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  September 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 SEPTEMBER 30,  2001

                         PART I. - FINANCIAL INFORMATION

Item  1  Financial  Information

METALINE  MINING  &  LEASING  COMPANY

BALANCE  SHEET  (UNAUDITED)                                   SEPTEMBER 30, 2001
---------------------------                                   ------------------



ASSETS

CURRENT  ASSETS:

     Cash  and  cash  equivalents:
     Cash  in  bank                                          $   392,769
     Temporary  cash  investments                                702,767
                                                             ------------
               Total  current  assets                          1,095,536

INVESTMENTS                                                       13,632

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

                                                             $ 1,114,236
                                                             ============

LIABILITIES  AND  STOCKHOLDERS'  EQUITY

CURRENT  LIABILITIES:

     Accounts  payable                                       $       308
     Income  taxes  payable                                          236
                                                             ------------
               Total  current  liabilities                           544

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                  (5,859)
     Retained  earnings                                          165,269
                                                             ------------

               Total  stockholders'  equity                    1,113,692
                                                             ------------

                                                             $ 1,114,236
                                                             ============



See  accompanying  note  to  financial  statements.

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

<TABLE>
                                        Three  Months              Year  to  Date
                                      Ended September 30,        Ended September 30,
                                  --------------------------  -------------------------
                                      2001          2000          2001         2000
                                  ------------  ------------  -----------  ------------
<S>                               <C>           <C>           <C>          <C>
INCOME:
  Dividends and interest income   $     7,105   $    13,824   $   33,243   $    38,400
                                  ------------  ------------  -----------  ------------

EXPENSES:

  Professional  fees                    1,966         2,276       10,212        10,691
  Office  expense                         650           300        1,256         6,359
  Taxes,  licenses,  and  fees            -              53          -             836
                                  ------------  ------------  -----------  ------------
                                        2,616         2,629       11,468        17,886
                                  ------------  ------------  -----------  ------------

INCOME  BEFORE  INCOME TAXES            4,489        11,195       21,775        20,514

FEDERAL  INCOME  TAX                     673          1,196       3,266          3,588
                                  ------------  ------------  -----------  ------------

NET INCOME                        $     3,816   $     9,999   $   18,509   $    16,926
                                  ============  ============  ===========  ============

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)
----------------------------------------


                                                         Nine  Months  Ended
                                                           September  30,
                                                     --------------------------
                                                         2001          2000
                                                     ------------  ------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH  FLOWS  FROM  OPERATING  ACTIVITIES:

  Net  income                                        $    18,509   $    16,926
  Adjustments to reconcile net income to net cash
    provided  by  operating  activities:
      (Increase) decrease in:
        Income  tax  receivable                              774           -
      (Decrease) increase  in:
        Accounts  payable                                    -             (9)
        Income  tax  payable                                 236       (5,013)
                                                     ------------  ------------
Net  cash  provided  by  operating  activities            19,519        11,904
                                                     ------------  ------------

NET  INCREASE  IN  CASH  AND  CASH  EQUIVALENTS           19,519        11,904

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

CASH  AND  CASH  EQUIVALENTS,  END OF PERIOD         $ 1,095,536   $ 1,071,628
                                                     ============  ============

























See  accompanying  note  to  financial  statements.

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



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  accounting  principles generally accepted in the
United  States  of  America  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 September 30, 2001, and its results of operations
for the nine-month periods ended September 30, 2001 and 2000, and its cash flows
for  the  nine-month  periods  ended  September  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 SEPTEMBER 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 September 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:  November 14, 2001
       GREGORY  B.  LIPSKER,  President

       /s/ William R. Green
BY: ------------------------------------         DATE:  November 14, 2001
       WILLIAM  R.  GREEN,  Secretary