UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

                 For the Quarterly Period ended September 30, 2000


                         Commission File Number: 0-6034


                          STANSBURY HOLDINGS CORPORATION
             --------------------------------------------------
             (Exact Name of Issuer as Specified in its Charter)



              UTAH                                  87-0281239
- -------------------------------      ---------------------------------------
(State or Other Jurisdiction of      (I.R.S. Employer Identification Number)
 Incorporation or Organization)


            8801 East Hampden Avenue, Suite 200, Denver, CO 80231
            -----------------------------------------------------
                 (Address of Principal Executive Offices)



                                 (720) 748-1407
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)


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 the  issuer's  classes of common
stock as of the latest practicable date.

At  September  30,  2000,  there  were  94,748,901   common  shares  issued  and
outstanding, $.001 par value.






<PAGE>


                          PART 1 - FINANCIAL STATEMENTS

                 STANSBURY HOLDINGS CORPORATION AND SUBISIDARIES
                           CONSOLIDATED BALANCE SHEETS
                             SEPTEMBER 30, 2000

                                                                       2000
                                                                   ------------

Assets

Current Assets:
    Inventory                                                      $     64,848
    Prepaid expenses                                               $     43,982
    Other                                                          $      9,916
                                                                   -------------
         Total Current Assets                                      $    118,746

Land                                                               $    120,000

Property and Equipment, at cost:
    Undeveloped mineral claims and
        projects, using full-cost method                           $ 23,328,237
    Los Banos exfoliation plant                                    $    569,102
    Buildings                                                      $    850,000
    Other property and equipment                                   $      6,219
                                                                   -------------
                                                                   $ 24,753,558

Less:  accumulated depreciation                                    $    (35,233)
                                                                   -------------
         Net Property and Equipment                                $ 24,718,325

Other Assets:
    Reclamation bonds                                              $     45,100
    Investment in Resource Vermiculite LLC                         $    126,088
    Deposits                                                       $        -
                                                                   -------------
  Total Other Assets                                               $    171,188

Total Assets                                                       $ 25,128,258
                                                                   -------------

Liabilities and Stockholders' Equity


Current Liabilities:
    Bank overdrafts                                                $     62,159
    Elk Creek acquisition obligations                              $  1,072,500
    Los Banos acquisition obligation                               $    350,000
    Sweetwater acquisition obligation                              $    663,000
    Current installments of long-term debt                         $    820,718
    Convertible notes payable to officers
        and shareholders                                           $    194,724
    Convertible note payable to related party                      $    130,000
    Accrued interest                                               $    695,309
    Trade accounts payable                                         $    809,980
                                                                   -------------

         Total Current Liabilities                                 $  4,798,390

Long-Term Debt                                                     $        -
                                                                   -------------
         Total Liabilities                                         $  4,798,390
                                                                   -------------
Stockholders' Equity:
    Common stock, par value $0.001,
        authorized 100,000,000, issued
        and outstanding 94,748,901 and
        48,159,234 at September 30, 2000 and
        1999, respectively                                         $     94,749
    Paid-in capital                                                $ 31,998,150
    Deferred interest                                              $    (88,691)
    Accumulated deficit                                            $(11,674,340)
                                                                   -------------

         Total Stockholders' Equity                                $ 20,329,868
                                                                   -------------

Total Liabilities and Stockholders' Equity                         $ 25,128,258
                                                                   -------------


           See Accompanying Notes to Consolidated Financial Statements



<PAGE>


                 STANSBURY HOLDINGS CORPORATION AND SUBISIDARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE THREE MONTH'S ENDING SEPTEMBER 30, 2000 AND 1999


                                                       2000            1999
                                                  --------------   -------------
Sales                                             $      9,756                0
Cost of sales                                            $ -                  0

Gross profit                                      $      9,756     $        -

Expenses:
    Operating                                     $    156,889                0
    General and administrative                    $    686,314     $    352,809
    Interest, conversion premiums,
        and equity inducements                    $    435,884     $    593,428
                                                  --------------   -------------
Total Expenses                                    $  1,279,087     $    946,237

Loss from operations                              $ (1,269,331)    $   (946,237)

Other income                                      $        -       $         65

Loss before extraordinary item                    $        -       $        -

Extraordinary gain from debt restructuring        $        -       $        -


Net Loss                                          $ (1,269,331)    $   (946,172)


Basic and diluted earnings per share:

    Loss from continuing operations               $      (0.02)    $      (0.02)

    Extraordinary gain                            $         -      $         -


    Net Loss                                      $      (0.02)    $      (0.02)

    Basic and diluted weighted average
        shares outstanding                          69,914,869       47,203,585



<PAGE>


                STANSBURY HOLDINGS CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                         Three Months Ended
                                                             September 30
                                                          2000           1999
                                                     ------------   ------------
OPERATING ACTIVITIES
Net Income (Loss)                                    $(1,269,331)   $  (946,172)
Adjustments to reconcile
 Net Income (loss) to net cash provided
   by operations:
Stock issued for interest,Debt inducement and        $   661,974
compensation                                         $   711,854
 Depreciation                                        $       670
 Prepaid Expenses                                    $   (32,342)   $     4,823
Inventory                                            $   (45,888)
 Accounts Payable                                    $   179,376    $    44,289
Other Assets                                         $    (3,500)
 Accrued Interest Payable                            $       592
 Other Current Liabilities                           $     2,688    $    (6,353)

      Net cash provided by (used in)
      Operating Activities                           $  (502,931)   $  (194,389)

INVESTING ACTIVITIES
Mineral property                                     $(2,211,263)   $    25,833
Land                                                 $  (120,000)
 Other Property and Equipment                        $(2,503,143)   $     2,307
 Development Costs                                   $   (14,632)   $    53,854


     Net cash provided by (used in)
     Investing Activities                            $(4,849,038)   $   (81,994)


FINANCING ACTIVITIES
 Bank Overdraft
 Payments on Elk Creek obligations                                  $   (67,000)
 Payments on Sweetwater obligations
 Payments on convertible notes                                      $   311,680
 Satisfaction on convertible notes to shareholders                  $  (432,945)
Increase in Accrued Interest on Convertible notes
and Notes payable                                                   $    40,649
Stock Issued for conversion of Term Debt             $ 5,342,037    $   440,035

     Net cash provided by (used in)                  $ 5,342,037    $   292,419
     Financing Activities

Net cash increase for period                         $    (9,932)   $    16,036

Cash at beginning of period                          $    52,228    $    (7,648)

Cash at end of period                                $   (62,160)   $     8,388











<PAGE>


                 STANSBURY HOLDINGS CORPORATION AND SUBSIDIARIES
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stansbury Holdings Corporation  ("Stansbury") was incorporated in 1969 under the
name  Stansbury  Mining  Corporation.  In 1985,  Stansbury  changed  its name to
Stansbury Holdings  Corporation.  During June 1999, Stansbury acquired Elk Creek
Vermiculite,  Inc.  ("Elk  Creek"),  and its  wholly  owned  subsidiary,  Dillon
Vermiculite,  LLC  ("Dillon"),  as  well  as  formed  International  Vermiculite
Montana),  Inc., as a wholly owned subsidiary.  In May 2000,  Stansbury acquired
the Los Banos  Exfoliation  Plant through the company's  wholly owned California
subsidiary,   International  Vermiculite  (California),   Inc.  In  July,  2000,
Stansbury  acquired  Sweetwater  Garnet,  Inc.,  as a wholly  owned  subsidiary;
Sweetwater Garnet,  Inc., owns the Sweetwater Garnet Mine and concentration mill
in Madison County,  Montana,  and the Sweetwater  Garnet  Finishing Mill in near
Dillon, in Beaverhead County, Montana.

Stansbury,  Elk  Creek,  Dillon,   International  Vermiculite  (Montana),  Inc.,
International Vermiculite  (California),  Inc., and Sweetwater Garnet, Inc., are
referred to collectively  herein as the "Company." The Company's business is the
acquisition,  exploration,  and  development of industrial  mineral  properties,
particularly vermiculite and garnet mineral sites.

NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION - The consolidated financial statements have been prepared
assuming that the Company will continue as a going concern.  These statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.  These  financial  statements have been prepared in accordance with
generally  accepted  accounting  principles for interim  financial  information.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  such interim  statements  reflect all adjustments
(consisting  of normal  recurring  accruals)  necessary  to  present  fairly the
financial  position and the results of operations and cash flows for the interim
periods  presented.  The results of operations for these interim periods are not
necessarily  indicative  of the results to be expected for the full year.  These
financial statements should be read in conjunction with the audited consolidated
financial  statements and footnotes for the year ended June 30, 2000, filed with
the Company's Form 10-KSB.


         Principles of Consolidation
         ---------------------------

         The  consolidated  financial  statements  include  the  accounts of the
         Company and its wholly owned  subsidiaries.  All intercompany  balances
         and transactions are eliminated in consolidation.

         Cash and Cash Equivalents
         -------------------------

         The Company  considers all highly liquid  investments  purchased with a
         maturity of three months or less to be cash equivalents.
<PAGE>

         Inventory
         ---------

         Inventory is stated at the lower of cost or market.

         Undeveloped Mineral Claims and Projects
         ---------------------------------------

         The Company follows the full-cost  method of accounting for its mineral
         claims  and  projects.  Accordingly,  all  costs  associated  with  the
         acquisition,   exploration,  and  development  of  mineral  properties,
         including directly related overhead costs, are capitalized.  Once these
         properties are developed,  the  capitalized  costs will be amortized on
         the unit-of-production method using estimates of proved reserves.

         In addition, the capitalized costs are separated into cost centers on a
         state-by-state  basis.  The capitalized  costs for each cost center are
         subject to a "ceiling  test",  which limits such costs to the aggregate
         of the  estimated  present  value of future net  revenues  from  proved
         reserves,  plus the lower of cost or fair market  value of  undeveloped
         and unproved properties.

         Other Plant, Property, and Equipment
         ------------------------------------

         Other  plant,  property  and  equipment,  consisting  of the Los  Banos
         exfoliation plant, two buildings, and office equipment, are recorded at
         cost.  Depreciation is calculated using the  straight-line  method over
         the  estimated  useful lives of the assets,  which are 20 years for the
         plant and buildings, and 5 years for the office equipment.

         Revenue Recognition
         -------------------

         Revenue is recognized when products are shipped to customers.

         Income Taxes
         ------------

         The  Company  uses the asset and  liability  method of  accounting  for
         income taxes. Under the asset and liability method, deferred tax assets
         and   liabilities   are  recognized   for  the  estimated   future  tax
         consequences   attributable   to  differences   between  the  financial
         statement carrying amounts of existing assets and liabilities and their
         respective  tax bases.  This method also  requires the  recognition  of
         future tax benefits such as net operating  loss  carryforwards,  to the
         extent  that  realization  of such  benefits  is more  likely than not.
         Deferred  tax assets and  liabilities  are measured  using  enacted tax
         rates  expected to apply to taxable  income in the years in which those
         temporary differences are expected to be recovered or settled.

         Earnings (Loss) Per Share
         -------------------------

         Basic  earnings  (loss)  per share are  based on the  weighted  average
         shares  outstanding.  Outstanding  stock options and  convertible  debt
         obligations  are  generally  treated as common  stock  equivalents  for
         purposes of computing  diluted earnings per share.  However,  since the
         Company reported net losses for the years ended June 30, 2000 and 1999,
         these common stock  equivalents  are excluded from the  computation  of
         diluted  earnings per share  because their effect on net loss per share
         would be anti-dilutive.
<PAGE>

         Use of Estimates
         ----------------

         The preparation of consolidated 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  consolidated  financial  statements  and the  reported
         amounts of revenues and expenses  during the reporting  period.  Actual
         results could differ from those estimates.


NOTE 2 - GOING CONCERN STATEMENT

The Company emerged from Chapter 11 bankruptcy proceedings during 1985, and
has been non-operating  since that time until June, 2000. At September 30, 2000,
its  negative  working  capital was  approximately  $4,798,390  and  accumulated
deficit was approximately $11,674,340.

During 1999,  the Company  hired a new president who also now serves as chairman
of the Board of Directors and chief executive officer.  Eldon W. Brickle,  Chief
Operating  Officer  and  Executive  Vice-President,  was elected to the Board on
August 18, 2000. James R. Hindman,  Martin J. Peskin,  Edward C. Stanojev,  Jr.,
and Jeff Wertz each  resigned  from the Board on August  18,  2000,  in order to
exempt themselves from certain common stock lock-up agreements being required by
an  underwriter  who has  agreed  on a best  efforts  basis to  raise a  private
placement of $2.5 million for the company.

There can be no assurances that the Company or its joint venture partner will be
successful in obtaining the financing necessary to develop its mineral reserves.
Nor can there be any  assurances  that other sources of funds can be obtained to
cover general and administrative costs.

The Company's  independent  public  accountants  have included a "going concern"
emphasis  paragraph  in their  audit  report  accompanying  the  June 30,  2000,
consolidated  financial  statements  reported in the  Company's  10K-SB for that
reporting period.  The paragraph states that the Company's  recurring losses and
negative working capital raise  substantial doubt about the Company's ability to
continue as a going concern and cautions  that the  financial  statements do not
include adjustments that might result from the outcome of this uncertainty.

Management  believes that, despite the financial and funding  difficulties going
forward,  it now has a business plan that, if successfully  funded and executed,
will result in the development of its mining claims thereby improving  operating
results.

NOTE 3   ACQUSISITION OF SWEETWATER GARNET

During July 2000, Stansbury acquired all of the outstanding shares of Sweetwater
Garnet,  Inc., a Nevada  corporation  qualified  to do business in Montana.  The
acquisition  was  accounted  for as a purchase  and the  results  of  Sweetwater
Garnet's operations were included in the Company's 2000 consolidated  statements
of operations from the date of acquisition.
<PAGE>

Total consideration  included the issuance of 15,560,000 common shares valued at
$4,140,000,  the  assumption  of $480,000 in debt,  and payment of legal fees of
$7,500.

The assets of Sweetwater  Garnet  represent  various  developed and  undeveloped
mining  interests,  and an office  and mill  building,  located  in the state of
Montana. The total consideration of $4,627,500 was allocated as follows:

                  Land                       $  120,000
                  Equipment                   1,750,000
                  Building                      750,000
                  Mineral Property            2,007,500

Debt  obligations assumed by Stansbury included a $330,000 note payable due to a
creditor  of  Sweetwater  Garnet  (paid in full at  closing),  and a  $1,000,000
debenture  satisfied at closing by the issuance of 3,000,000  commons  shares of
Stansbury and the grant of a royalty interest, and a $150,000 debt obligation to
the parent of  Sweetwater  Garnet of which  $25,000 was paid at closing,  with a
note  and  mortgage  on the  Sweetwater  Garnet  assets  given  in  favor of the
parent/Seller.


NOTE  5  -  SWEETWATER GARNET, INC.,  ACQUISITION  OBLIGATIONS
          --------------------------------------

Obligations  resulting from the Sweetwater  Garnet  acquisition  (see Note 4) at
September 30, 2000, consisted of the following:

         One  promissory  note  payable          $   38,000

         One promissory note payable,
                  2nd mortgage to Tanqueray         125,000

         Promissory Note and Mortgage payable
                  To source of funds for closing    500,000
                                                  ----------

                                                 $  663,000
                                                  ==========

The  promissory  note for $38,000 bears  interest at the rate of 12%, and is due
currently.

The  promissory  note for $125,000 bears interest at the rate of 12%, and is due
as follows:  $25,000  plus  accrued  interest on August 28,  2000;  $50,000 plus
accrued  interest on September  28, 2000;  and $50,000 plus accrued  interest on
October 28, 2000. The entire amount is currently due and payable.

The Promissory  note payable to the source of funding for the $500,000  utilized
to effect the closing on the acquisition is payable interest monthly,  beginning
August 28, 2000,  and on the same day of each month  thereafter,  at the rate of
12% per annum.  Principal is payable  quarterly  at 30% of the profit  margin of
each ton of  vermiculite  concentrate  produced and sold by the Dillon  Project,
with a balloon  payment  of any  unpaid  principal  and  interest  due 36 months
following the date of acquisition. The note payments are current.
<PAGE>


NOTE 6 - COMMITMENTS AND CONTINGENCIES

Effective June 1, 1999, the Company  entered into a 37-month lease agreement for
office  space in Denver,  Colorado.  Rent is  payable  in  advance in  six-month
increments.  Rent  expense for the year ended June 30, 1999 was $2,000.  Minimum
future  annual rent  payments  are $24,000 for each of the years ending June 30,
2000 and 2001, and $22,000 for the year ending June 30, 2002.

The Company is obligated to the federal government for approximately $24,100
per year to maintain the  ownership of its mineral  claims.  These funds are due
and payable by noon, on September 1, each year, and have been aid through August
31, 2001.

Various legal  proceedings and claims are pending  against the Company.  Some of
the  plaintiffs in these matters are certain of the Company's  shareholders  and
former officers, and others are trade creditors.

Actions brought by shareholders and former officers generally pertain to default
in the repayment terms of amounts loaned to the Company. The Company is accruing
interest on these amounts  pursuant to the terms of the underlying  obligations.
At September 30, 2000, the principal amount of these  obligations is included in
long-term debt under the caption "officers, directors and shareholders."

Actions  brought by certain  trade  creditors  and others  have  resulted in the
Company  issuing  promissory  notes payable to those  creditors.  The Company is
accruing  interest  on these  amounts  pursuant  to the terms of the  promissory
notes. At September 30, 2000, the principal  amount of these promissory notes is
included in long-term debt under the caption "other".

Amounts due other trade  creditors who have brought  action  against the Company
are included in trade accounts  payable.  The total of these amounts included in
the  balance of  accounts  payable at  September  30,  2000,  was  approximately
$170,000.

An  action  has also  been  brought  by the  Company  with  respect  to the debt
obligation  that resulted from the Elk Creek  acquisition.  Management  believes
that the matter  will be settled  for an amount not  greater  than the  recorded
amount of that obligation at September 30, 2000 of $772,500.







<PAGE>


ITEM 2 - PLAN OF OPERATIONS

GENERAL

The Company is currently directing its efforts to:

(1)  Bringing  into   production  the  Dillon   (Montana)Vermiculite   Mine  and
     Concentration Mill, by assuming operational control of the project.

(2)  Bringing into  production  the Los Banos  (California)  Exfoliation  Plant,
     which the Company acquired in May of 2000.

(3)  Acquiring,  and preparing for operation,  the Sweetwater  Garnet  (Montana)
     Mine and concentration Mill

         The summer  quarter  (July  1-September  30, 2000),  was  significantly
impacted by the forest  fires which  ravaged  southwestern  Montana.  The United
States Bureau of Land  Management and United States Forest  Service  effectively
shut down mining and  milling  operations  at the  company's  facilities  on the
public domain in Ravalli,  Beaverhead and Madison Counties. The State of Montana
took similar action,  which  supplemented  the shutdown on State lands.  Through
repeated  efforts,  the  Company  was able to obtain  exemptions  from  complete
closure,  in order to continue  rehabilitation  and reconstruction of the Dillon
Vermiculite  Mill in  Beaverhead  County,  albeit with greatly  reduced hours of
operation and considerable expense in installing and maintaining additional fire
suppression capability.

         The  inability  to  operate  the  Dillon  Mine and Mill for much of the
summer  impacted  the  ability to deliver  product to the Los Banos  Exfoliation
Plant, and had a negative impact on both production of exfoliated  product,  and
the resulting  inability to build  inventory for sale,  although the Company did
have  occasional  sales  from  inventory  on  hand at the  time of  acquisition.
Production at Dillon resumed slowly during October, and product shipments to Los
Banos are expected to be adequate to meet customer demand in the fourth calendar
quarter, 2000.

         In July, 2000, the Company acquired  Sweetwater  Garnet,  Inc.(a Nevada
corporation qualified to do business in Montana), from Absolute Resources Corp.,
an Alberta,  Canada,  publicly traded company.  Sweetwater  Garnet,  Inc., now a
wholly owned subsidiary of the Company, is the owner of (1) an 1860 acre mineral
lease in Madison County,  Montana,  upon which a garnet  concentrating  mine and
mill are located,  and (2) the owner in fee of a finishing  mill located on four
acres in  Beaverhead  County,  Montana,  about  six  miles  south of the town of
Dillon,  Montana,  adjacent to Interstate  15 and a rail siding.  The Company is
currently adding minor improvements to the finishing mill, and purchasing garnet
ore  concentrate  from an independent  miner.  The Company plans to start-up the
finishing mill, to commence  mining on its mineral lease,  and to begin shipping
garnet product in the fourth quarter, 2000.


DESCRIPTION OF PROPERTIES AND OPERATIONS

A.   VERMICUILTE PROPERTIES AND OPERATIONS

     (1)  THE DILLON VERMICULITE PROJECT MINE AND MILL

          (a)  UNPATENTED LODE MINING CLAIMS:
<PAGE>

     The  mining  property  consists  of 95  unpatented  lode-mining  claims  of
approximately  20 acres each, or a total of 1300 acres (slightly over two square
miles).  Prior  owner's  exploration   indicated  that  drilling  had  confirmed
sufficient  ore at a 25% grade to support the mill at 30,000 tons of concentrate
output a year for a period of twenty years.

          (b)  MINE AND CONCENTRATION MILL:

     The  concentration  mill  consist of a building of  approximately  60 by 40
feet, with a thirty-foot  ceiling.  Outside the building,  the mill  "front-end"
consists of certain  gross  screening  processes  to remove  large waste rock, a
dryer to remove  moisture,  and a pre-feed storage bin. Inside the mill are four
double-screened   shaker  screens   feeding  up  to  twelve   winnowing   boxes.
Concentrated product from the winnowers is stored in three silos adjacent to the
mill.  Fuel tanks and a power plant are located  outside the mill  building.  As
designed,  the mill is  expected to be able to take up to 35 tons an hour of ore
feed,  and yield 4 to 5 tons per hour of  concentrate.  Tailings are returned to
the open pit from whence the ore is mined,  and reclaimed in place by contouring
and seeding the surface.

     (2)  THE HAMILTON VERMICULITE PROJECT

                  (a) FEE LAND AND IMPROVEMENTS: The Company owns a small office
building  and   surrounding   land  (1.25  acres)  at  Victor  Siding,   Montana
(southwestern Montana),  which can be used for a field office (the "Field Office
Property"),   and  which  building  is  adequate  to  use  presently  to  expand
exploration activities.

                  (b)  UNPATENTED  LODE MINING CLAIMS AND MILL SITE CLAIMS:  The
Company is the holder of 96  unpatented  lode-mining  claims in Ravalli  County,
Montana,  which were formerly  managed and developed  under the name of "Western
Vermiculite".  These claims and the  development of a mining and milling project
to exploit the Skalkaho Mountain  vermiculite deposit covered by these claims is
referred  to as the  "Hamilton  Vermiculite  Project".  A "mineral  deposit"  or
"mineralized  material"  is a  mineralized  body  which has been  delineated  by
appropriately   spaced  drilling  and/or  underground   sampling  to  support  a
sufficient  tonnage  and  average  grade of  metal(s).  Such a deposit  does not
qualify as a reserve,  until a  comprehensive  evaluation  based upon unit cost,
grade,  recoveries,  and other  material  factors  conclude  legal and  economic
feasibility.

                  Under the original Western  Vermiculite  Project,  the Company
proposed to build an open pit  vermiculite  mine,  haul road, ore  beneficiation
plant, host rock waste stockpile,  water storage tanks,  sedimentation ponds and
administrative and maintenance buildings. The Company has commenced construction
on this original project proposed as part of the Environmental  Impact Statement
study.  At this  current  point in  time,  the  Company's  mining  experts  have
recommended that, as part of the new Hamilton  Vermiculite  Project,  mining and
processing on the  vermiculite  property be commenced with a small mill designed
to produce the larger sized vermiculite concentrates (Sizes 0, 1, and 2).

                  The  Company's  96  unpatented  mining  and mill site  claims,
comprising  approximately  1,750 acres,  are located about 11 air miles East and
slightly North of Hamilton,  Montana.  Access to the property is by an improved,
private  road.  The  nearest  rail  siding,  located  on the  Montana  Rail Link
Railroad,  is an  additional  9 miles  North of  Hamilton,  Montana,  at  Victor
Crossing, Montana.
<PAGE>

                  The  mine  proposed  in  the  Environmental  Impact  Statement
("EIS")  would be located on ABM Ridge and would  involve  disturbance  of up to
approximately 77 acres. A portion of the permit area is comprised of unreclaimed
land disturbed by previous  mining  activities.  Prior mining  operations at the
proposed  project  site  are  documented  in the  EIS,  and  remnants  of  these
operations are evident on the site. At the request of the US Forest Service, the
Company performed reclamation work at the proposed mine site in September 1995.

     The  Company's  vermiculite  deposit  near  Hamilton,   Montana  was  first
identified  as a potential  deposit in the 1930s.  During the summer of 1986 the
Company conducted a drilling program on the Hamilton  vermiculite  deposit.  The
drilling  was  performed  by  Boyles  Brothers   Drilling  Company  of  Spokane,
Washington,  and consisted of 90 diamond core drill holes covering the ABM Ridge
and Horse Ridge areas.  The drilling  program  produced over 9,500 feet of core.
The core was split and representative  samples of each five-foot section of core
were analyzed by an independent laboratory for vermiculite content.

                  An  estimate  of  the  contained  vermiculite  deposit  in the
Company's  Hamilton  property  was made based on the  analyses  of the  drilling
program  samples.  An  estimate  made in 1987 by Western  Resources  Company and
indicated proven and probable ore reserves of 6.3 million tons of ore containing
628,000 tons of vermiculite.

                  The Company is aware that there are a number of variables  and
assumptions that enter into the calculation of proven (verified by drilling) and
probable  (extrapolated  from  nearby  drilling)  ore  deposits.  These  include
assumptions  of in-ground ore density and the  limitation  of an acceptable  ore
grade cutoff. There are other exposures of vermiculite ore outside ABM Ridge and
Horse Ridge and the  Company  notes that the area  covered by the 1986  drilling
program was only 33 acres compared to a total 1,750 acres currently under claim.
The Company assumes that  additional  drilling will verify  additional  deposits
within the ore body.

     (3)  THE LOS BANOS EXFOLIATION PLANT:

     The Los Banos  Exfoliation  Plant,  located  in the San  Joaquin  valley of
central  California,  was  acquired by the Company in May,  2000.  The  facility
consists of two rotary furnaces for the exfoliation of vermiculite,  and certain
ancillary equipment. The Plant is capable of processing 5000 tons of product per
year. All exfoliate product processed by the plant has been sold to customers in
the San Joaquin Valley.

     The  Company,  subsequent  to this  reporting  period,  has entered  into a
contract to purchase a larger  facility in which to relocate the equipment,  and
in which it may  expand  production  facilities  to up to 20000  tons per  year.
Additionally,  the company owns perlite  furnaces which it intends to install in
the new facility, with a capacity of 10000 tons per year of expanded perlite.

     (4)  CURRENT VERMICULITE MARKET AND COMPETITION

     All of the  vermiculite  that is now being mined in the United States comes
from mines in  Virginia  and South  Carolina.  W.R.  Grace & Company has a large
vermiculite operation near Enoree, South Carolina, which is capable of producing
approximately  100,000 short tons of vermiculite  concentrate per year. Virginia
Vermiculite Ltd. produces vermiculite from a mine near Woodruff, South Carolina,
and from a mine near Louisa,  Virginia.  The Company  believes that the combined
output of Virginia  Vermiculite Ltd. Is approximately 90,000 tons per year. Both
Grace and Virginia  Vermiculite consider their reserve and production data to be
confidential so the Company's estimates of their production are approximations.
<PAGE>

     There is one other small mining operation in South Carolina. This operation
was for many years  known as  Patterson  Vermiculite  and was  recently  sold to
Palmetto Vermiculite (now Virginia Vermiculite). This operation has historically
produced  vermiculite  at the rate of 15,000 tons per year. The sum total of all
three  companies is an estimated  maximum  production  capacity of 205,000 short
tons per year.

     The Company  believes that  vermiculite  produced from its Dillon  property
will be  competitive  with South  Carolina and Virginia  sources  throughout the
western United States and Canada.  There is no vermiculite mine currently active
in the western United States.

     Currently,  substantially  all of the vermiculite  imported into the United
States  and Canada  comes  from  either  the  Peoples  Republic  of China or the
Republic  of South  Africa.  The  amount  of  vermiculite  arriving  at ports in
California and Washington is quite small and  relatively  high priced.  Although
the  possibility  of larger and lower cost  shipments  of  imported  vermiculite
landing  on the  Pacific  Coast  is  possible,  the  Company  believes  that the
information  available at this time is  insufficient  to allow it to  reasonably
predict its potential impact on the marketability of its vermiculite ores.

B.   GARNET PROPERTIES AND OPERATIONS

     On July 28, 2000, the Company  acquired  Sweetwater  Garnet,  Inc.(a Nevada
corporation qualified to do business in Montana), from Absolute Resources Corp.,
an Alberta,  Canada,  publicly traded company.  Sweetwater  Garnet,  Inc., now a
wholly owned  subsidiary of the Company,  is the owner of the Sweetwater  Garnet
Mine and Mill Project.

     The Sweetwater  Garnet Mine and Mill Project consists of 1860 acre lease in
Madison County,  Montana,  upon which a garnet  concentrating  mine and mill are
located,  and a finishing  mill located on four acres of fee land in  Beaverhead
County, Montana, about six miles south of the town of Dillon, Montana,  adjacent
to  Interstate15  and a rail siding.  The  acquisition was completed on July 28,
2000.

     The garnet  facilities have a fully  permitted  capacity of at least 12,000
tons  per year of  finished  garnet,  which  in the  past  has been  sold to the
abrasives and water treatment industries. With modest expenditures, the mine and
two mills can be increased to 20,000 tons per year output,  which represents 20%
of current United States demand.  The Plant building can house further  capacity
increase  up to  50,000  tons per year.  Industrial  grade  garnet,  used in the
abrasives  industry,  and in water-jet  cutting and water treatment  facilities,
sells  generally for $180 to $225 per ton,  depending on size. The facilities of
Sweetwater  Garnet,  Inc., produce the full suite of sizes used in the industry.
The known ore body covers an extensive area from the surface to an average depth
of nine feet,  with an estimated  resource able to supply 16 years of ore to the
mills at a production rate of 20,000 tons of finished garnet per year.
<PAGE>

C.   LIQUIDITY AND FINANCE

Prior to 1999,  the  Company  had been  inactive  and  non-operating  for years;
consequently,  it is  questionable  as to  whether  or not it can remain a going
concern.  The primary  activity  in the past few years has been to preserve  and
maintain  mineral  leases and claims.  No actual  mining has occurred  since the
Company acquired such properties in 1984, other than the operations commenced in
December, 1999. Other than the revenues from recent production,  the Company has
had no income since 1991, and has utilized  proceeds of loans from  shareholders
and the issuance of capital stock for meeting its operating capital commitments.
Funding for Company  general and  administrative  expenses is not expected to be
satisfied by this source,  and further funding from  shareholders is expected to
be required in the 2000-2001 fiscal year.

                         PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

                                LEGAL PROCEEDINGS

Pending  actions  against the  Company,  as of November  10,  2000,  include the
following:

(1) An action against the Company by Ellsworth, Wiles & Chalphin, P.C., filed in
the Court of Common Pleas,  Bucks County,  Pennsylvania,  on September 14, 1998.
James G. Wiles  ("Wiles")  acted as former  counsel to the Company as partner in
Ellsworth,  Wiles & Chalphin,  P.C. The complaint alleges  $69,654.95 is due for
legal services  rendered by Wiles on behalf of the Company.  The matter has been
settled for $60,000, to be paid on a scheduled pay-out.

(2) The  Montana  Department  of  Environmental  Quality  issued two  Notices of
Noncompliance  regarding disturbances at the Dillon Vermiculite Property and the
Hamilton Property with Civil penalties totaling $42,950.  With respect to Dillon
Project,   the  Company  is  currently   negotiating   with  the  Department  of
Environmental Quality to pay $20,000 and to complete $20,000 in reclamation work
on various  abandoned mine sites around the State.  With respect to the Hamilton
Project, the proposed penalty is $500.

(3) A Notice of default on the note with  Nevada  Vermiculite  ,L.L.C.  that the
Company has failed to make a $130,000 payment plus interest due October 28,1999.
Management is diligently  pursuing  financing to cure the default.  No action as
been filed by the claiming party.

(4) An  agreement  between  the  Company  and four other  co-plaintiffs  against
Resource  Vermiculite,  L.L.C..  The  court  has  ordered  that the  Company  be
substituted  as plaintiff in place of all other  plaintiffs  as a result of that
agreement.  The Company is currently in the process of seeking  settlements with
the defendant.

(5) A judgment obtained by Dorsey & Whitney, a general partnership, in December,
1994, for $52,683 in principal,  along with prejudgment interest of $32,527, the
total  amount of which is $85,210 and is accruing  interest at an annual rate of
12% from December  1994;  at June 30, 2000 a proposed  settlement of $90,000 was
negotiated with agreement received subsequent to fiscal year end.

(6) A judgment obtained by Martineau & Co. in Salt Lake City, Utah, for $12,587,

(7) A judgment  obtained by Bruce  Blessington,  in Salt Lake County,  Utah, for
$14,674.  These  judgments  remain due and payable by the Company as of June 30,
2000.
<PAGE>

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

   None.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

   None.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

   None.

ITEM 5 - OTHER INFORMATION

   None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

   (a) 27.1 Financial Data Schedule

   (b) There  were no reports on Form 8-K filed  during the three  months  ended
       September 30, 2000.









<PAGE>
                                 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.

DATED: November 13, 2000              STANSBURY HOLDINGS CORPORATION


                                      By:/s/ Aldine J. Coffman, Jr.
                                         ALDINE J. COFFMAN, JR.,
                                         Chief Executive Officer and
                                         President


                                      By:/s/ Dennis R. Staal
                                         DENNIS R. STAAL, Chief Financial
                                         Officer and Treasurer





<PAGE>


                                 EXHIBIT INDEX
EXHIBIT                                              METHOD OF FILING
- -------                                        -----------------------------
27.    FINANCIAL DATA SCHEDULE                   Filed herewith electronically