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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form10-QSB

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

For the Quarterly Period ended September 30, 2007

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|[ ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From                      To

Commission File Number: 001-01761

CHIEF CONSOLIDATED MINING COMPANY

(Exact name of small business issuer as specified in its charter)

ARIZONA


87-0122295(State or Other Jurisdiction of
Incorporation or Organization)


(I.R.S. Employer
Identification No.)


15988 SILVER PASS ROAD, P.O. BOX 51, EUREKA, UTAH


84628(Address of Principal Executive Offices)


(Zip Code)


(435) 433-6606
(Issuer’s telephone number)

Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the ExchangeAct.[ ]

Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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[ ]No[X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes[ ]No[X]

State the number of shares outstanding of each of the issuer’s classes of common equity, as of November 15, 2007.

Common Stock $0.50 par value: 10,635,507

Convertible Common Stock $0.50 par value: 4,060,000

Transitional Small Business Disclosure Format (check one): Yes[ ]No[X]

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PART I

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|------- | ---------------------
|Item 1. | Financial Statements.

See Financial Statements beginning on page F-1.

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|------- | ----------------------------------------------------------
|Item 2. | Management’s Discussion and Analysis or Plan of Operation.

The following discussion is intended to assist you in understanding our financial condition and plan of operations. You should read the following discussion along with our financial statements and related notes included in this Quarterly Report on Form 10-QSB.

Overview

We were organized in 1909 and own or control approximately 16,000 acres of mining land in Utah and Juab counties in Utah. These properties include the Burgin Mine, whose mining rights are owned by our subsidiary Tintic Utah Metals, LLC, a Colorado limited liability company, and the Trixie Mine, owned by our subsidiary Chief Gold Mines, Inc., a Delaware corporation. Of these 16,000 acres, approximately 6,000 acres are subject to being sold, as discussed below, pursuant to a Consent Decree with the Environmental Protection Agency.

Trixie and Burgin Mines

The Trixie Mine is located on property owned by our wholly-owned subsidiary, Chief Gold Mines, and is 1.5 miles from Tintic Utah’s concentrating mill. Our subsidiary, Tintic Utah, last processed gold and silver ores produced from the Trixie Mine at Tintic Utah’s concentrating mill in early 2002. Due to past safety conditions at the Trixie Mine, we are not currently operating the mine and do not presently plan to resume mining operations, although we may be interested in various other options including, joint ventures or leasing or selling the Trixie.

The Burgin Mine, which is located in the East Tintic Mining District of Utah, is also not currently in production. We cannot proceed with production at the mine unless we can dewater the mine and raise capital for use in connection with restarting mining operations. We have applied for permission to appropriate water from the Burgin Mine and the application is currently pending before the Utah State Engineer. If it approves our application, we may then begin negotiations with various potential partners with the intention of finding a method to finance the construction of a water treatment facility. The water treatment facility would be used as the means for disposing of the water pumped from the lower levels of the Burgin Mine, enabling us to proceed with development and production programs. Although there were objections to our application, we have been in negotiations regarding the terms of an agreement with the main objectors. The Utah State Engineer will issue a decision on the application and we would have the right to appeal any adverse decision to a court. We are unable to predict whether an agreement with the objectors will be signed or when the Utah State Engineer will render his decision. Even if the Utah State Engineer approves our application and we reach an agreement with the objectors, we may not have the necessary funds to proceed, and even if we do have such funds, we may not use these funds to proceed at the Burgin Mine. If we are not successful in obtaining water rights, we believe there may be alternative methods to successfully dewater the mine.

As a result of the suspended mining and processing operations, we are not generating any revenues and we do not have sufficient funding to make the significant safety improvements required in the Trixie Mine or to continue exploration efforts related to the Burgin Mine. As a result, we have had no significant operating activity since early 2002.

Plan of Operation

In the mining aspect of our activities, we will concentrate on seeking one or more joint venture partners or other arrangements to fund the startup of mining operations. To the extent we enter into

1

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such an arrangement, we could contribute mining properties and/or the Burgin concentrating mill to any joint venture arrangement in return for a percentage interest in the venture, with our partner(s) to provide the main portion of cash funding requirements.

We have an immediate cash need. No assurance can be given that we will be able to raise the necessary funds, or if the funds are raised, that we will be able to restart our mining operations.

Our financial statements have been prepared assuming that we will continue as a going concern. We recognized $0 in revenues for the nine months ended September 30, 2007. We have suffered net losses of $757,347 for the nine months ended September 30, 2007. Additionally, as of September 30, 2007, we had an accumulated deficit of $97,718,646. These matters raise substantial doubt about our ability to continue as a going concern.

As of September 30, 2007, we had $950,000 of land and mining claims and $162,500 of mining related buildings, machinery and equipment. The realization of our investment in land and mining claims and mining related buildings and equipment is dependent upon various factors, including: our success in exploration efforts to discover additional mineral resources and in proving the technical feasibility and commercial viability of the identified mineral resources, and our ability to obtain necessary funding to continue exploration of the mining properties and to finance operations.

In December 2005, Dimeling, Schreiber & Park Reorganization Fund II, LP, agreed to purchase $2.5 million in convertible debentures contingent upon creditors holding more than 50% of our then outstanding indebtedness agreeing to settle such outstanding amounts. The minimum level of acceptances with creditors has been reached. The funds are held in escrow by our counsel and are dispersed by the escrow agent to pay creditors as they individually agree with us and to pay legal, accounting and other consulting fees as incurred. The debentures automatically convert into Common Stock at $0.25 per share immediately upon shareholder approval of certain amendments to our Articles of Incorporation, including a decrease in the par value. In the event that the shareholders do not approve such amendments, the debentures will become immediately due and payable.

In addition, in May 2006, some of the holdings of Tintic Utah Metals, LLC, Central Standard Mines Co., and Eagle and Blue Bell Mining Co., our subsidiaries, were sold at tax sale. We have been reviewing our options to recover these properties.

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|Item 3. | Controls and Procedures.

Based on an evaluation of Chief’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934, as amended), the Chief Executive and Chief Financial Officer of Chief has concluded that Chief’s disclosure controls and procedures were effective as of September 30, 2007.

There were no changes in Chief’s internal controls over financial reporting during the quarter ended September 30, 2007 that materially affected, or was reasonably likely to materially affect, Chief’s internal control over financial reporting.

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PART II

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|Item 1. | Legal Proceedings.

EPA Settlement

During 2001, the Environmental Protection Agency, also known as the EPA, placed Eureka Mills Superfund Site on the National Priorities List, as authorized under the Comprehensive Environmental Response, Compensation and Liability Act of 1980. According to the EPA, samples indicate that, approximately 150 acres of soil in the Town of Eureka, Utah, the location of our principal executive offices and operations, were contaminated with lead and, to a lesser extent, arsenic.

In 2002, the EPA finalized its actions to be taken in response to the release of waste materials at and around the site. The EPA is seeking reimbursement from us for our portion of the liability based on the ownership and the conduct of mining operations on portions of the site.

In February 2005, we agreed to a judgment against us by the EPA in the amount of $60 million. The judgment will remain in effect until we have complied with all the requirements of a Consent Decree issued to us by the EPA. Our material obligations under the Consent Decree include:

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|• | using our best efforts to satisfy the judgment by seeking indemnification or recovery from our insurance policies and paying 70% of all proceeds from such insurance policies to the United States;

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|• | providing an annual report to the United States each year for five years listing all insurance claims, the actions we are taking to recover the amounts and any recovery obtained until all such claims are exhausted;

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|• | using our best efforts to sell our property, other than property upon which repository, open cells, response action structures, water sources and borrow source are located;

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|• | upon the transfer of any property, paying 100% of net sales proceeds upon to $350,000 and 50% thereafter to the EPA;

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|• | reimbursing the United States 15% of our net income in excess of $2 million during any calendar year for five years from the date of the Consent Decree;

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|• | paying the United States 15% of any proceeds in excess of $2 million from a sale of the Company or all or substantially all of our assets;

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|• | allowing the EPA the sole use of borrowed material (top soil, fill and base material) that is free from contaminants, including the allowance of uninterrupted and continuous access to the borrowed sources 24 hours per day, 365 days per year;

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|• | allowing the EPA the irrevocable right to access, operate and close the repository, the property and the two open cells on the property for the permanent disposal of waste material excavated from the site;

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|• | allowing the EPA to enter onto the property to construct and maintain response action structures as are necessary to implement response actions, including an easement for the EPA to inspect, maintain and operate the structure;

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|• | providing storage space and water as needed to the EPA; and

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|• | allowing additional access to the EPA for various purposes as needed.

In the event that we complete all of our obligations under the Consent Decree, the EPA will file a Release of Notice of Federal Lien in the Office of the Juab County Recorder and we will be relieved of the $60 million liability, resulting in a gain in such future period. As of the current date, we continue to have obligations under the terms of the consent decree and are in compliance with those terms. The judgment amount of $60 million represents the future value of clean up costs when the terms of the Consent Decree are satisfied on February 9, 2010.

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Royce Hackworth and Hackworth Drilling, Inc.

On August 30, 2002, Royce Hackworth and Hackworth Drilling, Inc. filed a complaint against us and Adren Underwood in the Fourth Judicial District Court in and for Juab County, Utah (Civil No. 02060124). The complaint sought monetary relief of $37,697.14 for drilling services that were rendered to us by Hackworth Drilling. Judgment in the amount of $37,697.14 has been entered against us. We have had numerous communications with the plaintiff’s counsel regarding settlement, but the plaintiff has not responded to any of our offers.

Alta Steel

Alta Steel filed a complaint against Tintic Utah Metals, LLC, our subsidiary, in the Fourth Judicial District Court in and for Juab County, Utah (Civil No. 020600141). Alta Steel claimed monetary damages in the amount of $12,440.35 for materials and labor supplied by Alta Steel. A default judgment was entered against Tintic Utah Metals, LLC on November 27, 2002 in the amount of $12,440.35. Tintic Utah filed a motion to set aside the judgment on November 28, 2002. We then settled the judgment for $2,448.07 in March 2007. The amount was paid in full on April 24, 2007.

Codale Electric Supply, Inc.

On June 25, 2002, Codale Electric Supply, Inc. filed a complaint against us and Tintic Utah Metals, LLC, our subsidiary, in the Fourth Judicial District Court in and for Utah County, Utah (Civil No. 020402764). The complaint sought money damages in the amount of $16,583.18 plus attorneys’ fees and costs for breach of contract, breach of covenant of good faith and fair dealings, quantum meruit and mechanic’s lien foreclosure. Judgment was stipulated to and entered in the amount of $19,378.34 on May 6, 2003. We have made an offer to settle, but the plaintiff has not responded to our offer.

Leonard Weitz

On April 23, 2007, Leonard Weitz filed a complaint against us in the Fourth Judicial District in and for Utah County, Utah (Case No. 07010174). An amended complaint was filed on June 23, 2007. The complaint is seeking money damages in the amount of $726,000.00 for alleged breach of contract arising out of Mr. Weitz’s employment agreement with the Company. We believe we have meritorious defenses to the claims asserted in the action and intend to vigorously defend the matter.

Other Proceedings

In addition, we were named, along with two other corporate entities, as a respondent in an administrative proceeding before the Utah Labor Commission in August 2006. In the proceeding, the seventy-six year old petitioner alleged that he was one of our employees from 1950 to 1954 and has contracted lung cancer as a result of his employment. The plaintiff sought medical expenses and permanent total disability compensation. The plaintiff is now deceased. His widow claims dependent’s benefits and burial benefits. We have denied all material allegations, are investigating the claim and will vigorously dispute the petitioner’s claims. Currently, this litigation is in the discovery stage. A hearing originally scheduled for April 5, 2007 was rescheduled for September 2007. That hearing was continued at the request of the petitioner, based on a defense raised by us. No new hearing date has been set.

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|Item 5. | Other Information.

There have not been any material changes to procedures by which security holders may recommend nominees to our board of directors.

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|Item 6. | Exhibits.

EXHIBIT NO.


DESCRIPTION3
.1



Articles of Incorporation [Incorporated by reference to Exhibit A to Chief’s Schedule 14A Proxy Statement filed on December 17, 1999 (SEC File No. 001-01761)].3
.2



Amended and Restated By-laws [Incorporated by reference to Exhibit 3.2 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].10
.1



The Operating Agreement of Tintic Utah LLC dated as of July 17, 1996 by and among Chief, Akiko Resources (Utah) Inc. and KZ Utah, Inc. [Incorporated by reference to Exhibit 10B, marked as ‘‘Exhibit A’’, to Chief’s Form 10-KSB filed on April 2, 1997 (SEC File No. 001-01761].10
.2



The First Amendment to Operating Agreement dated as of March 11, 1997 by and among Chief, Akiko Resources (Utah) Inc. and KZ Utah, Inc. [Incorporated by reference to Exhibit 10B, marked as ‘‘Exhibit A’’, to Chief’s Form 10-KSB filed on April 2, 1997, (SEC File No. 001-01761].10
.3



Second Amendment to Operating Agreement dated as of November 10, 1997 by and between Chief and KZ Utah, Inc [Incorporated by reference to Exhibit 10D, filed as Exhibit A, to Chief’s Form 10-K report filed on March 30, 1998 (SEC File No. 001-01761)].10
.4



Third Amendment to Operating Agreement dated as of October 1, 1998 by and between Chief and KZ Utah, Inc [Incorporated by reference to Exhibit 10D, filed as Exhibit A, to Chief’s Form 10-KSB report filed on April 15, 1999 (SEC File No. 001-01761)].10
.5



Fourth Amendment to Operating Agreement dated as of September 9, 1999 by and between Chief and KZ Utah, Inc [Incorporated by reference to Exhibit 10E, filed as Exhibit A, to Chief’s Form 10-KSB report filed on March 30, 2000 (SEC File No. 001-01761)].10
.6



Fifth Amendment to the Operating Agreement dated as of January 1, 2001 [Incorporated by reference to Form 10-QSB filed on August 14, 2001].10
.7



The Articles of Organization of Tintic Utah LLC is incorporated by reference to an exhibit to Form 10-KSB filed on April 2, 1997.10
.8



Stock Purchase Agreement dated as of November 19, 1999 between Chief and Dimeling, Schreiber & Park [Incorporated by reference to Chief’s Form 8-K report filed on November 30, 1999 (SEC File No. 001-01761)].10
.9



Registration Rights Agreement dated as of November 19, 1999 between Chief and Dimeling, Schreiber & Park [Incorporated by reference to Chief’s Form 8-K report filed on November 30, 1999 (SEC File No. 001-01761)].10
.10



Form of Warrant issued to Dimeling, Schreiber & Park by Chief dated as of November 19, 1999 [Incorporated by reference to Chief’s Form 8-K report filed on November 30, 1999 (SEC File No. 001-01761)].


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EXHIBIT NO.


DESCRIPTION10
.11



EPA Consent Decree [Incorporated by reference to Exhibit 10.11 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].10
.12



Debenture Purchase Agreement [Incorporated by reference to Exhibit 10.12 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].10
.13



Escrow Agreement [Incorporated by reference to Exhibit 10.13 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].10
.14



Chief Consolidated Mining Company Prospect and Retrospect dated as November 2005 [Incorporated by reference to Exhibit 10.14 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].21
.1



Subsidiary List [Incorporated by reference to Exhibit 21.1 to Amendment No. 1 of Chief’s Form 10-KSB report filed on September 5, 2007 (SEC File No. 001-01761)].31
.1



Certification by Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) (filed herewith).31
.2



Certification by Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) (filed herewith).32




Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).


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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
TABLE OF CONTENTS

PageCondensed Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006 (Unaudited)




F-2Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2007 and 2006 (Unaudited)




F-3Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and 2006 (Unaudited)




F-4Notes to Condensed Consolidated Financial Statements (Unaudited)




F-5


F-1

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

September 30,
2007


December 31,
2006ASSETSCurrent assetsCash



$
275,310




$
939,578Accounts receivable




13,356





—Prepaid expenses




119,137





—Other current assets




31,333





35,720Total current assets




439,136





975,298Land and mining claims




950,000





950,000Buildings, machinery and equipment, net




162,500





200,000Reclamation funds on deposit




488,300





488,300Total assets



$
2,039,936




$
2,613,598LIABILITIES AND STOCKHOLDERS’ DEFICITCurrent liabilitiesAccounts payable



$
600,074




$
588,339Related party payable




391,351





380,305Interest payable




349,589





200,000Accrued liabilities




110,285





110,285Accrued convertible common stock dividends




823,139





694,421Total current liabilities




2,274,438





1,973,350Long-term liabilitiesConvertible debentures




2,500,000





2,500,000Reclamation obligation




514,264





502,948EPA settlement obligation




60,000,000





60,000,000Total long-term liabilities




63,014,264





63,002,948Minority interest in consolidated subsidiaries




24,727





24,727Shareholders’ deficitPreferred stock, $0.50 par value; 1,500,000 shares authorized;
10,899 shares outstanding; liquidation preference of $5,450




5,450





5,450Convertible common stock, $0.50 par value; 30,000,000 shares
authorized; 4,060,000 shares outstanding




2,030,000





2,030,000Common stock, $0.50 par value; 50,000,000 shares authorized;
10,635,507 shares outstanding




5,314,209





5,314,209Additional paid-in capital




23,773,747





23,773,747Stock purchase rights




3,321,747





3,321,747Accumulated deficit




(97,718,646
)




(96,832,580
)Total stockholders’ deficit




(63,273,493
)




(62,387,427
)Total liabilities and stockholders’ deficit



$
2,039,936




$
2,613,598


F-2

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three months
Ended
Sept 30,
2007


Three months
Ended
Sept 30,
2006


Nine months
Ended
Sept 30,
2007


Nine months
Ended
Sept 30,
2006RevenueMining revenue



$
—




$
—




$
—




$
—Land sales and other




—





—





—





2,214Total revenue




—





—





—





2,214Operating expensesGeneral and administrative




221,489





93,439





565,861





244,412Depreciation and depletion




12,500





12,500





37,500





37,500Accretion of reclamation obligation




3,772





3,662





11,316





10,986Total expenses




237,761





109,601





614,677





292,898Other income (expense)Interest Income




7,673





26,030





22,534





54,345Interest expense




(50,411
)




(58,636
)




(149,589
)




(178,278
)Other expenses




—





—





(15,615
)




—Gain on forgiveness of debt




—





82,933





—





347,949Total Other income (expense)




(42,738
)




50,327





(142,670
)




224,016Net loss




(280,499
)




(59,274
)




(757,347
)




(66,668
)Eight percent convertible common stock dividends




(35,427
)




(45,924
)




(128,719
)




(135,585
)Loss attributable to common stockholders



$
(315,926
)



$
(105,198
)



$
(886,066
)



$
(202,253
)Basic and diluted loss per common share



$
(0.03
)



$
(0.01
)



$
(0.08
)



$
(0.02
)Basic and Diluted Weighted-Average
Common Shares Outstanding




10,635,507





10,635,507





10,635,507





10,635,507


F-3

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

For The Nine Months
Ended September 30,2007


2006Cash Flows from Operating Activities:Net loss



$
(757,347
)



$
(66,668
)Adjustments to reconcile net loss to net cash used in operating activities:Accretion of reclamation obligation




11,316





10,986Gain on forgiveness of debt




—





(347,949
)Depreciation and depletion




37,500





37,500Changes in operating assets and liabilities:Accounts receivable




(13,356
)




—Other assets




4,386





(8,740
)Reclamation funds on deposit




—





(2,214
)Related party payable




11,046





(979
)Accounts payable




11,735





(137,140
)Interest payable




149,589





170,146Prepaid expenses




(119,137
)




(101,685
)Director indemnification




—





(127,736
)Net Cash Used in Operating Activities




(664,268
)




(574,479
)Cash Flows from Financing Activities:Proceeds from release of proceeds from convertible debentures from restricted cash




—





2,500,000Principal payments on notes payable




—





(26,608
)Net Cash Provided By Financing Activities




—





2,473,392Net Change in Cash




(664,268
)




1,898,913Cash at Beginning of Period




939,578





10Cash at End of Period



$
275,310




$
1,898,923Supplemental Cash Flow InformationCash paid for interest



$
—




$
53,563Supplemental Schedule of Noncash Investing and Financing ActivitiesConvertible common stock dividends accrued



$
128,718




$
135,585


F-4

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 — CONDENSED FINANCIAL STATEMENTS

Chief Consolidated Mining Company (‘‘Chief’’ or the ‘‘Company’’) was incorporated in the state of Arizona in 1909. Chief currently is the owner of or has vested interests in approximately 16,000 acres of patented mining property in the Tintic Mining Districts in Utah County and Juab County, Utah. Chief and its subsidiaries (collectively, the ‘‘Company’’) operate as a mineral resource company seeking to engage in the exploration and development of their mining claims and properties.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the Company’s annual financial statements and the notes thereto for the year ended December 31, 2006. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to fairly present the consolidated financial position of Chief Consolidated Mining Company and subsidiaries as of September 30, 2007, and the results of their operations for the three and nine months ended September 30, 2007 and 2006 and their cash flows for the nine months ended September 30, 2007 and 2006. The results of operations for the nine months ended September 30, 2007, may not be indicative of the results that may be expected for the year ending December 31, 2007 or for any other period.

Business Condition– The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.

During 2002, the Company suspended mining and processing operations. As a result, the Company is not generating any mining revenue and has not had sufficient funding to make the significant safety improvements required in the Trixie Mine or to continue exploration efforts related to the Burgin Mine. As of September 30, 2007, the Company had $950,000 of land and mining claims and $162,500 of mining related buildings, machinery and equipment, which in aggregate, represent approximately 55% of total assets. The Company’s buildings, machinery and equipment consist principally of the Tintic Mill located at the Trixie mine. The realization of the Company’s investment in land and mining claims and mining related buildings, machinery and equipment is dependent upon various factors, including the outcome of: (i) the Company’s success in exploration efforts to discover additional mineral resources and in proving the technical feasibility and commercial viability of the identified mineral resources, (ii) the Company’s ability to obtain necessary funding to continue exploration of the mining properties and to finance operations while the Company pursues real estate development alternatives for portions of the Company’s land, (iii) the Company’s success in finding a joint venture partner to provide capital funding for the Company’s continued exploration of its mining properties, (iv) the Company’s ability to profitably lease the Tintic Mill or its mining claims to outside entities, and (v) the Company’s success in selling or developing certain of its land surface rights to fund its continued mining and exploration activities.

During 2002, the Environmental Protection Agency (EPA) completed a study and finalized its actions to be taken in response to the release of waste materials at and around the Eureka Mills Superfund Site located in Juab County, Utah. The EPA is seeking reimbursement from the Company in the amount of $60 million for its portion of the liability based on the ownership and the conduct of mining operations on portions of the site. During 2005, the Company reached a settlement agreement with the EPA regarding the judgment, as discussed more fully in Note 6.

F-5

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

These matters raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability or classification of assets or liabilities that might be necessary should the Company not be able to continue as a going concern.

The Board of Directors is currently pursuing efforts to obtain additional sources of financing to allow the Company to proceed with its operations. The Company is also investigating selling portions of its land surface rights in order to comply with the EPA Consent Decree.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates– The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 these estimates. The estimated amount of the reclamation and EPA settlement obligations are particularly subject to change in the near term.

Impairment of Long-Lived Assets– The Company accounts for long-lived assets pursuant to SFAS No. 144,Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of. The Company evaluates its land and mineral properties, buildings, machinery and equipment and other long-lived assets for impairment at least quarterly and assesses their recoverability based upon anticipated future cash flows. If changes in circumstances lead Company management to believe that any of its long-lived assets may be impaired, the carrying value of long-lived assets are reduced by the estimated excess of the carrying value over the fair value of the assets.

Basic and Diluted Loss Per Common Share– Basic loss per common share excludes dilution and is computed by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted loss per common share reflects the potential dilution that could occur if stock options were exercised or convertible common stock was converted into common stock. The computation of diluted loss per common share does not assume exercise or conversion of securities that would have an antidilutive effect on net loss per common share.

At September 30, 2007 and 2006, there were outstanding options to purchase 185,000 and 245,000 shares of common stock, respectively, which were excluded from the computation of diluted loss per common share. In addition, for the periods ended September 30, 2007 and 2006, there were 4,060,000 shares of convertible common stock outstanding and 10,000,000 shares of common stock underlying our convertible debentures outstanding that were excluded from the computations of diluted loss per common share. These potential common shares were excluded because they were antidilutive and would have decreased diluted loss per common share.

Reclamation Costs– The Company provides for reclamation costs and penalties for the retirement obligations associated with tangible long-lived assets. Reclamation liabilities are accrued based on estimates of known environmental exposure in conjunction with feasibility studies and are accreted over the estimated life of the assets.

Environmental Remediation Costs (EPA Settlement) Liability– The Company follows the guidance of SOP 96-1,Environmental Remediation Liabilities, by accounting for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations are recognized upon the completion of a feasibility study.

Such accruals are adjusted as further information develops or cirumstances change. Costs of future expenditures are not discounted to their present value.

F-6

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Recent Accounting Pronouncements– In September 2006, the FASB issued SFAS No. 157,Fair Value Measurements(SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 will be applied prospectively and is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. SFAS 157 is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities – including an Amendment of FASB Statement No. 115, which allows an entity to choose to measure certain financial instruments and liabilities at fair value. Subsequent measurements for the financial instruments and liabilities an entity elects to fair value will be recognized in earnings. SFAS No. 159 also establishes additional disclosure requirements. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007, with early adoption permitted provided that the entity also adopts SFAS No. 157. The Company is currently evaluating whether to adopt SFAS No. 159.

NOTE 3 — RELATED PARTY TRANSACTIONS

The Company has amounts payable to Dimeling, Schreiber & Park Reorganization Fund II, LP in the amount of $343,766 and $321,143 at September 30, 2007 and December 31, 2006, respectively, and owes Dimeling, Schreiber & Park Reorganization Fund II, LP $2,500,000 at September 30, 2007 and December 31, 2006 under the terms of convertible debentures payable, as discussed further in Note 4. A representative of Dimeling, Schreiber & Park Reorganization Fund II, LP is management of the Company. In addition, the Company has accrued payroll liabilities in the amount of $43,419 and $54,996 to former employees as of September 30, 2007 and December 31, 2006.

NOTE 4 — CONVERTIBLE DEBENTURES

During December 2005, the Board resolved to issue convertible debentures in the amount of $2.5 million to Dimeling, Schreiber & Park Reorganization Fund II, LP. The debentures accrue interest at an annual rate of 8%, payable at the time of conversion in additional shares of common stock. The conversion price is $0.25 per share. The debentures automatically convert into shares of common stock at the rate of 4,000 shares for each $1,000 principal amount upon the approval of the shareholders of certain amendments to the Articles of Incorporation. Under APB 14, none of the proceeds were attributable to the conversion feature.

NOTE 5 — ASSET RETIREMENT OBLIGATIONS

Reclamation of Mines– Prior to 1993, the Company or companies that were subsequently acquired by the Company leased certain of its mining properties to other companies for operation, exploration and development. Under the terms of the leases, these other companies were obligated to comply with all federal, state and local environmental laws and regulations affecting the mining industry. Tintic assumed a reclamation obligation from the previous operator of the Burgin Mine. In addition, the Company also holds a small mining permit and reclamation obligation in connection with its Chief Gold properties.

At September 30, 2007, the Company has $488,300 of cash held in escrow in the form of reclamation bonds with the State of Utah to assure that the Company will settle the reclamation obligations. All interest income on the bonds is currently being garnished by the Internal Revenue Service to cover certain taxes, penalties, and interest included in accrued liabilities on the Company’s balance sheet.

F-7

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A reconciliation of the asset retirement obligations is as follows:

EPA Liability


Other


TotalBalance, December 31, 2006



$
60,000,000




$
502,948




$
60,502,948Accretion expense




—





11,316





11,316Balance, September 30, 2007



$
60,000,000




$
514,264




$
60,514,264


NOTE 6 — OTHER COMMITMENTS AND CONTINGENCIES

On April 23, 2007, Leonard Weitz filed a complaint against us in the Fourth Judicial District in and for Utah County, Utah (Case No. 07010174). An amended complaint was filed on June 23, 2007. The complaint is seeking money damages in the amount of $726,000.00 for alleged breach of contract arising out of Mr. Weitz’s employment agreement with the Company. The Company believes it has meritorious defenses to the claims asserted in the action and intends to vigorously defend the matter.

Environmental Protection Agency Settlement– During 2001, the U.S. Environmental Protection Agency (‘‘EPA’’) proposed to place what the agency has titled the ‘‘Eureka Mills Superfund Site’’ (the ‘‘Site’’) on the National Priorities List, as authorized under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (‘‘CERCLA’’). According to the EPA, samples indicate that the soil in the Town of Eureka, Utah is contaminated with lead and, to a lesser extent, arsenic. The Site consists of approximately 150 acres in the town of Eureka, Utah.

On October 18, 2002 the EPA finalized its actions to be taken in response to the release of waste materials at and around the Site. The EPA is seeking reimbursement from the Company for its portion of the liability based on the ownership and the conduct of mining operations on portions of the Site. On February 9, 2005, the Company agreed to a judgment with the EPA in the amount of $60 million. The judgment will remain in effect until the Company has complied with all the requirements of the related consent decree. The following details the Company’s obligations under the judgment:

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | The Company agrees to use its best efforts to satisfy the judgment by seeking indemnification or recovery from insurance policies. After deducting recovery costs, 70% of all proceeds from insurance policies shall be paid to the United States. Until all claims are exhausted, the Company must provide a report to the United States each year for five years listing insurance claims, the action the Company is taking to recover the amounts, and any recovery obtained.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | The Company agrees to use its best efforts to sell property comprising approximately 6,000 acres, most of which is located north of Highway 6 in both Utah County and Juab County, Utah. Upon the transfer of any such property, the Company shall pay the EPA 100% of net sales proceeds up to $350,000, and then 50% thereafter. If the transfer is less than the tax assessed value of the property or exceeds a total of more than 1,000 acres, the EPA may require an independent appraisal and may object to the transfer based on the sale price. If any portion of such property is not sold by the fifth anniversary of this decree, the Company agrees to auction the property to the highest bidder, engaging a professional auctioneer. The Company cannot hold a mortgage or other security interest from any purchaser.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3. | The Company agrees, for a five year period from the date of the consent decree, to reimburse the United States 15% of its net income in excess of $2 million during any calendar year. The Company also agrees to pay the US 15% of the net proceeds of the sale of Chief Consolidated Mining Company or the sale of substantially all of its assets in excess of $2 million. The Company will be required to present audited financial statements to the EPA.

|   |                                                                                                                                                                                                                                                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | The Company agrees to allow the EPA sole use of borrowed material (top soil, fill and base material) that is free from contaminants. The Company agrees to give uninterrupted and continuous access to the borrowed source 24 hours a day, 365 days a year. The Company shall allow the EPA to use and improve the borrowed source as is necessary to fulfill its purposes.

F-8

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CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

|   |                                                                                                                                                                                                                                                                                                                           
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | The Company agrees to allow the EPA an irrevocable right to access, construct, operate, and close the repository and the property. The Company further grants the EPA the right to access, construct, and operate the two open cells on the property for the permanent disposal of waste material excavated from the site.

|   |                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|6. | The Company agrees to allow the EPA to enter onto the property to construct and maintain such response action structures as are necessary to implement the response actions. The land will have an easement for the EPA to inspect, maintain, and operate the structure.

|   |                                                                 
|-- | ----------------------------------------------------------------
|7. | The Company agrees to provide storage space and water as needed.

|   |                                                                                        
|-- | ---------------------------------------------------------------------------------------
|8. | The Company agrees to allow additional access as needed for various purposes as needed.

In the event the Company completes all of its obligations under the consent decree, the EPA will file a Release of Notice of Federal Lien in the office of the Juab County Recorder and the Company will be completely relieved of the $60 million liability, resulting in a gain in such future period. To date, the Company has fully complied with all terms of the agreement.

The judgment amount of $60 million represents the future value of clean up costs when the terms of the consent decree are satisfied on February 9, 2010. The Company elected to adopt SFAS 5 and SOP 96-1 during the year ended December 31, 2002 with respect to the EPA settlement obligation. The Company recognized the face value (undiscounted) of the liability and there will be no accretion expense of it.

F-9

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHIEF CONSOLIDATED MINING COMPANY


By:/s/ Richard R.Schreiber


Richard R. Schreiber
President (Principal Executive Officer and
Principal Financial Officer)


Dated: November 19, 2007

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