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

                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 June 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: 8,867,441 as of March 31, 1998.

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



<PAGE>





                         IDAHO CONSOLIDATED METALS CORP.

                                   Form 10-QSB
                   For the Fiscal Quarter ended June 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....................................................................................12
   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 June, 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 June 1998 and the  interim  consolidated  statements  of
changes in shareholders' equity,  operations and cash flows for the three months
and six 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 June
U.S. Funds
Unaudited - See Notice to Reader


<TABLE>


ASSETS                                                                               1998                  1997
---------------------------------------------------------------------- -- ------------------ -- ------------------
<S>                                                                         <C>                   <C>          
Current
   Cash                                                                     $         461         $      25,126
   Accounts receivable                                                              8,671                 5,084
   Cash in trust                                                                   50,000                     -
                                                                          ------------------ -- ------------------
                                                                                   59,132                30,210
Restricted Investments                                                             90,000                90,000
Property Rights, Plant and Equipment                                            3,105,938             4,204,527
                                                                          ------------------ -- ------------------
                                                                            $   3,255,070         $   4,324,737
---------------------------------------------------------------------- -- ------------------ -- ------------------



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

Current
   Bank loan                                                                $           -         $      17,175
   Accounts payable      - Related parties                                        102,951               225,255
                         - Other                                                  227,583               607,583
   Current portion of notes payable                                               253,995               546,843
                                                                          ------------------ -- ------------------
                                                                                  584,529             1,396,856
                                                                          ------------------ -- ------------------
Notes Payable                                                                     370,857                16,209
                                                                          ------------------ -- ------------------
Share Subscriptions Payable                                                             -               166,995
                                                                          ------------------ -- ------------------


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

Share Capital - Statement 2                                                     8,710,329             7,570,177
Deficit - Accumulated during the exploration stage - Statement 2               (6,358,060)           (4,772,915)
Foreign Currency Translation Adjustment - Statement 2                             (52,585)              (52,585)
                                                                          ------------------ -- ------------------
                                                                                2,299,684             2,744,677
                                                                          ------------------ -- ------------------
                                                                            $   3,255,070         $   4,324,737
---------------------------------------------------------------------- -- ------------------ -- ------------------

</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                         125,000           104,000                -                 -          104,000
   Loss for the period                        -                 -         (481,513)                -         (481,513)
                                 --------------------------------------------------------------------------------------
Balance - 30 June 1997                6,979,208      $  7,570,177     $ (4,772,915)     $    (52,585)    $  2,744,677
-----------------------------------------------------------------------------------------------------------------------


Balance - 31 December 1997         $  9,434,650      $  8,710,329     $ (6,015,621)     $    (52,585)    $  2,642,123
   Loss for the period                        -                 -     $   (342,439)                -     $   (342,439)
                                 --------------------------------------------------------------------------------------
Balance - 30 June 1998             $  9,434,540      $  8,710,329     $ (6,358,060)     $    (52,585)    $  2,299,684
-----------------------------------------------------------------------------------------------------------------------

</TABLE>


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


<TABLE>

                                                             1998                                   1997
                                             -------------------------------------  -------------------------------------
                                                     Three                Six                Three               Six
                                                    Months             Months               Months            Months
                                                     Ended              Ended                Ended             Ended
                                                   30 June            30 June              30 June           30 June
-------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                 <C>                <C>                <C>         
Operating Expenses
   General and administrative
     - Schedule 1                              $    169,717        $    305,313       $    260,605       $    470,617
                                             ----------------------------------------------------------------------------

Other Income (Expenses)
   Interest income                                   (1,652)             (2,313)                 -                  -
                                             ----------------------------------------------------------------------------
   Interest expense                                  30,267              39,439              7,017             10,896
                                             ----------------------------------------------------------------------------
                                                     28,615              37,126              7,017             10,896

Loss for the Period                            $    198,332        $    342,439       $    267,622       $    481,513
-------------------------------------------------------------------------------------------------------------------------

Loss per Common Share                          $      0.02         $      0.04        $      0.04        $      0.07
-------------------------------------------------------------------------------------------------------------------------

Weighted Average Number of Common Shares
   Outstanding                                 $  9,434,686        $  9,434,686       $  6,879,208       $  6,879,208
-------------------------------------------------------------------------------------------------------------------------

</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               Six             Three                Six
                                                        Months            Months            Months             Months
                                                         Ended             Ended             Ended              Ended
Cash Resources Provided By (Used In)                   30 June           30 June           30 June            30 June
-------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>           <C>                <C>               <C>          
Operating Activities
   Loss for the period                                 (198,332)     $   (342,439)      $   (267,622)     $   (481,513)
   Item not affected by cash
     Amortization                                         2,276             4,552              3,144             6,288
                                                 ------------------------------------------------------------------------
   Changes in current assets and
     liabilities
     Accounts receivable                                 (4,320)           (4,683)            (4,148)           (5,084)
     Other                                                    -                 -              2,750             2,750
     Accounts payable
        - Related parties                               (90,411)          (78,041)            49,211            52,899
        - Other                                          65,672            73,009            108,659           204,798
                                                 ------------------------------------------------------------------------
   Net cash used in operating activities               (225,115)         (347,602)          (108,006)         (219,862)

Investing Activities
   Property rights, plant and equipment                 (51,141)          (88,454)          (108,022)         (195,800)
   Restricted investments                                     -                 -             (5,000)           (5,000)
                                                 ------------------------------------------------------------------------
   Net cash used in investing activities                (51,141)          (88,454)          (113,002)         (200,800)
                                                 ------------------------------------------------------------------------

Financing Activities
   Bank loan                                                  -                 -             (4,998)           (4,998)
   Proceeds of notes payable                            148,633           357,632             13,171            16,649
   Share subscriptions payable                                -                 -            166,995           166,995
                                                 ------------------------------------------------------------------------
   Net cash provided by financing
     activities                                         148,633           357,632            175,168           178,646
                                                 ------------------------------------------------------------------------

Net Decrease in Cash                                   (127,623)          (78,424)           (45,860)         (242,016)
   Cash position - Beginning of period                  128,084            78,885             70,986           267,142
                                                 ------------------------------------------------------------------------

Cash Position - End of Period                      $        461      $        461       $     25,126      $     25,126
-------------------------------------------------------------------------------------------------------------------------

</TABLE>







                           - See Accompanying Notes -





                                     Page 7
<PAGE>




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

<TABLE>

                                                               1998                               1997
                                                 ---------------------------------  ---------------------------------
                                                         Three              Six             Three              Six
                                                        Months           Months            Months           Months
                                                         Ended            Ended             Ended            Ended
                                                       30 June          30 June           30 June          30 June
---------------------------------------------------------------------------------------------------------------------
<S>                                                <C>              <C>               <C>               <C>         
Management fees and wages                          $     60,656     $    115,545      $     45,665      $    100,138
Professional fees                                        60,311           92,965           128,617           206,099
Travel                                                   18,421           35,654            19,051            43,963
Shareholder information                                  12,473           22,841            38,186            64,523
Office and general                                        5,904           15,491            12,165            26,727
Office rent                                               5,196           11,579             4,590             9,180
Amortization                                              2,276            4,552             3,144             6,288
Transfer agent and filing fees                            2,633            4,486             3,279             5,991
Entertainment and promotion                               1,847            2,200               863             2,663
Finance fees                                                  -                -             5,045             5,045
                                                 --------------------------------------------------------------------

Expenses for the Period                            $    169,717     $    305,313      $    260,605      $    470,617
---------------------------------------------------------------------------------------------------------------------

</TABLE>


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


<TABLE>
                                                               1998                               1997
                                                 ---------------------------------- ----------------------------------
                                                         Three               Six            Three               Six
                                                        Months            Months           Months            Months
                                                         Ended             Ended            Ended             Ended
                                                       30 June           30 June          30 June           30 June
----------------------------------------------------------------------------------------------------------------------
<S>                                                <C>                     <C>        <C>               <C>         
Direct - Mineral
   Idaho County, Idaho, U.S.A.
     Geological                                    $     25,324            40,005     $     32,209      $     61,812
     Lease payments and acquisition                      12,000            24,600            6,351           170,261
     Camp and general                                     3,765             7,445           16,412            25,815
     Assaying, staking and claim
       rental                                             3,382             5,456                -                 -
     Survey                                                 498             4,776            3,746             9,824
     Transportation                                       3,701             3,701                -                 -
     Drilling                                                 -                 -              124            15,094
     Process plant and equipment                              -                 -            9,022            13,622
     Environmental                                            -                 -                -             2,964
                                                 ---------------------------------------------------------------------
                                                         48,670            85,983           67,864           299,392
Equipment                                                 2,471             2,471                -                 -
                                                 ---------------------------------------------------------------------

Costs for the Period                               $     51,141      $     88,454     $     67,864      $    299,392
----------------------------------------------------------------------------------------------------------------------
</TABLE>


                           - See Accompanying Notes -




                                     Page 8
<PAGE>


Idaho Consolidated Metals Corp.
Notes to Interim Consolidated Financial Statements
30 June 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

Second Quarter Fiscal 1998 Compared with Second 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 second  quarter,  general  and  administrative  expenses  decreased  from
$260,605 to $169,717 compared to the second quarter of 1997,  representing a 35%
savings.  Significant  decreases were experienced in both travel and shareholder
information expenses (67% decrease),  as well as a 53% reduction in professional
fees.  Management  fees and wages increased by 33% over the same period in 1997,
due to the addition of an additional  staff position.  On a quarter over quarter
basis, however, the Company saved over $90,000.

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 CDN$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 second  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  $198,332,  of which  $169,717 was related to general
and  administrative  expenses.  The Company had a loss of $267,622  for the same
period in 1997.

During the  quarter,  the  Company  expended  $51,141 on its  resource  property
exploration,  development and acquisition program as compared to $108,022 in the
comparable 1997 period.  The Company had lease payments and acquisition costs of
$12,000  in the  quarter,  compared  to  $6,351  in  1997.  The  Company  had no
expenditures  on  drilling,  process  plant  and  equipment,  environmental  and
roadwork expenses. The Company experienced the majority of these cost savings on
it  resource  expenditures  by virtue  of  having  entered  into  joint  venture
agreements  with Cyprus  Gold  Exploration  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 may not  continue as a going  concern.  See note 1 to the
Company's December 31, 1997 Financial



                                    Page 10
<PAGE>


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  $250,000  for  general and  administrative
expenses for the remainder of the fiscal year,  and $253,995 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, and
the conversion of the promissory notes and the exercise of stock options.

During the second  quarter ended June 30, 1998, the Company has received cash in
the  amount of  $150,000  from the  issue of a  convertible  promissory  note to
related parties.  These funds were used for working capital purposes and funding
of exploration,  development and claim maintenance of the Company's  properties.
See note 12 to the Company's December 31, 1997 Financial Statements and Item 2 -
Changes in Securities - for further details.

As at June 30, 1998,  the Company has a working  capital  deficiency of $525,397
versus a working  capital  deficiency of $1,366,646 for the same period in 1997.
Accounts  payable to  related  parties  accounts  for  approximately  20% of the
deficiency,  while  trade  accounts  payable  and the  current  portion of notes
payable  accounts  for  the  other  approximate  80%.  The  Company  anticipates
improvement of this deficiency  from the proceeds of the convertible  promissory
notes issued in 1998. The Company is in the process of restructuring  certain of
its obligations with certain  creditors during the quarter in order to assist in
the  correction of this  deficiency.  The VSE accepted the Company's  shares for
debt exchange agreements with those creditors,  which resulted in the removal of
C$414,063.17 in debt in exchange for  approximately  567,209 shares on April 21,
1998.  This  matter  is  more  particularly  discussed  in Item 2 -  Changes  in
Securities.

Positive cash flow from the financing  activities of the Company of $357,632 and
$178,646  were recorded at June 30, 1998 and 1997,  respectively.  The long-term
debt  increased to $370,857 in 1998 from $16,209 in 1997 and $20,078 in 1996 and
current  liabilities  decreased to $584,529 in 1998 from  $1,396,856 in 1997 and
$1,480,766  in  1996.  Of  the  June  30,  1998  current  liabilities,  $227,583
represents the amounts payable to other parties and $102,951  represent  amounts
payable to various related parties.

Negative Cash flows from  operating  activities of  ($347,602),  ($219,862)  and
(161,838) were recorded as at June 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.

Investing activities consist of funds being expended on resource properties. The
net cash  expended on  investing  activities  decreased  to $88,454 in 1998 from
$200,800 in 1997 as compared to $216,543 in 1996. The 1997 and 1996 additions to
resource properties were primarily from cash.


                                    Page 11
<PAGE>


                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Civil Suit by Joe Swisher and IMD

The following  discussion  was  disclosed in the  Company's  Form 10-QSB for the
quarter  ended March 31, 1998 and the  Company's  Form 10-KSB for the year ended
December  31, 1997 as the legal  proceedings  recounted  below were known at the
time of filing of those documents.  These legal proceedings were resolved in the
second quarter of 1998, and hence their disclosure  herein,  despite their prior
disclosure.

On October 18, 1996 Mr. Swisher and Idaho Mining and Development  Company,  Inc.
("IMD") filed suit against the Company for $3,473,857 or alternatively  $344,257
and 1,304,000 common shares of the Company plus interest,  attorney fees and any
further relief available.

Subsequently,  the Company filed a suit against Mr.  Swisher and Silver  Crystal
Mines,  Inc.  alleging breach of contract on the Eckert's Hill processing  plant
contract  and filed a  counter-claim  against  Mr.  Swisher  and IMD for alleged
failure to perform contracted  assessment work, alleged breach of the Swisher-Br
metallurgical  process  contract  and alleged  breach of certain  other  mineral
property arrangements.

On April 29, 1998, the parties entered into a Global Settlement  Agreement which
causes all claims and counter-claims  between the parties to be resolved. A copy
of this agreement is filed as an exhibit to the Company's  1997 Form 10-KSB.  In
full and final  settlement  of all existing  and  potential  claims  between and
amongst the parties,  the Company will pay $50,000 to IMD within 2 business days
of the  settlement  and will deposit in trust a further  $50,000.  Both of these
payments  have been made.  The  balance in trust  will be  released  to IMD upon
delivery  by IMD to the  Company of certain  quitclaim  deeds to the Claim Block
properties.  The Company has recorded a gain on the settlement of the lawsuit of
$223,946.

The  settlement  has been  recorded as of December  31, 1997 and the $100,000 is
accrued within amounts payable to related  parties in the financial  statements.
See also note 7 to the  Company's  December 31, 1997  Financial  Statements  for
further  details.   The  gain  on  debt  settlement  has  been  recorded  as  an
extraordinary  item in the statement of operations  for the year ended  December
31,  1997.  See  also  note 8 to  the  Company's  December  31,  1997  Financial
Statements for additional information.


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 Second  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.




                                    Page 12
<PAGE>


ITEM 2.  CHANGES IN SECURITIES

Shares for Debt Exchange

On April 21, 1998 the Company settled outstanding  indebtedness in the aggregate
amount of  C$414,063  owing to certain  creditors  by issuing a total of 567,209
common  shares in the capital  stock of the Company at a deemed  price of C$0.73
per share pursuant to the terms and conditions of the respective Debt Settlement
Agreements  dated June 30, 1997.  The Company  received VSE  acceptance  of this
transaction  on March 18,  1998.  The shares  were  issued on April 21, 1998 and
accordingly,  the debts were extinguished  upon the issuance of the shares.  The
particulars of the creditors are as follows:


Name of Creditor                  Amount of Indebtedness (C$)      No. of Shares
----------------                  ---------------------------      -------------

Tomasovich Family Trust(1)              $56,310.37                     77,137

Wilfried Struck(2)                      $28,155.59                     38,569

Stephens, Berg & Lasater                $73,000.00                    100,000

Delbert Steiner(3)                      $180,880.22                   247,781

Robert A. Young & Associates(4)         $28,700.00                     39,315

Staley, Okada, Chandler, & Scott(5)     $47,016.99                     64,407

TOTAL                                   $414,063.17                   567,209

(the "Creditors")

Notes:

(1)  Theodore  Tomasovich,  a director  of the  Company,  is the  Trustee of the
     Tomasovich Family Trust and has voting control over the Trust.
(2)  Wilfried  Struck is  Vice-President,  Chief Operating  Officer,  Mining and
     Exploration of the Company.
(3)  Delbert  Steiner is a director,  Chairman,  President  and Chief  Executive
     Officer of the Company.
(4)  Robert A. Young is a director  of the Company  and the sole  proprietor  of
     Robert A. Young & Associates.
(5)  Kenneth Scott, the Chief Financial Officer of the Company,  is a partner of
     Staley, Okada, Chandler & Scott.

During 1997, the Company and the Creditors had reached agreement to settle debts
in the amount of C$414,063.17 by the issuance of 567,209 common shares. The debt
settlement  was  subject to approval by the VSE.  The debt  settlement  has been
recorded in the Company's December 31, 1997 Financial Statements; VSE acceptance
was received on March 18, 1998 and the shares were issued on April 21, 1998.  In
addition  to  the  debt  settlement,  the  Company  negotiated  a  reduction  of
previously invoiced and accrued legal fees of $179,138 from the Company's former
U.S.  securities  counsel.  The reduction has been recorded as an  extraordinary
item in the consolidated statement of operations for the year ended December 31,
1997. See also note 8 to the Company's  December 31, 1997 Financial  Statements.
Certain of the debts  settled were owed to parties  related to the Company.  See
Item 12 - Related  Transactions  - of the Company's 1997 Form 10-KSB for further
information.

Convertible Promissory Notes

On April 9, 1998 the Company entered into  convertible loan agreements #1 and #2
with the Tomasovich  Family Trust (the  "Trust"),  pursuant to which the Company
issued  convertible  promissory  notes in the amounts of $100,000  and  $110,000
dated January 23, 1998 and March 31, 1998 respectively. The Company received VSE
acceptance of the two convertible  loan  agreements on June 22, 1998,  following
approval by the  shareholders  of the Company at the annual general meeting held
on June 16, 1998, of the



                                    Page 13
<PAGE>


possible change of control of the Company to Theodore  Tomasovich and the Trust.
The repayment terms and conversion  features are more  particularly  detailed in
Item 2 - Changes in Securities - in the Company's March 31, 1998 Form 10-QSB.

On May 15, 1998 the Company entered into  convertible loan agreement #3 with the
Trust pursuant to which the Company issued a convertible  promissory note in the
amount  US$150,000 dated May 15, 1998. The Company received VSE approval of this
transaction  on June 22,  1998  following  approval by the  shareholders  of the
Company at the annual  general  meeting held on June 16,  1998,  of the possible
change of  control of the  Company to  Theodore  Tomasovich  and the Trust.  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 1,498,111 shares,  or 15.88% of the Company on a non-diluted  basis, as of
June 30, 1998. The Trust is a private family trust, of which Mr.
Theodore Tomasovich, a Director of the Company, is a trustee.

The  US$150,000  convertible  promissory  note  issued  under  convertible  loan
agreement #3 is  repayable on or before May 15, 2000 bearing  interest at 9% per
annum. After June 17, 1998, 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$0.23 of  indebtedness
until and including May 15, 1999 and at a conversion  price of one unit for each
C$0.28 of  indebtedness  during the period  from May 16, 1999 until May 15, 2000
for a maximum of 932,608  common shares if the principal  amount is converted in
its entirety in the first year and a maximum of 766,071  units if the  principal
amount is converted in its entirety  between May 16, 1999 and May 15, 2000. Each
unit  consists of one common  share and one  non-transferable  warrant with each
warrant being  exercisable at a price of C$0.23 per share until May 15, 1999 and
C$0.27 per share from May 16, 1999 to May 15, 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  the  principal  amount
outstanding  under the promissory notes into shares and warrants pursuant to the
convertible  loan  agreements,  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 security holders to the possible change of control 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

During the quarter ended June 30, 1998, the following  matters were submitted to
a vote of, and  approved by, the security  holders at the  Company's  annual and
extraordinary meeting, held on June 17, 1998:

(a)  to determine the number of directors at four;

(b)  to elect Delbert W. Steiner, Theodore Tomasovich,  Robert A. Young, and Jag
     Vyas as Directors for the ensuing year;



                                    Page 14
<PAGE>





(c)  to  appoint  Coopers & Lybrand  as  auditors  for the  ensuing  year and to
     authorize  the  directors  of the  Company to fix the  remuneration  of the
     auditors;

(d)  to approve:

     (i)  the granting of stock options and the amendment of  outstanding  stock
          options  granted to certain  insiders  since the last  annual  general
          meeting; and

     (ii) the  granting,  generally,  by the  board of  directors  of new  stock
          options  and the  amendment  of  existing  stock  options  granted  to
          insiders; and

(e)  to approve the possible  change of control of the Company to the Tomasovich
     Family Trust and Theodore Tomasovich,  which may result in the event of the
     conversion  of  outstanding  convertible  loans  made by the  Trust  to the
     Company aggregating $360,000.


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
-------------------------       Chief Executive Officer
Delbert W. Steiner


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