SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  FORM 10 - KSB
(Mark  One)

(X)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
     ACT OF  1934
     For  the  fiscal  year  ended  December  31,  2001

     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.  $32,551

     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,  the  aggregate  market value was   $195,686

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  December 31, 2001, 4,946,956 sharesof Common Stock

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

<PAGE>

                                     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  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>
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, 2001, the Company had 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>
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>
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.

Year          Silver  Price  Per Ounce               Copper Price Per Pound
----    -------------------------------------  ---------------------------------
              High                Low                 High              Low
        -----------------  ------------------  ------------------  -------------
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
2000          $5.36               $4.61               $0.91               $0.75
2001          $4.80               $4.07               $0.82               $0.60

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>
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.

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.

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.








<page>

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.

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.










<page>
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.

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.  In 2001 The U.S. Government issued
patents  for  certain  of  Noranda's  key  claims.

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.


<page>
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
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  15  unpatented  mining  claims  containing  about  300 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 9255
barrels  to  the  Company's  account.

ITEM  3.     LEGAL  PROCEEDINGS

None






<page>
ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

As  an economy measure, during the year ended December 31, 2001, the Company did
not  hold  an  Annual  Shareholders'  Meeting.  The  directors  elected  at  the
Shareholders  Meeting of November 19, 1999 will continue to serve until the next
Annual  Meeting.


                                     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,  1999.  The  quotations  reflect inter-dealer prices, without retail mark-up,
mark-down  or  commission  and  may  not  represent  actual  transactions.


Fiscal  Year                              High  Closing          Low  Closing
------------                              -------------          ------------

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

2000:
     First  Quarter                             .375               .15
     Second  Quarter                            .28                .125
     Third  Quarter                             .25                .125
     Fourth  Quarter                            .125               .063

2001:
     First  Quarter                             .18                .09
     Second  Quarter                            .14                .08
     Third  Quarter                             .12                .05
     Fourth  Quarter                            .05                .05

2002:
     First  Quarter                              .13               .05

Holders.
--------

As of December 31,  2001 there were 1075 shareholders of record of the Company's
common  stock.

Dividends.
----------

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






<page>
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, 2001, Compared to the  Year Ended
December 31, 2000

For  the  year  ended  December 31,  2001 the Company had income of $ 17.00 or $
0.00 per share, as compared to a net loss of $ 3,573 or $ 0.00 per share for the
year  ended December 31, 2000.  The decrease in net loss for Fiscal Year 2001 is
attributable  to  a  lower  level  of  exploration  activity.

During  Fiscal  Year  2001  the  Company had revenue from oil sales of $7,551 as
compared  to  revenues  of  $10,028  for  the year ended December 31, 2000.  The
decrease in revenue was primarily the result of decreased oil prices.  In Fiscal
Year  2001,  344.8  barrels were produced and sold at an average price of $25.88
per barrel as compared with 344.8 barrels sold at an average price of $27.17 per
barrel  for  the  year  ended  December  31,  2000.

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,
2001 and  2000, which have been audited by LeMaster & Daniels PLLC  are inserted
here.














<page>

MINES  MANAGEMENT,  INC.
AND  SUBSIDIARY

CONSOLIDATED  FINANCIAL  STATEMENTS  AND
INDEPENDENT  AUDITORS'  REPORT

DECEMBER  31,  2001  AND  2000
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY

CONTENTS
--------


INDEPENDENT  AUDITORS'  REPORT                          2


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       7-10


































<page>
                          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) and Subsidiary as of December 31, 2001
and  2000,  and  the  related  consolidated  statements of income, stockholders'
equity,  and  cash flows for the years 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  audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States  of  America.  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 audits provide 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.  and  Subsidiary as of December 31, 2001 and 2000, and the results of their
operations  and  their  cash  flows for the years then ended, in conformity with
accounting  principles  generally  accepted  in  the  United  States of America.

/s/ LeMasters & Daniels PLLC

LeMASTER  &  DANIELS  PLLC
Certified  Public  Accountants
Spokane,  Washington
February  28,  2002























<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
CONSOLIDATED  BALANCE  SHEETS

                                                           December  31,
                                                 ------------------------------
                                                      2001             2000
                                                 --------------  --------------
ASSETS
CURRENT  ASSETS:
     Cash  and  cash equivalents                 $      33,993   $      29,557
     Accounts  receivable                                2,524           1,566
     Prepaid  expenses                                     500           2,300
                                                 --------------  --------------
               Total  current  assets                   37,017          33,423
                                                 --------------  --------------
MINERAL  PROPERTIES                                    360,180         360,180
                                                 --------------  --------------
PROPERTY  AND  EQUIPMENT:
     Mine buildings                                     11,031          11,031
     Equipment                                          44,098          44,098
     Office  equipment                                  10,723          10,723
                                                 --------------  --------------
                                                        65,852          65,852
     Less  accumulated  depreciation                    64,014          63,109
                                                 --------------  --------------
                                                         1,838           2,743
                                                 --------------  --------------
INVESTMENTS:
     Available-for-sale securities,
       Bitteroot  Resources,  Ltd.                         846           1,801
                                                 --------------  --------------
                                                 $     399,881   $     398,147
                                                 ==============  ==============

LIABILITIES  AND  STOCKHOLDERS' EQUITY

CURRENT  LIABILITIES:
     Accounts  payable                           $       2,593   $         926
     State  income  taxes  payable                         164             164
     Payroll  taxes  payable                             1,005             -
                                                 --------------  --------------
               Total  current  liabilities               3,762           1,090
                                                 --------------  --------------
COMMITMENTS
STOCKHOLDERS'  EQUITY:
     Common stock 100,000,000 shares, $.01
       par value, authorized; 4,946,956 shares
       issued and outstanding                           49,470          49,470
     Issuable  common  stock                            22,500          22,500
     Preferred stock 10,000,000 shares, no
      par value, authorized; no shares issued
      and  outstanding                                     -               -
     Additional  paid-in  capital                    1,362,365       1,362,365
     Retained  deficit                              (1,039,062)     (1,039,079)
     Accumulated  other  comprehensive income              846           1,801
                                                 --------------  --------------
              Total  stockholders' equity              396,119         397,057
                                                 --------------  --------------
                                                 $     399,881   $     398,147
                                                 ==============  ==============

See  accompanying  notes  to  consolidated  financial  statements.
<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
CONSOLIDATED  STATEMENTS  OF  INCOME

                                                     Years Ended December 31,
                                                 ------------------------------
                                                      2001             2000
                                                 --------------  --------------
REVENUE:
     Royalties                                   $      25,000   $      25,000
     Oil  and  gas                                       7,551          10,028
                                                 --------------  --------------
          Total  revenue                                32,551          35,028
                                                 --------------  --------------

OPERATING  EXPENSES:
     Depreciation                                          905           1,285
     Legal  and  accounting                              7,252           7,617
     Miscellaneous                                       3,479           1,442
     Oil  and  gas  operating                            2,383           2,412
     Rent  and  office                                   2,314           4,762
     Salaries,  officer  and  staff                      9,947           1,300
     Taxes  and  licenses                                1,254           1,246
     Telephone                                           1,925             878
     Exploration                                         1,800          16,167
     Fees,  filing,  and  licenses                       2,112           2,077
                                                 --------------  --------------
          Total  operating  expenses                    33,371          39,186
                                                 --------------  --------------

LOSS  FROM  OPERATIONS                                    (820)         (4,158)

OTHER  INCOME:
     Interest                                              837             585
                                                 --------------  --------------
INCOME  (LOSS)  BEFORE  INCOME TAXES                        17          (3,573)

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

NET  INCOME  (LOSS)                                         17          (3,573)
                                                 ==============  ==============

NET INCOME (LOSS )PER SHARE                      $         NIL   $         NIL
                                                 ==============  ==============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING           4,946,956       4,946,956
                                                 ==============  ==============














See  accompanying  notes  to  consolidated  financial  statements.
<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
CONSOLIDATED  STATEMENTS  OF  STOCKHOLDERS' EQUITY
YEARS  ENDED  DECEMBER 31, 2001 AND 2000


<table>
                                                                                          Accumu-
                                                                                            lated
                                                                                          Other
                      Common Stock        Issuable Common Stock   Additional  Retained    Compre-
                  ---------------------  -----------------------  Paid-in     Earnings      hensive
                    Shares      Amount      Shares      Amount    Capital     (Deficit)   Income      Total
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------

               <c>         <c>         <c>         <c>         <c>         <c>         <c>         <c>

BALANCES,
 DECEMBER 31, 1999 4,946,956  $  49,470      90,000   $  22,500   $1,362,365  $(1,035,506)$     623   $ 399,452

Comprehensive loss:
 Adjustment to net
 unrealized gain
 on marketable
 securities              -          -            -           -           -            -       1,178       1,178
Net  loss                -          -            -           -           -         (3,573)      -        (3,573)
                                                                                                      ----------
Comprehensive loss                                                                                       (2,395)
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------
BALANCES,
 DECEMBER 31 2000 4,946,956      49,470      90,000     22,500     1,362,365  (1,039,079)     1,801     397,057

Comprehensive loss:
Adjustment to net
 unrealized gain on
 marketable
 securities             -           -           -          -             -           -        (955)        (955)
Net  income             -           -           -          -             -            17       -             17
                                                                                                      ----------
Comprehensive loss                                                                                         (938)
                  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ----------
BALANCES,
 DECEMBER 31, 2001 4,946,956  $  49,470      90,000   $  22,500   $1,362,365  $(1,039,062)$     846   $  396,119
                  ==========  ==========  ==========  ==========  ==========  ==========  ==========  ==========
</table>

























See  accompanying  notes  to  consolidated  financial  statements.

<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS


                                                     Years Ended December 31,
                                                 ------------------------------
                                                      2001             2000
                                                 --------------  --------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH  FLOWS  FROM  OPERATING  ACTIVITIES:

     Net income (loss)                           $          17   $      (3,573)
     Adjustments to reconcile net income
    (loss) to net cash provided by
     operating  activities:
       Depreciation                                        905           1,285
       Changes  in  assets  and  liabilities:
       Accounts  receivable                               (958)         (1,190)
       Prepaid  expenses                                 1,800          16,167
       Accounts payable                                  1,667          (3,222)
       Payroll  taxes  payable                           1,005             -
                                                 --------------  --------------
Net  cash  provided  by  operating  activities           4,436           9,467

CASH AND CASH EQUIVALENTS, BEGINNING  OF  YEAR          29,557          20,090
                                                 --------------  --------------
CASH  AND  CASH  EQUIVALENTS,  END  OF  YEAR     $      33,993   $      29,557
                                                 ==============  ==============

SUPPLEMENTAL  DISCLOSURES  OF  CASH  FLOWS  INFORMATION:

     Income taxes paid                           $         150   $         120
                                                 ==============  ==============


























See  accompanying  notes  to  consolidated  financial  statements.

<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
----------------------------------------------

NOTE  1  -  ORGANIZATION  AND  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES:

Organization:

Mines  Management,  Inc.  (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. The Company performed
exploration  activities  in  South  America  in  2000  and  2001.

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, 2001 and 2000, a portion
of  the  shares  to be distributed to the Heidelberg Silver Mining Company, Inc.
stockholders  has  yet  to be issued.  Even though a number of stockholders 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% of the net profits until capital investment is recovered and 20%
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.

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  Financial  Accounting Standards Board 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, 2001.

e.     Property and equipment are stated at cost.  Buildings were depreciated on
the  straight-line  basis  and  were  fully depreciated at December 31, 2001 and
2000,  respectively.  Machinery  and  furniture  are generally being depreciated
using  accelerated  methods over estimated useful lives ranging from five to ten
years.

f.     Basic  and diluted loss per share are computed using the weighted average
number  of  shares  outstanding  during  the  year (4,946,956 in 2001 and 2000).
Stock  options and warrants outstanding and issuable shares are antidilutive and
are  not  considered  in  the  computation.

<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
----------------------------------------------

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

Summary  of  Significant  Accounting  Policies  (continued):

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 accounting
principles  generally  accepted  in  the  United  States  of  America   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.

NOTE  2  -  STOCKHOLDERS'  EQUITY:

Common  Stock:

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 February 28,
2002,  the  shares  had  not  been  issued.

Preferred  Stock:

The  Company  has  authorized 10,000,000 shares of no-par-value preferred stock.
Through  December  31,  2001,  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,
                 ---------------------------------
                       2001              2000
                 ----------------   --------------
     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 five-acre patented
mill  site.

The  Iroquois  property  consists  of  64  acres of patented mineral and surface
rights  and 15 unpatented mining claims containing 300 acres.
<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
----------------------------------------------

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, 2001 and 2000, have an approximate
market  value  of  $846  and  $1,801  U.S.  funds,  respectively.

NOTE  5  -  STOCK  OPTIONS:

During  the  year  ended  December  31,  1998,  the  stockholders 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.

At  December  31,  2001,  the  following  fixed  plan  options were outstanding:

                      Number of
         Optionee     Shares Granted     Option Price     Option Period
--------------------  --------------  -----------------  ---------------
Directors:
  Robert L. Russell       100,000       $0.30 per share      5 years
  Jack Gustavel            75,000       $0.40 per share      5 years
  Roy Franklin             75,000       $0.40 per share      5 years
                      --------------
                          250,000

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.

At  December  31,  2001,  the  following  incentive-based  plan  options  were
outstanding:

                      Number of
         Optionee     Shares Granted     Option Price     Option Period
--------------------  --------------  -----------------  ---------------
  William Green             100,000     $0.40 per share       5 years
  Chris Broili              100,000     $0.40 per share       5 years
                      --------------
                            200,000











<page>
MINES  MANAGEMENT,  INC.  AND  SUBSIDIARY
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
----------------------------------------------

NOTE  5  -  STOCK  OPTIONS  (CONTINUED):

As permitted under accounting principles generally accepted in the United States
of  America,  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 Statements of
Financial  Accounting  Standards  (SFAS) No. 123, the reported net income (loss)
and  per-share  amounts  would have been the same as reported for 2001 and 2000.

The  following  summarizes  option  activity  for  the  years  presented:

                                                          Weighted Average
                                          Shares          Exercise Price
                                          Under Option    Per  Share
                                          -------------   ----------------
     Balance,  at  January  1,  2000          600,000     $     0.38
          Issued                                  -             -
          Forfeited                          (150,000)          0.40
          Exercised                               -             -
                                          -------------   ----------------
     Balance  at  December  31,  2000         450,000           0.38
          Issued                                  -             -
          Forfeited                               -             -
          Exercised                               -             -
                                          -------------   ----------------
     Balance  at  December  31,  2001         450,000     $     0.38
                                          =============   ================

Options  outstanding  at December 31, 2001, have a remaining contractual life of
approximately  1.4  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
up  to  $100,000  per  institution.

NOTE  7  -  DEFERRED  INCOME  TAX:

At  December 31, 2001 and 2000, the Company had deferred tax assets of $125,000,
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  2001  and  2000  relate only to
corresponding  changes  in  the  deferred  tax  assets  for  those  years.

At  December  31,  2000,  the  Company  had federal tax-basis net operating loss
carryforwards  totaling  approximately $830,000, which expire in various amounts
from  2002  through  2021.









<page>
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,  2001.

                                    PART III
                                    --------

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

Directors  and  Officers

Name                        Age  Office  with  the Company  Appointed to Office
--------------------------  ---  -------------------------  -------------------

William  R.  Green             63  Chairman  of  the  Board          1965
                                   President
                                   Chief  Executive  Officer
Chris  Broili                  53  Vice President - Exploration      1998
Roy  G.  Franklin              65  Director & Secretary/Treasurer    1988
Jack  W.  Gustavel             61  Director                          1974
Robert  L.  Russell            68  Director                          1999
Jerry  Pogue                   60  Director                          1999

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,  Triband  Enterprise Corp. and Petromin
Resources  Ltd.,  and  US  company  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.

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  a  small  portion  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.




<page>
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 stockbroker 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

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.






<page>
ITEM  10.        EXECUTIVE  COMPENSATION

A  summary  of cash and other compensation for the Company's President and Chief
Executive  Officer  for  the  four  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(#)      ($)      ($)
-----------  ----  -------  -------  -------  ----------  ----------  --------  ---------

          <c>   <c>      <c>      <c>      <c>        <c>          <c>       <c>
William R.
 Green       1998  $15,600     $0       $0      $3,000       -0-         $0       $0
President &  1999  $15,600     $0       $0      $3,000       -0-         $0       $0
Director     2000  $1,300      $0       $0      $0           -0-         $0       $0
             2001  $9,500      $0       $0      $0           -0-         $0       $0
</table>

Option/SAR  Grants  In  Last  Fiscal  Year
------------------------------------------

None

Director  Compensation  For  Last  Fiscal  Year
-----------------------------------------------
None

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 31,  2001 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.


Title of Class   Name of              Amount and nature of
                 Beneficial owner     Beneficial  Ownership   Percent of Class
--------------   -------------------  ---------------------  -----------------
Common           William R. Green           627,500                 11.4%

Security  Ownership  of  Management
-----------------------------------

The  following  table  sets  forth  certain  information  as  of  March 30, 2002
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>

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

                <c>                  <c>                       <c>
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.

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,  2001  and  2000

Consolidated  Statements  of  Operations  and  Comprehensive  Income
for  the  years  ended  December  31,  2001  and  2000

Consolidated  Statement  of  Changes  in  Stockholders'  Equity
          for  the  years  ending  December  31,  2001,  and  2000

Consolidated  Statements  of  Cash  Flows
for  the  years  ending  December  31,  2001,  and  2000

Notes  to  Financial  Statements




<page>

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.                                               (1)
(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  Summary - no longer required
(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>

                                   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.

                                       By:/s/ William R. Green
                                       --------------------------------
Date:     March  29,  2002             WILLIAM  R.  GREEN
                                       President (Principal Executive Officer)


                                       By:/s/ Roy G. Franklin
                                       --------------------------------
Date:     March  29,  2002              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.



                                       By:/s/  William R. Green
                                       --------------------------------
Date:     March  29,  2002             WILLIAM  R.  GREEN,  Director



                                       By:/s/ Roy G. Franklin
                                       --------------------------------
Date:     March  29,  2002             ROY  G.  FRANKLIN,  Director



                                       By:/s/ Jack W. Gustavel
                                       --------------------------------
Date:     March  29,  2002             JACK  W.  GUSTAVEL,  Director


                                       By:/s/ Robert L. Russell
                                       --------------------------------
Date:     March  29,  2002             ROBERT  L  .RUSSELL,  Director


                                       By:/s/  Jerry G. Pogue
                                       --------------------------------
Date:     March  29,  2002             JERRY  G.  POGUE,  Director