SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
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                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 16 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

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For the quarter ended: 3/31/98            Commission file number:     1-355


                            DRAGON MINING CORPORATION
             (Exact name of registrant as specified in its charter)

            (UTAH)                                            87-0128639
(State of other jurisdiction of                         (I.R.S. Employer
 incorporation or organization)                         Identification No.)


         107 WEST WADE, SUITE 7, P.O. BOX 9, PAYSON, ARIZONA 85547-0009
            (Address of principal executive offices)         (Zip Code)

       Registrant's telephone number, including area code: (520) 474-9151
                                                            --------------

                                       N/A

              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate  by a 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 the
filing requirements for the past 90 days.

           Yes    __X__                           No          ____

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

      23,143,826 SHARES OF COMMON STOCK, $.001 PAR VALUE, AS OF MAY 5, 1998

Exhibit index on page N/A                                        Page 1 of 3
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                         PART I - FINANCIAL INFORMATION


                     Omitted pursuant to rule 13a-13(c) (3).

                           PART II - OTHER INFORMATION



Item 1.                 LEGAL PROCEEDINGS.
                        Not applicable.

Item 2.                 CHANGES IN SECURITIES.

                        Not applicable.

Item 3.                 DEFAULTS UPON SENIOR SECURITIES.
                        Not applicable.

Item 4.                 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
                        Not applicable.

Item 5.                 OTHER INFORMATION.
                        Not applicable.

Item 6.                 EXHIBITS AND REPORTS ON FORM 8-K.
                        (a)         Exhibits. None.
                        (b)         Reports on Form 8-K.   None.





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                                   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.



                                     DRAGON MINING CORPORATION
                                          (Registrant)





MAYL 8, 1998                    BY:/s/Thomas L. Crom
                                      Thomas L. Crom,
                                      President (Principal Financial
                                      and Accounting Officer)

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