**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
                10-QSB**




x
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES** **EXCHANGE ACT OF
                1934**




**For
                the quarterly period ended June 30,
                2007**




o
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES** **EXCHANGE ACT OF
                1934**




**For
                the transition period from __________ to __________**
              
              **Idaho
                General Mines, Inc.**
              (Name
                of small business issuer in its
                charter)****





**IDAHO**
            
            **000-50539**
            
            **91-0232000**(State
                or other jurisdiction
            
            Commission
                File Number
            
            (I.R.S.
                Employerof
                incorporation or organization)
            
            
            
            Identification
                No.)




**1726
      Cole Blvd., Suite 115**


**Lakewood,
      CO 80401**


**Telephone:
      (303) 928-8599**


(Address
      and telephone number of principal executive offices)




10
      North
      Post St., Suite 610


Spokane,
      WA 99201


(Former
      name, former address and former fiscal year, if changed since last report)






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
      xNO o**




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


**YES o** **NO
      x**




The
      number of shares outstanding of registrant’s common stock as of August 3, 2007
      was 56,334,005.




Transitional
      Small Business Disclosure Format (check one): **YES** o **NO x**













**PART
                  I****FINANCIAL
                  INFORMATION****ITEM
                  1.****FINANCIAL
                  STATEMENTS****IDAHO
                  GENERAL MINES, INC.****(AN
                  EXPLORATION STAGE COMPANY)****CONDENSED
                  CONSOLIDATED BALANCE
                  SHEETS**
  **At**
                    **June
                      30,**
                    **2007**
              
              **At
                    December 31, 2006****ASSETS:**
              
              **(Unaudited)**CURRENT
                  ASSETSCash
                  and cash equivalents
              
              $
              27,537,000
              
              $
              17,882,000Deposits
              
              
              238,000
              
              
              147,000Prepaid
                  expense and other assets
              
              
              106,000
              
              
              46,000Total
                  Current Assets
              
              
              27,881,000
              
              
              18,075,000Mining
                  properties, land and water rights
              
              
              16,958,000
              
              
              7,885,000Property
                  and equipment, net
              
              
              835,000
              
              
              431,000Restricted
                  cash held for reclamation bonds
              
              
              575,000
              
              
              —TOTAL
                  ASSETS
              
              $
              46,249,000
              
              $
              26,391,000**LIABILITIES
                  AND STOCKHOLDERS’ EQUITY**CURRENT
                  LIABILITIESAccounts
                  payable and accrued liabilities
              
              $
              2,751,000
              
              $
              951,000Provision
                  for post closure reclamation and remediation costs
              
              
              105,000
              
              
              —Current
                  portion of long term debt
              
              
              39,000
              
              
              19,000Total
                  Current Liabilities
              
              
              2,895,000
              
              
              970,000Provision
                  for post closure reclamation and remediation costs, net ofcurrent
                  portion
              
              
              324,000
              
              
              —Long
                  term debt, net of current portion
              
              
              87,000
              
              
              58,000Total
                  Liabilities
              
              
              3,306,000
              
              
              1,028,000STOCKHOLDERS’
                  EQUITYPreferred
                  stock, Series A, $0.001 par value; 10,000,000 sharesauthorized,
                  no shares issued and outstanding
              
              
              —
              
              
              —Common
                  stock, $0.001 par value; 200,000,000 shares authorized,54,959,000
                  and 43,398,000 shares issued and outstanding,respectively
              
              
              55,000
              
              
              43,000Additional
                  paid-in capital
              
              
              81,268,000
              
              
              45,223,000Accumulated
                  deficit before exploration stage
              
              
              (213,000
              )
              
              (213,000
              )Accumulated
                  deficit during exploration stage
              
              
              (38,167,000
              )
              
              (19,690,000
              )Total
                  Stockholders’ Equity
              
              
              42,943,000
              
              
              25,363,000TOTAL
                  LIABILITIES AND STOCKHOLDERS’ EQUITY
              
              $
              46,249,000
              
              $
              26,391,000The
                  accompanying notes are an integral part of these condensed consolidated
                  financial statements.




2




**IDAHO
                GENERAL MINES, INC.****(AN
                EXPLORATION STAGE COMPANY)****CONDENSED
                CONSOLIDATED STATEMENTS OF OPERATIONS****(Unaudited)**




**Three
                Months Ended**
            
            
            **Six Months
                Ended**
            
            
            **January
                1, 2002****(Inception
                of Exploration**
              **Stage)
                to****June
                30, 2007**
            
            
            **June
                30, 2006**
            
            
            **June
                30, 2007**
            
            
            **June
                30, 2006**
            
            
            **June
                30, 2007**REVENUES
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —
            
            $
            —OPERATING
                EXPENSES:Property
                research, exploration anddevelopment
            
            
            6,158,000
            
            
            1,706,000
            
            
            10,070,000
            
            
            2,816,000
            
            
            20,084,000General
                and administrativeexpense
            
            
            3,533,000
            
            
            3,308,000
            
            
            8,936,000
            
            
            4,413,000
            
            
            19,292,000Realized
                loss on marketablesecurities
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            321,000TOTAL
                OPERATING
                EXPENSES
            
            
            9,691,000
            
            
            5,014,000
            
            
            19,006,000
            
            
            7,229,000
            
            
            39,697,000LOSS
                FROM OPERATIONS
            
            
            (9,691,000
            )
            
            (5,014,000
            )
            
            (19,006,000
            )
            
            (7,229,000
            )
            
            (39,697,000
            )OTHER
                INCOMEInterest
                and dividend income
            
            
            361,000
            
            
            186,000
            
            
            529,000
            
            
            330,000
            
            
            1,465,000Realized
                gains
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            65,000TOTAL
                OTHER INCOME
            
            
            361,000
            
            
            186,000
            
            
            529,000
            
            
            330,000
            
            
            1,530,000LOSS
                BEFORE TAXES
            
            
            (9,330,000
            )
            
            (4,828,000
            )
            
            (18,477,000
            )
            
            (6,899,000
            )
            
            (38,167,000
            )INCOME
                TAXES
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            —NET
                LOSS
            
            $
            (9,330,000
            )
            $
            (4,828,000
            )
            $
            (18,477,000
            )
            $
            (6,899,000
            )
            $
            (38,167,000
            )BASIC
                AND DILUTED NETLOSS
                PER SHARE OFCOMMON
                STOCK
            
            $
            (0.17
            )
            $
            (0.13
            )
            $
            (0.38
            )
            $
            (0.21
            )WEIGHTED
                AVERAGENUMBER
                OF COMMONSHARES
                OUTSTANDINGBASIC
            
            
            53,642,000
            
            
            38,410,000
            
            
            48,767,000
            
            
            32,706,000FULLY
                DILUTED
            
            
            61,409,000
            
            
            46,191,000
            
            
            55,421,000
            
            
            41,791,000The
                accompanying notes are an integral part of these condensed consolidated
                financial statements.






3




**IDAHO
                  GENERAL MINES, INC.****(AN
                  EXPLORATION STAGE COMPANY)****CONDENSED
                  CONSOLIDATED STATEMENTS OF CASH FLOWS****(Unaudited)**
  **1-Jan-02****Six
                  Months**
              
              **Six
                  Months**
              
              **(Inception
                  of****Ended
                  June 30,**
              
              **Ended
                  June 30,**
              
              **Exploration
                  Stage****2007**
              
              **2006**
              
              **to
                  June 30, 2007**CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  loss
              
              $
              (18,477,000
              )
              $
              (6,899,000
              )
              $
              (38,167,000
              )Adjustments
                  to reconcile net loss to net cash used byoperating
                  activities:Services
                  and expenses paid with common stock
              
              
              304,000
              
              
              950,000
              
              
              1,754,000Depreciation
                  and amortization
              
              
              76,000
              
              
              14,000
              
              
              149,000Realized
                  loss on impairment of securities
              
              
              —
              
              
              —
              
              
              321,000Other
              
              
              —
              
              
              —
              
              
              17,000Equity
                  compensation for management and directors
              
              
              4,663,000
              
              
              745,000
              
              
              7,584,000Decrease
                  (increase) in restricted cash
              
              
              (84,000
              )
              
              —
              
              
              (84,000
              )Decrease
                  (increase) in deposits, prepaid expenses andother
              
              
              (151,000
              )
              
              (146,000
              )
              
              (373,000
              )(Decrease)
                  increase in accounts payable and accruedliabilities
              
              
              1,746,000
              
              
              (522,000
              )
              
              2,697,000(Decrease)
                  increase in post closure reclamation andremediation
                  costs
              
              
              220,000
              
              
              —
              
              
              220,000Net
                  cash used by
                  operating activities
              
              
              (11,703,000
              )
              
              (5,858,000
              )
              
              (25,882,000
              )CASH
                  FLOWS FROM INVESTING ACTIVITIES:Payments
                  for the purchase of equipment
              
              
              (480,000
              )
              
              (256,000
              )
              
              (858,000
              )Purchase
                  of securities
              
              
              —
              
              
              —
              
              
              (458,000
              )Purchase
                  of mining property, claims, options
              
              
              (8,475,000
              )
              
              (4,460,000
              )
              
              (15,941,000
              )Net
                  increase in debt
              
              
              49,000
              
              
              —
              
              
              49,000Cash
                  provided by sale of marketable securities
              
              
              —
              
              
              —
              
              
              247,000Net
                  cash used by investing activities
              
              
              (8,906,000
              )
              
              (4,716,000
              )
              
              (16,961,000
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES:Proceeds
                  from issuance of stock
              
              
              30,264,000
              
              
              32,719,000
              
              
              70,334,000Net
                  cash provided by financing activities
              
              
              30,264,000
              
              
              32,719,000
              
              
              70,334,000Net
                  increase (decrease) in cash and cash equivalents
              
              
              9,655,000
              
              
              22,145,000
              
              
              27,491,000Cash
                  and cash equivalents, beginning of period
              
              
              17,882,000
              
              
              257,000
              
              
              46,000Cash
                  and cash equivalents, end of period
              
              $
              27,537,000
              
              $
              22,402,000
              
              $
              27,537,000SUPPLEMENTAL
                  DISCLOSURES OF CASH FLOWINFORMATION:Income
                  taxes paid
              
              $
              —
              
              $
              —
              
              $
              —Interest
                  paid
              
              $
              3,000
              
              $
              —
              
              $
              3,000NON-CASH
                  INVESTING AND FINANCINGACTIVITIES:Common
                  stock issued for equipment
              
              $
              —
              
              $
              11,000
              
              $
              11,000Common
                  stock and warrants issued for property
              
              $
              826,000
              
              $
              —
              
              $
              1,201,000Restricted
                  cash held for reclamation bond acquired in abusiness
                  combination
              
              $
              491,000
              
              $
              —
              
              $
              491,000Post
                  closure reclamation and remediation costs assumed in abusiness
                  combination
              
              $
              209,000
              
              $
              —
              
              $
              209,000Accounts
                  payable and accrued expenses assumed in abusiness
                  combination
              
              $
              54,000
              
              $
              —
              
              $
              54,000The
                  accompanying notes are an integral part of these condensed consolidated
                  financial statements.
  4
  **IDAHO
      GENERAL MINES, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**




**NOTE
                1—BASIS OF PRESENTATION**




The
      interim Condensed Consolidated Financial Statements of Idaho General Mines,
      Inc.
      and its subsidiaries (collectively, “IGMI” or the “Company”) are unaudited. In
      the opinion of management, all adjustments and disclosures necessary for a
      fair
      presentation of these interim statements have been included. All such
      adjustments are, in the opinion of management, of a normal recurring nature.
      The
      results reported in these interim Condensed Consolidated Financial Statements
      are not necessarily indicative of the results that may be reported for the
      entire year. These interim Condensed Consolidated Financial Statements should
      be
      read in conjunction with IGMI’s Consolidated Financial Statements included in
      its Annual Report on Form 10-KSB for the year ended December 31, 2006.




On
      January 30, 2007, the Company completed the acquisition of all of the issued
      and
      outstanding shares of a corporation that owned a royalty interest in our
      Hall-Tonopah Property (see note 4). Upon its acquisition, the corporation was
      consolidated as a wholly owned subsidiary of the Company.




Certain
      amounts for the three and six months ended June 30, 2006 have been reclassified
      to conform to the 2007 presentation.




**NOTE
      2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**




This
      summary of significant accounting policies is presented to assist in
      understanding the financial statements. The financial statements and notes
      are
      representations of the Company’s management, which is responsible for their
      integrity and objectivity. These accounting policies conform to accounting
      principles generally accepted in the United States of America and have been
      consistently applied in the preparation of the financial statements.




**Accounting
                Pronouncements—Recent**




There
      are
      no recently issued accounting pronouncements that when adopted in a future
      period will have a material impact on the Company’s financial position or
      results of operations.




**Cash
                and Cash Equivalents**




For
      the
      purposes of the statement of cash flows, the Company considers all highly liquid
      investments with original maturities of three months or less to be cash
      equivalents.




**Estimates**




The
      process of preparing financial statements in conformity with accounting
      principles generally accepted in the United States of America requires the
      use
      of estimates and assumptions regarding certain types of assets, liabilities,
      revenues, and expenses. Such estimates primarily relate to unsettled
      transactions and events as of the date of the financial statements. Accordingly,
      upon settlement, actual results may differ from estimated amounts.




**Exploration
                Stage Activities**




The
      Company has been in the exploration stage since January 2002 and has not
      realized any revenue from operations. It will be primarily engaged in minerals
      exploration until it enters a development or operations stage.




5




**Fair
                Value of Financial
                Instruments**




The
      Company’s financial instruments include cash, accounts payable and accrued
      liabilities. All instruments are accounted for on a historical cost basis,
      which, due to the short maturity of these financial instruments, approximates
      fair value at June 30, 2007 and December 31, 2006.




**Mining
                Properties, Land and Water
                Rights**




Costs
      of
      acquiring and developing mining properties, land and water rights are
      capitalized as appropriate by project area. Exploration and related costs and
      costs to maintain mining properties, land and water rights are expensed as
      incurred. When a property reaches the production stage, the related capitalized
      costs are amortized using the units-of-production method on the basis of
      periodic estimates of ore reserves. Mining properties, land and water rights
      are
      periodically assessed for impairment of value, and any subsequent losses are
      charged to operations at the time of impairment. If a property is abandoned
      or
      sold, a gain or loss is recognized and included in operations.




**Mineral
                Exploration and Development
                Costs**




All
      exploration expenditures are expensed as incurred. Significant property
      acquisition payments for active exploration properties are capitalized. If
      no
      minable ore body is discovered, previously capitalized costs are expensed in
      the
      period the property is abandoned. Expenditures to develop new mines, to define
      further mineralization in existing ore bodies, and to expand the capacity of
      operating mines, are capitalized and amortized on a units-of-production basis
      over proven and probable reserves.




Should
      a
      property be abandoned, its capitalized costs are charged to operations. The
      Company charges to operations the allocable portion of capitalized costs
      attributable to properties sold. Capitalized costs are allocated to properties
      sold based on the proportion of claims sold to the claims remaining within
      the
      project area.




**Reclamation
                and Remediation**




Expenditures
      for ongoing compliance with environmental regulations that relate to current
      exploration operations are expensed. Expenditures resulting from the remediation
      of existing conditions caused by past operations that do not contribute to
      future revenue generations are expensed. Liabilities are recognized when
      environmental assessments indicate that remediation efforts are probable and
      the
      costs can be reasonably estimated.




Estimates
      of such liabilities are based upon currently available facts, existing
      technology and presently enacted laws and regulations taking into consideration
      the likely effects of inflation and other societal and economic factors, and
      include estimates of associated legal costs. These amounts also reflect prior
      experience in remediating contaminated sites, other companies’ clean-up
      experience and data released by The Environmental Protection Agency or other
      organizations. Such estimates are by their nature imprecise and can be expected
      to be revised over time because of changes in government regulations,
      operations, technology and inflation. Recoveries are evaluated separately from
      the liability and, when recovery is assured, the Company records and reports
      an
      asset separately from the associated liability.




**Provision
                for Taxes**




Income
      taxes are provided based upon the liability method of accounting pursuant to
      Statement of Financial Accounting Standards No. 109, “Accounting for Income
      Taxes” (hereinafter “SFAS No. 109”). Under this approach, deferred income taxes
      are recorded to reflect the tax consequences in future years of differences
      between the tax basis of assets and liabilities and their financial reporting
      amounts at each year-end. A valuation allowance is recorded against the deferred
      tax asset if management does not believe the Company has met the “more likely
      than not” standard imposed by SFAS No. 109 to allow recognition of such an
      asset.




6




**Basic
                and Diluted Net Loss Per
                Share**




Net
      loss
      per share was computed by dividing the net loss by the weighted average number
      of shares outstanding during the period. The weighted average number of shares
      was calculated by taking the number of shares outstanding and weighting them
      by
      the amount of time that they were outstanding. Diluted net loss per share for
      IGMI is the same as basic net loss per share, as the inclusion of common stock
      equivalents would be antidilutive.




**NOTE
                3—INVESTMENTS**




The
      Company accounts for its investments in debt and equity securities in accordance
      with the provisions of Statement of Financial Accounting Standards No. 115,
      “Accounting for Certain Investments in Debt and Equity Securities,” and reports
      its investments in available for sale securities at their fair value, with
      unrealized gains and losses excluded from income or loss and included in other
      comprehensive income or loss.




**NOTE
      4—MINING PROPERTIES, LAND AND WATER RIGHTS**




**Mount
      Hope.** The
      Company is currently in the process of evaluating the Mount Hope molybdenum
      project and acquiring necessary rights, land and claims related to the
      operations.




In
      November 2004, IGMI entered into an option to lease all property and assets
      of
      the Mount Hope Molybdenum Property from Mt. Hope Mines, Inc. and in October
      2005
      exercised its rights under the option. The renewable lease allows IGMI to
      proceed for the next 30 years with permitting, developing and mining the deposit
      and for so long thereafter as IGMI maintains an active operation. In 2004,
      the
      Company paid $456,000 and issued 500,000 shares of common stock with warrants
      to
      purchase 500,000 shares of common stock for the Mount Hope option.




Pursuant
      to the terms of the lease, the underlying total royalty on production payable
      to
      Mt. Hope Mines, Inc., less certain deductions, is three percent for a molybdenum
      price up to $12 per pound, four percent for a molybdenum price up to $15
      per pound, and five percent for a molybdenum price above $15 per pound (the
      “Production Royalties”). IGMI is subject to certain periodic payments as set
      forth in Note 11 “Commitments and Contingencies.” Additionally, IGMI is
      obligated to pay Exxon Mineral Company a one percent net smelter royalty on
      all
      production.




In
      July
      2006, the Company purchased deeded land which includes certain BLM grazing
      rights and certain water rights for $1,869,000. The primary purpose for the
      purchase of this asset was to acquire the water rights for use by the Mount
      Hope
      operations.




In
      November 2006, the Company purchased from Atlas Precious Metals, Inc. patented
      millsite claims, water rights and fee land in Eureka, Nevada for $107,000.
      As
      part of the purchase the Company paid $321,000 for 150,000 shares of Atlas
      Precious Metals, Inc. common stock. The investment in this common stock was
      written off in the year ended December 31, 2006. The primary purpose of this
      purchase was to acquire the water rights for the Mount Hope operation.




In
      April
      2007, the Company purchased land including all water rights and various personal
      property for cash of $3,200,000 and 50,000 shares of common stock valued at
      $308,000. The primary purpose of this purchase was to acquire the water rights
      for the Mount Hope operation.




In
      May
      2007, the Company purchased water rights for cash of $1,375,000 and 17,000
      shares of common stock valued at $98,000. The primary purpose of this purchase
      was to acquire the water rights for the Mount Hope operation.




**Hall-Tonopah.** The
      Company is currently in the process of exploration and evaluation of the
      Hall-Tonopah molybdenum project.





7


During
      the year ended December 31, 2005, the Company
      entered into an option agreement with High Desert Winds LLC (“High Desert”) for
      High Desert’s approximately ten square mile property in Nye County,
      Nevada, including
      water rights, mineral and surface rights, buildings and certain equipment (the
      “Hall-Tonopah Property”). On March 17, 2006, the Company entered into a purchase
      agreement with High Desert whereby it purchased a substantial portion of the
      Hall-Tonopah Property. At closing, the Company paid High Desert a cash payment
      of $4,460,000 for the portion of the Hall-Tonopah Property that it purchased
      and
      made a deferred payment of $990,000 in November of 2006 for the purchase of
      the
      remaining portion of this property for the total purchase price of $5,450,000
      including buildings and equipment at the Hall-Tonopah site. The primary purpose
      of the Hall-Tonopah purchase was to further the Company’s strategy of exploring
      and developing potential molybdenum properties.




At
      December 31, 2006, the Hall-Tonopah Property was subject to a 12 percent royalty
      payable with respect to the net revenues generated from molybdenum or copper
      minerals removed from the properties purchased. In January 2007, the Company
      completed the acquisition of all of the issued and outstanding shares of the
      corporation that held the 12 percent net smelter royalty interest in the mineral
      rights of the Hall-Tonopah Property and, as a result of this purchase, the
      Company now owns the Hall Tonopah Property and all associated mineral rights
      without future royalty obligations. As set forth in the Purchase Agreement,
      the
      Company paid approximately $3,691,000 in cash at closing, net of cash acquired
      of $1,246,000. At first commercial production of the property, the Company
      has
      agreed to pay an additional $6,000,000. Because the Company cannot determine
      beyond a reasonable doubt that the mine will attain commercial production,
      the
      Company has not recognized the $6,000,000 liability in its financial statements.
      In connection with the acquisition, the Company also received restricted cash
      totaling $491,000 and assumed reclamation and remediation costs, accounts
      payable and accrued liabilities of $263,000.




In
      March
      2007, the Company purchased a patented lode mining claim adjacent to the
      Hall-Tonopah Property for $175,000 cash. Additionally, in March 2007, the
      Company completed the purchase of certain patented lode mining claims referred
      to as the Liberty Claims on property adjacent to the Hall-Tonopah Property
      for
      cash of $75,000 and 150,000 shares of common stock valued at $420,000. These
      two
      acquisitions of mining claims were completed to control additional mineral
      rights needed for the development of the Hall-Tonopah Property. The Company
      currently believes that it has all the mineral, water and surface rights
      necessary to develop the Hall-Tonopah Property.




**Other
      Properties.** The
      Company’s mining claims and land purchased prior to 2006 consist in part of (a)
      approximately 107 acres of fee simple land in the Little Pine Creek area of
      Shoshone County, Idaho, (b) six patented mining claims known as Chicago-London
      group, located near the town of Murray in Shoshone County, Idaho, (c) 265 acres
      of private land with three unpatented claims in Josephine County, Oregon, known
      as the Turner Gold project.




The
      following is a summary of mining properties, land and water rights at June
      30,
      2007 and December 31, 2006:


**At
                  June 30,**
              
              **At
                  Dec. 31,****2007**
              
              **2006**Mount
                  Hope:Real
                  estate and water rights
              
              $
              6,804,000
              
              $
              1,971,000Total
                  Mount Hope
              
              
              6,804,000
              
              
              1,971,000Hall-Tonopah:Hall-Tonopah
                  Property
              
              
              9,162,000
              
              
              5,417,000Liberty
                  claims
              
              
              495,000
              
              
              —Total
                  Hall-Tonopah
              
              
              9,657,000
              
              
              5,417,000Other
                  Properties:Little
                  Pine Creek land
              
              
              1,000
              
              
              1,000Chicago-London
                  group
              
              
              80,000
              
              
              80,000Turner
                  Gold land
              
              
              416,000
              
              
              416,000Total
                  Other Properties
              
              
              497,000
              
              
              497,000Total
              
              $
              16,958,000
              
              $
              7,885,000


8




**NOTE
                5—PROPERTY AND
                EQUIPMENT**




During
      the six months ended June 30, 2007, the Company purchased depreciable assets
      such as vehicles, equipment and computers in the amount of $481,000. The
      vehicles, equipment and computers will be depreciated over useful lives of
      three
      to seven years using straight line depreciation. Depreciation expense for the
      six months ended June 30, 2007 was $76,000.




Capital
      assets are recorded at cost. Depreciation is calculated using the straight-line
      method over three to twenty years. The following is a summary of property,
      equipment, and accumulated depreciation at June 30, 2007 and December 31, 2006:




**Cost**
              
              
              **Accumulated
                    Depreciation**
              
              
              **Net
                        Book Value at June 30,
                        2007**
              
              
              **Net
                        Book Value at Dec. 31,
                        2006**Field
                  Equipment and Vehicles
              
              $
              391,000
              
              $
              67,000
              
              $
              324,000
              
              $
              167,000Office
                  Furniture and Computers
              
              
              326,000
              
              
              67,000
              
              
              259,000
              
              
              209,000Buildings
                  and Improvements
              
              
              267,000
              
              
              15,000
              
              
              252,000
              
              
              55,000Total
              
              $
              984,000
              
              $
              149,000
              
              $
              835,000
              
              $
              431,000





**NOTE
                6—RELATED PARTY
                TRANSACTIONS**




In
      January 2007, the Company entered into an employment agreement with a son of
      the
      Company’s Chairman for services as Director of Projects and Operations. Under
      this agreement, the Company granted a stock option to purchase 140,000 shares
      at
      $2.78 per share, the closing price of the Company’s stock on January 30, 2007.
      Also under this agreement the Company issued an additional 90,000 shares of
      nonvested common stock at $2.78 that will vest based on certain performance
      based milestones. The Company has recorded the expense associated with these
      shares this period as per the accounting guidelines of SFAS No. 123(R), *Share-Based
      Payment.*




Additional
      related party transactions are included as part of Note 9.




**NOTE
      7—COMMON STOCK AND COMMON STOCK WARRANTS**




In
      April
      2007, the Company completed the private placement of units for gross proceeds
      of
      $25,000,000 less placement agent and finder’s fees of $1,500,000. In the
      aggregate, the Company issued 7,353,000 units at a price of $3.40 per unit.
      Each
      unit consisted of one share of common stock and a warrant to purchase one half
      of one share of common stock. Each warrant will be exercisable at a price of
      $5.20 per whole share for a period of one year from the date of closing. The
      Units were offered and sold pursuant to exemptions from registration under
      Regulation S of the Securities Act of 1933, as amended (the “Securities Act”),
      for offers and sales occurring outside the United States, and Rule 506 of
      Regulation D and Section 4(2) of the Securities Act, as a transaction not
      involving any public offering.




During
      the six months ending June 30, 2007, the Company had the following issuances
      of
      common stock. The Company issued 303,000 shares of common stock upon the
      cashless exercise of warrants and 255,000 shares of common stock upon the
      cashless exercise of stock options. Warrants and options in the amount of
      2,779,000 and 326,000 were exercised for cash in the amount of $6,387,000 and
      $379,000 respectively. The Company issued 150,000 shares of common stock in
      the
      completion of the Liberty Claims purchase valued at $420,000, issued 17,000
      shares of common stock in the completion of a water rights purchase associated
      with Mount Hope valued at $98,000, issued 50,000 shares of common stock as
      part
      of the consideration paid for property in the Mount Hope vicinity valued at
      $308,000, and issued 75,000 shares of common stock in exchange for services
      valued at $304,000. The Company issued 620,000 shares of nonvested stock to
      officers and management of the Company. During the first six months of 2007,
      shareholders returned to the Company 39,000 shares of common stock due to a
      stock option exercise pricing error in 2006.




9




The
      following is a summary of common stock warrant activity for the six months
      ended
      June 30, 2007:




**Number
                  of****Shares
                  Under****Warrants**
              
              
              **Exercise
                  Price**Balance
                  at December 31, 2006
              
              
              12,268,000
              
              
              $0.80
                  to $3.75Issued
                  in connection with a private placement
              
              
              3,676,000
              
              
              $5.20Exercised
                  for cash
              
              
              (2,779,000
              )
              
              $0.80
                  to $3.75Exercised
                  in cashless exchange
              
              
              (400,000
              )
              
              $1.00Expired
              
              
              (60,000
              )
              
              $1.00Balance
                  at June 30, 2007
              
              
              12,705,000
              
              
              $0.80
                  to $5.20Weighted
                  average exercise price
              
              
              $3.82




Of
      the
      warrants outstanding at June 30, 2007, 7,050,000 are exercisable at $3.75 per
      warrant and expire February 2011; 3,676,000 are exercisable at $5.20 per share
      and expire April 2008; and the remaining 1,979,000 are exercisable at prices
      ranging from $.80 to $2.10 and expire through November 2010.




**NOTE
                8—PREFERRED STOCK**




In
      October 2004, shareholders of the Company authorized 10,000,000 shares of no
      par
      value preferred stock. The authorized but unissued shares of preferred stock
      may
      be issued in designated series from time to time by one or more resolutions
      adopted by the board of directors. The directors have the power to determine
      the
      preferences, limitations and relative rights of each series of preferred stock.




In
      November 2004, the board of directors unanimously consented to amend the
      articles of incorporation of the Company. The amendment reclassified 10,000,000
      shares of the Company’s no par value preferred stock into 10,000,000 shares of
      $0.001 par value Series A preferred stock. At June 30, 2007 and December 31,
      2006, no shares of $0.001 par value Series A preferred stock were issued or
      outstanding.




**NOTE
                9—STOCK BASED COMPENSATION**
              
              **Stock
                Based Compensation Plans**




During
      2006, the board of directors and shareholders adopted the Idaho General Mines,
      Inc. 2006 Equity Incentive Plan (the “2006 Plan”). During 2004, the board of
      directors and shareholders adopted the Idaho General Mines, Inc. 2003 Stock
      Option Plan (the “2003 Plan” and together with the 2006 Plan, the “Plans”). The
      purpose of the Plans is to give the Company greater ability to attract, retain,
      and motivate its officers and key employees. The Plans are intended to provide
      the Company with the ability to provide incentives more directly linked to
      the
      success of the Company’s business and increases in shareholder value.




Under
      the
      2006 Plan, the board of directors is authorized to grant incentive stock options
      (“ISOs”) to employees (pursuant to Internal Revenue Code 422), non-statutory
      stock options, restricted stock awards, restricted stock units and stock
      appreciation rights. The aggregate number of shares of common stock that may
      be
      issued pursuant to awards granted under the 2006 Plan will not exceed 3,500,000
      plus the number of shares that are ungranted and those that are subject to
      reversion under the 2003 Plan. As of June 30, 2007, the maximum number of shares
      available for issuance under the 2003 Plan was 360,000 shares. Shares under
      the
      2003 Plan that become eligible for awards under the 2006 Plan may not be granted
      again under the 2003 Plan.




**Stock
                Options**




During
      the six months ending June 30, 2007, the Company issued 1,865,000 options under
      the 2006 Plan with an exercise price ranging from $2.41 to $6.40 with vesting
      at
      various dates through 2009. These options were granted to members of the board
      of directors, officers, employees and consultants of the Company. The fair
      value
      of each option is estimated on the issue date using the Black-Scholes Option
      Price Calculation. The following assumptions
      were made in estimating the fair value: risk free interest of 4.94% to 5.05%;
      volatility of 88% to 91%; dividend rate of 0%; and expected life of 2.0 years.
      The total value of options awarded during the first six months of 2007 was
      calculated at $3,858,000. Expense was recorded of $2,947,000 for the options
      which were earned in the first six months ended June 30, 2007.




10




During
      the year ended December 31, 2006, the Company granted 1,665,000 non-qualified
      stock options outside of the Plans with an exercise price ranging from $2.25
      to
      $3.68 with vesting at various dates through 2008. These options were granted
      to
      members of the board of directors, officers, and employees of the Company.
      The
      Company issued 60,000 of ISOs within the 2003 Plan with an exercise price of
      $2.10 with vesting at various dates through 2008. The fair value of each option
      is estimated on the issue date using the Black-Scholes Option Price Calculation.
      The following assumptions were made in estimating the fair value: risk free
      interest of 5%; volatility of 101%; dividend rate of 0% and expected life of
      2.4
      years. The total value of options awarded during 2006 was calculated at
      $3,347,000. Expense was recorded of $2,326,000 for the options which were earned
      in 2006.




The
      following is a summary of the Company’s stock option plans as of June 30, 2007:


**Number
                  of**
              
              
              
              
              
              **Number
                  of securities****securities**
              
              
              
              
              
              **remaining
                  available****to
                  be issued upon**
              
              
              **Weighted
                  average**
              
              
              **for
                  future issuance****exercise
                  of**
              
              
              **exercise
                  price of**
              
              
              **under
                  equity****outstanding
                  options**
              
              
              **outstanding
                  options**
              
              
              **compensation
                  plans**Equity
                  compensation plans notapproved
                  by security holders
              
              
              2,057,000
              
              $
              1.20
              
              
              n/aEquity
                  compensation plansapproved
                  by security holders:2006
                  Plan
              
              
              1,845,000
              
              
              3.98
              
              
              1,015,000
              (1)2003
                  Plan
              
              
              540,000
              
              
              0.59
              
              
              360,000Total
              
              
              4,442,000
              
              $
              2.28
              
              
              1,375,000





(1)
      The
      aggregate number of shares of common stock that may be issued pursuant to awards
      granted under the 2006 Equity Incentive Plan will not exceed 3,500,000 plus
      the
      number of shares that are ungranted and those that are subject to reversion
      under the 2003 Stock Plan. Shares under the 2003 Plan that become eligible
      for
      awards under the 2006 Plan may not be granted again under the 2003 Plan.




The
                following is a summary of stock option activity in 2006 and
                2007:




**Number
                  of****Shares
                  Under****Warrants**
              
              
              **Exercise
                  Price**Outstanding
                  January 1, 2006
              
              
              4,020,000
              
              $
              0.43Granted
              
              
              1,725,000
              
              
              3.01Exercised
              
              
              (1,615,000
              )
              
              0.49Forfeited
              
              
              (480,000
              )
              
              1.57Expired
              
              
              —
              
              
              —Outstanding
                  at December 31, 2006
              
              
              3,650,000
              
              $
              1.48Options
                  exercisable at December 31, 2006
              
              
              2,705,000Weighted
                  average fair value of options granted during 2006
              
              $
              3.10Outstanding
                  January 1, 2007
              
              
              3,650,000
              
              $
              1.48Granted
              
              
              1,865,000
              
              
              3.97Exercised
              
              
              (956,000
              )
              
              2.48Forfeited
              
              
              (117,000
              )
              
              2.71Expired
              
              
              —
              
              
              —Outstanding
                  June 30, 2007
              
              
              4,442,000
              
              $
              2.28


Exercisable
                    at June 30, 2007
                
                
                3,402,000Weighted
                    Average Fair Value Granted During 2007
                
                $
                2.07


11




Nonvested
        Shares of Common Stock


During
      the six months ending June 30, 2007, the Company issued 620,000 shares of
      nonvested common stock to officers and employees of the Company that will vest
      based on certain performance based milestones established for each
      person **.** The
      total
      value of restricted stock awarded and expensed during the first six months
      of
      2007 was calculated at $1,716,000.




**NOTE
                10—INCOME TAXES**




At
      June
      30, 2007 and December 31, 2006, the Company had deferred tax assets principally
      arising from the net operating loss carry forwards for income tax purposes
      multiplied by an expected rate of 34%. As management of the Company cannot
      determine that it is more likely than not that the Company will realize the
      benefit of the deferred tax assets, a valuation allowance equal to the deferred
      tax asset has been established at June 30, 2007 and December 31, 2006. The
      significant components of the deferred tax asset at June 30, 2007 and December
      31, 2006 were as follows:




**June
                  30,**
              
              **December
                  31,****2007**
              
              **2006**Net
                  operating loss carry forward
              
              $
              12,202,000
              
              $
              8,425,000Deferred
                  tax asset
              
              $
              4,149,000
              
              $
              2,865,000Deferred
                  tax asset valuation allowance
              
              $
              (4,149,000
              )
              $
              (2,865,000
              )Net
                  deferred tax asset
              
              
              —
              
              
              —
  At
        June
        30, 2007 and December 31, 2006, the Company had a net operating loss carry
        forward of approximately $12,202,000 and $8,425,000 respectively, which expire
        in the years 2022 through 2027. The change in the allowance amount from December
        31, 2006 to June 30, 2007 was $1,284,000.




**NOTE
      11—COMMITMENTS AND CONTINGENCIES**




**Mount
                Hope**




The
      Mount
      Hope Lease Agreement requires a royalty advance (the “Construction Royalty
      Advance”) of the greater of $2,500,000 or 3% of the construction capital cost
      estimate upon the earliest of the Company’s securing project financing in
      sufficient amounts to develop and put into operation the Mount Hope property
      at
      a production level of at least 10 million pounds of annual production or October
      19, 2008.




12




The
      Company has the right to defer the Construction Royalty Advance for one or
      two
      years by payment of a deferral fee (the “Deferral Fee”) in the amount of
      $350,000 on or before October 19, 2008 and October 19, 2009 in the event project
      financing for the project has not been secured by each of the dates. By October
      19, 2010, the Company must pay at a minimum $2,500,000 of the Construction
      Royalty Advance with the remainder due upon securing project financing or 50%
      of
      the remainder on October 19, 2011 and the other 50% due on October 19, 2012.




Once
      the
      Company has paid in full the Construction Royalty Advance, the Company is
      obligated to pay an advance royalty (the “Annual Advance Royalty”) each October
      19 thereafter in the amount of $500,000 per year. The Construction Royalty
      Advance and the Annual Advance Royalty are collectively referred to as the
      “Advance Royalties”.
      All Advance Royalties are credited against the Production Royalties (see note
      4)
      once the mine has achieved commercial production. (The Deferral Fees are not
      recoverable against Production Royalties.)




Based
      on
      the Company’s current estimate of developing and operating the mine, we believe
      our contractual obligations under the Mount Hope Lease Agreement will be as
      shown in the following table. This estimate is based on our current estimates
      of
      the timing of securing project financing and construction capital costs. The
      Company is currently in the process of developing a new bankable feasibility
      study and our estimates of both the amount and the timing may change upon
      completion of the bankable feasibility study.


**Year**
              
              **Deferral
                  Fees**
              
              **Advance
                  Royalties**
              
              **Total**2007
              
              $
              350,000
              
              $
              —
              
              $
              350,0002008
              
              
              350,000
              
              
              —
              
              
              350,0002009
              
              
              —
              
              
              21,000,000
              
              
              21,000,0002010
              
              
              —
              
              
              500,000
              
              
              500,0002011
              
              
              —
              
              
              500,000
              
              
              500,000Thereafter
                  (1)
              
              
              —
              
              
              —
              
              
              —Total
              
              $
              700,000
              
              $
              22,000,000
              
              $
              22,700,000






(1)
      After
      the first full year of production the Company estimates that the Production
      Royalties will fully recover the Advance Royalties for the life of the project
      and, further, the Advance Royalties will be fully recovered (credited against
      Production Royalties) by the end of 2012. ****




**Environmental
                Considerations**




The
      Company owns and has owned mineral property interests on certain public and
      private lands in Shoshone County, Idaho. The Company’s mineral property holdings
      known as the Little Pine Creek and the Chicago-London properties include lands
      contained in mining districts that have been designated as “Superfund” sites
      pursuant to the Comprehensive Environmental Response, Compensation, and
      Liability Act. The Company and its properties have been and are subject to
      a
      variety of federal and state regulations governing land use and environmental
      matters. The Company believes it has been in substantial compliance with all
      such regulations, and is unaware of any pending action or proceeding relating
      to
      regulatory matters that would affect the financial position of the Company.
      The
      Company’s management acknowledges, however, that the possibility exists that the
      Company may be subject to further environmental liabilities associated with
      its
      properties in the future, and that the amount and nature of any liabilities
      the
      Company may be held responsible for is impossible to estimate.




**Other
      Commitments and Contingencies**




The
      Company has entered into miscellaneous notes for vehicles and leases for office
      equipment at various interest rates and terms totaling $140,000. The table
      below
      shows these obligations over the next five years.


**Year**
              
              **Lease
                  Payment**
              
              **Interest
                  on Leases**
              
              **Note
                  Payment**
              
              **Note
                  Interest**2007
                  (Remaining portion)
              
              $
              5,000
              
              $
              1,000
              
              $
              17,000
              
              $
              2,0002008
              
              
              10,000
              
              
              2,000
              
              
              35,000
              
              
              3,0002009
              
              
              10,000
              
              
              1,000
              
              
              35,000
              
              
              2,0002010
              
              
              10,000
              
              
              1,000
              
              
              6,000
              
              
              —2011
              
              
              10,000
              
              
              —
              
              
              —
              
              
              —Total
              
              $
              45,000
              
              $
              5,000
              
              $
              93,000
              
              $
              7,000




13




**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**




The
      following discussion of our financial condition and plan of operations
      constitutes management’s review of the factors that affected our financial and
      operating performance for the six months ended June 30, 2007 and 2006. This
      discussion should be read in conjunction with the financial statements and
      notes
      thereto contained elsewhere in this report and in our Form 10-KSB, for the
      year
      ended December 31, 2006.




**Overview**




We
      are in
      the business of the exploration, development and, if warranted, the mining
      of
      properties containing molybdenum, as well as silver, gold, base metals and
      other
      specialty metals. We currently have a 30-year renewable lease for the lands,
      surface rights, patented and unpatented claims related to the Mount Hope
      Project, a primary molybdenum property, located in Eureka County, Nevada. In
      2006, we acquired a second significant molybdenum project, the Hall-Tonopah
      project, located in Nye County, Nevada. We also own other properties and mineral
      rights on which we intend to conduct mineral exploration and evaluation for
      determining economic viability for further development. We continue to identify,
      investigate, and acquire other potential properties for future development.




**Mount
      Hope** .
      In
      November 2004, we entered into an option agreement with Mt. Hope Mines, Inc.,
      or
      MHMI, pursuant to which we were granted an exclusive one-year option to enter
      into a lease agreement for Mount Hope’s previously drilled molybdenum deposit
      consisting of 13 patented claims and 109 unpatented claims in Eureka County,
      Nevada, for a lease period of 30 years. In April 2005, we completed a Phase
      1
      Mine Feasibility Study with respect to Mount Hope and began the permitting
      process for placing into production an open pit molybdenum mine, concentrator
      and processing facility capable of producing 44,000 short tons (40,000 metric
      tons) of ore per day. In October 2005, we exercised the option and our lease
      agreement with MHMI became effective.




In
      December 2005, we completed a Technical Report that evaluated the potential
      to
      profitably extract the deeper portion of the Mount Hope deposit and augmented
      the mine plan contained in the 2005 Phase I Mine Feasibility Study. The
      augmented mine plan allowed for the mining and processing of 1.0 billion short
      tons (920 million tons) of molybdenum bearing rock over a mine production life
      of 50 or more years.




In
      June
      2007, the Company completed a five hole drill program that produced an aggregate
      of over 5,100 feet of core and 1,400 feet of RC drilling. The holes targeted
      mineralization expected to be mined within the first five years of the mine
      plan. The core material intersected long runs of mineralization with average
      molybdenum grades ranging between 0.145% and 0.118% ranging between 635 and
      905
      feet in thickness.




The
      Company intends to conduct another drilling program prior to the end of 2007,
      which will consist of approximately 14 holes (over 21,000 feet of core) that
      target mineralization within the first ten years of planned production.




In
      July
      2007, the Company announced plans to increase mill throughput capacity at Mount
      Hope from 44,000 short tons per day (40,000 metric tons) to an average of
      approximately 60,000 short tons per day (54,000 metric tons), with actual annual
      throughput dependant on ore characteristics and other factors. The increased
      throughput capacity is expected to expand average annual molybdenum production
      during the first ten years of production to 37 million pounds from the Company’s
      prior estimates of approximately 31 million pounds.




The
      Company is currently in the process of developing a bankable feasibility study
      with respect to the Mount Hope Project, which, due to the additional engineering
      required to accommodate the higher throughput capacity, is now scheduled to
      be
      completed in late August of 2007. The bankable feasibility study will include
      optimized mine and waste rock placement plans as well as revised estimates
      for
      capital and operating costs. As we are currently focused primarily on the
      development of the Mount Hope Project, we do not expect to generate revenues
      from operations before production of molybdenum begins at the Mount Hope
      Project.




14






**Hall-Tonopah**.
      In
      March 2006, we purchased from High Desert Winds LLC it’s approximately ten
      square mile property in Nye County, Nevada, including water rights, mineral
      and
      surface rights, buildings and certain equipment. The property includes the
      former Hall molybdenum and copper deposit which was mined by open pit methods
      between 1982 and 1985 by the Anaconda Minerals Company and between 1988 and
      1991
      by Cyprus Metals Company for molybdenum. Equatorial Tonopah, Inc. mined copper
      from 1999 to 2000 on this property. Much of the deposit was drilled but not
      developed or mined.




In
      January 2007, we purchased 100% of the corporation which owned a 12% net smelter
      returns royalty on the Hall-Tonopah Property, effectively eliminating the
      royalty on the property.




From
      January 2007 through April 2007, we completed a drilling program at Hall-Tonopah
      on the molybdenum mineralization of the existing molybdenum pit developed by
      Cyprus and an east extension mineralized area near the top of the east side
      of
      the existing pit. This program included 13 reverse circulation drill holes
      and
      six diamond drill holes.




The
      drilling program was designed to validate and confirm the continuity of
      mineralization indicated in the previous results of drilling by Anaconda and
      Cyprus. The new drilling confirmed previous drill results for the upper ore
      body, and has indicated near surface high grade mineralization greater than
      0.10% on the east side of the existing molybdenum pit.




The
      Company is conducting a pre-feasibility study on the Hall-Tonopah Property,
      which it expects to complete before year-end 2007.




**Other
      Properties** .
      We also
      currently own several other properties located in the western United States.
      These properties include additional molybdenum deposits as well as copper and
      gold deposits.




**Results
      of Operations for the Six Months Ended June 30, 2007**


**Compared
      to Six Months Ended June 30, 2006**




We
      are
      classified as an exploration stage company with no producing mines and,
      accordingly, we do not produce income. Our net loss for the six months ended
      June 30, 2007 was $(18,477,000) as compared to a net loss of $(6,899,000) for
      the six months ended June 30, 2006. The increase of $11,578,000 is attributable
      primarily to increased level of expenditures in exploration and research studies
      required to complete our Environmental Impact Statement and our bankable
      feasibility study at Mount Hope as well as continuing research and exploration
      at Hall-Tonopah as we continue to evaluate our molybdenum resources there.
      General and administrative costs are also increasing as we continue to expand
      our support personnel for the higher levels of activity in our exploration
      efforts.




Exploration
      and development expenditures of $10,070,000 were incurred at the Mount Hope
      Project and the Hall-Tonopah Project during the six months ended June 30, 2007,
      as we continued to drill and evaluate our properties. This is consistent
      with our stated objective to complete our Mount Hope Project plans and to focus
      on the permitting required to bring the project to commercial production and
      to
      confirm existing mineralization as well as identify additional molybdenum
      resources at Hall-Tonopah. The expenditures during the six months ended June
      30,
      2007 were related to this objective, including associated costs involved in
      properly evaluating and developing our feasibility study for the Mount Hope
      Project.




We
      also
      incurred corporate and administrative costs of $8,936,000 for the six months
      ended June 30, 2007 compared with $4,413,000 for the six months ended June
      30,
      2006 consistent with our increased activity levels. These costs include employee
      compensation expenses, increase in staffing levels of corporate personnel and
      associated costs, marketing and investor relations expenses, general legal
      expenses, and accounting and compliance issues reflecting the greater complexity
      of our operations.




During
      the six months ended June 30, 2007, we added key Officers, Directors and
      employees as a continuation of our previously announced reorganization of the
      executive team to keep up with our significant growth. In connection with our
      compensation programs we granted stock options and unvested common shares to
      attract, retain and motivate our Officers, Directors and key employees. As
      a
      result, we incurred non-cash equity compensation costs
      of
      $4,663,000 in the six months ended June 30, 2007 compared with $745,000 in
      the
      six months ended June 30, 2006. Approximately one half of the amount for the
      six
      months ended June 30, 2007 was as a result of the initial retention of Officers,
      Directors and employees and, accordingly, will not be of a recurring nature.




15





**Liquidity
                and Capital Resources**




We
      have
      limited capital resources and thus have to rely upon the sale of equity and
      debt
      securities for the cash required for exploration and development purposes,
      for
      acquisitions and to fund our administration. Since we do not expect to generate
      any revenues in the near future, we must continue to rely upon the sale of
      our
      equity and debt securities to raise capital. There can be no assurance that
      financing, whether debt or equity, will always be available to us in the amount
      required at any particular time or for any period or, if available, that it
      can
      be obtained on terms satisfactory to us.




Our
      cash
      balance at June 30, 2007 was $27,537,000 compared to $22,501,000 at June 30,
      2006. Total assets at June 30, 2007 were $46,249,000 compared to $27,943,000
      at
      June 30, 2006. The change in these balances reflects the purchase of property
      and water rights for our Mount Hope Project and the purchase of a corporation
      to
      secure the royalty at our Hall-Tonopah project offset by proceeds received
      in
      March 2007, from a private placement of equity. Current liabilities at June
      30,
      2007 were $2,895,000 compared to $293,000 at June 30, 2006. This increase in
      current liabilities reflects our increased accounts payable due to increased
      drilling expenses and expenses related to the preparation of our bankable
      feasibility study, and due to the increase in our required provision for post
      closure reclamation and remediation costs.




On
      January 10, 2006, we concluded a private placement of 3,442,000 units at a
      price
      of $1.10 per unit. Each unit consisted of one share of our common stock and
      one-half of one warrant to purchase one share of our common stock. Each whole
      warrant is exercisable for 24 months from the date of issuance and carries an
      exercise price of $1.75 per whole share. The gross proceeds of this offering
      were $3,786,000 and, after payment of sales commissions and finder’s fees, we
      received net proceeds of $3,621,000.




On
      February 15, 2006, we concluded a private placement of 15,000,000 units at
      a
      price of $2.00 per unit. Each unit consisted of one share of our common stock
      and a warrant to purchase one-half of a share of our common stock. Each whole
      warrant is exercisable for five years from the date of issuance and carries
      an
      exercise price of $3.75 per whole share. The gross proceeds of this offering
      were $30,000,000 and, after payment of sales commissions and finder’s fees, we
      received net proceeds of $27,875,000. In the aggregate, we issued 15 million
      shares of common stock and warrants to purchase an additional 8.3 million
      shares, including warrants issued as compensation to the placement agent.




On
      January 30, 2007, the Company completed its previously announced acquisition
      of
      all of the issued and outstanding shares of a corporation that held a 12 percent
      net smelter royalty interest in the mineral rights of the Company’s Hall-Tonopah
      molybdenum-copper property in Nye County, Nevada. The Company now owns the
      Hall-Tonopah Property and all associated mineral rights without future royalty
      obligations. As set forth in the Purchase Agreement, the Company paid
      approximately $4,937,000 in cash at closing. At first commercial production
      of
      the property, the Company has agreed to pay an additional
      $6,000,000.




In
      April
      2007, we concluded a private placement of 7,353,000 units for gross proceeds
      of
      $25,000,000, with net proceeds to the Company of approximately $23,500,000
      after
      legal and other related expenses. In the aggregate, the Company issued the
      units
      at a price of $3.40 per unit. Each unit consisted of one share of common stock
      and a warrant to purchase one half of one share of common stock. Each warrant
      will be exercisable at a price of $5.20 per whole share for a period of one
      year
      from the date of closing.




See
      note
      11 to the condensed consolidated notes to the financial statements for a
      discussion of commitments and contingencies.




**Changes
                in Accounting Policies**




We
      did
      not change our accounting policies during the six months ended June 30,
      2007.




16




**Special
                Note Regarding Forward-Looking
                Statements**




Certain
      statements in this report may constitute forward-looking statements, which
      involve known and unknown risks, uncertainties and other factors, which may
      cause actual results, performance or achievements of our company, the Mount
      Hope
      Project, Hall-Tonopah project and our other projects, or industry results,
      to be
      materially different from any future results, performance or achievements
      expressed or implied by such forward-looking statements. We use the words “may”,
“will”, “believe”, “expect”, “anticipate”, “intend”, “future”, “plan”,
“estimate”, “potential” and other similar expressions to identify
      forward-looking statements. Forward-looking statements may include, but are
      not
      limited to, statements with respect to the following:




·
            the
                timing
                and possible outcome of pending regulatory and permitting
                matters;




·
            the
                parameters and design of our planned initial mining facilities at
                the
                Mount Hope Project;




·
            future
                financial or operating performances of our company and our
                projects;




·
            the
                estimation and realization of mineral reserves, if
                any;




·
            the
                timing of
                exploration, development and production activities and estimated
                future
                production, if any;




·
            estimates
                related to costs of production, capital, operating and exploration
                expenditures;




·
            requirements
                for additional capital;




·
            government
                regulation of mining operations, environmental conditions and risks,
                reclamation andrehabilitation
                expenses;




·
            title
                disputes or claims;




·
            limitations
                of insurance coverage; and




·
            the
                future
                price of molybdenum, gold, silver or other
                metals.




You
      should not place undue reliance on these forward-looking statements, which
      speak
      only as of the date of this report. These forward-looking statements are based
      on our current expectations and are subject to a number of risks and
      uncertainties, including those set forth above. Although we believe that the
      expectations reflected in these forward-looking statements are reasonable,
      our
      actual results could differ materially from those expressed in these
      forward-looking statements, and any events anticipated in the forward-looking
      statements may not actually occur. Except as required by law, we undertake
      no
      duty to update any forward-looking statements after the date of this report
      to
      conform those statements to actual results or to reflect the occurrence of
      unanticipated events. We qualify all forward-looking statements contained in
      this report by the foregoing cautionary statements.




**ITEM
                3. **CONTROLS
                AND
                PROCEDURES****




An
      evaluation was performed under the supervision and with the participation of
      our
      management, including our principal executive officer and principal financial
      officer, of the effectiveness of our disclosure controls and procedures (as
      defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
      of
      1934) as of the end of the period covered by this Quarterly Report on Form
      10-QSB. Based on the foregoing, our management concluded that our disclosure
      controls and procedures are effective to ensure that information required to
      be
      disclosed by us in reports that we file or submit under the Exchange Act is
      recorded, processed, summarized and reported within the time periods specified
      in the Securities and Exchange Commission rules and forms and such information
      is accumulated and communicated to our management, including our principal
      executive officer and principal financial officer, to allow timely decisions
      regarding required disclosure.




There
      was
      no change in our internal control over financial reporting that occurred during
      the quarter ended June 30, 2007 that has materially affected, or is reasonably
      likely to materially affect, our internal control over financial reporting.




Additionally,
      the Company has engaged an outside Sarbanes-Oxley consultant to assist the
      Company in assessing the effectiveness of the internal controls over its
      financial reporting processes. The consultant will assist management in
      establishing the framework for compliance with Section 404(a) of the
      Sarbanes-Oxley Act of 2002.




17


**PART
                II**





**OTHER
                INFORMATION**




**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**




During
      the period covered by this quarterly report, the Company issued 7,353,000 units
      for gross proceeds of $25,000,000, with net proceeds to the Company of
      approximately $23,500,000 after legal and other related expenses. In the
      aggregate, the Company issued the units at a price of $3.40 per unit. Each
      unit
      consisted of one share of common stock and a warrant to purchase one half of
      one
      share of common stock. Each warrant will be exercisable at a price of $5.20
      per
      whole share for a period of one year from the date of closing. The Units were
      offered and sold pursuant to exemptions from registration under Regulation
      S of
      the Securities Act of 1933, as amended (the “Securities Act”), for offers and
      sales occurring outside the United States, and Rule 506 of Regulation D and
      Section 4(2) of the Securities Act, as a transaction not involving any public
      offering. In addition, the Company also issued the following securities during
      the second quarter: (i) 150,000 shares of common stock valued at $420,000 in
      connection with the purchase of certain patented lode mining claims referred
      to
      as the Liberty Claims on property adjacent to the Hall-Tonopah Property, (ii)
      75,000 shares of common stock to John Mears, a consulting geologist, in exchange
      for services valued at $304,000, (iii) 17,000 shares of common stock valued
      at
      $98,000 in the completion of a water rights purchase associated with Mount
      Hope,
      and (iv) 50,000 shares of common stock valued at $308,000 as part of the
      consideration paid for property in the Mount Hope vicinity. The foregoing
      issuances were exempt from the registration requirements of the Securities
      Act
      of 1933, as amended, pursuant to Section 4(2) thereof.




**ITEM
                5. **OTHER
                INFORMATION****




On
      July
      24, 2007, the Board of Directors adopted Corporate Governance Guidelines that,
      among other things, include the following requirements that relate to the
      procedures by which security holders may recommend nominees to the Board of
      Directors:




The
      Governance and Nominating Committee will consider candidates submitted for
      nomination by shareholders that satisfy the procedural requirements promulgated
      by the SEC and the American Stock Exchange, including Rule 14a-8(b)(1). Any
      shareholder with a nomination should submit such candidate’s name, along with a
      curriculum vitae or other summary of qualifications, experience and skills,
      a
      document signed by the candidate indicating the candidate’s willingness to serve
      if elected, and evidence of the shareholder’s ownership of Company stock to the
      Corporate Secretary, Idaho General Mines, Inc., at the corporate offices in
      Lakewood, Colorado. A shareholder wanting to formally nominate a candidate
      must
      do so by following the procedures described in the Company’s bylaws and proxy
      statement for the prior year.




**ITEM
      6. EXHIBITS**




**Exhibit****Number**
            
            **Description
                of Exhibit**31.1
            
            Certification
                of CEO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
                Act31.2
            
            Certification
                of CFO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
                Act32.1
            
            Certification
                of CEO pursuant to 18 U.S.C. Section 135032.2
            
            Certification
                of CFO pursuant to 18 U.S.C. Section 1350




18




**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the Registrant has duly
      caused this report to be signed on its behalf by the undersigned, thereunto
      duly
      authorized.




IDAHO
              GENERAL
              MINES, INC.Dated: August
              7, 2007
            By:
            /s/ 
Bruce
              D.
              HansenBruce D. Hansen
              Chief Executive Officer






19