the first quarter of 1999, $1.2 million of the gain was
recognized. For the remainder of 1999, $2.9 million of the gain will be
recognized with the balance of $4.5 million recognized in 2000.

         At March 31, 1999, the mark to market value of the Company's forward
contracts was approximately $4.7 million. The fair value and carrying value of
the Company's commodity-based loan at March 31, 1999 was approximately $12.1
million and $16.7 million, respectively.

Interest Rates

         At March 31, 1999, the Company's debt primarily consisted of a
commodity-based (gold) loan. Interest rates for such loans are typically lower
than dollar denominated debt, as the cost of leasing gold from sources such as
central banks is relatively inexpensive (less than 2% per annum). A counterparty
to a commodity-based loan will add an applicable margin to its cost of funds for
purposes of establishing an interest rate to the producer. During the first
three months of 1999 and 1998, the interest rate on the Company's gold loan
averaged 2.7% and 3.8%. The Company is required to have the rate periodically
reset for periods that it may choose which range in duration from one to six
months. Because of the historically low rates for gold-denominated debt, the
Company is not exposed to significant interest rate risk, as a change of 100
basis points in the rate would have an impact on annual earnings and cash flow
of less than $0.150 million, based on the March 31, 1999 outstanding loan amount
of 43,085 ounces and gold prices of approximately $280 per ounce.

Foreign Currency

         The price of gold is denominated in US dollars, and the Company's gold
production operations are in the United States. The Company conducts only a
minor amount of exploration activity in foreign countries and has minimal
foreign currency exposure.



                                       19
<PAGE>   20

                            PART II OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS: ..............................................None

ITEM 2.   CHANGES IN SECURITIES: ..........................................None

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES: ................................None

ITEM 4.   SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS: ..............None

ITEM 5.   OTHER INFORMATION: ..............................................None

ITEM 6(a) EXHIBITS:

          No. 27 - Financial Data Schedule

ITEM 6(b) REPORTS ON FORM 8-K: ............................................None



                                       20

<PAGE>   21
                                   SIGNATURES

Pursuant to the requirements 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.



                                             CANYON RESOURCES CORPORATION



Date:    May 12, 1999                        /s/ Richard T. Phillips
                                             ----------------------------------
                                             Richard T. Phillips
                                             Treasurer



Date:   May 12, 1999                         /s/ Gary C. Huber
                                             ----------------------------------
                                             Gary C. Huber
                                             Chief Financial Officer



                                       21
<PAGE>   22

                                  EXHIBIT INDEX

EXHIBIT 
NUMBER                         EXHIBIT DESCRIPTION                       PAGE
------                         -------------------                       ----

  27                           Financial Data Schedule