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                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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                                   FORM 10-QSB

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

                     For the period ended: January 31, 1998

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


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                      Commission File Number: 033-18437-LA


                          PRECIOUS METALS MINES, INC.
            Incorporated pursuant to the laws of the state of Nevada


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


                  IRS Employer Identification No. - 88-0230400

                15th Floor, 640 5th Ave., New York City, NY 10019
                                 (212) 262-5786


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


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 90 days.

 Yes    X     No
    ---------   ---------

The Company had  4,165,705  shares of common  stock  outstanding  at January 31,
1998.

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


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<PAGE>

                           PRECIOUS METAL MINES, INC.
                                TABLE OF CONTENTS



                         PART I. FINANCIAL INFORMATION


Item 1.   Financial Statements (Unaudited)

   Balance Sheets as of January 31, 1998 ...............................3

   Statements of Operations ............................................4

   Statements of Cash Flows ............................................5

   Notes to Consolidated Financial Statements (unaudited)...............6

Item 2.   Management's Discussion and Analysis of Financial Condition
            and Results of Operations.................................. 7


                           PART II. OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K...............................7

   Signature Page.......................................................8




                                     - 3 -
<PAGE>



                             PART I - FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS


                           PRECIOUS METAL MINES, INC.
                                 BALANCE SHEETS



<TABLE>
<CAPTION>
                                               January 31,        January 31,
                                                  1998              1997
                                               -----------       -----------
                                               (Unaudited)       (Unaudited)
                ASSETS
<S>                                           <C>                <C>

CURRENT ASSETS:
    Cash and cash equivalents                   $      0           $      0

    Notes Receivable                            $ 20,750           $ 20,750

MINING PROPERTIES                                      0                  0
                                               ----------         ----------
TOTAL ASSETS                                    $ 20,750           $ 20,750
                                               ----------         ----------

     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

    Stockholder Advances                       $       0          $   5,225
    Accounts payable                           $  42,149             25,240
                                               ----------         ----------

TOTAL CURRENT LIABILITIES                      $  42,149          $  30,465
                                               ----------         ----------

STOCKHOLDERS' EQUITY
    Common stock, $.01 par value;
    Authorized 50,000,000
     for property - 750,000 shares issued
     for services -  273,000 shares issued
     for cash  -     3,142,705 shares

     Total Issued 4,165,705 shares            $   41,657         $   41,657

     Capital Surplus                             128,833            128,833

     Deficit accumulated during
     the development stage                    $ (191,889)        $ (171,793)
                                              -----------        -----------
TOTAL STOCKHOLDER'S EQUITY                    $  (21,399)           -$1,303
                                              -----------        -----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY                          $   20,750         $   23,937
                                              ===========        ===========


</TABLE>


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<PAGE>




                           PRECIOUS METAL MINES, INC.
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                            Three Months Ended   Three Months Ended
                                             January 31, 1998     January 31, 1997
                                             ----------------     ----------------
                                                (Unaudited)          (Unaudited)
<S>                                          <C>                  <C>
INCOME

         Received for Lease                             $ 0                   $ 0
         Cancellation of Lease                            0                     0
                  Total Income                            0                     0

EXPENSES

         Administration                          $    1,233                $6,288
         Financial                                        0                     0
         Property                                         0                     0
         Organization - Note 3                            0                     0
                                                 -----------          ------------
                  Total Expenses                 $    1,233                $6,288

             Income (loss) from operations       $   (1,233)              -$6,288
                                                 -----------          ------------
         Average Shares Outstanding              $ 4,165,705          $ 4,165,705

         Loss per share                          $     .0000          $     .0016

         Deficit at Beginning of Period          $   190,656          $   165,505

         Deficit at End of Period                $   191,889          $   171,793
                                                 ============         ============

</TABLE>


<PAGE>
                              PRECIOUS METAL MINES
                             STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>

                              Three Months Ended      Three Months Ended
                               October 31, 1998        January 31, 1997
                               ----------------        ----------------
                                  (Unaudited)             (Unaudited)
<S>                            <C>                     <C>
Cash Received from
subscription to
Companies Shares                             0                       0

Cash Received from
Officers                                     0                 $25,000

Cash Received from
Operations                                   0                       0

Total Cash Received
During Period                                0                 $25,000

Cash Used in Operations                      0                 $25,000

Increase in Cash                             0                       0

Cash at Beginning of
Period                                       0                       0

Cash at End of Period                        0                       0

</TABLE>


                The accompanying notes to condensed consolidated
               financial statements are an integral part of these
                       condensed consolidated statements.


<PAGE>
                           PRECIOUS METAL MINES, INC.
                          Notes to Financial Statements

1.  Basis of Preparation

         The unaudited  information included herein includes,  in the opinion of
         management,  all adjustments  necessary for a fair  presentation of the
         results of operations for the period covered hereby.

         The  preparation  of  the  Company's   financial   statements  requires
         management to make  estimates and  assumptions  that affect the amounts
         reported in the financial  statements and  accompanying  notes.  Actual
         results may vary from these estimates.


<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

Results of Operations

The Company had no  business  operations  during the period to which this report
relates.

Liquidity and Capital Resources

The  Company had no income  from  operations  in the period to which this report
relates. As of January 31, 1997 shareholders and other parties had provided cash
and services to the value of $25,000.


                          Part II - Other Information


ITEM 6 - EXHIBITS AND REPORTS IN FORM 8-K

None



<PAGE>

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


PRECIOUS METAL MINES, INC.                               Dated: March 17, 2000
by: /s/ Francis J. Joslin
-------------------------
Chief Executive Officer