UNITED  STATES
                       SECURITIES  AND  EXCHANGE  COMMISSION
                             Washington,  D.C.  20549
                                   FORM  10-QSB

     [  X  ]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
     SECURITIES  EXCHANGE  ACT  OF  1934

     For  the  quarterly  period  ended  March  31,  2001

     OR

     [    ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
     SECURITIES  EXCHANGE  ACT  OF  1934

      For  the  transition  period  from  to

Commission  file  number:   001-01428


                        METALINE  MINING  AND  LEASING  COMPANY


               Washington                                       91-0684860
(State of other jurisdiction of incorporation          (I.R.S. Employer Id. No.)
 or  organization)

601  West  Main  Avenue,  Suite  714
Spokane,  WA  99201-0677                                        99201-0677
(Address  of  principal  executive  offices)                    (Zip  Code)

                             (509)  455-9077
             (Issuer's  telephone  number,  including  area  code)

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 at least the past 90 days. Yes (X) No ()


State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of  the  latest  practicable  date   14,555,668

Transitional  Small  Business  Disclosure Format (check one);  Yes  ()  No  (X)
















<PAGE>
METALINE  MINING  AND  LEASING  COMPANY
FORM  10-QSB
FOR  THE  QUARTERLY  PERIOD  ENDED  MARCH 31, 2001

                         PART I. - FINANCIAL INFORMATION

Item  1  Financial  Information

METALINE  MINING  &  LEASING  COMPANY
BALANCE  SHEETS  (Unaudited)

                                                 March  31,      December  31,
                                                    2001             2000
                                               --------------   --------------

ASSETS
CURRENT  ASSETS:
     Cash                                      $     397,673    $     393,783
     Temporary cash investments                      690,879          682,234
                                               --------------   --------------
Total  cash  and  cash  investments                1,088,552        1,076,017

Federal  income  tax  receivable                         -                774
                                               --------------   --------------
Total  current  assets                             1,088,552        1,076,791

INVESTMENTS                                           12,180           12,790

MINING  PROPERTIES                                     5,068            5,068
                                               --------------   --------------
                                               $   1,105,800    $   1,094,649
                                               ==============   ==============

LIABILITIES  AND  STOCKHOLDERS'  EQUITY

CURRENT  LIABILITIES:
     Accounts  payable                                   308              308
     Federal  income  tax  payable                     1,106              -
                                               --------------   --------------
Total  current  liabilities                            1,414              308
                                               --------------   --------------

STOCKHOLDERS'  EQUITY:
     Common stock - 15,000,000 shares, no
      par value, authorized; 14,555,668
      shares issued and outstanding                  954,282          954,282
     Accumulated  other  comprehensive  income:
     Unrealized  loss,  marketable  securities        (7,311)          (6,701)
     Retained  earnings                              157,415          146,760
                                               --------------   --------------
Total  stockholders'  equity                       1,104,386        1,094,341
                                               --------------   --------------
                                               $   1,105,800    $   1,094,649
                                               ==============   ==============






See  accompanying  notes  to  financial  statements.

<PAGE>
METALINE  MINING  &  LEASING  COMPANY
STATEMENTS  OF  INCOME  (Unaudited)

                                                Three Months Ended March 31,
                                               -------------------------------
                                                    2001             2000
                                               --------------   --------------

INCOME:
     Dividend  and  interest  income           $      13,994    $       8,815
                                               --------------   --------------

EXPENSES:
     Professional  fees                                1,158               14
     Office  expense                                     301              311
     Taxes,  licenses,  and fees                         -                527
                                               --------------   --------------

                                                       1,459              852
                                               --------------   --------------

INCOME  BEFORE  FEDERAL  INCOME  TAX                  12,535            7,963

PROVISION  FOR  FEDERAL  INCOME  TAX                   1,880              -
                                               --------------   --------------

NET  INCOME                                    $      10,655    $       7,963
                                               ==============   ==============


BASIC  EARNINGS  PER  SHARE,  based  on
     weighted  average  shares  outstanding              NIL              NIL
                                               ==============   ==============



























See  accompanying  notes  to  financial  statements.

<PAGE>
METALINE  MINING  &  LEASING  COMPANY
STATEMENTS  OF  CASH  FLOWS  (Unaudited)

                                                Three Months Ended March 31,
                                               -------------------------------
                                                    2001             2000
                                               --------------   --------------
INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS

CASH  FLOWS  FROM  OPERATING  ACTIVITIES:

     Net  Income                               $      10,655     $      7,963
     Adjustments to reconcile net inomce to
       net cash provided by operating
       activities:
       Decrease  (increase)  in  assets:
         Income  tax  receivable                         774               -
       Increase (decrease) in liabilities:
         Accounts  payable                               -                 (9)
         Income  tax  payable                          1,106           (5,013)
                                               --------------   --------------
Net cash provided by operating activities             12,535            2,941
                                               --------------   --------------

NET INCREASE IN CASH AND CASH EQUIVALENTS             12,535            2,941

CASH AND CASH EQUIVALENTS, BEGINNING OF
  PERIOD                                           1,076,017        1,059,724
                                               --------------   --------------

CASH  AND  CASH  EQUIVALENTS,  END OF PERIOD    $  1,088,552    $   1,062,665
                                               ==============   ==============



























See  accompanying  notes  to  financial  statements.

<PAGE>
METALINE  MINING  &  LEASING  COMPANY
NOTE  TO  FINANCIAL  STATEMENTS


NOTE  --  BASIS  OF  PRESENTATION:

The  unaudited  financial  statements  have  been  prepared by Metaline Mining &
Leasing  Company  (the  Company),  pursuant  to the rules and regulations of the
Securities  and Exchange Commission (the SEC).  Certain information and footnote
disclosures  normally  included  in  financial statements prepared in accordance
with generally accepted accounting principles have been omitted pursuant to such
SEC  rules  and  regulations.  These  financial  statements  should  be  read in
conjunction  with  the  financial  statements  and notes thereto included in the
Company's  Annual  Report  on  Form 10-KSB for the year ended December 31, 2000,
which  was  filed  April 16, 2001.  In the opinion of management of the Company,
the foregoing statements contain all adjustments necessary to present fairly the
financial  position  of  the  Company  as  of March 31, 2001, and its results of
operations  for  the  three-month periods ended March 31, 2001 and 2000, and its
cash  flows  for  the  three-month  periods  ended March 31, 2001 and 2000.  The
interim  results  reflected  in  the  foregoing  financial  statements  are  not
considered  indicative  of  the  results  expected  for  the  full  fiscal year.









































<PAGE>
METALINE  MINING  AND  LEASING  COMPANY
FORM  10-QSB
FOR  THE  QUARTERLY  PERIOD  ENDED  MARCH 31, 2001

Item  2.  Management's  Discussion  and  Analysis  or  Plan  of  Operation

The Registrant has no revenues from operations. Our only income has been derived
from  interest.

Our  plan  of operation for the next twelve months will consist of attempting to
acquire an interest in a business opportunity. Due to our limited assets and our
inability  to  raise  additional  financing  due to the lack of a market for its
Common  Stock,  it  is anticipated that any such acquisition would be a "reverse
take-over"  accomplished  through  a merger or share exchange. In such event our
existing shareholders would likely become minority shareholders in the surviving
entity. We are  not currently evaluating any specific acquisition opportunities.

We  do not currently have any employees and anticipate utilizing the services of
consultants  to  accomplish  our plan of operation. We currently have sufficient
resources  to  meet  our  financial  obligations  for  the  next  twelve months.

                            PART II OTHER INFORMATION

Item  5.  Other  Information.

In  the  Form  10Q for the quarter ended September 30, 2000 it was reported that
Mr.  Albert  M.  Zlotnick  had  offered to sell his 7,277,834 shares back to the
Company  for  an aggregate sales price of $510,000. Since the per share price of
Mr.  Zlotnick's  offer was less than our current book value per share, the Board
of Directors had accepted Mr. Zlotnick's offer. Since that time the parties have
been  unable  to  agree  on  the  specific  terms  of the share purchase and Mr.
Zlotnick  has  decided  not  to  sell  his  shares  to  the  Company.

Item  6.  Exhibits  and  Reports  of  Form  8-K

(b)  Reports  on  Form  8-K

During  the  Quarter  ended  March  31, 2001 the Registrant filed  no Form 8-Ks:

     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.

METALINE  MINING  AND  LEASING  COMPANY


    /s/ Gregory B. Lipsker
BY: -----------------------          DATE:  May  18,  2001
GREGORY  B.  LIPSKER,  President

    /s/ William R. Green
BY: -----------------------          DATE:  May  18,  2001
WILLIAM  R.  GREEN,  Secretary