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  June  30,  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            1-1428


                       METALINE  MINING  AND  LEASING  COMPANY


          Washington                                     91-0684860
(State or other jurisdiction of          (I.R.S. Employer Identification  No.)
incorporation 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  JUNE  30,  2001

                         PART I. - FINANCIAL INFORMATION

Item  1  Financial  Information

METALINE  MINING  &  LEASING  COMPANY
BALANCE  SHEET  (UNAUDITED)                                   JUNE  30,  2001
---------------------------                                   ---------------



ASSETS

CURRENT  ASSETS:

     Cash  and  cash  equivalents:
          Cash  in  bank                         $   393,230
          Temporary  cash  investments               698,827
                                                 ------------
          Total  current  assets                   1,092,057

INVESTMENTS                                          12,663

PARTNERSHIP  PROPERTIES                               5,068
                                                 ------------

                                                 $ 1,109,788
                                                 ============


LIABILITIES  AND  STOCKHOLDERS'  EQUITY

CURRENT  LIABILITIES:

     Accounts  payable                           $       308
     Income  tax  payable                                573
                                                 ------------
          Total  current  liabilities                    881

STOCKHOLDERS'  EQUITY:

     Common stock-15,000,000 shares, no par
       value,  authorized; 14,555,668 shares
       issued  and  outstanding                      954,282
     Accumulated other comprehensive income:
          Unrealized loss, marketable securities      (6,828)
     Retained  earnings                              161,453
                                                 ------------
          Total  stockholders'  equity             1,108,907
                                                 ------------

                                                 $ 1,109,788
                                                 ============




See  accompanying  note  to  financial  statements.

<PAGE>
METALINE  MINING  &  LEASING  COMPANY

STATEMENTS  OF  INCOME  (UNAUDITED)
-----------------------------------
<table>
                                   Three  Months                Year  to  Date
                                  Ended  June  30,             Ended  June  30,
                             --------------------------  --------------------------
                                 2001          2000          2001          2000
                             ------------  ------------  ------------  ------------

                          <c>           <c>           <c>           <c>
INCOME:
  Dividends and interest
    income                   $    12,144   $    15,761   $    26,138   $    24,576
                             ------------  ------------  ------------  ------------

EXPENSES:

  Professional  fees               7,088         8,401         8,246         8,415
  Office  expense                    305         5,748           606         6,059
  Taxes, licenses, and fees          -             256           -             783
                             ------------  ------------  ------------  ------------
                                   7,393        14,405         8,852        15,257
                             ------------  ------------  ------------  ------------

INCOME BEFORE INCOME TAXES         4,751         1,356        17,286         9,319

FEDERAL INCOME TAX EXPENSE           713         2,392         2,593         2,392
                             ------------  ------------  ------------  ------------

NET  INCOME (LOSS)           $     4,038     $  (1,036)  $    14,693   $     6,927
                             ============  ============  ============  ============

BASIC INCOME PER SHARE
  (based upon weighted
   average share outstanding)        NIL           NIL           NIL           NIL
                             ============  ============  ============  ============
</table>






















See  accompanying  note  to  financial  statements.

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

                                                 Six  Months  Ended June  30,
                                                ------------------------------
                                                     2001            2000
                                                --------------  --------------
INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS

CASH  FLOWS  FROM  OPERATING  ACTIVITIES:

  Net income                                    $      14,693   $       6,927
  Adjustments to reconcile net income
    to net cash provided by operating
    activities:
      (Increase) decrease in:
      Income tax receivable                               774             -
      Increase (decrease) in:
      Accounts  payable                                   -                (9)
      Income  tax  payable                                573          (5,013)
                                                --------------  --------------
Net cash provided by operating activities              16,040           1,905
                                                --------------  --------------

NET INCREASE IN CASH AND CASH EQUIVALENTS              16,040           1,905

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

CASH AND CASH EQUIVALENTS, END OF PERIOD        $   1,092,057   $  1,061,629
                                                ==============  ==============


























See  accompanying  note  to  financial  statements.

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


NOTE  --  BASIS  OF  PRESENTATION:


The financial statements included herein have been prepared by Metaline Mining &
Leasing  Company  (the  Company),  without  audit,  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.  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 June 30,
2001,  and  its results of operations for the three- and six-month periods ended
June  30, 2001 and 2000, and its cash flows for the six-month periods ended June
30,  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  JUNE  30,  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  6.  Exhibits  and  Reports  of  Form  8-K

(b)  Reports  on  Form  8-K

During  the  Quarter  ended  June  30,  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:  August  20,  2001
       GREGORY  B.  LIPSKER,  President

       /s/ William R. Green
BY: ------------------------------------         DATE:  August  20,  2001
       WILLIAM  R.  GREEN,  Secretary