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<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10 - KSB

-X- ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
    ACT  OF  1934
    For  the  fiscal  year  ended  December  31,  1999
    OR;
--- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
    EXCHANGE  ACT  OF  1934
    For  the  transition  period  from

Commission  File  Number        0-29786

                             MINES MANAGEMENT, INC.
             ------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)

             Idaho                                             91-0538859
---------------------------------                       -----------------------
(State or other jurisdiction of                          (I.R.S.  Employer
incorporation  or  organization)                          Identification  No.)

905  W.  Riverside  Avenue,  Suite  311
Spokane,  Washington                                            99201
------------------------------------------            -------------------------
(Address  of  principal  Executive  Office)                  (Zip  Code)

Registrant's  telephone  number,  including  area  code:         (509) 838-6050

Securities  Registered pursuant to Section 12 (g) of the Act:

                       COMMON STOCK,  PAR  VALUE  $0.01
                             (Title  of  Class)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section 13 or 15(d) of the Securities 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 the past ninety (90)
days.     Yes    (X)      No    (  )

     Check  if  there  is no disclosure of delinquent filers in response to Item
405  of  Regulation S-B is not contained in this form, and no disclosure will be
contained,  to  the  best  of  registrant's  knowledge,  in  definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or  any  amendment  to  this  Form  10-KSB.  (X)

     State  issuer's  revenues  for  its  most recent fiscal year.       $29,622

     State the aggregate market value of the voting and non-voting common equity
held  by  non-affiliates  computed by reference to the price at which the common
equity was sold, or the average bid and asked price of such common equity, as of
a  specified  date within the past 60 days.  Based upon the average bid price at
January  31,  1999  the aggregate market value was                    $1,236,739

     State  the  number of shares outstanding of each of the issuer's classes of
common equity, as of December 31, 1999          4,946,956 shares of Common Stock

DOCUMENTS INCORPORATED BY REFERENCE: None
Transitional  Small  Business  Disclosure  Format  (check  one): Yes ( )   No(X)

<PAGE>                                 1
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999



                                     PART I

ITEM  1.     DESCRIPTION  OF  BUSINESS

General

Mines  Management,  Inc.   (together  with   its  subsidiaries,   "MMI"  or  the
"Company"),  is  engaged in the business of acquiring, exploring, and developing
mineral  properties,  primarily  those containing silver and associated base and
precious  metals.  The  Company  was incorporated under the laws of the State of
Idaho  on  February 20, 1947.  The Company has a wholly owned subsidiary, Newhi,
Inc.  Newhi,  Inc. was incorporated under the laws of the State of Washington on
November  3,  1987.  The  Company's  executive  offices  are  located  at  905 W
Riverside,  Suite  311,  Spokane,  WA  99201.

With  the  exception of historical matters, the matters discussed in this report
are  forward-looking  statements  within  the  meaning of the Private Securities
Litigation  Reform  Act  of  1995 and involve risks and uncertainties that could
cause  actual  results  to  differ  materially  from  projections  or  estimates
contained  herein.  Such forward-looking statements include statements regarding
planned  levels  of  exploration and other expenditures, anticipated mine lives,
timing  of  production  and schedules for development.  Factors that could cause
actual  results  to  differ  materially  include,  among  others  ,metals  price
volatility.  Most  of  these factors are beyond the Company's ability to predict
or  control.  The Company disclaims any obligation to update any forward-looking
statement  made  herein.  Readers  are  cautioned  not  to put undue reliance on
forward-looking  statements.  (  See  Investment  Considerations).

All  of  the  Company's properties are currently in the exploration stage except
for the Montanore property, which is in the stage of determining feasibility for
development.  No  property  is  currently  in  production.

The  Company  conducts exploration and development on projects containing silver
and  associated  base and precious metal values.  The company primarily seeks to
obtain royalty and other carried ownership interests in these properties through
the  subsequent  transfer  of  operating  interests  to  other mining companies.
Although  the  Company  may  engage  in  mining  operations at some future time,
substantially  all of the Company's revenue is and can be expected to be derived
from  royalty  interests  for  the  foreseeable  future.

The  Company's  principal  mineral property interest is held by its wholly owned
subsidiary,  Newhi,  Inc.,  and  consists of a net profits royalty interest in a
portion of the claims making up the Montanore project.  The Montanore project is
located  in northwestern Montana, USA, and is operated by Noranda Minerals.  The
project  has an approved Environmental Impact Statement, has received all of its
primary  permits,  and  has  been  the  subject  of a variety of pre-feasibility
technical  analyses.  Noranda  Minerals  has reported a geologic resource of 142
million  tons  containing  0.76%  copper  and 2.1 ounces of silver per ton.  The
Company  is  also  conducting  exploration on its Cha arcillo silver property in
Chile and its Iroquois and Advance zinc-lead properties in Washington, USA.  The
Company  is  also  evaluating  opportunities  in  Mexico  and the United States.

The  Company  also  has  a small royalty income from a working interest royalty,
acquired  more  than  40  years  ago, for several producing oil wells located in
Kansas,  USA.

<PAGE>                                 2
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

Competition

There  is  aggressive  competition  within the minerals industry to discover and
acquire  properties  considered  to  have  commercial  potential.  The  Company
competes  for  the  opportunity to participate in promising exploration projects
with  other entities, many of which have greater resources than the Company.  In
addition,  the  Company  competes  with others in efforts to obtain financing to
explore  and  develop  mineral  properties.

Employees

During the year ending December 31, 1999, the Company had one full-time employee
and  one  part-time  employee  located  in  Spokane,  Washington.  The Company's
employees  are  not  subject  to a union labor contract or collective bargaining
agreement.  The  Company  executive  officers  provide  management  service on a
non-salaried  basis.  On  occasion, such officers perform consulting services to
the  Company  at  their  usual  and  customary  rates.

Regulation

The  Company's  activities  in the United States are subject to various federal,
state,  and  local  laws  and  regulations  governing  prospecting, development,
production,  labor  standards,  occupational  health and mine safety, control of
toxic  substances,  and  other  matters  involving  environmental protection and
taxation.  It is possible that future changes in these laws or regulations could
have a significant impact on the Company's business, causing those activities to
be  economically  reevaluated  at  that  time.

Investment  Considerations

The  following  Investment  Considerations,  together with other information set
forth  in this Form 10-KSB, should be carefully considered by current and future
investors  in  the  Company's  securities.

Risks  of  Passive  Ownership

At  present,  the  Company's  principal  asset  is its interest in the Montanore
property.  The  Company's  success is dependent on the extent to which Montanore
proves  to  be  successful  and  on  the  extent to which the Company is able to
acquire  or  create  other  royalty  or  property  interests.

The  holder of a royalty interest typically has no executive authority regarding
development  or  operation of a mineral property.  Therefore, unless the Company
is  able  to secure and enforce certain extraordinary rights, it can be expected
that the Company will not be in control of basic decisions regarding development
and  operation  of  the  properties  in  which the Company may have an interest.

Thus,  the  Company's  strategy  of having others operate properties in which it
retains  a  royalty or other passive interest puts the Company generally at risk
to  the  decisions  of  others  regarding all basic operating matters, including
permitting,  feasibility  analysis,  mine  design and operation, and processing,
plant and equipment matters, among others.  While the Company attempts to obtain
contractual  rights  that will permit the Company to protect its position, there
can  be  no  assurance

that  such  rights  will  be  sufficient  or  that the Company's efforts will be
successful  in  achieving  timely  or  favorable  results.

<PAGE>                                 3
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


Risks  Inherent  in  the  Mining  Industry

Mineral exploration and development is highly speculative and capital intensive.
Most  exploration  efforts are not successful, in that they do not result in the
discovery  of  mineralization of sufficient quantity or quality to be profitably
mined.  The  operations of the Company are also indirectly subject to all of the
hazards  and  risks  normally  incident  to  developing  and  operating  mining
properties.  These  risks  include  insufficient  ore  reserves, fluctuations in
production  costs  that  may  make  mining  of  reserves uneconomic; significant
environmental  and  other  regulatory  restrictions;  labor disputes; geological
problems;  failure  of  pit walls or dams; force majeure events; and the risk of
injury  to  persons,  property  or  the  environment.

Uncertainty  of  Reserves  and  Mineralization  Estimates

There  are  numerous  uncertainties  inherent  in estimating proven and probably
reserves  and  mineralization,  including many factors beyond the control of the
Company.  The  estimation of reserves and mineralization is a subjective process
and the accuracy of any such estimates is a function of the quality of available
data  and of engineering and geological interpretation and judgment.  Results of
drilling,  metallurgical testing and production and the evaluation of mine plans
subsequent  to  the date of any estimate may justify revision of such estimates.
No  assurances  can be given that the volume and grade of reserves recovered and
rates of production will not be less than anticipated.  Assumptions about prices
are  subject  to greater uncertainty and metals prices have fluctuated widely in
the  past.  Declines  in  the  market  price of base or precious metals also may
render  reserves  or  mineralization  containing  relatively lower grades of ore
uneconomic to exploit.  Changes in operating and capital costs and other factors
including, but not limited to, short-term operating factors such as the need for
sequential  development of ore bodies and the processing of new or different ore
grades,  may  materially  and  adversely  affect  reserves.

Proposed  Federal  Legislation

The  U.S.  Congress  is  currently  considering a proposed major revision of the
General  Mining  Law,  which  governs  the creation of mining claims and related
activities on federal public lands in the United States.  Each of the Senate and
the House of Representatives has passed a separate bill for mining law revision,
and  it  is  possible that a new law could be enacted.  The Company expects that
when  the  new  law  is  effective,  it will impose a royalty upon production of
minerals  from  federal  lands  and will contain new requirements for mined land
reclamation,  and  similar  environmental  control and reclamation measures.  It
remains  unclear  to  what  extent  any such new legislation may affect existing
mining  claims  or  operations.  The  effect of any such revision of the General
Mining Law on the Company's operations in the United States cannot be determined
conclusively  until  such  revision  is enacted; however, such legislation could
materially  increase  costs  on  properties  located  on federal lands, and such
revision  could also impair the Company's ability to develop, in the future, any
mineral  prospects  that  are  located  on  unpatented  mining  claims.








<PAGE>                                 4
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


Fluctuations  in  the  Market  Price  of  Minerals

The  profitability  of mining operations is directly related to the market price
of the metals being mined.  The market price of base and precious metals such as
copper  and  silver  fluctuate widely and is affected by numerous factors beyond
the  control  of  any  mining  company.  These factors include expectations with
respect  to  the  rate  of inflation, the exchange rates of the dollar and other
currencies,  interest  rates,  global or regional political, economic or banking
crises, and a number of other factors.  If the market price of  silver or copper
should  drop  dramatically,  the  value  of  the  Company's royalty interest and
exploration  properties  could also drop dramatically, and the Company might not
be  able  to  recover  its  investment  in  those  interests or properties.  The
selection  of  a  property  for exploration or development, the determination to
construct  a  mine  and  place  it  into production, and the dedication of funds
necessary  to  achieve such purposes are decisions that must be made long before
the first revenues from production will be received.  Price fluctuations between
the  time  that  such  decisions  are  made  and  the commence of production can
drastically  affect  the  economics  of  a  mine.

The  volatility  in  metals  prices is illustrated by the following table, which
sets  forth,  for  the periods indicated, the yearly high and low prices in U.S.
dollars  per  ounce  for  silver  and the high and low yearly average prices for
copper  in  U.S.  dollars  per  pound.
<TABLE>
     Year          Silver  Price  Per Ounce               Copper Price Per Pound
     ----          ------------------------               ----------------------
                    High               Low                High              Low
                   -----              -----               -----            -----
     <S>           <C>                <C>                 <C>              <C>
     1996          $5.79              $4.67               $1.17            $0.91
     1997          $6.39              $4.18               $1.14            $0.87
     1998          $7.09              $4.80               $0.85            $0.65
     1999          $5.71              $4.93               $0.83            $0.62
</TABLE>

Environmental  Risks

Mining  is  subject to potential risks and liabilities associated with pollution
of  the  environment and the disposal of waste products occurring as a result of
mineral  exploration  and  production.  Insurance  against  environmental  risk
(including potential liability for pollution or other hazards as a result of the
disposal  of  waste  products  occurring from exploration and production) is not
generally  available  to  the  Company  (or  to  other companies in the minerals
industry) at a reasonable price.  To the extent that the Company becomes subject
to  environmental  liabilities,  the  satisfaction of any such liabilities would
reduce  funds  otherwise  available  to  the  Company  and could have a material
adverse  effect  on  the  Company.  Laws  and regulations intended to ensure the
protection  of  the  environment  are  constantly  changing,  and  are generally
becoming  more  restrictive.








<PAGE>                                 5
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999



Title  to  Properties

The validity of unpatented mining claims, which constitute a significant portion
of the Company's property holdings in the United States, is often uncertain, and
such validity is always subject to contest.  Unpatented mining claims are unique
property  interests  and  are generally considered subject to greater title risk
than  patented  mining  claims, or real property interests that are owned in fee
simple.  The  Company  has  not  yet  filed  a patent application for any of its
properties  that  are  located on federal public lands in the United States and,
under proposed legislation to change the General Mining Law, patents may be hard
to  obtain.  Although the Company has attempted to acquire satisfactory title to
its undeveloped properties, the Company does not generally obtain title opinions
until  financing  is  sought to develop a property, with the attendant risk that
title  to  some properties, particularly title to undeveloped properties, may be
defective.

Foreign  Operations

The  Company's  foreign  activities  are subject to the risk normally associated
with  conducting  business in foreign countries, including exchange controls and
currency   fluctuations,  limitations  on   repatriation  of  earnings,  foreign
taxation,  laws  or  policies  of  particular  countries,  labor  practices  and
disputes, and uncertain political and economic environments, as well as risks of
war  and  civil  disturbances,  or  other  risk  that could cause exploration or
development  difficulties or stoppages, restrict the movement of funds or result
in  the  deprivation  or  loss  of  contract rights or the taking of property by
nationalization  or expropriation without fair compensation.  Foreign operations
could  also  be  adversely  impacted  by  laws and policies of the United States
affecting  foreign  trade,  investment  and taxation.  The Company currently has
exploration  projects  located  in  Chile.

ITEM  2.     DESCRIPTION  OF  PROPERTIES

The  significant  properties  in which the Company has an interest are described
below.  Reference  is  made  to  footnotes  in the financial statements for more
information on the properties.  The Company has relied on public disclosure made
by  its  lessee  Noranda  Minerals,  relative to its assessment of the Montanore
deposit.

Montanore  Property

The  Montanore  property consists of 16 mining claims covering approximately 300
acres  and  a  4 acre patented mill site located in Sanders County, northwestern
Montana.  The  mining  claims  are  owned  outright  by the Company and are held
subject to a $100 per claim annual payment to the Federal government.  Eleven of
the  claims  are  leased to Noranda Minerals Corp, who is responsible for annual
claim upkeep.  The claims can be reached from Noxon, the nearest town, by taking
State  Highway 200 about 2 miles to the east and thence north about 5 miles on a
secondary  graveled  road  to  the  junction  of the west and east forks of Rock
Creek.  From  this  point  it  is  about  a 4 mile hike up a Jeep trail behind a
locked  U.S.  Forest  Service gate to the claims.  More than half the claims are
located  within  the  Cabinet  Wilderness  Area.




<PAGE>                                 6
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999



Eleven  of  the  Company's claims cover a portion of the Montanore silver/copper
deposit.  The  deposit  occurs within rocks of the Belt Super Group, Precambrian
metasediments  that  crop  out over much of western Montana, northern Idaho, and
parts  of adjacent British Columbia.  The Montanore is one of 3 similar deposits
to  have  been  found  within Revett Formation quartzite of the Belt Supergroup.
These  include  the  Troy deposit which was mined between 1981 and 1992, and the
Rock  Creek  deposit  currently  under  environmental  assessment.

Mineralization  within  the  Revett  Formation  is disseminated, and confined to
specific  quartzite  strata.  The  deposits  are  characterized by great lateral
extent,  relatively  uniform  grades, and thicknesses that range up to 100 feet.
Often  the deposits are bounded by a paleo growth fault, considered to have been
active  during  rock  sedimentation  and  mineral  deposition.  Mineralization
consists  in  varying  parts  of  bornite, primary chalcocite, and chalcopyrite.

The  Montanore  deposit  has been defined as being at least 12,000 feet long and
varies  between 500 and 5000 feet in width.  The long axis of the deposit trends
in  a  northwesterly  direction  parallel  with a regional fault that bounds the
mineralization  of  the southwest.  The deposit dips approximately 12 degrees to
the  northwest,  parallel  with its long axis.  Mineralization occurs within two
mineralized  beds  over  much  of the deposit's length, but seems to coalesce up
dip.  Overall  the upper zone averages 29.9 feet in thickness and the lower zone
34.8  feet.  Unmineralized  strata  between  beds varies between 20 and 200 feet
thick.  On  the  basis  of 27 surface drill holes Noranda has reported a deposit
containing  and  estimated  142  million tons and averaging 0.78% copper and 2.1
ounces  of  silver  to  the  ton.

The  Company's  claims are located along the fault which bounds the southwestern
margin  of the deposit, and were staked to cover minor silver occurrences within
the  fault  or  in sympathetic parallel fractures.  The claims represent mineral
rights  to  a strip of land several hundred feet wide and about 11,500 feet long
that  cover  the projected position of the deposit adjoining the fault.  A total
of  7 widely spaced surface drill holes have intersected the deposit beneath the
Company's  claims  or  in  close  proximity  to  them.

In  1988,  Newhi,  Inc., a Washington corporation and wholly-owned subsidiary of
Mines Management, Inc. acquired the assets of Heidelberg Silver Mining Co., Inc.
through  a  corporate  merger.  The  assets  acquired  by  the Company consisted
primarily  of  34  unpatented mining claims and a 4 acre patented mill site.  In
1993  the Company determined that 18 of the mining claims were immaterial to the
maintenance  of  its  interest  in  the  Montanore project and these claims were
dropped.  Of  the remaining 16 claims owned by the Company, 11 claims are leased
to  Noranda  Minerals  Corp.  who is responsible for their yearly upkeep.  Under
terms of the lease agreement, the Company is paid annual advance minimum royalty
payments of $25,000.  In addition, the Company will be paid a production royalty
of 5% of the net profits until capital investment recovery and 20% thereafter on
all  material  taken  from  the  claims.  A significant portion of the Company's
claims  are  situated  within  the Cabinet Wilderness Area and may be subject to
dissolution  for  lack of adequate discovery.  However, Noranda's mineral rights
are  also  based  upon other claims with approved discoveries, and the agreement
between  Noranda  and  the Company is specifically not affected by the status of
the  Company's  claims.




<PAGE>                                 7
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


In  1983,  U.S.  Borax and Chemical Corporation discovered a major silver/copper
deposit, later to be named the Montanore deposit, which extended in part beneath
what  is  now the Company's property.  In 1984 a lease agreement, relative to 11
claims,  was  entered  into  between  U.S.  Borax and the Company's predecessor,
Heidelberg.  Subsequently  U.S.  Borax  conducted  more than 70,000 feet of core
drilling  from  the  surface  which  outlined  the  bedded  silver/copper
mineralization.

In  1988,  U.S. Borax and partners sold their interest in the project to a Joint
Venture  made  up  of  Noranda  Minerals Corp. and Montana Reserves Co.  Noranda
became  the project operator, and the project name was changed to Montanore.  In
1993  the  Joint  Venture  was  dissolved  with  Noranda retaining rights to the
project.

In  late  1989, Noranda began a major tunneling program from a point east of the
Cabinet  Wilderness  Area.  The  purpose  of  the program was to more accurately
define  and develop a portion of the deposit containing approximately 30 million
tons.  The  proposed work was to include a 3-mile long decline and approximately
2,000  feet  of  lateral  development  in  the vicinity of the deposit.  Several
lateral  headings  were planned to intersect the portion of the deposit owned by
the  Company.  Close  spaced  drilling  was planned from these workings and bulk
metallurgical  samples  were  to  be taken during this phase.  In December, 1991
tunneling was stopped at approximately 14,000 feet, or about 2,000 feet short of
the  deposit,  pending  the  completion  of  the  project's Environmental Impact
Statement  (EIS).  Also during the year Noranda completed the process to acquire
patents  to  several  of its key claims.  However, the Secretary of Interior has
continued  to  refuse to approve any US patent applications made under the terms
of  the  Mining  Law  of  1872.

During  1993  the  project Environmental Impact Statement (EIS) was approved and
all  of  the  important  permits  for the mine were granted.  As part of the EIS
process, this approval was subject to appeal, and several appeals were made.  In
1994,  after  due  consideration,  the  US  Forest  Service  denied all appeals.

In  1991  an  environmental  group  had  brought suit against Noranda and the US
Forest  Service  concerning the validation of certain mining claims covering the
Montanore deposit.  In 1993 the US Secretary of Agriculture found that Noranda's
key mining claims were valid, and in 1997 the Federal District Court hearing the
case  also  ruled  that  Noranda's  claims  were  valid.  The court decision was
appealed  and  in  March,  1999  the U.S. Court of Appeals for the Ninth Circuit
upheld  the  U.S.  District  Court  decision.

Chanarcillo  Property

The  Chanarcillo  property consists of 14 exploration concessions  that cover an
area  of  about 38 sq. km. (9,500 acres) within the Chanarcillo mining district.
The  district  is  located in northern Chile's Third Region about 55 km south of
the mining center of Copiapo and about 350 km north of Santiago. The property is
reached  by  secondary roads from the Pan American Highway which passes about 10
km  to  the west.  The Chanarcillo district is situated in the western foothills
of  the Andes Mountains, with elevations that range between 900 and 1200 m above
sea  level.   The  Company's  concessions  contain  a number of small overlapped
concessions  representing preexisting mineral  rights which partially cover some
of  the  old mines of the district.  A total of about 34 sq. km (8,500 acres) of
the  Company's  concessions  are  unobstructed,  with  clear exploration rights.


<PAGE>                                 8
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


The  Company  has an option to purchase the concessions from their owner, Minera
Calcia  Ltda.  of  Santiago,  Chile,  on the basis of the amount expended on the
project.  The  Company  has a work commitment of $50,000 in year 1, and $100,000
in  year 2 of the agreement.  After the Company has expended a total of $200,000
on the project it has the right to acquire title to the concessions, subject to:

-  A 2% Net Smelter Return Royalty one-half of which may be purchased during the
   first  4  years  of  commercial  production.

-  An  annual  fee  of  $25,000 to be paid prior to the start of commercial
   production.

-  An annual payment equal to 5% of the preproduction exploration expenses of
   the project that are incurred in Chile, the total of which is capped at
   $2 million.

The  Chanarcillo district, was Chile's foremost silver producing area during the
19th  century, when  it  reportedly  produced an estimated 100 million ounces of
silver between 1832  and  1885.  Only minor  work occurred after that time until
the 1980's when the area  became the  focus of  exploration for large, low-grade
copper deposits similar to the La Candelaria deposit  located about 22 miles to
the north.  At various times to the present, several major mining companies have
drilled specific  copper targets in the  district,  but  no  work  has  involved
exploration  for  silver.

The Chanarcillo district lies within northern Chile's coastal belt of Cretaceous
age  sediments  and  intercalated volcanics. These rocks are intruded throughout
the length of the belt by Cretaceous age plutons which range in composition from
quartz  monzonite  to diorite.  The sediments consist primarily of siltstone and
carbonates  which  may  contain in varying degree silt or chert.  Interbedded in
the  sediments  are a series of thick to thin tuffs, pyroclastics, aggolmerates,
and  volcanic  units.  The  intruded  rocks  are  thermally  metamorphosed for a
substantial distance from the intrusive contacts creating extensive skarn zones.

In  the  Chanarcillo district the host  rocks are relatively flat lying, but are
gently  folded into a northeast-trending double plunging anticline or dome.  The
district  is cut by two prominent sets of high-angle structures, which generally
show  small displacements.  One set trends to the north-northeast, parallel with
the fold axis, while the other trends to the northwest.  The north-northeast set
contains  most of the known silver veins, while faults of the northwest trending
set commonly contain andesite dikes and only locally some silver mineralization.

Silver  values  exploited  in the 19th century occur mostly in veins but also in
mantos  and  brecciated zones.  Exposures in mine workings extended to depths of
as  much as 400 m.  The character of the veins was strongly affected by the type
of  host  rock  they cut.  There was a definite correlation between increases in
vein  width and grade and carbonate wall rocks.  Ore shoots within the veins are
reported  to have ranged from 200 to 400 m in length, had vertical dimensions of
30 to 50 m, and varied from 1 to 10 m in width.  Hypogene vein minerals included
silver  sulfides  and  sulfosalts associated with minor amounts of copper, lead,
and  zinc  minerals.  Vein  mineralization  was  greatly  affected  by supergene
processes  to  depths  of as much as 200 m.  Mineralization within the supergene
zone was altered to native silver, and silver halides and bromides.  In addition
to  the  concentration of old silver mines on the property, internal exploration
summaries  by  Western  Mining  Exploration, S.A., and North, Ltd., report drill


<PAGE>                                 9
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


intercepts  of  zinc  and  copper  mineralization  in several drill holes on the
property.  According  to  these  exploration  summaries,  a bedded, semi-massive
sulfide  occurrence  about  1  m  thick  and  running 7% zinc is reported to cut
underground  workings  in  the old silver mines.  A number of drill holes in and
around  the  Company's  concessions are reported to have cut zinc values ranging
from  13%  over  1  m  to  1%  over  120  m.

All  exploitation  of  silver  mineralization at Chanarcillo ceased by the early
1900's,  and  no systematic mapping and other exploration is known to have taken
place since that time.  Despite the lack of modern day exploration it is thought
that  near  surface, very high grade silver vein deposits have probably all been
discovered.  However,  several  types  of  targets  have  not been investigated.
These include: deeper hypogene mineralization, vein extensions, and bulk tonnage
targets.  The  Company  intends  to  investigate  all three target models in its
planned  exploration,  with emphasis placed upon the examination of bulk tonnage
targets.

Advance  and  Iroquois  Properties

The  Company  owns  the  Advance  and  Iroquois  zinc-lead properties located in
northeastern  Washington  state,  approximately  6  miles  south of the Canadian
border.  The  properties  are  situated  5  miles apart along a belt of Cambrian
carbonate  sediments  that  have  acted  as host rocks for several former mines.
Both  properties  are easily accessible on secondary graveled roads by two wheel
drive  vehicles.  A large zinc smelter and refinery is located at Trail, British
Columbia,  Canada,  approximately  17  miles  distant  over  excellent  roads.

The  Company  was  originally formed in 1947 to explore the Advance and Iroquois
properties.  Since  that time, Mines Management has leased its holdings to major
companies  including:  Rare  Metals,  Inc.  (El  Paso  Natural Gas) 1959-65, The
Bunker  Hill  Company  1962-65,  Cominco  American,  Inc.  1966-67  and 1974-75,
Brinco,  Ltd.  (RTZ  Group) 1977-78, and Equinox Resources Ltd.  1989-91.  Total
expenditures  on the properties to date are estimated to be at least $1,500,000.

The  Advance  and  Iroquois  properties are located along the Deep Lake Trend, a
northeast  striking  belt of Cambrian carbonate rocks collectively designated as
the  Metaline Limestone.  Rocks of the Deep Lake Trend have been strongly folded
and  faulted  by  numerous high-angle as well as thrust faults.  As a result the
Metaline  Limestone  has  a  complex  outcrop  pattern,  with steeply overturned
bedding.

Zones  of brecciation are found throughout the Metaline Limestone and are often,
but  not  always,  the  location of zinc and lead sulfide mineralization.  These
features  are  predominantly  stratabound  and have gradational, often irregular
borders.  Individual  breccia  bodies  are  crudely lensoid in cross section and
have third dimensions that attain considerable length.  The zones often occur in
an  en  echelon,  and  sometimes  interconnected pattern.  A variety of evidence
suggests  that  the  breccia bodies are solution collapse features controlled by
favorable  stratigraphy  or  lithologic  facies.

Mineralization  consists  of irregular bands, lenses, and fine disseminations of
sphalerite  and   galena  accompanied   by  varying  amounts   of  pyrite.   The
mineralization  is  considered  to have been localized by permeable zones within
and  peripheral  to  breccia  bodies  created by solution collapse.  The sulfide
minerals  are found in white dolomite that makes up the breccia matrix and fills


<PAGE>                                 10
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


other  voids,  and  also  as selective replacements of the host carbonate rocks.
Individual deposits have irregular gradational borders and are crudely lensoidal
to  oval  in  outline.  Their  elongated  third dimension parallels the regional
strike  of  the  host  rocks,  and  often plunge at low angles.  Cross sectional
widths  up  to 80 feet and heights of as much as 150 feet have been noted in the
more  prominent  zones.  Lengths  of  mineralization  vary  up to 650 feet.  The
deposits  have  a  tendency  to  occur  together in an en echelon pattern over a
stratigraphic  interval  of as much as 300 feet.  Such groupings of deposits may
be  more  or  less  interconnected and have composite lengths of as much as 5000
feet.  Metal  values generally decease outward thus necessitating a border to be
established by economic consideration.  Although individual sample values within
a  deposit may be as high as 20% zinc, average values for a deposit will usually
range  up  to  7%  zinc  and 1% lead depending upon the "assay border" selected.

The  Advance  property consists of 720 acres of patented mineral rights, located
approximately  5  miles  east of the town of Northport.  The property is reached
from  Northport,  the  nearest  town,  by taking the paved Deep Lake south for 4
miles  to  the  graveled  Black  Canyon  road and thence north for 3 miles.  The
Metaline  Formation  is  the  principal  rock  unit  to  crop out on the Advance
property.  Exploration  consisting  of  soil  sampling, drilling, trenching, and
tunneling  has  shown  that  several  zones  of  low-grade,   disseminated  zinc
mineralization  occur on the property.  The Advance property is considered to be
of  an  exploratory  nature,  and is held by the Company on a maintenance basis.

The  Iroquois  property  consists  of  62  acres of patented mineral and surface
rights,  and  18  unpatented  mining  claims  containing  about  360 acres.  The
property  is  reached from Northport, the nearest town, by taking the paved Deep
Lake  road south and east for 19 miles to the graveled road marked Iroquois Mine
Road,  and  thence  northeast for three miles.  The unpatented mining claims are
held subject to a $100 per claim annual payment to the Federal government.  More
than  25,000  feet  of  drilling  and approximately 2,600 feet of tunneling have
shown  low-grade  mineralization  to  occur in multiple zones, extending for the
entire  5,000  foot  length  of  the property.  Most of the exploration has been
concentrated  in  one  area  where  a mineralized zone of disseminated zinc with
associated  lead  values has been outlined over approximately 900 feet in length
and  within  300  feet  of  the surface.  The property is considered to be of an
exploratory  nature  and  is  held  by  the  company  on  a  maintenance  basis.

Oil  Interests

The  Company receives income from a 12.5% working interest in 4 oil wells on the
Clark  lease  in Sumner County, Kansas.  Although the lease has now produced for
more  than 30 years, independent consultants calculated the Company's 1981 share
of the remaining reserves available through primary and secondary recovery to be
at  least  20,000 barrels.  Production since 1981 has totaled approximately 8565
barrels  to  the  Company's  account.

ITEM  3.     LEGAL  PROCEEDINGS

None







<PAGE>                                 11
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

During  the fourth quarter of the fiscal year covered by this report, the Annual
Meeting  of  the shareholders of the Company was held on November 19, 1999.  The
purpose  of  the  meeting was the election of directors, the approval of amended
and  restated  Articles  of  Incorporation, and the approval of stock option and
incentive  stock  option  plans.

The  following  table sets forth information regarding the election of the board
of  directors:
<TABLE>
Directors               Votes  For          Votes Against  Abstentions
----------------------  ------------------  -------------  -----------
<S>                     <C>                 <C>            <C>
William  R.  Green          2,293,401            8,142          0
Jack  W.  Gustavel          2,293,401            8,142          0
Roy  G.  Franklin           2,293,401            8,142          0
Robert  L. Russell          2,293,401            8,142          0
Jerry  Pogue                2,293,401            8,142          0
</TABLE>

                                     PART II

ITEM  5.     MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

The  Common Stock of the Company is traded in the over the counter market on the
NASD Bulletin Board under the symbol "MNMM".  The following table shows the high
and low closing sales prices for the Common Stock for each quarter since January
1,  -1998.  The  quotations reflect inter-dealer prices, without retail mark-up,
mark-down  or  commission  and  may  not  represent  actual  transactions.
<TABLE>
Fiscal  Year                           High  Closing     Low  Closing
------------                           -------------     ------------
<S>                                    <C>               <C>
1998:
First  Quarter                              .44               .25
Second  Quarter                             .50               .31
Third  Quarter                              .56               .25
Fourth  Quarter                             .43               .25

1999:
First  Quarter                              .406              .313
Second  Quarter                             .438              .313
Third  Quarter                              .313              .25
Fourth  Quarter                             .375              .25

2000:
     First  Quarter                         .375              .15

</TABLE>

Holders.

As of December 31, 1999 there were 1,120 shareholders of record of the Company's
common  stock.


<PAGE>                                 12
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

Dividends.

The  Company has never paid any dividends and does not anticipate the payment of
dividends  in  the  foreseeable  future.

Recent  Sales  Of  Unregistered  Securities.

In  January  and  February 1999 the Registrant sold a total of 245,000 shares of
its  common  stock at a price of $.25 per share for an aggregate of $ 61,250.  A
commission  of  $6,000 was paid to selected dealers who were also granted 24,000
warrants.  Each  warrant  is exercisable for a period of one year to acquire one
share of common stock at a price of $0.30 per share. The shares were offered and
sold  pursuant  to  an  exemption  from registration under the Securities Act of
1933,  as  amended pursuant to Rule 504 of Regulation D.  Subsequent to the year
ended  December  31,  1999,  the  warrants  expired  without  issue.

ITEM  6      MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND RESULTS OF
OPERATIONS  FOR  THE  YEAR  ENDED DECEMBER 31, 1999, COMPARED TO THE  YEAR ENDED
DECEMBER 31, 1998.

For the year ended  December 31, 1999 the Company had a net  loss of $116,626 or
$0.0238 per share, as compared to a net loss of $152,931 or $0.035 per share for
the  year ended December 31, 1998. The decrease in net loss for Fiscal Year 1999
is  attributable  to  a  lower  level  of property acquisition, and exploration.

During  Fiscal  Year  1999  the Company had revenues from oil sales of $4,622 as
compared  to  revenues  of  $4,070  for  the  year  ended December 31, 1998.  An
increase  in  operating  costs  and  a  slight decrease in production was nearly
offset,  in  Fiscal  Year  1999  when 298.8 barrels were produced and sold at an
average  price  of  $14.65  per  barrel,  compared with 312.5 barrels sold at an
average  price  of  $13.02  per  barrel  for  the  year ended December 31, 1998.

The  Company's  plan  of  operation  for  the next twelve months will consist of
maintaining  its   key  exploration  properties   and  evaluating  new  resource
opportunities.  The  Company  does  not  intend  to hire a significant number of
employees  to  carry out its activities.  It is anticipated that all exploration
work  on its properties will be carried out through the services of consultants.
The  Company  currently has sufficient resources to maintain its key exploration
properties  and  satisfy  its  cash  requirements  for  the  next twelve months.

Although  the Company intends to aggressively seek to acquire silver exploration
properties  of  merit,  at  the  present time the Company has no specific plans,
arrangements  agreements  or  undertakings  to  acquire  any  additional  silver
exploration  properties.

ITEM  7.     FINANCIAL  STATEMENTS

Financial Statements of the Company for the fiscal years ended December 31, 1999
and  1998,  which  have been audited by LeMaster & Daniels PLLC and Williams and
Webster,  P.S.  respectively,  are  included  elsewhere  in  this  Form  10-KSB.






<PAGE>                                 13
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

ITEM  8.     CHANGES  IN  AND  DISAGREEMENTS  WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL  DISCLOSURE

There  have  been  no  disagreements  between  the  Company  and its accountants
regarding  any  matter  or  accounting  principles  or  practices  or  financial
statement disclosures.  The Company elected to engage the services of LeMaster &
Daniels  PLLC  to  undertake  its  audit  for  the year ended December 31, 1999.

                                    PART III

ITEM  9.     DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS;
COMPLIANCE  WITH  SECTION  16(a)  OF  THE  EXCHANGE  ACT

Directors  and  Officers

<TABLE>
Name                   Age  Office  with  the Company        Appointed to Office
---------------------  ---   ------------------------------  -------------------
<S>                    <C>   <C>                             <C>
William  R.  Green      61   Chairman  of  the  Board               1965
                             President
                             Chief  Executive  Officer

Chris  Broili           51   Vice President - Exploration           1998

Roy  G.  Franklin       63   Director & Secretary/Treasurer         1988

Jack  W.  Gustavel      59   Director                               1974

Robert  L.  Russell     66   Director                               1999

Jerry  Pogue            58   Director                               1999
</TABLE>

The  directors  are  elected for a one-year term and until their successors have
been elected and qualified.  Executive Officers are appointed to serve until the
meeting  of  the  Board  of  Directors  following  the  next  annual  meeting of
shareholders  and until their successors have been elected and qualified.  There
are  no  arrangements  or understandings between any of the directors, executive
officers,  and other persons pursuant to which any of the foregoing persons were
named  as  Directors  or  executive  officers.  There  is no family relationship
between  any  Director,  Executive Officer, or person nominated or chosen by the
Registrant  to  become  a  Director  or  Executive  Officer.

William  R.  Green  is  a  mining engineer and geologist, and was a professor of
mining  engineering  at  the University of Idaho from 1965 to 1983.  He has been
actively  involved in the mining business since 1965 and is a former officer and
director  of  Yamana Resources and currently an officer and director of Canadian
public  companies:  Maya  Gold  Limited  and  Petromin  Resources  Ltd.,  and US
companies  Cimarron-Grandview  Group,  Inc.  and Metaline Mining and Leasing Co.
Dr.  Green  dedicates  approximately  80%  of  his time to the management of the
Company.  The  balance  of Dr. Green's time is devoted to consulting for various
mining  exploration  companies.





<PAGE>                                 14
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

Chris  Broili  holds  an  MSc degree in exploration geology and has more than 25
years experience in mineral exploration worldwide.  From 1984 to 1994 Mr. Broili
was  employed  by  Atlas  Precious Metals, Inc., most recently as an Exploration
Manager  and  was involved in the discovery of the Grassy Mountain gold deposit.
From  1994  to  1997  Mr. Broili was employed by Yamana Resources, Inc. as chief
geologist  and  later as Vice-President of Exploration.  Since January 1998, Mr.
Broili  has  been  employed  as an independent consulting geologist.  Mr. Broili
dedicates  approximately  30%  of  his time to the management of the Company and
provides independent consulting services to several mining exploration companies
for  the  balance  of  his  time.

Robert  L.  Russell,  a Professional Engineer has been a director of the Company
since  March,  1999.  Since  September,  1998  Mr.  Russell  has provided mining
management  consulting  services  through  his  consulting company, R.L. Russell
Associates.  From  1995-1998  Mr.  Russell  was  employed by Zambia Consolidated
Copper  Mines, most recently as General Manager of the Nchanga Division. In that
position  Mr.  Russell  was responsible for all functions of two operating mines
and  several  metallurgical  facilities. Under Mr. Russell, the Nchanga Division
had  8700 employees and produced 150,000 tons of copper and 3500 tons (about 12%
of  the  world's  supply)  of  cobalt  per  year.

Jerry  G. Pogue is a businessman with an extensive  background in the management
and  financing  of  junior  resource  companies.  He  has  managed a large sales
organization,  has  worked  as  a  highly successful stock broker and investment
analyst,  and has financed and managed a number of companies in the resource and
technology  sectors.  He  frequently lectures at international mining investment
conferences.

Roy  G.  Franklin  is  a certified public accountant with 30 years experience in
small  company  administration  and  finance.  He  was  formerly  a  director of
Heidelberg  Silver  Mining  Company and is a principal in the accounting firm of
Oswalt,  Teel,  and  Franklin,  P.S.

Jack  W.  Gustavel has more than 30 years experience in the banking industry and
is  a  former  member  of the Board, and Director of, the Portland branch of the
Federal  Reserve Bank of San Francisco.  He is currently a Director and Chairman
and  CEO  of  Idaho  Independent  Bank.

None  of  the  Directors  is  also  a  director  of  any company with a class of
securities  registered  pursuant to Section 12 of the Exchange Act or subject to
Section  15(d)  of  the  Act,  or of any company registered under the Investment
Company  Act  of  1940  except  William R. Green, and Jack W. Gustavel, as noted
above.

No  Director, or person nominated to become a Director or Executive Officer, has
been  involved  in  any  legal action involving the Company during the past five
years.

Promoters  and  Control  Person:  Not  Applicable









<PAGE>                                 15
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

Compliance  with  Section  16(a)  of  the  Exchange  Act

Based  solely upon a review of forms 3 and 4 and amendments thereto furnished to
the Registrant pursuant to Section 240.16a-3 during the most recent fiscal year,
and  Form  5  and amendments thereto furnished to the Registrant with respect to
the  most  recent  fiscal year, no person who at any time during the fiscal year
was  a  director,  officer,  or beneficial owner or more than ten percent of any
class  of  equity securities of the Registrant registered pursuant to Section 12
of  the  Exchange Act, or any other person subject to Section 16 of the Exchange
Act  with respect to the Registrant because of the requirements of Section 30 of
the  Investment  Company Act or Section 17 of the Public Utility Holding Company
Act  (A  reporting person) failed to file on a timely basis, as disclosed in the
above  Forms,  reports  required by Section 16(a) of the Exchange Act during the
most  recent  fiscal year or prior fiscal years, except William R. Green, Roy G.
Franklin,  Jack  A.  Gustavel, Jerry G. Pouge, who had one delinquent filing and
Robert  L.  Russell  with  two  delinquent  filings.

ITEM  10.        EXECUTIVE  COMPENSATION

A  summary  of cash and other compensation for the Company's President and Chief
Executive  Officer  for  the  three  most  recent  years  is  as  follows:

<TABLE>
                              SUMMARY  COMPENSATION  TABLE
LONG-TERM  COMPENSATION
Annual  Compensation                          Awards            Payouts
--------------------------------------------  -----------------  ----------------------
(a)          (b)   (c)      (d)      (e)      (f)        (g)          (h)     (i)
Name                                 Other    Restricted Securities
and                                  Annual   Stock      Underlying   LTIP     All  Other
Principal    Year  Salary   Bonus    Comp.    Awards(1)  Options/     Payouts  Comp.
Position           ($)      ($)      ($)      ($)        SARs(#)      ($)      ($)
-----------  ----  -------  -------  -------  ----------  ----------  --------  ---------
<S>          <C>   <C>      <C>      <C>      <C>        <C>          <C>       <C>
William R.
  Green      1997  $15,600     $0       $0       $3,000        -0-        $0       $150
President &  1998  $15,600     $0       $0       $3,000        -0-        $0       $  0
Director     1999  $15,600     $0       $0       $3,000        -0-        $0       $  0
</TABLE>

OPTION/SAR  GRANTS  IN  LAST  FISCAL  YEAR

<TABLE>
                             INDIVIDUAL  GRANTS
---------------------------------------------------------------------------
(a)                (b)              (c)           (d)     (e)
                    Number of       % of Total
                    Securities      Options/SARs   Exercise
                    Underlying      Granted to     or Base
                    Options/SARs    Employees in   Prices       Expiration
Name                Granted (#)     Fiscal Year    $/Sh         Date
------------------  --------------  ------------   ----------   -----------
<S>                 <C>             <C>            <C>          <C>
Robert L. Russell       100,000        16.6%          $.30        2/22/04

</TABLE>


<PAGE>                                 16
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999


DIRECTOR  COMPENSATION  FOR  LAST  FISCAL  YEAR

<TABLE>
                       Cash Compensation                    Security Grants
                       -----------------------------------  -----------------------------
                                                                         Number of
                       Annual                  Consulting                Securities
                       Retainer     Meeting    Fees/Other   Number of    Underlying
                       Fees ($)     Fees       Fees ($)     Shares (#)   Options/SARs (#)
Name (a)               (b)          (c)        (d)          (e)          (f)
---------------------  -----------  ---------  -----------  -----------  ----------------
<S>                    <C>          <C>        <C>          <C>          <C>
Roy G. Franklin              0           0           0          15,000          0

Jack A. Gustavel             0           0           0          15,000          0

William R. Green             0           0           0          15,000          0

Robert L. Russell            0           0           0          15,000          0

Jerry G. Pogue               0           0           0          15,000          0
</TABLE>

The  Company  has  no employment contracts with executive officers or directors.
While  there  is no formal compensation arrangement with directors, historically
directors  have  received an annual restricted stock award or stock options.  In
1999,  the  directors  were  granted  restricted  stock  awards.

ITEM  11.     SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND
MANAGEMENT

SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS

The  following  table  sets forth information as of March 30, 2000 regarding any
person known to the Company to be the beneficial owner of more than five percent
of  any  class  of  the  Company's  voting  securities.

<TABLE>
Title of Class     Name of              Amount and nature of
                   Beneficial owner     Beneficial  Ownership     Percent of Class (1)
----------------   -------------------  ------------------------  --------------------
<C>                <S>                  <S>                       <S>
     Common        William R. Green           627,500(2)                11.4%

</TABLE>

(1)  Fully  Diluted  (assumes  exercise  of  all  450,000  outstanding  options)
(2)  Does  not  include  options  to  acquire  100,000  shares  of  Common Stock

SECURITY  OWNERSHIP  OF  MANAGEMENT

The  following  table  sets  forth  certain  information  as  of  March 30, 2000
regarding  the number and percentage of shares of Common Stock of the Company or
any  of  its parents or subsidiaries beneficially owned (as such term is defined
in  Rule  13d-3  under  the  Exchange  Act)  by each director, each of the named
executive  officers  and  directors  and  officers  as  a  group:

<PAGE>                                 17
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

<TABLE>

Title of Class     Name of              Amount and nature of
                   Beneficial owner     Beneficial  Ownership     Percent of Class (1)
----------------   -------------------  ------------------------  --------------------
<C>                <S>                  <S>                       <S>

     Common        William R. Green             627,500(2)                11.4

     Common        Christopher Broili           180,000(2)                 3.3

     Common        Jack W. Gustavel             104,500(3)                 1.9

     Common        Roy G. Franklin               91,229(3)                 1.7

     Common        Robert R. Russell             15,000(2)                  .003

     Common        Jerry Pogue                   15,000                     .003

     Common        Total of all officers
                   and directors
                   (6 individuals)            1,033,229(4)                18.8

</TABLE>

(1)     Fully  Diluted  (assumes  exercise  of  all 450,000 outstanding options)
(2)     Does  not  include  options  to  acquire  100,000  shares
(3)     Does  not  include  options  to  acquire  75,000  shares
(4)     Does  not  include  options  to  acquire  700,000  shares

CHANGES  IN  CONTROL

There  are no arrangements known to the Registrant the operation of which may at
a  subsequent  time  result  in  the  change  of  control  of  the  Registrant.

ITEM  12.       CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

There  have  been  no  transactions  or  series  of  transactions,  or  proposed
transactions  during  the  last  two years to which the Registrant is a party in
which  any  director,  nominee  for election as a director, executive officer or
beneficial  owner  of  five percent or more of the Registrant's common stock, or
any  member  of the immediate family of the foregoing had or is to have a direct
or  indirect  material  interest  exceeding  $60,000.















<PAGE>                                 18
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

ITEM  13.     EXHIBITS,  FINANCIAL  STATEMENT  SCHEDULES,  AND  REPORTS  ON
FORM  8-K.

(a)  the  following  documents  are  filed  as  part  of  the  report:

     1.  Financial  Statements

              Accountants'  Report

              Consolidated  Balance  Sheets
              December  31,  1999  and  1998

              Consolidated  Statements  of  Operations and Comprehensive Income
              for  the  years  ended  December  31,  1999,  and  1998

              Consolidated  Statement  of  Changes  in  Stockholders'  Equity
              for  the  years  ending  December  31,  1999,  and  1998

              Consolidated  Statements  of  Cash  Flows
              for  the  years  ending  December  31,  1999,  and  1998

              Notes  to  Financial  Statements

     2.  Exhibits  required  by  Item  601

(2)      Plan  of  Acquisition, reorganization, arrangement,
         liquidation  or  succession.(1)
(3)(i)   Articles  of  Incorporation  (2)
(3)(ii)  Bylaws.  (2)
(4)      Instruments  defining  the  rights  of  security  holders,
         including  indentures.  (1)
(9)      Voting  trust  agreements.  (1)
(10)     Material  contracts.  (2)
(11)     Statement  re:  computation  of  per  share  earnings.  (1)
(12)     Statements  re:  computation  of  ratios.  (1)
(13)     Annual  report  to  security  holders,  Form  10Q
         or  quarterly  report  to  security  holders.(1)
(16)     Letter  re:  change  in  certifying  accountant.  (1)
(18)     Letter  re:  change  in  accounting  principles  .(1)
(19)     Subsidiaries  of  the  Registrant.  (2)
(22)     Publisher  report  regarding  matters  submitted
         to  vote  of  security  holders.  (1)
(23)     Consents  of  Experts  and  counsel. (1)
(24)     Power  of  Attorney. (1)
(27)     Financial  Data  Schedule                                 Attached
(99)     Additional  Exhibits.  (1)

     (1)  These  items  have  either  been  omitted  or  are  not  applicable
     (2)  Incorporated  by  reference  to  previous  filing

(b)     Reports  on Form 8-K.  No reports on Form 8-K have been filed during the
last  quarter  of  the  period  covered  by  this  report.






<PAGE>                                 19
                             MINES MANAGEMENT, INC.
                                  FORM 10 - KSB
                    For  the  year  ended  December  31,  1999

                                   SIGNATURES

In  accordance  with  Section  13  or  15(d) of the Exchange Act, the Registrant
caused  this report to be signed on its behalf by the undersigned thereunto duly
authorized.

MINES  MANAGEMENT,  INC.

                                         /s/  William R. Green
                                      By:---------------------------------------
Date:     April  13,  2000            WILLIAM  R.  GREEN
                                      President  (Principal  Executive  Officer)

                                         /s/ Roy G. Franklin
                                      By:---------------------------------------
Date:     April  13,  2000            ROY  G.  FRANKLIN
                                      Treasurer  (Principal  Financial  Officer)


In  accordance  with  the Exchange Act, this report has been signed below by the
following  persons  on behalf of the registrant and in the capacities and on the
dates  indicated.

                                      /s/ William R. Green
                                      ---------------------------------
Date:     April  13,  2000            WILLIAM  R.  GREEN,  Director


                                      /s/ Roy G. Franklin
                                      ---------------------------------
Date:     April  13,  2000            ROY  G.  FRANKLIN,  Director


                                      /s/ Jack W. Gustavel
                                      ---------------------------------
Date:     April  13,  2000            JACK  W.  GUSTAVEL,  Director


                                      /s/ Robert L. Russell
                                      ---------------------------------
Date:     April  13,  2000            ROBERT  L  .RUSSELL,  Director


                                      /s/ Jerry G. Pogue
                                      ---------------------------------
Date:     April  13,  2000            JERRY  G.  POGUE,  Director












<PAGE>                                 20


                             MINES  MANAGEMENT,  INC.
                    CONSOLIDATED  FINANCIAL  STATEMENTS  AND
                         INDEPENDENT  AUDITORS'  REPORT

                         DECEMBER  31,  1999  AND  1998


                                   CONTENTS


                                                                         Page


INDEPENDENT  AUDITORS'  REPORT                                             2


CONSOLIDATED  FINANCIAL  STATEMENTS:

     Consolidated  balance  sheets                                         3

     Consolidated  statements  of  income                                  4

     Consolidated  statements  of  stockholders'  equity                   5

     Consolidated  statements  of  cash  flows                             6

     Notes  to  consolidated  financial  statements                      7-12

































<PAGE>                                   21


                        INDEPENDENT  AUDITORS'  REPORT


Board  of  Directors
Mines  Management,  Inc.
Spokane,  Washington


We  have  audited  the  accompanying   consolidated   balance  sheets  of  Mines
Management,  Inc.  (an Idaho  Corporation) as  of December  31,  1999,  and  the
related  consolidated  statements  of  income,  stockholders'  equity,  and cash
flows for the year  then ended.  These  consolidated  financial  statements  are
the  responsibility  of  the Company's  management.  Our  responsibility  is  to
express  an opinion on these  consolidated  financial  statements  based on  our
audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those  standards require that we plan and perform the audit to obtain reasonable
assurance   about  whether  the  financial  statements   are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing  the  accounting  principles  used  and  significant estimates made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  our  audit  provides  a  reasonable  basis  for  our  opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly,  in  all  material respects, the financial position of Mines Management,
Inc.,  as  of  December 31, 1999, and the results of its operations and its cash
flows  for the year then ended, in conformity with generally accepted accounting
principles.


/s/ Lemaster & Daniels
Certified  Public  Accountants



Spokane,  Washington
March  22,  2000




















Auditors' page 2
<PAGE>                                 22
MINES  MANAGEMENT,  INC.
CONSOLIDATED  BALANCE  SHEETS



<TABLE>
                                                        December 31,
                                              ----------------------------
                                                  1999            1998
                                              ------------    ------------
<S>                                           <C>             <C>
ASSETS
`
  CURRENT  ASSETS:
     Cash                                     $    20,090     $    45,734
     Accounts receivable                              376             500
     Prepaid expenses                              18,467          19,217
                                              ------------    ------------
          Total current assets                     38,933          65,451
                                              ------------    ------------

  MINERAL PROPERTIES                              360,180         360,180
                                              ------------    ------------

  PROPERTY  AND  EQUIPMENT:

     Mine buildings                                11,031          11,031
     Equipment                                     44,098          44,098
     Office equipment                              10,723          10,196
                                              ------------    ------------
                                                   65,852          65,325
         Less accumulated depreciation             61,824          60,236
                                              ------------    ------------
                                                    4,028           5,089
                                              ------------    ------------

  INVESTMENTS:

     Available  for  sale  securities,
           Bitteroot Resources, Ltd.                  623           1,765
                                              ------------    ------------
                                              $   403,764     $   432,485
                                              ============    ============
</TABLE>















See  accompanying  notes  to  consolidated  financial  statements.

Auditors' page 3
<PAGE>                                 23
MINES  MANAGEMENT,  INC.
CONSOLIDATED  BALANCE  SHEETS

<TABLE>

                                                        December 31,
                                              ----------------------------
                                                  1999            1998
                                              ------------    ------------
<S>                                           <C>             <C>

LIABILITIES  AND  STOCKHOLDERS'  EQUITY

  CURRENT  LIABILITIES:

     Accounts payable                         $     2,649     $     4,919
     Payroll payable                                1,300           1,300
     State income taxes payable                       164             121
     Payroll taxes payable                            199             175
                                              ------------    ------------
               Total current liabilities            4,312           6,515
                                              ------------    ------------

COMMITMENTS                                           -               -

STOCKHOLDERS'  EQUITY:

     Common stock-100,000,000 shares, $.01
       par value, authorized; 4,946,956 and
       4,676,956 shares, respectively, issued
       and outstanding                             49,470          46,770
     Issuable common stock                         22,500             -
     Preferred stock-10,000,000 shares, no
       par value, authorized; no shares
       issued and outstanding                         -               -
     Additional paid-in capital                 1,362,365       1,296,315
     Retained earnings (deficit)               (1,035,506)       (918,880)
     Accumulated other comprehensive income           623           1,765
                                              ------------    ------------
          Total stockholders' equity              399,452         425,970
                                              ------------    ------------
                                              $   403,764     $   432,485
                                              ============    ============
</TABLE>















See  accompanying  notes  to  consolidated  financial  statements.

Auditors' page 3
<PAGE>                                 24
MINES  MANAGEMENT,  INC.
CONSOLIDATED  STATEMENTS  OF  INCOME

<TABLE>
                                                        December 31,
                                              ----------------------------
                                                  1999            1998
                                              ------------    ------------
<S>                                           <C>             <C>

REVENUES:
     Royalties                                $    25,000      $   25,000
     Oil and gas                                    4,622           4,070
                                              ------------    ------------
           Total revenues                          29,622          29,070
                                              ------------    ------------

EXPENSES:
     Operating  expenses:
       Depreciation                                 1,584           1,407
       Legal and accounting                        15,344          17,017
       Miscellaneous                                6,362          15,104
       Oil and gas operating expense                3,789           2,686
       Professional fees                            8,546          28,459
       Rent and office expenses                    10,510          14,817
       Salaries, officer and staff                 19,350          15,600
       Taxes and licenses                           2,161           1,533
       Telephone                                    2,201           3,824
       Travel expense                               1,112           4,463
       Exploration expense                         55,447          58,423
       Commissions                                    -             3,650
       Fees, filing, licenses                       2,409           2,576
       Assays                                         -               714
       Directors' fees                             18,750          15,000
                                              ------------    ------------

            Total operating expenses              147,565         185,273
                                              ------------    ------------

LOSS FROM OPERATIONS                             (117,943)       (156,203)

OTHER  INCOME:
     Interest                                       1,372           3,272
                                              ------------    ------------

LOSS BEFORE INCOME TAXES                         (116,571)       (152,931)

PROVISION FOR INCOME TAXES                             55              -
                                              ------------    ------------

NET LOSS                                      $  (116,626)    $  (152,931)
                                              ============    ============

NET LOSS PER SHARE                            $   (0.0238)    $    (0.035)
                                              ============    ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING    4,910,244         4,402,385
                                              ============    ============
</TABLE>
See  accompanying  notes  to  consolidated  financial  statements.

Auditors' page 4
<PAGE>                                 25
MINES  MANAGEMENT,  INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 1999 AND 1998

*begin 8pt type*
<TABLE>
                                                                                          Accumu-
                                                                                            lated
                                                                                          Other
                      Common Stock        Issuable Common Stock   Additional  Retained    Compre-
                  ---------------------  -----------------------  Paid-in     Earnings      hensive
                    Shares      Amount      Shares      Amount    Capital     (Deficit)   Income      Total
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------
<S>               <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
BALANCES,
DECEMBER 31, 1997  3,873,706  $  38,737         -     $     -     $1,139,698  $(765,949)  $  10,800   $ 423,286
ADD (DEDUCT):
Common stock
  issued for
  services at
  deemed value
  of $.20 to $.28
  per share          163,250      1,633         -           -         35,017        -           -        36,650
Stock sold during
  the period for
  $.20 per share     640,000      6,400         -           -        121,600        -           -       128,000
Comprehensive loss:
  Adjustment to net
  unrealized gain on
  marketable
  securities             -           -          -           -            -          -        (9,035)     (9,035)
Net loss                 -           -          -           -            -     (152,931)        -      (152,931)
                                                                                                      ----------
Comprehensive loss                                                                                     (161,966)
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------
BALANCES,
DECEMBER 31, 1998  4,676,956       46,770       -           -      1,296,315   (918,880)      1,765     425,970
ADD (DEDUCT):
Common stock
  issued for
  payment of
  property holding
  fee at deemed
  value of $.30
  per  share         25,000           250       -           -          7,250         -           -        7,500
Common stock
  to be issued
  for  services
  at deemed value
  of $.25 per share     -             -      90,000       22,500         -           -           -       22,500
Stock sold
  during the
  period for $.25
  per share         245,000         2,450       -            -        58,800         -           -       61,250
Comprehensive loss:
  Adjustment to net
  unrealized gain
  on marketable
  securities            -              -        -            -            -          -        (1,142)    (1,142)
Net loss                -              -        -            -            -     (116,626)        -     (116,626)
                                                                                                      ----------
Comprehensive loss                                                                                     (117,768)
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------
BALANCES,
DECEMBER 31, 1999  4,946,956  $  49,470       90,000  $  22,500   $1,362,365 $(1,035,506) $     623   $ 399,452
                  ==========  ==========  ==========  ==========  ==========  ==========  ==========  ==========
</TABLE>
*end 8pt type*




See  accompanying  notes  to  consolidated  financial  statements.

Auditors' page 5
<PAGE>                                 26
MINES  MANAGEMENT,  INC.
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS


<TABLE>
                                                        December 31,
                                              ----------------------------
                                                  1999            1998
                                              ------------    -------------
<S>                                           <C>             <C>
INCREASE (DECREASE) IN CASH

CASH  FLOWS  FROM  OPERATING  ACTIVITIES:

     Net loss                                  $  (116,626)    $  (152,931)
     Adjustments to reconcile net loss to
       net cash used in operating activities:
         Depreciation                                1,584           1,407
         Common stock issued/issuable
            for services                            30,000          36,650
     Changes in assets and liabilities:
         Accounts receivable                           124              58
         Prepaid expenses                              750         (16,917)
         Taxes payable                                  71            (512)
         Accounts payable                           (2,270)          4,014
                                              ------------    -------------
     Net cash used in operating activities         (86,367)       (128,231)

CASH  FLOWS  FROM  INVESTING  ACTIVITIES:

     Acquisition of equipment                         (527)         (2,831)

CASH  FLOWS  FROM  FINANCING  ACTIVITIES:

     Issuance of common stock for cash              61,250         128,000
                                              ------------    -------------

NET DECREASE IN CASH                               (25,644)         (3,062)

CASH, BEGINNING OF YEAR                             45,734          48,796
                                              ------------    -------------

CASH, END OF YEAR                             $     20,090    $     45,734
                                              ============    =============

SUPPLEMENTAL CASH FLOWS DISCLOSURES:
Noncash financing activities:
     Common stock issued/issuable
     for property holding fee
     and services                             $     30,000    $     36,650
                                              ============    =============

Interest paid                                 $        -      $        -
                                              ============    =============

Income taxes paid                             $       103     $        -
                                              ============    =============
</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.

Auditors' page 6
<PAGE>                                 27
                          MINES  MANAGEMENT,  INC.
                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS




NOTE  1  -  ORGANIZATION  AND  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES:

Organization:

Mines  Management,  Inc.  (hereinafter  the  "Company") is a publicly held Idaho
corporation incorporated in 1947.  The Company acquires, explores, develops, and
operates  mineral  and  oil properties principally in North America.  Currently,
the  Company  is  beginning  exploration  activities  in  South  America.

Summary  of  Significant  Accounting  Policies:

a.     The  accompanying  consolidated financial statements include the accounts
of  Mines  Management,  Inc.,  and  its  wholly  owned  subsidiary,  Newhi, Inc.
Intercompany  balances  and  transactions  have  been  eliminated.

Newhi, Inc., was formed by the Company for the purpose of merger with Heidelberg
Silver  Mining  Company,  Inc.  In  the  merger,  completed  on  April 15, 1988,
Heidelberg  Silver  Mining Company, Inc., was merged into Newhi, Inc.  To effect
the  merger, the Company issued 367,844 shares of its previously unissued common
stock.  Also in connection with this merger, the Company issued 11,117 shares of
common  stock  and  paid  $4,446 as a finders' fee.  As of December 31, 1999 and
1998,  a portion of the shares to be distributed to the Heidelberg Silver Mining
Company,  Inc.,  shareholders  has  yet  to  be issued.  Even though a number of
shareholders  have  elected  not  to  return  their  shares upon the merger, the
Company is holding approximately 60,000 shares to be delivered at their request.

b.     The  Company  receives  a majority of its income from a lease arrangement
which  pays  an  annual  minimum  royalty of $25,000, with contingent production
royalties  of 5 percent of the net profits until capital investment is recovered
and  20 percent thereafter.  Management believes that this source of income will
continue in the foreseeable future due to the large investment of capital by the
lessor  in  this  project;  however, royalties are unearned by the Company until
received.

c.     The  Company   capitalizes   acquisition   and   exploration   costs   on
nonoperating mining properties.  Costs to maintain the mineral rights and leases
are  expensed  as  incurred.  Upon  commencement  of operations, the capitalized
costs will be amortized based on proven or probable reserves.  Capitalized costs
are  charged  to  operations as impairment losses when title to the property has
expired or when management believes the properties are not economically feasible
to  develop  or  hold  for  future  development.

d.     In  accordance  with FASB Statement No. 121,"Accounting for Impairment of
Long-Lived  Assets,"  the  Company  reviews  its  long-lived assets quarterly to
determine  if  any  events  or  changes  in  circumstances have transpired which
indicate  that  the  carrying  value  of its assets may not be recoverable.  The
Company  does  not  believe  that  any  impairment  adjustment  is needed to the
carrying  value  of  its  assets  at  December  31,  1999.

e.     Property and equipment are stated at cost.  Buildings were depreciated on
the  straight-line  basis  and  were  fully  depreciated  at  December 31, 1999.
Machinery  and  furniture  are  generally  being  depreciated  using accelerated
methods  over  lives  ranging  from  five  to  ten  years


Auditors' page 7
<PAGE>                                 28
                          MINES  MANAGEMENT,  INC.
                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1  -  ORGANIZATION  AND  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES
           (CONTINUED):

Summary  of  Significant  Accounting  Policies  (continued):

f.     Basic  and diluted loss per share are computed using the weighted average
number of shares outstanding during the year (4,910,244 in 1999 and 4,402,385 in
1998).  Stock  options  and  warrants   outstanding  and  issuable   shares  are
antidilutive  and  are  not  considered  in  the  computation.

g.     Deferred  income  tax  is  provided  for differences between the basis of
assets  and  liabilities for financial and income tax reporting.  A deferred tax
asset,  subject to a valuation allowance, is recognized for estimated future tax
benefits  of  tax-basis  operating  losses  being  carried  forward.

h.     The  preparation  of  financial  statements  in conformity with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect  the  reported  amounts  of assets and liabilities and
disclosure  of  contingent  assets  and liabilities at the date of the financial
statements  and  the  reported  amounts  of  revenues  and  expenses  during the
reporting  period.  Actual  results  may  differ  from  estimates.

i.     In  1998,  the  Company  adopted  SFAS  No. 130, "Reporting Comprehensive
Income," which establishes rules for the reporting of income and its components.
Comprehensive  income  consists  of  net income (loss) and changes in unrealized
losses  on  securities  available-for-sale.  The adoption of SFAS No. 130 had no
impact on total stockholders' equity.  Prior year financial statements have been
reclassified  to  conform  to  the  SFAS  No.  130  requirements.

NOTE  2  -  STOCKHOLDERS'  EQUITY:

Common  Stock:

In  1998,  the  Company  issued  75,000  shares of common stock to directors for
services  rendered.  These  shares were valued at $0.20 per share, which was the
estimated  fair  market  value  on  the  date  of  issuance.

In  1999,  the  Company authorized the issuance of 90,000 shares of common stock
for  director fees and officer compensation.  The shares were valued at $.25 per
share, the estimated market value on the authorized date.  As of March 22, 2000,
the  shares  had  not  been  issued.

In 1998, the Company issued 88,250 shares of common stock to outside parties for
services  rendered.  These  shares  were  valued at prices ranging from $0.20 to
$0.28  per  share,  which  was  the  estimated  fair market value on the date of
issuance.

In 1999, the Company sold 245,000 common shares for $61,250 ($0.25 per share) in
cash.  In  1998,  the Company sold 640,000 shares for $128,000 ($0.20 per share)
in  cash.  In connection with the 1999 stock sales, the company granted selected
dealers  warrants  to  purchase  up  to  24,000 common shares at $0.30 per share
through  February  2000.  Compensation was not recognized for the warrant grant,
as  such  amount  was  not  material.  The  warrants  expired  unexercised.

In  1999,  the  Company issued 25,000 shares of common stock to an outside party
for  an  annual  property  holding  fee.  These  shares were valued at $0.30 per
share,  which  was  the  estimated  fair  market  value at the date of issuance.


<PAGE>                                 29
                          MINES  MANAGEMENT,  INC.
                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  2  -  STOCKHOLDERS'  EQUITY (CONTINUED):

Preferred  Stock:

During  1998, the Company authorized 10,000,000 shares of no par value preferred
stock.  Through  December  31,  1999,  the  Company  had  not  issued any of the
authorized  preferred  stock.

NOTE  3  -  MINING  PROPERTIES:

Mining  properties  are  comprised  of acquisition, exploration, and development
costs  related to the Advance and Iroquois properties in the Northport region of
northeastern Washington State and the Montanore property in northwestern Montana
as  shown  below:

                      December  31,
                ------------------------
                  1999             1998
                -------          -------
Advance     $     2,139     $     2,139
Montanore       134,207          134,207
Iroquois        223,834          223,834
                -------          -------
            $   360,180     $    360,180
                =======          =======

The Advance property consists of 720 acres of patented mineral rights.  Although
the  Company  does  not own the overlying surface rights to its patented mineral
rights,  it  does  have  right  of  access  to  explore  and  mine.

The  Montanore  property  (formerly  the Noxon property) located in northwestern
Montana  includes 16 mining claims covering 320 acres and a 5-acre patented mill
site.

The  Iroquois  property  consists  of  64  acres of patented mineral and surface
rights  and  18  unpatented  mining  claims  containing  360  acres.

In 1998, the Company signed an agreement, effective June 1, 1998, to explore and
develop  certain  lands  located in the country of Chile along with an option to
purchase the property.  The agreement provides for an initial deposit of $25,000
as  a  holding  fee  and  annual  holding fees of $25,000 until such time as the
property is placed in production.  The initial fee is being amortized currently.
The  agreement provides for certain qualified expenditures as work requirements.


NOTE  4  -  MARKETABLE  SECURITIES:

The Company owns 45,000 free trading shares of Bitterroot Resources, Ltd. (BTT),
a  public  Canadian  corporation  traded  on  the Vancouver Stock Exchange.  The
shares  are  held as "available for sale."  This investment is being recorded at
fair  market value with a corresponding adjustment to stockholders' equity.  The
45,000  free  trading  shares at December 31, 1999 and 1998, have an approximate
market  value  of  $623  and  $1,765  U.S.  funds,  respectively.






<PAGE>                                 30
                          MINES  MANAGEMENT,  INC.
                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  5  -  STOCK  OPTIONS:

During the year ended December 31,1998, the shareholders of the Company approved
two  stock-based  compensation  plans: a fixed employee stock-based compensation
plan  and a performance-based plan.  Under the fixed plan, the Company may grant
options  to  purchase  up  to  460,000 shares of common stock.  The option price
shall not be less than the fair market value on the date of grant of the shares.
Stock  options  shall be exercisable within ten years from the date of the grant
of  the  option.  Options  under  the  fixed  plan  vest  immediately.

Through  December  31,  1999, the following fixed plan options had been granted:
<TABLE>
                        Number of
Optionee                Shares Granted     Option Price         Option Period
----------------------  --------------     -----------------    -------------
<S>                     <C>                <C>                  <C>
Directors:
   Robert L. Russell      100,000          $0.30 per share         5 years
   Jack Gustavel           75,000          $0.40 per share         5 years
   Phillip Piffer          75,000          $0.40 per share         5 years
   Roy Franklin            75,000          $0.40 per share         5 years

General Counsel:
   Greg Lipsker            75,000          $0.40 per share         5 years
                          -------
                Total     400,000
                          =======
</TABLE>

Under  the  incentive  plan,  the  Company  may  grant options to purchase up to
460,000  shares  of  common  stock.  The option price shall not be less than the
fair  market  value  on the date of grant of the shares.  Stock options shall be
exercisable  within ten years from the date of the grant of the option.  Options
under  the  incentive  plan  vest  immediately.

Through  December  31, 1999, the following incentive based plan options had been
granted:
<TABLE>
                        Number of
Optionee                Shares Granted     Option Price         Option Period
----------------------  --------------     -----------------    -------------
<S>                     <C>                <C>                  <C>
William Green              100,000         $0.40 per share         5 years
Chris Broili               100,000         $0.40 per share         5 years
                           -------
                 Total     200,000
                           =======
</TABLE>

As permitted under generally accepted accounting principles, option grants under
the  plans  are accounted for following the provisions of APB Opinion No. 25 and
its  related  interpretations.   Accordingly,  no  compensation  cost  has  been
recognized  for  the grants.  Had compensation cost been determined based on the
fair  value  method prescribed in FASB Statement No. 123 (FAS 123), the reported
net  loss and loss per share would have been increased to approximately $127,000
for  1999  and  $252,000  for  1998 ($.0259 and $.057, respectively, per share).



<PAGE>                                 31
                          MINES  MANAGEMENT,  INC.
                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  5  -  STOCK  OPTIONS  (CONTINUED):

In  determining  the  pro  forma  amounts  above,  the  value  of the grants was
estimated  at  the  grant date to be $0.11 and $0.15 per optioned share for 1999
and 1998, respectively, using the fair value method prescribed in FAS 123, based
on  the  Black  Scholes  option-pricing  model  with  the following assumptions:

Dividend  rate                    -0-%
Risk-free  interest  rate          6 %
Expected  lives  of  options       5  years
Estimated  price  volatility      30 %

The  following  summarizes  option  activity  for  the  years  presented:
<TABLE>
                                          Weighted Average
                                          Exercise
                               Shares     Price
                               Under      Per
                               Option     Share
                               -------    ----------------
<S>                            <C>        <C>
Balance, at January 1, 1998        -      $     -
     Issued                    600,000         0.40
     Exercised                     -           -
                               -------    ----------------
Balance at December 31, 1998   600,000        0.40
     Issued                    100,000        0.30
     Forfeited                (100,000)       0.40
     Exercised                     -           -
                               -------    ----------------
Balance at December 31, 1999   600,000    $   0.38
                               =======    ================
</TABLE>

Options  outstanding  at December 31, 1999, have a remaining contractual life of
approximately  3.4  years.

NOTE  6  -  CONCENTRATION  OF  CREDIT  RISK:

The  Company  maintains   its  cash  and  cash   equivalents  in  two  financial
institutions.  Balances are insured by the Federal Deposit Insurance Corporation
(FDIC)  up  to  $100,000  per  institution.

NOTE  7  -  DEFERRED  INCOME  TAX:

At  December  31, 1999 and 1998, the Company had deferred tax assets of $150,000
and   $140,000,   respectively,   related  to   tax-basis   net  operating  loss
carryforwards.  The  deferred  tax  assets  were  fully  reserved by a valuation
allowance  at  each date.  Changes in the deferred tax asset valuation allowance
for  1999  and  1998  relate  only  to corresponding changes in the deferred tax
assets  for  those  years.

At  December  31,  1999,  the  Company  had federal tax-basis net operating loss
carryforwards  totaling  approximately  $944,000 which expire in various amounts
from  2000  through  2019.