--------------------------------------------------------------------------------

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                        --------------------------------
                                   FORM 10-QSB

                    |X| QUARTERLY REPORT PURSUANT TO SECTION
                        13 OR 15(d) OF THE SECURITIES EXCHANGE
                        ACT OF 1934

                       For the Quarterly Period ended September 30, 1998

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

                    For the Transition Period from _________ to _________
                    Commission File Number _____________________


                      IDAHO CONSOLIDATED METALS CORPORATION
        (Exact Name of Small Business Issuer as Specified in its Charter)

   British Columbia, Canada                             82-0465571
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)             


                           504 Main Street, Suite 470
                              Post Office Box 1124
                              Lewiston, Idaho 83501
                    (Address of Principal Executive Offices)
                                 (208) 743-0914
                (Issuer's Telephone Number, Including Area Code)



Check  whether  the issuer  has (1) filed all  reports  required  to be filed by
Section  13 or 15(d) of the  Exchange  Act  during  the past 12 months  (or such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements  for the past 90 days.  Yes |_| No
|X|

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 9,434,650 as of September 30, 1998.

Transitional Small Business Disclosure Format (check one):  Yes  |_|  No |X|



<PAGE>



                         IDAHO CONSOLIDATED METALS CORP.

                                   Form 10-QSB
                 For the Fiscal Quarter ended September 30, 1998


                                TABLE OF CONTENTS


<TABLE>
                                                                                                                Page
PART I

FINANCIAL INFORMATION
<S>                                                                                                              <C>
   ITEM 1.  FINANCIAL STATEMENTS OF THE COMPANY...................................................................3
   ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
              PLAN OF OPERATION..................................................................................10

PART II

OTHER INFORMATION

   ITEM 1.  LEGAL PROCEEDINGS....................................................................................13
   ITEM 2.  CHANGES IN SECURITIES................................................................................13
   ITEM 3.  DEFAULTS UPON SENIOR SECURITIES......................................................................14
   ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..................................................14
   ITEM 5.  OTHER INFORMATION....................................................................................15
   ITEM 6.  EXHIBITS AND REPORTS FILED ON FORM 8-K...............................................................15

SIGNATURES.......................................................................................................16

</TABLE>




                                     Page 2
<PAGE>

                                     PART I

                              FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS OF THE COMPANY

The following unaudited financial statements for the period ending 30 September,
1998 are included in response to Item 1 and have been compiled by Staley, Okada,
Chandler & Scott, Chartered Accountants.

The  financial  statements  should  be read  in  conjunction  with  Management's
Discussion  and Analysis or Plan of Operations and other  financial  information
included elsewhere in this Form 10-QSB.





                                     Page 3
<PAGE>




                         STALEY, OKADA, CHANDLER & SCOTT
                              Chartered Accountants
                  (A Partnership of Incorporated Professionals)

--------------------------------------------------------------------------------


[X] 225 - 4299 Canada Way       L.M. Okada, Ltd.        221 - 20316 56th Avenue
    Burnaby, B.C. V5G 1H3       C.N. Chandler, Ltd.     Langley, B.C. V3A 3Y7
    Tel:  (604) 434-1384        K.A. Scott, Ltd.        Tel:  (604) 532-9913
    Fax:  (604) 434-7045        J.M Bhagirath, Ltd.     Fax:  (604) 532-1209



NOTICE TO READER


--------------------------------------------------------------------------------

We have compiled the interim  consolidated  balance sheet of Idaho  Consolidated
Metals Corp. as at 30 September 1998 and the interim consolidated  statements of
changes in shareholders' equity,  operations and cash flows for the three months
and nine months then ended from information provided by management.  We have not
audited,  reviewed or otherwise attempted to verify the accuracy or completeness
of such  information.  Readers are cautioned  that these  statements  may not be
appropriate for their purposes.

                                       signed "Staley, Okada, Chandler & Scott"

Burnaby, B.C.                          STALEY, OKADA, CHANDLER & SCOTT
1 December 1998                        CHARTERED ACCOUNTANTS


--------------------------------------------------------------------------------

                                     [Logo]
       Members of Institute of Chartered Accountants of British Columbia






                                     Page 4
<PAGE>


Idaho Consolidated Metals Corp.                                      Statement 1
(An Exploration Stage Company)
Interim Consolidated Balance Sheet
As at 30 September
U.S. Funds
Unaudited - See Notice to Reader



<TABLE>

ASSETS                                                                               1998                  1997
---------------------------------------------------------------------- -- ------------------ -- ------------------
<S>                                                                         <C>                   <C>          
Current
   Cash                                                                     $       1,445         $     125,455
   Accounts receivable                                                              3,005                 7,452
   Cash in trust                                                                   50,000                     -
                                                                          ------------------ -- ------------------
                                                                                   54,450               132,907
Restricted Investments                                                             90,000                90,000
Property Rights, Plant and Equipment                                            3,153,233             4,238,902
                                                                          ------------------ -- ------------------
                                                                            $   3,297,683         $   4,461,809
---------------------------------------------------------------------- -- ------------------ -- ------------------



LIABILITIES
---------------------------------------------------------------------- -- ------------------ -- ------------------

Current
   Accounts payable      - Related parties                                  $      84,362         $     244,175
                         - Other                                                  221,642               400,317
   Current portion of notes payable                                               255,139               623,970
                                                                          ------------------ -- ------------------
                                                                                  561,143             1,268,462
                                                                          ------------------ -- ------------------
Notes Payable                                                                     560,773                14,140
                                                                          ------------------ -- ------------------
Share Subscriptions Payable                                                             -               574,837
                                                                          ------------------ -- ------------------


SHAREHOLDERS' EQUITY
---------------------------------------------------------------------- -- ------------------ -- ------------------

Share Capital - Statement 2                                                     8,710,329             7,651,427
Deficit - Accumulated during the exploration stage - Statement 2               (6,481,977)           (4,994,472)
Foreign Currency Translation Adjustment - Statement 2                             (52,585)              (52,585)
                                                                          ------------------ -- ------------------
                                                                                2,175,767             2,604,370
                                                                          ------------------ -- ------------------
                                                                            $   3,297,683         $   4,461,809
---------------------------------------------------------------------- -- ------------------ -- ------------------

</TABLE>

ON BEHALF OF THE BOARD

"Robert Young"                 , Director
------------------------------

"Delbert W. Steiner"           , Director
------------------------------

                           - See Accompanying Notes -



                                     Page 5
<PAGE>


Idaho Consolidated Metals Corp.                                      Statement 2
Interim Consolidated Statement of Changes
     In Shareholders' Equity
U.S. Funds
Unaudited - See Notice to Reader

<TABLE>

                                                                          Deficit
                                                                      Accumulated           Foreign
                                                                       During the          Currency
                                          Common Shares               Exploration       Translation
                                        Shares           Amount             Stage        Adjustment            Total
-----------------------------------------------------------------------------------------------------------------------
<S>                                  <C>            <C>              <C>               <C>              <C>         
Balance - 31 December 1996            6,854,208      $  7,466,177     $ (4,291,402)     $    (52,585)    $  3,122,190
   Shares issued for resource
     properties                         250,000           182,250                -                 -          182,250
   Loss for the period                        -                 -         (703,070)                -         (703,070)
                                 --------------------------------------------------------------------------------------
Balance - 30 June 1997                7,104,208      $  7,651,427     $ (4,994,472)     $    (52,585)    $  2,604,370
-----------------------------------------------------------------------------------------------------------------------


Balance - 31 December 1997         $  9,434,650      $  8,710,329     $ (6,015,621)     $    (52,585)    $  2,642,123
   Loss for the period                        -                 -     $   (466,356)                -     $   (466,356)
                                 --------------------------------------------------------------------------------------
Balance - 30 June 1998             $  9,434,650      $  8,710,329     $ (6,481,977)     $    (52,585)    $  2,175,767
-----------------------------------------------------------------------------------------------------------------------

</TABLE>


                                                                     Statement 3
Interim Consolidated Statement of Operations
U.S. Funds
Unaudited - See Notice to Reader


<TABLE>

                                                             1998                                   1997
                                             -------------------------------------  -------------------------------------
                                                Three Months        Nine Months        Three Months        Nine Months
                                                       Ended              Ended               Ended              Ended
                                                30 September       30 September        30 September       30 September
-------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                 <C>                <C>                <C>         
Operating Expenses
   General and administrative
     - Schedule 1                              $    115,179        $    420,492       $    260,611       $    677,228
                                             ----------------------------------------------------------------------------

Other Income (Expenses)
   Interest income                                   (1,208)             (3,521)                 -                  -
   Interest expense                                   9,946              49,385             14,946             25,842
                                             ----------------------------------------------------------------------------
                                                      8,738              45,864             14,946             25,842
                                             ----------------------------------------------------------------------------

Loss for the Period                            $    123,917        $    466,356       $    221,557       $    703,070
-------------------------------------------------------------------------------------------------------------------------

Loss per Common Share                          $      0.01         $      0.05        $      0.03        $      0.10
-------------------------------------------------------------------------------------------------------------------------

Weighted Average Number of Common Shares
   Outstanding                                 $  9,434,650        $  9,434,650       $  6,990,078       $  6,984,687
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                           - See Accompanying Notes -





                                     Page 6
<PAGE>


Idaho Consolidated Metals Corp.                                      Statement 4
Interim Consolidated Statement of Cash Flows
U.S. Funds
Unaudited - See Notice to Reader

<TABLE>

                                                                1998                                 1997
                                                    ----------------------------        -----------------------------
                                                   Three Months      Nine Months       Three Months       Nine Months
                                                          Ended            Ended              Ended             Ended
Cash Resources Provided By (Used In)               30 September     30 September       30 September      30 September
-------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>           <C>                <C>               <C>          
Operating Activities
   Loss for the period                                 (123,917)     $   (466,356)      $   (221,557)     $   (703,070)
   Item not affected by cash
     Amortization                                         2,276             6,828              3,145             9,433
                                                 ------------------------------------------------------------------------
   Changes in current assets and
     liabilities
   Accounts receivable                                    5,666               983             (2,368)           (4,702)
   Accounts payable  - Related parties                  (18,589)          (96,630)            18,920            71,819
                     - Other                             (5,941)           67,068           (207,266)           (2,468)
                                                 ------------------------------------------------------------------------
   Net cash used in operating activities               (140,505)         (488,107)          (409,126)         (628,988)

Investing Activities
   Property rights, plant and equipment                 (49,571)         (138,025)            43,730          (152,070)
   Restricted investments                                     -                 -                  -            (5,000)
                                                 ------------------------------------------------------------------------
   Net cash used in investing activities                (49,571)         (138,025)            43,730          (157,070)
                                                 ------------------------------------------------------------------------

Financing Activities
   Bank loan                                                  -                 -            (17,175)          (22,173)
   Notes payable                                        191,060           548,692             75,058            91,707
   Share subscriptions payable                                -                 -            407,842           574,837
                                                 ------------------------------------------------------------------------
   Net cash provided by financing
     activities                                         191,060           548,692            465,725           644,371
                                                 ------------------------------------------------------------------------

Net Increase (Decrease) in Cash                             984           (77,440)           100,329          (141,687)
   Cash position - Beginning of period                      461            78,885             25,126           267,142
                                                 ------------------------------------------------------------------------

Cash Position - End of Period                      $      1,445      $      1,445       $    125,455      $    125,455
-------------------------------------------------------------------------------------------------------------------------

</TABLE>







                           - See Accompanying Notes -





                                     Page 7
<PAGE>


Idaho Consolidated Metals Corp.
Interim Consolidated Schedule of General and Administrative           Schedule 1
   Expenses
U.S. Funds
Unaudited - See Notice to Reader

<TABLE>

                                                               1998                               1997
                                                 ---------------------------------  ---------------------------------
                                                  Three Months      Nine Months      Three Months      Nine Months
                                                         Ended            Ended             Ended            Ended
                                                  30 September     30 September      30 September     30 September
---------------------------------------------------------------------------------------------------------------------

<S>                                                <C>              <C>               <C>               <C>         
Management fees and wages                          $     42,113     $    157,658      $     92,709      $    204,874
Professional fees                                        36,858          134,159             2,339           194,234
Travel                                                      423           36,077             9,076            53,039
Shareholder information                                   2,452           20,957            42,230           105,488
Office and general                                       14,656           30,147            21,421            50,325
Office rent                                               8,423           20,002             7,233            16,413
Amortization                                              2,276            6,828             3,145             9,433
Transfer agent and filing fees                            4,562            9,048             7,041            13,032
Entertainment and promotion                               3,416            5,616             1,504             5,432
Finance fees                                                  -                -            19,913            24,958
                                                 --------------------------------------------------------------------

Expenses for the Period                            $    115,179     $    420,492      $    206,611      $    677,228
---------------------------------------------------------------------------------------------------------------------
</TABLE>


Interim Consolidated Schedule of Property Rights,                     Schedule 2
   Plant and Equipment
U.S. Funds
Unaudited - See Notice to Reader

<TABLE>

                                                               1998                               1997
                                                 ---------------------------------- ----------------------------------
                                                  Three Months       Nine Months     Three Months       Nine Months
                                                         Ended             Ended            Ended             Ended
                                                  30 September      30 September     30 September      30 September
----------------------------------------------------------------------------------------------------------------------

<S>                                                <C>               <C>              <C>               <C>         
Direct - Mineral
   Idaho County, Idaho, U.S.A.
     Geological                                    $      7,837      $     47,842     $     20,403      $     82,215
     Lease payments and acquisition                      13,200            37,800           65,454           235,715
     Camp and general                                        93             7,538            3,481            44,390
     Assaying, staking and claim rental                  22,141            27,597           (2,680)           (2,272)
     Survey                                                 601             5,377           (6,360)            3,464
     Transportation                                       1,257             4,958           10,106            10,106
     Process plant and equipment                              -                 -            6,923            20,545
     Environmental                                        3,452             3,452                -             2,964
     Taxes and licenses                                     990               990            5,193             5,193
     Option payments received                                 -                 -          (65,000)          (65,000)
                                                 ---------------------------------------------------------------------
                                                         49,571           135,554           37,520           337,320
Equipment                                                     -             2,471                -                 -
                                                 ---------------------------------------------------------------------

Costs for the Period                               $     49,571      $    138,025     $     37,520      $    337,320
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                           - See Accompanying Notes -




                                     Page 8
<PAGE>


Idaho Consolidated Metals Corp.
Notes to Interim Consolidated Financial Statements
30 September 1998
U.S. Funds
Unaudited - See Notice to Reader




--------------------------------------------------------------------------------

1.       Significant Accounting Policies

         The notes to the  consolidated  financial  statements as at 31 December
         1997,  as set forth in the company's  1997 Annual Report  substantially
         apply to these interim  consolidated  financial  statements and are not
         repeated here.

--------------------------------------------------------------------------------

2.       Interim Consolidated Financial Statements Adjustments

         The financial  information given in the accompanying  unaudited interim
         consolidated  financial  statements reflects all adjustments which are,
         in the opinion of  management,  necessary  to a fair  statement  of the
         results for the interim periods reported. All such adjustments are of a
         normal recurring nature. All financial  statements presented herein are
         unaudited.

--------------------------------------------------------------------------------







                                     Page 9
<PAGE>


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

1.   Results of Operations

Third Quarter Fiscal 1998 Compared with Third Quarter 1997

The Company is in the  exploration  stage and has yet to generate  revenue  from
production. The Company continues to explore its mineral properties in an effort
to establish  proven ore  reserves,  and now has the  additional  resources of a
joint venture partner to assist in this regard.

In the  third  quarter,  general  and  administrative  expenses  decreased  from
$206,611 to $115,179 compared to the third quarter of 1997, representing a 44.2%
savings.  Significant  decreases were experienced in both travel and shareholder
information expenses (94.3% decrease),  as well as a 32% reduction in office and
general  expenses.  Management  fees and wages also  decreased by 54.6% over the
same period in 1997,  as a result of the reduction of  administrative  staff and
the related decrease in expenses,  due to the price of gold and the marketplace.
On a quarter over quarter basis the Company saved over $97,640.

Under U.S. generally  accepted  accounting  principles,  the Company must record
executive  remuneration  on the release of performance  shares from escrow.  The
Company issued 750,000 shares at the time of its initial public  offering to the
original  principal  founders  of the  Company  at a price of C$0.01  per share,
subject to the terms of an escrow agreement.  The number of shares released from
escrow  is  calculated  on an annual  basis as the  Company  expends  qualifying
amounts on its exploration and development  programs,  and the Company must seek
regulatory  approval for each  release.  During the third  quarter of 1998,  the
Company  did not apply for  regulatory  approval  for a  release  of any  escrow
shares,  and  accordingly  there was no  executive  remuneration  expense and no
corresponding change to the Company's share capital. The executive  remuneration
is a deemed  amount and is based  upon the fair  market  value of the  Company's
common shares during 1998.

The Company had very little income during the quarter. The Company experienced a
net loss for the period of  $123,917,  of which  $115,179 was related to general
and  administrative  expenses.  The Company had a loss of $221,557  for the same
period in 1997.

During the  quarter,  the  Company  expended  $49,571 on its  resource  property
exploration,  development and acquisition  program as compared to $37,520 in the
comparable 1997 period.  The Company had lease payments and acquisition costs of
$13,200 in the quarter,  compared to $65,454 in 1997 and geological  expenses of
$7,837  in  the  quarter  compared  to  $20,403  in  1997.  The  Company  had no
expenditures  on  process  plant and  equipment,  and  limited  expenditures  on
environmental and experienced an 88% reduction in transportation  expenses.  The
Company has  experienced  cost savings on it resource  expenditures by virtue of
having entered into joint venture  agreements  with Kinross Gold  Corporation on
the Company's most promising properties.

2.   Liquidity and Capital Resources

The Company is dependent on the proceeds of debt and equity financing, including
but not limited to public  offerings,  private  placements  and the  exercise of
stock  options  and  warrants  as  well  as from  the  optioning  or sale of its
properties  and the sale of other assets to fund its general and  administrative
expenditures  and its mineral  exploration and development  costs.  Without such
proceeds,  the Company 


                                     Page 10
<PAGE>


may not continue as a going  concern.  See note 1 to the Company's  December 31,
1997  Financial  Statements for  additional  information.  The Company will need
further funds to continue its  operations  and there is no reasonable  assurance
that such funding will be available.

The  Company  plans  to  conduct  exploration  and  development  on its  various
properties  within  the  constraints  of  current  market  conditions,  with its
objective being the maximization of geologic  understanding of the projects with
minimal  expenditures.  The  Company's  estimated  budget for all  properties is
$175,000 including BLM rental fees and contractual  payments to underlying claim
owners.  The majority of the budget will be spent on geologic mapping,  sampling
and assays,  geologic  interpretation,  geophysics,  geochemical  soil sampling,
property  payments  and  claim  fees.  The  estimated  budget  is  exclusive  of
expenditures  by the Company's joint venture partner on the Deadwood and Petsite
properties.

The Company  requires  approximately  $125,000  for  general and  administrative
expenses for the remainder of the fiscal year, and $255,139^ for payments on its
current notes payable, of which $250,000 is a demand note,  currently subject to
litigation as discussed  herein under the title Legal  Proceedings - Gumprecht -
Promissory  Note.  The  Company  anticipates  repayment of these notes from the
proceeds of the Private Placement,  the proceeds of convertible debt issues, the
conversion of the promissory notes and the exercise of stock options.

During the third quarter ended September 30, 1998, the Company  received cash in
the amount of  $183,660  from the issue of  convertible  promissory  notes which
notes are to be issued in the aggregate  principal amount of $250,000 to related
parties.  The  balance  of $66,340  was  received  by the  Company in the fourth
quarter.   These  funds  were   designated  for  the  Company's   corporate  and
administrative  expenses. In addition, on October 1, 1998, the Company agreed to
borrow an additional  $300,000 by way of the issue of a  convertible  promissory
note to a related party and the Company  received cash in the amount of $300,000
on November  17,  1998.  On  November  24,  1998,  the  principal  amount of the
convertible note was increased to $322,000 as a result of the Company  receiving
an additional  cash payment of $22,000 from the related party.  These funds have
been applied  towards  settling the civil suit against the Company by Gumprecht.
See Item 1. "Legal  Proceedings  - Civil Suit by  Gumprecht -  Promissory  Note"
below. See Item 2. "Changes in Securities"  below for further details  regarding
the convertible promissory notes.

As at  September  30,  1998,  the Company has a working  capital  deficiency  of
$506,693 versus a working  capital  deficiency of $1,135,555 for the same period
in 1997.  Accounts payable to related^ parties accounts for approximately 17% of
the  deficiency,  while trade accounts  payable and the current portion of notes
payable  accounts  for  the  other  approximate  83%.  The  Company  anticipates
improvement of this deficiency  from the proceeds of the convertible  promissory
notes issued in 1998.

Positive cash flow from the financing activities of the Company of $191,060^ and
$465,725 were recorded at September 30, 1998 and 1997, respectively. The current
liabilities  decreased  to  $561,143^  in  1998  from  $1,268,462  in  1997  and
$1,172,310  in 1996. Of the  September  30, 1998 current  liabilities,  $221,642
represents  the amounts  payable to non-related  parties and $84,362  represents
amounts payable to various related parties.

Negative Cash flows from  operating  activities of  ($140,505^),  ($409,126) and
($608,980) were recorded as at September 30, 1998, 1997, and 1996, respectively.
The Company will continue recording negative cash flow from operating activities
unless  significant  revenue is generated  from ore  production.  The  continued
negative cash flow will have a material negative impact on liquidity.


                                     Page 11
<PAGE>


Investing activities consist of funds being expended on resource properties. The
net cash  expended  on  investing  activities  was  $49,571 in 1998  compared to
$43,730  received in 1997 as  compared  to  $346,124 in 1996.  The 1997 and 1996
additions to resource properties were primarily from cash.




                                     Page 12
<PAGE>


                                     PART II

                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Civil Suit by Gumprecht - Promissory Note

As reported in the  Company's  Form 10-QSB for the quarter ended March 31, 1998,
the Company  elected to allow a default to be entered in the  District  Court of
the Third  Judicial  District  of the State of Idaho,  in and for the  County of
Idaho on January 30, 1998.  On May 18, 1998 the Court ordered the Company to pay
the amount of  $332,216.71  which  included  interest  through May 17, 1998. The
Company  is  currently  negotiating  payment  terms  of the  judgment  with  the
Plaintiffs.  and believes  that issue will be resolved in the fourth  quarter of
1998.

Civil Suit by Gumprecht - Derivative Action

During the  quarter  ended  September  30,  1998 the Company has been added as a
party to the  lawsuit.  The  Company  is of the view  that the  allegations  are
generally without merit and will vigorously defend against this suit.


ITEM 2.  CHANGES IN SECURITIES

Convertible Promissory Notes

Convertible Loan #4

On September 10, 1998 the Company  entered into  convertible  loan  agreement #4
with the  Tomasovich  Family Trust (the  "Trust")  pursuant to which the Company
issued  convertible  promissory  notes  in  the  aggregate  amount  of  $250,000
($183,660 - September 10, 1998; $7,400 - October 14, 1998 and $58,940 - November
17,  1998).  The Company  received  VSE  acceptance  of this  transaction  as to
$191,060  on  November  3, 1998 and as to  $58,940 on  November  17,  1998.  The
repayment terms and conversion  features are more  particularly  detailed below.
The lender with respect to the convertible  promissory notes is the Trust, which
owned 1,498,611 shares,  or 15.88% of the Company on a non-diluted  basis, as of
September 30, 1998. The Trust is a private family trust,  of which Mr.  Theodore
Tomasovich, a Director of the Company, is a trustee.

The aggregate $250,000  convertible  promissory notes are repayable on or before
September 10, 2000 bearing  interest at 9% per annum. The lender may require the
Company  to  convert  all or any  portion  of the  principal  amount of the loan
advanced and then  outstanding  into units at a conversion price of one unit for
each C$0.17 of  indebtedness  until and  including  September  10, 1999 and at a
conversion  price of one unit for each C$0.22 of indebtedness  during the period
from  September  11, 1999 until  September  10, 2000 for a maximum of  2,227,941
units if the principal amount is converted in its entirety in the first year and
a  maximum  of  1,721,590  units if the  principal  amount is  converted  in its
entirety between September 11,


                                     Page 13
<PAGE>


1999 and  September  10,  2000.  Each unit  consists of one common share and one
non-transferable   common  share  purchase   warrant  with  each  warrant  being
exercisable  at a price of C$0.17 per share until  September 10, 1999 and C$0.27
per share from September 11, 1999 to September 10, 2000.

Convertible Loan #5

On October 1, 1998 the Company entered into  convertible  loan agreement #5 with
the Trust pursuant to which the Company issued a convertible  promissory note in
the amount of  $300,000  dated  November  17,  1998.  The Company  received  VSE
acceptance  of this  transaction  on November 20, 1998.  Effective  November 24,
1998,  the  Company  and the Trust  amended  convertible  loan  agreement  #5 by
increasing the principal amount of the convertible promissory note from $300,000
to $322,000 and the Company issued a convertible  promissory  note in the amount
of $22,000 dated November 17, 1998.  The Company  received VSE acceptance of the
increase  in the  convertible  loan  agreement  #5 on  November  20,  1998.  The
repayment terms and conversion features are more particularly detailed below.

The aggregate  $322,000  convertible  promissory notes is repayable on or before
October 1, 2000  bearing  interest at 9% per annum.  ^The lender may require the
Company  to  convert  all or any  portion  of the  principal  amount of the loan
advanced and then  outstanding  into units at a conversion price of one unit for
each  C$0.20  of  indebtedness  until  and  including  October  1, 1999 and at a
conversion  price of one unit for each C$0.25 of indebtedness  during the period
from October 2, 1999 until  October 1, 2000 for a maximum of 2,439,150  units if
the  principal  amount is  converted  in its  entirety  in the first  year and a
maximum of 1,951,320 units if the principal  amount is converted in its entirety
between  October 2, 1999 and October 1, 2000.  Each unit  consists of one common
share and one non-transferable  warrant with each warrant being exercisable at a
price of C$0.20  per share  until  October  1, 1999 and  C$0.25  per share  from
October 2, 1999 to October 1, 2000.

The policies of the VSE require  shareholder  approval to any possible change of
control of a company resulting from certain transactions  including the issuance
of  convertible  securities.  If the  Trust  converts  all or a  portion  of the
principal amount outstanding under the convertible  promissory notes aggregating
$910,000  issued to it by the Company into shares and  warrants  pursuant to the
five convertible  loan agreements with the Company,  it could result in Theodore
Tomasovich and the Trust  exercising  control or direction over more than 20% of
the voting rights attached to the common shares of the Company,  which under the
British  Columbia  Securities  Act is deemed,  in the absence of evidence to the
contrary, to affect materially the control of the Company. The Company requested
and  received  approval  of its  securities  holders to the  possible  change of
control of the  Company to Theodore  Tomasovich  and the Trust at the annual and
extraordinary general meeting held on June 17, 1998.


Item 3.  Defaults upon Senior Securities

Not applicable.


Item 4.  Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of security holders during the quarter ended
September 30, 1998.




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<PAGE>


ITEM 5.  OTHER INFORMATION

None.


ITEM 6.  EXHIBITS AND REPORTS FILED ON FORM 8-K

(a)  None.

(b)  None.



                                     Page 15
<PAGE>


                                   Signatures


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934, the registrant has caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized, on the 31st day of December, 1998.


                                   IDAHO CONSOLIDATED METALS CORPORATION


                                   By: /s/ Delbert W. Steiner
                                       -----------------------------------------
                                       Delbert W. Steiner
                                       President and Chief Executive Officer


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities indicated on the 31st day of December, 1998.

     Signature                             Title                 Date

/s/ Delbert W. Steiner
---------------------------     Director, President and        December 31, 1998
Delbert W. Steiner              Chief Executive Officer


/s/ Kenneth A. Scott
---------------------------     Chief Financial Officer        December 31, 1998
Kenneth A. Scott



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