SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2003
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ________
Commission file number: 1-316
INDEPENDENCE LEAD MINES COMPANY
(Exact name of registrant as specified in its charter)
Arizona 82-0131980
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation)
510 Cedar Street
Wallace, Idaho 83873
(Address of principal executive offices)
Registrant's telephone number,
including area code: (208) 753-2525
Common Stock None
Title of each class Name of each exchange
on which registered
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period as 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 number of outstanding shares of the registrant's common stock
at March 1, 2003 was 4,175,357 shares.
<Page>
INDEPENDENCE LEAD MINES COMPANY QUARTERLY REPORT
ON FORM 10-Q FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 2003
TABLE OF CONTENTS Page
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements . . . . . . . . . . . . . . . . 1
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . 1
PART II - OTHER INFORMATION
Item 1: Legal Proceedings . . . . . . . . . . . . . . . . . 2
Item 2: Changes in Securities . . . . . . . . . . . . . . . 3
Item 3: Defaults upon Senior Securities . . . . . . . . . . 3
Item 4: Submission of Matters to a Vote of Security Holders . 3
Item 5: Other Information . . . . . . . . . . . . . . . . . . 3
Item 6: Exhibits and Reports on Form 8-K . . . . . . . . . . 3
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . .F/S 10
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The unaudited financial statements of the Company for the periods
covered by this report are included elsewhere in this report,
beginning at page F/S-1.
The unaudited financial statements have been prepared by the
Company in accordance with generally accepted accounting
principles for interim financial information with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of the
Company's management, all adjustments (consisting of only normal
recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three-month period
ended March 31, 2003 are not necessarily indicative of the
results that may be expected for the full year ending
December 31, 2003.
For further information refer to the financial statements and
footnotes thereto in the Company's Annual Report on Form 10-K for
the year ended December 31, 2002 incorporated by reference
herein.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2003.
Three months Ended March 31, 2003 Compared to three months Ended
March 31, 2002.
During the three months ended March 31, 2003 the Company realized
no income other than interest income of $317. General and
administrative expenses increased to $29,145 for the three-month
period ended March 31, 2003 as compared to $3,661 for the three-
month period ended March 31, 2002. This increase is principally
attributed to increased legal expenses incurred in 2003. For the
quarter ended March 31, 2003, the Company experienced a net loss
of $23,708, or $0.006 per share, compared to a net loss of
$2,668, during the comparable period in the previous year.
LIQUIDITY AND CAPITAL RESOURCES.
The Company is the owner of fifteen patented and seventeen
unpatented mining claims. This claim group ("the property") is
situated Northwest of Hecla Mining Company's Lucky Friday Mine in
the Coeur d'Alene Mining District, Shoshone County Idaho.
Adjacent is the community of Mullan and U.S. Interstate Highway
90.
Pursuant to the terms of an agreement dated February 8, 1968,
among Hecla Mining Company ("Hecla"), Day Mines, Inc. ("Day"),
Abot Mining Company ("Abot"), and the Company (the "Unitization
Agreement"), the Eastern portion of the Company's Property
(approximately five-eighths of the Property) was unitized with
certain adjoining and near-by properties owned by Day and Abot
into a unitized area, consisting of 55 claims, (known as the "DIA
Area"). Under the terms of the Unitization Agreement, ores and
minerals in place are owned by the parties thereto in the
following percentages:
Day (now Hecla by merger) 47.70%
Independence 46.30%
Abot 6.00%
By a second agreement also dated February 8, 1968 (the "Lease
Agreement"), Hecla leased the DIA Area for a period of fifty (50)
years, subject to a 30-year extension, for the purpose of
conducting mineral exploration and development of the DIA Area
and mining such commercial ore as may be discovered in the DIA
Area by Hecla.
The Lease Agreement provides that all costs and expenses incurred
in the exploration, development, and operation of the DIA Area
are to be paid by Hecla subject to the right of Hecla to be
reimbursed for such costs and expenses, together with all advance
royalties paid, out of any future net profits realized from the
operation of the DIA Area. After recovery of Hecla's costs and
expenses and
-1-
<Page>
amounts paid as advance royalties, and the establishment of a
three month working capital reserve, net profit royalties are to
be paid to the Company and the other property owners as follows:
Day (now Hecla by merger) 19.08%
Independence 18.52%
Abot 2.40%
Under the terms of the Unitization Agreement, one-half of the
first net profit royalties received by the Company are to be paid
over to Day (now Hecla) until Day recovers the sum of $450,000.
The relationship of the parties to the Agreement may, under
certain circumstances, be converted to a joint venture at the
option of the property owners, where after the property owners
would become participating, non-operating working interest owners
who would share profits and expenses in connection with the DIA
Area in the same ratio as exists pursuant to lease arrangement
with Hecla described above.
Until Hecla commences to pay net profit royalties and during such
period as the Lease Agreement is in effect, Hecla is obligated to
pay an advance royalty to the Company of $750 per month subject
to increase to $1,500 if production for the DIA Area exceeds
2,000 tons per month. The Company currently receives an advance
royalty of $1,500 per month, which is recorded in the financial
statements as deferred income.
Pursuant to the terms of the February 8, 1968, agreements, Hecla
will be obligated to pay a royalty of 18.52 percent of defined
net profits after Hecla has recouped its costs to explore and
develop this property from the new discovery to Independence Lead
Mines Company.
Since June 30, 1999 the Company has experienced substantial
differences with the Lesee. In January 1997, Hecla chose to go
forward with the DIA Projects Phase III and by June 1, 1998 the
Project reached full production. In the first year of full
production the Project lost $785,000 after mining and milling
260,000 tons. Independence requested Hecla to stop mining to
prevent loss of the resource. Hecla's management has refused all
requests to act with prudence, and continues to mine at this
writing. During 2002 Hecla mined and milled 159,651 tons
containing 13 oz. Silver per ton, 7.45% lead, and 2.14% zinc. For
the year 2002 the Project lost an additional $1,369,439. The DIA
Project Total Costs at the end of first quarter 2003 were
$32,674,780. None of the Projects exploration and development
costs have been recovered.
The DIA Project records show Hecla's management engaged in a
massive pretence, representing the project as one with economic
viability by declaring "Proven and Probable Reserves". In fact
with the mining method chosen along with the deficiencies of the
mill, and the actual economic condition, the record clearly shows
there never were any Proven and Probable Reserves. Hecla's
management chose to engage in "Fraudulent Pretence of Viability",
resulting in the removal and waste of approximately 1,200,000
tons of mineralized material from Independence's mining claims.
The current officers and directors of the Company serve without
compensation and are not considered by the Company to be
employees.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The Company has retained the Boise law firm of Marcus, Merrick,
Christian and Hardee. As required by terms of a 1968 Lease
Agreement with Hecla Mining Company, our Company gave notice of
termination of that agreement in early March 2002. This agreement
covered the DIA Project, which is Hecla's principle operation at
the Lucky Friday mine near Mullan, Idaho. Both parties agreed to
waive arbitration requirement contained in the lease and agreed
to a trial without a jury. On June 17, 2002 the Independence Lead
Mines Company's attorneys filed a complaint in the District Court
of the First Judicial District of the State of Idaho, In And For
the County of Kootenai, Case #CV-02-4061, and asked for
Declaratory Judgment, Injunctive Relief, and Damages.
On March 19, 2003 under Case#CV-02-4061 Independence's attorney
filed a statement of undisputed material facts in a brief, and
exhibits in support of a Motion For Partial Summary Judgment, or
In The Alternative, For Preliminary Injunction. The contents of
the brief are available from the court. It tells an astounding
story of a calculated looting of Independence's mining claims,
almost unimaginable in its scope and scale. THE COURT HAS SET A
HEARING DATE OF JULY 17, 2003.
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<Page>
Independence moves for partial summary judgment as follows:
1. Judgment declaring Defendant Hecla Mining Company ("Hecla") to
be in default of its obligations under the February 8, 1968 lease
agreement between the parties known as the "DIA Project
Agreement";
2. Judgment declaring the DIA Project Agreement, and Hecla's
leasehold interest in Independence's mining claims under it,
terminated;
3. Judgment declaring the Unitization Agreement, entered into
concurrently with the DIA Project Agreement, terminated; and
4. Judgment that Hecla has committed waste of Independence's
mining claims, with the damages therefrom to be determined at
trial.
In the alternative, Independence moves for a preliminary
injunction prohibiting Hecla from further mining on
Independence's mining claims pending final resolution of this
case.
ITEM 2. CHANGES IN SECURITIES.
Neither the constituent instruments defining the rights of the
registrant's securities holders nor the rights evidenced by the
registrant's outstanding common stock have been modified,
limited, or qualified.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
The registrant has no outstanding senior securities.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to a vote of the registrant's security
holders during the period covered by this report.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
EXHIBITS. The following exhibit is filed as part of this report:
NONE
REPORTS ON FORM 8-K.
No reports on Form 8-K were filed by the registrant during the
period covered by this report.
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<Page>
INDEPENDENCE LEAD MINES COMPANY
TABLE OF CONTENTS
PAGE
Balance Sheets as of March 31, 2003
and December 31, 2001 . . . . . . . . . . . . . . . . . F/S-2
Statements of Operations for the
three Months Ended March 31, 2003 and 2002 . . . . . . F/S-3
Statements of Cash Flow for the three
Months Ended March 31, 2003 and 2002 . . . . . . . . . F/S-4
Notes to Interim Financial Statements . . . . . . . . . . F/S-5
Signatures . . . . . . . . . . . . . . . . . . . . . . . F/S-10
[The balance of this page has been intentionally left blank.]
F/S - 1
<Page>
INDEPENDENCE LEAD MINES COMPANY
(AN EXPLORATORY STAGE COMPANY)
BALANCE SHEET - UNAUDITED
<Table>
<Caption>
ASSETS
March 31, 2003 DECEMBER 31, 2002
-------------- ------------
<s> <c> <c>
CURRENT ASSETS:
Cash $ 144,249 $ 152,632
Royalties receivable 1,500 1,500
Refunds and deposits
receivable 7,275 2,207
Investments 1,006 1,006
----- -----
Total current assets 154,030 157,345
------ ------
PROPERTY AND EQUIPMENT, at cost:
Equipment 0 0
Less accumulated depreciation 0 0
--- ---
0 0
Mining property 2,945,407 2,945,407
------ ------
Total property and equipment 2,945,407 2,945,407
OTHER ASSETS:
Unrecovered exploration costs 187,920 187,920
----- -----
Total assets $3,287,357 $ 3,290,672
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 24,741 $ 8,848
Accrued Expenses 0 0
----- -----
Total current liabilities 24,741 8,848
----- -----
DEFERRED INCOME: 374,000 378,500
------ ------
STOCKHOLDERS' EQUITY:
Common Stock, $1.00 par value,
authorized 5,000,000 shares;
issued 4,308,793 at 12/31/02;
and at 03/31/03 4,308,793 4,308,793
Treasury Stock Additional (55,290) (55,290)
Paid-In Capital(Deficit) (108,293) (108,293)
------ ------
4,145,210 4,145,210
Less deficit accumulated during
the exploration stage (1,261,094) (1,237,386)
------- -------
Total Stockholders equity 2,884,116 2,907,824
-------- --------
Total liabilities and
stockholders' equity $3,287,357 $3,290,672
======= =======
The accompanying notes are an integral part of these financial
statements.
</Table>
F/S - 2
INDEPENDENCE LEAD MINES COMPANY
(AN EXPLORATORY STAGE COMPANY)
STATEMENTS OF OPERATIONS AND DEFICIT ACCUMULATED
DURING THE EXPLORATION STAGE - UNAUDITED
<Table>
<Caption>
QUARTER THREE MONTHS
ENDED ENDED
MARCH 31, 03 MARCH 31, 02
----------- -----------
REVENUE $ 0 $ 0
----- -----
EXPENSES
Consulting 5,366 2,756
Licenses and fees 0 0
Office expense 30 0
Office services 150 150
Shareholder Relations 450 500
Interest 0 0
Transportation 0 0
Accounting 0 0
Legal 23,149 255
----- -----
Total expenses 29,145 3,661
----- ------
LOSS FROM OPERATIONS ($29,145) ($3,661)
OTHER INCOME AND (EXPENSE)
Interest, net 317 641
--- -----
Total other income $317 $641
--- -----
NET INCOME(LOSS)
BEFORE INCOME TAXES (28,828) (3,020)
Provision for income taxes 5,120 332
----- -----
NET INCOME (LOSS) ($23,708) ($2,688)
DEFICIT, accumulated during the
exploration stage,
beginning of period ($1,237,386) ($1,209,165)
DEFICIT, accumulated during the
exploration stage,
end of period ($1,261,094) ($1,211,853)
========== ==========
Income(Loss)per share ($0.006) ($0.000)
Weighted average common
shares outstanding 4,175,357 4,175,357
- -----------------------
The accompanying notes are an integral part of these financial
statements.
</Table>
F/ S - 3
INDEPENDENCE LEAD MINES COMPANY
(AN EXPLORATORY STAGE COMPANY)
STATEMENTS OF CASH FLOW - UNAUDITED
<Table>
<Caption>
NINE MONTHS NINE MONTHS
ENDED ENDED
MAR. 31, 2003 MAR. 31, 2002
---------- ----------
Operating Activities:
Net income (loss) ($23,708) ($2,688)
Adjustments to reconcile net loss to net cash
used in operating activities: 0 0
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 0 1,500
Increase (decrease) in accounts payable 15,893 (4,572)
Increase (decrease) in deferred income 4,500 1,500
Increase (decrease) in taxes payable (5,068) (868)
----- -----
Net cash used in operating activities (8,383) (5,128)
---- ----
Investing activities:
Purchase of Company's capital stock 0 0
--- ---
Net cash used in investing activities 0 0
--- ---
Financing activities:
Retirement of director's shares 0 0
Repurchase and retirement of common stock 0 0
Repayment of long-term debt 0 0
--- ---
Net cash provided by financing activities 0 0
--- ---
Net increase (decrease) in cash (8,383) (5,128)
Cash and cash equivalent, beginning of period 152,632 167,674
----- -----
Cash and cash equivalent, end of period $144,249 $162,546
====== ======
Disclosure of accounting policy
For the nine months ended March 31,
2003 and March 31, 2002, the Company
had no cash equivalents.
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest $ 0 $ 0
Income taxes 0 536
The accompanying notes are an integral part of these financial statements.
</table>
F/S - 4
<Page>
NOTES TO INTERIM FINANCIAL STATEMENTS - UNAUDITED
Financing information presented in the Company's quarterly
reports follow the policies set forth in its Annual Report on
Form 10-K filed with the Securities and Exchange Commission. In
accordance with generally accepted accounting principles for
interim financial information, the instructions to Form 10-Q, and
Rule 10-01 of Regulation S-X, these quarterly reports do not
include all of the information and footnotes.
In the opinion of the Company's management, all adjustments
(consisting of only normal recurring accruals) considered
necessary for a fair presentation have been included. Operating
results for the three-month period ended March 31, 2003 are not
necessarily indicative of the results that may be expected for
the full year ending December 31, 2003.
1. Nature of business:
Independence Lead Mines Company ("the Company") is a
corporation organized under the laws of the State of Arizona on
September 16,1929. The Company is the owner of fifteen patented
and fourteen unpatented mining claims. This claim group (the
"property") is situated Northwest of Hecla Mining Company's Lucky
Friday Mine in the Coeur d'Alene Mining District, Shoshone County
Idaho. The Company's property is part of the "DIA Area" which is
currently being developed and mined by Hecla Mining Company. The
Company has been in the exploration stage since its inception.
The Company's only recurring source of funds has been a monthly
advance royalty from Hecla Mining Company of $1,500. In March
2002, the Company notified Hecla Mining Company that it
considered the DIA Lease terminated and as a result would no
longer accept advance royalty payments. Subsequently to that
notice, the Company began accepting advance royalty payments,
pending the outcome of the dispute between the Company and Hecla
Mining Company. The Company has incurred operating losses since
inception; these factors indicate doubt as to the ability of the
company to continue business as a going concern basis. The
financial statements do not contain any adjustments, which might
be necessary if the Company is unable to continue as a going
concern.
2. Common stock:
In September 1997 the capitalization of the Company was increased
from 4,000,000 shares to 5,000,000 shares.
During the three months ended March 31, 2000 the Company
purchased 47,000 shares of the Company's common stock on the open
market at an average price of $0.49 per share. These purchases
brought the total treasury shares held by the Company to 85,436
shares. There were no stock purchases in the three months ended
March 31, 2003 and 2002.
[The balance of this page has been intentionally left blank.]
F/S - 5
<page>
INDEPENDENCE LEAD MINES COMPANY
AN EXPLORATION STAGE COMPANY
March 31, 2003
CERTIFICATIONS
I, Bernard C. Lannen, certify that:
1. I have reviewed this quarterly report on Form 10-Q of
Independence Lead Mines Company.
2. Based on my knowledge, this annual report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations, and cash flows of the registrant as of, and for,
the periods presented in this quarterly report;
4. The registrant's other certifying officer and I, are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and
6. The registrant's other certifying officer and I have indicated
in this annual report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: May 02, 2003
/s/ Merlin D. Bingham
------------
President
F/S 6
</page>
<page>
INDEPENDENCE LEAD MINES COMPANY
AN EXPLORATION STAGE COMPANY
March 31, 2002
CERTIFICATIONS
I, Wayne L. Schoonmaker, certify that:
1. I have reviewed this quarterly report on Form 10-Q of
Independence Lead Mines Company.
2. Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations, and cash flows of the registrant as of, and for,
the periods presented in this quarterly report;
4. The registrant's other certifying officer and I, are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and
6. The registrant's other certifying officer and I have indicated
in this annual report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: May 02, 2003
/s/ Wayne L. Schoonmaker
------------
Principal Accounting Officer
F/S 7
</page>
<page>
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly Report of Independence Lead
Mines Company (the "Company") on Form 10-KSB for the period ended
December 31, 2002, as filed with the Securities and Exchange
Commission on the date hereof (the "Report"), I, Bernard C.
Lannen, President of the Company, certify, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in
all material respects, the financial condition, and results of
operations of the Company.
/s/ Bernard C. Lannen
- -----------
President
Dated: May 02, 2003
F/S 8
</page>
<page>
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly Report of Independence Lead
Mines Company (the "Company") on Form 10-K for the period ended
December 31, 2002, as filed with the Securities and Exchange
Commission on the date hereof (the "Report"), I, Wayne L.
Schoonmaker, Principal Accounting Officer of the Company,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in
all material respects, the financial condition, and results of
operations of the Company.
/s/ Wayne L. Schoonmaker
- ------------
Principal Accounting Officer
Dated: May 02, 2003
F/S 9
</page>
<Page>
SIGNATURES
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.
INDEPENDENCE LEAD MINES COMPANY
By: /s/ Bernard C. Lannen
------------
Bernard C. Lannen, its
President
Date: May 02, 2003
By: /s/ Wayne Schoonmaker
------------
Wayne Schoonmaker, its
Principal Accounting Officer
Date: May 02, 2003
F/S-10
<page>