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, 2002

                                 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 & 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 & LEASING COMPANY
                                 FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002


                        PART I. - FINANCIAL INFORMATION

Item 1 Financial Information

METALINE MINING & LEASING COMPANY
BALANCE SHEETS (UNAUDITED)

                                                                 June 30,
                                                                   2002
                                                               ------------
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents:
    Cash                                                       $   383,132
    Temporary cash investments                                     710,687
                                                               ------------
        Total cash and cash equivalents                          1,093,819
                                                               ------------

PREPAID FEDERAL INCOME TAX                                           1,840

INVESTMENTS                                                         14,721

MINING PROPERTIES                                                    5,821
                                                               ------------
TOTAL ASSETS                                                   $ 1,116,201
                                                               ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

  Accounts payable                                             $       310

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                          (4,771)
  Retained earnings                                                166,380
                                                               ------------
        Total stockholders' equity                               1,115,891
                                                               ------------
                                                               $ 1,116,201
                                                               ============









See  accompanying  note  to  financial  statements.

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

<TABLE>
<CAPTION>
                                         Three Months               Year to Date
                                        Ended June 30,              Ended June 30,
                                   --------------------------  --------------------------
                                       2002          2001          2002         2001
                                   ------------  ------------  ------------  ------------
<S>                                <C>           <C>           <C>           <C>
INCOME:

  Dividend and interest income     $     3,520   $    12,144   $     7,117   $    26,138

EXPENSES:

  Professional fees                      2,591         7,088         7,240         8,246
  Office expense                           647           305           963           607
                                   ------------  ------------  ------------  ------------
                                         3,238         7,393         8,203         8,853
                                   ------------  ------------  ------------  ------------

INCOME (LOSS) BEFORE FEDERAL
  INCOME TAX                               282         4,751        (1,086)       17,285

PROVISION FOR FEDERAL INCOME TAX           -             713           -           2,593
                                   ------------  ------------  ------------  ------------

NET INCOME (LOSS)                  $       282   $     4,038   $    (1,086)  $    14,692
                                   ============  ============  ============  ============

BASIC (LOSS) EARNINGS PER SHARE,
  based on weighted average
  shares 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,
                                                     --------------------------
                                                         2002        2001
                                                     ------------  ------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net income (loss)                                  $    (1,086)  $    14,693
  Adjustments to reconcile net income (loss) to
    net cash provided by operating activities:
      Decrease in assets:
        Income tax receivable                                -             774
        Prepaid federal income taxes                      (1,454)          -
      Increase in liabilities:
        Accounts payable                                  (1,500)          -
        Income tax payable                                   -             573
                                                     ------------  ------------
          Net cash provided by operating activities       (4,040)       16,040
                                                     ------------  ------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS      (4,040)       16,040

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD         1,097,859     1,076,017
                                                     ------------  ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD             $ 1,093,819   $ 1,092,057
                                                     ============  ============



























See  accompanying  note  to  financial  statements.

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

NOTE 1 - 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 accounting principles generally  accepted  in the United States of America
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, 2001, which was filed  April  15, 2002.  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, 2002, and its results of operations for the three-month periods ended March
31, 2002 and 2001, and its cash flows for the three-month periods  ended  March
31,  2002  and  2001.  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 & LEASING COMPANY
                                 FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

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

Three Months Ended June 30, 2002

We had no revenues from operations  during  the recently completed quarter. Our
only  income has been derived from interest on  our  cash  and  temporary  cash
investments.  Interest  income  for  the three-month period ended June 30, 2002
decreased from  $12,144 to $3,520  for the  same  period ended  June 30,  2001.
This  decrease  is due to lower  interest rates  available  for  the  cash  and
temporary cash investments.

We had net income of $282 during the three-month period ended  June  30,  2002.
This  compares to net income of $4,038 during the three-month period ended June
30, 2001.  We  anticipate  continuing  nominal  net  income  until such time as
interest rates rise. Our expenses consist of accounting, legal and book keeping
expenses  related  to  complying with reporting requirements of the  Securities
Exchange Act of 1934.

Six Months Ended June 30, 2002

We had no revenues from  operations  during the six months ended June 30, 2002.
Our only income has been derived from  interest  on our cash and temporary cash
investments.  Interest income year- to-date for the six-month period ended June
30, 2002 decreased from $26,138 to $7,117 for the same  period  ended  June 30,
2001.  This  decrease is due to lower interest rates available for the cash and
temporary cash investments.

We have incurred  a  loss  of $1,086 during the six-month period ended June 30,
2002.  This compares to net income of $14,692 during the six-month period ended
June 30, 2001.  We anticipate continuing  losses  until such  time  as interest
rates  rise  to  a  level  that enables our interest income to meet our ongoing
administrative expenses.  Our  expenses  consist  of accounting, legal and book
keeping  expenses  related  to  complying with reporting  requirements  of  the
Securities Exchange Act of 1934.

Plan of Operation

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.









<PAGE>
                      METALINE MINING & LEASING COMPANY
                                 FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002


                           PART II OTHER INFORMATION

Items deleted are not applicable.

During the Quarter ended June 30, 2002 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 & LEASING COMPANY


       /s/ Gregory B. Lipsker
BY:                                  DATE:  AUGUST 14, 2002
-----------------------------------  ----------------------
GREGORY B. LIPSKER, PRESIDENT

       /s/ William Green
BY:                                  DATE:  AUGUST 14, 2002
-----------------------------------  ----------------------
WILLIAM R. GREEN, SECRETARY