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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
 FORM 10-QSB (Mark One) [X]
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGEACT
OF 1934
 For the quarterly period from 7-1-04 to 9-30-04 [  ]
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT.
 For the transition period from  to Commission file number 000-31025 METALINE CONTACT MINES 
  Washington
    
    91-0779945(State or jurisdiction of incorporation or
    
    (IRS Employer Identification No.)organization)
 W. 3848 Turtle Patch Road, Pine River WI 54965 
  920-987-5317 
  State the number of shares outstanding of each of the issuers classes of
common equity, as of the latest practical date: 14,531,254 Transitional Small Business Disclosure Format (Check one): Yes [  ] No [X]




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TABLE OF CONTENTS PAGEPART I  FINANCIAL INFORMATION
    
    
    F-1Item 1. Financial Statements
    
    
    3Item 2. Managements Analysis and Discussion
    
    
    4Item 3. Controls and Procedures
    
    
    4PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    5Item 2. Changes in Securities
    
    
    5Item 3. Defaults Upon Senior Securities
    
    
    5Item 4. Submission of Matters to a Vote of Security Holders
    
    
    5Item 5. Other Information
    
    
    5Item 6. Exhibits and Reports on Form 8-K
    
    
    5SIGNATURES
    
    
    5EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2
 -2-




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PART I  FINANCIAL INFORMATION 
 Item 1. Financial Statements  The Company has prepared the unaudited financial statements presented
below in accordance with accounting principles generally accepted in the
United States for interim financial information, as well as the
instructions to Form 10-QSB. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements. However, the financial
statements have been reviewed by the Companys independent auditors,
Williams & Webster, P.S., using professional standards and procedures for
conducting such reviews established by generally accepted auditing
standards, and we include herewith their report. It is the opinion of
the Companys management that all adjustments considered necessary for
the fair presentation of the interim financial statements have been
included. Operating results for the nine-month period ended September
30, 2004 are not necessarily indicative of the results that may be
expected for the full year ending December 31, 2004.  For further information refer to the financial statements and footnotes
thereto in the Companys Annual Report on Form 10-KSB for the year ended
December 31, 2003.  Subsequent Event. See Part II  Other Information, Item 2  Changes in
Securities, below.




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METALINE CONTACT MINES FINANCIAL STATEMENTS
September 30, 2004 Williams & Webster, P.S.Certified Public AccountantsBank of America Financial Center
601 W. Riverside, Suite 1940
Spokane, WA 99201 F-1




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METALINE CONTACT MINES TABLE OF CONTENTS REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
    
    
    F-3FINANCIAL STATEMENTSBalance Sheets
    
    
    F-4Statements of Operations
    
    
    F-5Statement of Stockholders Equity
    
    
    F-6Statements of Cash Flows
    
    
    F-7NOTES TO FINANCIAL STATEMENTS
    
    
    F-8
 F-2




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The Board of Directors
Metaline Contact Mines
Murray, Idaho REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We have reviewed the accompanying balance sheet of Metaline Contact Mines as of
September 30, 2004 and 2003, and the related statements of operations,
stockholders equity, and cash flows for the nine months ended September 30,
2004 and 2003. These interim financial statements are the responsibility of the
management of Metaline Contact Mines. We conducted our review in accordance with standards established by the Public
Company Accounting Oversight Board (United States). A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with auditing standards of the Public Company Accounting Oversight
Board, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion. Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with accounting principles generally accepted in the United States
of America. The financial statements for the year ended December 31, 2003 were audited by
us and we expressed an unqualified opinion on them in our report dated March 5,
2004. We have not performed any auditing procedures since that date. Williams & Webster, P.S.Certified Public Accountants
Spokane, Washington
October 18, 2004 F-3




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METALINE CONTACT MINES
BALANCE SHEETS September 30,2004
    
    December 31,(Unaudited)
    
    2003ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    93,103
    
    
    $
    105,687Total Current Assets
    
    
    93,103
    
    
    
    105,687OTHER ASSETSReceivables from related parties
    
    
    109,413
    
    
    
    109,413Accrued interest receivable
    
    
    28,722
    
    
    
    22,978Investments
    
    
    35,942
    
    
    
    33,935Website, net of amortization
    
    
    1,000
    
    
    
    Prepaid expenses
    
    
    350
    
    
    
    Total Other Assets
    
    
    175,427
    
    
    
    166,326TOTAL ASSETS
    
    $
    268,530
    
    
    $
    272,013LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESDeferred royalty income
    
    $
    3,880
    
    
    $
    3,880Total Current Liabilities
    
    
    3,880
    
    
    
    3,880COMMITMENTS AND CONTINGENCIES
    
    
    
    
    
    
    STOCKHOLDERS EQUITYCommon stock, $0.05 par value;
20,000,000 shares authorized, 14,531,254 and
14,064,300 shares issued and outstanding, respectively
    
    
    726,570
    
    
    
    703,222Additional paid-in capital
    
    
    316,582
    
    
    
    302,165Stock options
    
    
    47,907
    
    
    
    17,907Accumulated deficit
    
    
    (826,409
    )
    
    
    (755,161
    )Total Stockholders Equity
    
    
    264,650
    
    
    
    268,133TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    268,530
    
    
    $
    272,013
 See accompanying notes and accountants review report. F-4




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METALINE CONTACT MINES
STATEMENTS OF OPERATIONS Three Months EndedSeptember 30,
    
    September 30,2004
    
    2003(Unaudited)
    
    (Unaudited)REVENUESRoyalty income
    
    $
    3,880
    
    
    $
    3,880GENERAL AND ADMINISTRATIVE EXPENSESConsulting and management fees
    
    
    30,000
    
    
    
    1,500Property expense
    
    
    
    
    
    
    Professional fees
    
    
    6,628
    
    
    
    3,000Administrative expenses
    
    
    3,123
    
    
    
    6,123TOTAL EXPENSES
    
    
    39,751
    
    
    
    10,623OPERATING LOSS
    
    
    (35,871
    )
    
    
    (6,743
    )OTHER INCOME (LOSS)Dividend income
    
    
    137
    
    
    
    41Interest income
    
    
    1,915
    
    
    
    1,915Loss from investment in LLC
    
    
    (144
    )
    
    
    (85
    )TOTAL OTHER INCOME
    
    
    1,908
    
    
    
    1,871LOSS BEFORE TAXES
    
    
    (33,963
    )
    
    
    (4,872
    )INCOME TAX EXPENSE
    
    
    
    
    
    
    NET LOSS
    
    $
    (33,963
    )
    
    $
    (4,872
    )NET LOSS PER COMMON SHARE,
BASIC AND DILUTED
    
    $nil
    
    $nilWEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING,
BASIC AND DILUTED
    
    
    14,531,254
    
    
    
    14,064,300
 See accompanying notes and accountants review report. F-5




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METALINE CONTACT MINES
STATEMENT OF STOCKHOLDERS EQUITY Common Stock
    
    AdditionalPaid-in
    
    Stock
    
    Accumulated
    

TotalStockholdersShares
    
    Amount
    
    Capital
    
    Options
    
    Deficit
    
    EquityBalance, December 31, 2002
    
    
    14,064,300
    
    
    $
    703,222
    
    
    $
    302,165
    
    
    $
    17,907
    
    
    $
    (738,208
    )
    
    $
    285,086Net loss for the year ended December 31, 2003
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,953
    )
    
    
    (16,953
    )Balance, December 31, 2003
    
    
    14,064,300
    
    
    
    703,222
    
    
    
    302,165
    
    
    
    17,907
    
    
    
    (755,161
    )
    
    
    268,133Common stock issued at $0.08 per share
for property expense
    
    
    466,954
    
    
    
    23,348
    
    
    
    14,417
    
    
    
    
    
    
    
    
    
    
    
    37,765Stock options issued for directors fees
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,000
    
    
    
    
    
    
    
    30,000Net loss for the nine months ended
September 30, 2004
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (71,248
    )
    
    
    (71,248
    )Balance, September 30, 2004 (unaudited)
    
    
    14,531,254
    
    
    $
    726,570
    
    
    $
    316,582
    
    
    $
    47,907
    
    
    $
    (826,409
    )
    
    $
    264,650
 See accompanying notes and accountants review report. F-6




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METALINE CONTACT MINES
STATEMENT OF CASH FLOWS Nine Months EndedSeptember 30,
    
    September 30,2004
    
    2003(Unaudited)
    
    (Unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
    
    $
    (71,248
    )
    
    $
    (11,747
    )Adjustments to reconcile net loss to net cash
provided (used) by operating activities:Net loss in investment in LLC
    
    
    393
    
    
    
    848Stock options issued for directors fees
    
    
    30,000
    
    
    
    Changes in assets and liabilities:Increase in interest receivable
    
    
    (5,744
    )
    
    
    (5,745
    )Increase in prepaid expenses
    
    
    (350
    )
    
    
    (2,000
    )Increase in website
    
    
    (1,000
    )
    
    
    Payment of expenses from issuance of stock
    
    
    37,765
    
    
    
    Net cash provided (used) by operating activities
    
    
    (10,184
    )
    
    
    (18,644
    )CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:Cash advance repaid by related party
    
    
    
    
    
    
    18,000Investment purchased
    
    
    (2,400
    )
    
    
    Net cash provided (used) by investing activities
    
    
    (2,400
    )
    
    
    18,000CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
    
    
    
    
    
    
    Net increase (decrease) in cash
    
    
    (12,584
    )
    
    
    (644
    )Cash, beginning of period
    
    
    105,687
    
    
    
    111,124Cash, end of period
    
    $
    93,103
    
    
    $
    110,480SUPPLEMENTAL CASH FLOW DISCLOSURES:Income taxes paid
    
    $
    
    
    
    $
    Interest paid
    
    $
    
    
    
    $
    NON-CASH TRANSACTIONS:Payment of expenses from issuance of stock
    
    $
    37,765
    
    
    $
    
 See accompanying notes and accountants review report. F-7




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Item 2. Managements Discussion and Analysis or Plan of Operations  Results of OperationsThe Company had revenues from operations of $3,880 in the third quarter
of 2004, the same as in the third quarter of 2003. The Company
experienced an increased operating loss of $35,871 in the third quarter
of 2004, versus $6,743 in the third quarter of 2003. The increased loss
of $29,128 was due primarily to the increase in management fees as a
result of granting stock options to two newly appointed directors.There was an increase in management and consulting fees to $30,000 in the
third quarter of 2004, versus $1,500 in the third quarter of 2003. The
increase was due to the granting of 500,000 share options valued at $0.06
per share to two new directors. Professional fees, consisting of legal
and accounting, were $6,628 in the third quarter of 2004, versus $3,000
in the third quarter of 2003. The increase, $3,628, was due to the
billing cycle of the Companys auditors. There was a 49% decrease in
administrative expenses in the third quarter of 2004, to $3,123, versus
$6,123 in the third quarter of 2003. The difference of $3,000 is
attributable to the termination of the Companys Offices Services
Agreement with Murrayville Land Company LLC, and a decrease in financial
printing (Edgar) expenses associated with SEC filing requirements.During the third quarter of 2004, the Companys other income increased by
$37, to $1,908 from $1,871, due primarily to an increase in dividend
income.It should be noted that excluding the charge to management fees of
$30,000 for the granting of stock options to directors, the Companys
operating loss decreased by $872, or 13%, from $6,743 in the third
quarter of 2003 to $5,871 in the third quarter of 2004. In addition, the
Companys net loss decreased by $909, or 19%, from $4,872 in the third
quarter of 2003 to $3,963 in the third quarter of 2004.Financial ConditionThe Company can continue at its current level of operations for 2
additional years without the necessity of additional capital.
Professional fees (auditing/accounting), and related administrative costs
associated SEC reporting requirements, are the Companys most significant
expenses. Thereafter, the Company may require additional capital.
Additional capital could be obtained from increased revenues from
operations, and/or the sale of shares of the Companys authorized, but
unissued, common stock.Any production decision on the Companys mineral rights and properties
that could significantly increase its revenues is under the sole
discretion and control of Teck Cominco American Incorporated and New
Jersey Mining Company. Further, there are no assurances that the Company
would be able to sell shares of its common stock on terms acceptable to
the Company. Any such sales of shares could be dilutive to the Companys
then-existing shareholders, and any debt financings could involve
restrictive covenants with respect to future capital raising activities,
and other financial and operational matters.Presently there are no trends, events or uncertainties that have, or are
reasonably likely to have, a material impact on the Companys short-term
or long-term liquidity; there are no material commitments for capital
expenditures, except for the management of its own business affairs; and
there are no known trends, events or uncertainties that have or that are
reasonably expected to have a material impact on the revenues from
operations. -3-




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Liquidity and Capital ResourcesHistorically, the Company has funded its capital requirements from
revenues from operations, interest earned on its cash accounts, and other
income. As of September 30, 2004, the Companys cash position was
$93,103, compared to $ 110,480 on September 30, 2003.The Company has no debt. The Company does not expect to incur any
debt in the immediate future to expand its current level of operations.
The Company has no financial obligations under the New Cominco Lease, the
Golden Chest Lease, or the New Jersey Exploration Agreement. Its most
significant cash requirements are accounting fees and other expenses
associated with U.S. Securities and Exchange Commission reporting
requirements. The Company has a related party receivable from MCMLLC in
the amount of $109,413, with accrued interest of $28,722, as of September
30, 2004. As the Managing Member of MCMLLC, the Company believes it has
the ability to collect on this receivable in the event of a shortfall of
cash. In addition, the Company will receive a 5% Net Smelter Return
(NSR) royalty payment from New Jersey Mining Company for development
ore stockpiled at the Golden Chest Mine. The amount of the royalty will
not be determined until the 4th quarter of 2004 when the ore is
processed, and the concentrates are sold.Based on the foregoing, it is managements opinion that at its current
level of operations the Company can satisfy its working capital
requirements internally in the immediate future without the need to seek
outside sources of equity or debt funding.Subsequent EventEffective November 1, 2004, MCMLLC assigned the above-described
receivable and accrued interest to Nor-Pac Limited Company (Nor-Pac).
Nor-Pac owns a 93% equity membership interest in MCMLLC. The Company
consented to the assignment. 
 Item 3. Controls and Procedures  The Companys Chief Executive Officer (CEO) and Chief Financial Officer
(CFO) performed an evaluation of the effectiveness of the design and
operation of the Companys disclosure controls and procedures. On that
evaluation, the CEO and CFO concluded that the Companys current
disclosure controls and procedures were effective as of September 30,
2004 in ensuring that all material information required in this quarterly
report has been made known to them in a timely fashion.  There have been no changes in the Companys internal controls over
financial reporting during the quarter ended September 30, 2004 that has
materially affected, or is reasonably likely to materially affect, its
internal controls over financial reporting.  For further information refer to the Controls and Procedures section in
the Companys Annual Report on Form 10-KSB for the year ended December
31, 2003, incorporated herein by reference. 
 PART II  OTHER INFORMATION 
 Item 1. Legal Proceedings  The Company is not a party to any legal proceedings, and management is
not aware of any threatened litigation, claims or assessments. -4-




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Item 2. Changes in Securities  There has been no change in securities for the quarter ending September
30, 2004.  Subsequent Event  Effective November 1, 2004, the Company reacquired 748,065 of its shares,
representing approximately 5% of its outstanding stock. The shares were
obtained through a distribution made to the Company by Metaline Contact
Mines LLC. The Company owns a 7% equity membership interest in the LLC.
The reacquired shares will be returned to the treasury and become
authorized, but unissued, shares. 
 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  Exhibit 31.1  Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.Exhibit 31.2  Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.Exhibit 32.1  Certification Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.Exhibit 32.2  Certification Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.There were no reports filed on Form 8-K during the three month period
ended September 30, 2004. 
 SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized. DATED this the 15th day of November, 2004
    
    METALINE CONTACT MINESBy:
    
    /s/ John W. BeasleyJohn W. BeasleySecretary/Treasurer/CFO
 -5-