-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Lyavz6zEOYLUZUnxd5Tu0Iq5Rs0AS9Jic/GgcDKBloHaZUXkL/Vqs9dI4RMEZghs
 tTL0wSomZDWB66TX4ICShg==

<SEC-DOCUMENT>0001179110-08-010750.txt : 20080528
<SEC-HEADER>0001179110-08-010750.hdr.sgml : 20080528
<ACCEPTANCE-DATETIME>20080528171457
ACCESSION NUMBER:		0001179110-08-010750
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080523
FILED AS OF DATE:		20080528
DATE AS OF CHANGE:		20080528

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ATLAS MINING CO
		CENTRAL INDEX KEY:			0000008328
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				820096527
		STATE OF INCORPORATION:			ID
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		630 EAST MULLAN AVENUE
		CITY:			OSBURN
		STATE:			ID
		ZIP:			83849
		BUSINESS PHONE:		2085561181

	MAIL ADDRESS:	
		STREET 1:		630 EAST MULLAN AVENUE
		CITY:			OSBURN
		STATE:			ID
		ZIP:			83849

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			IBS TURNAROUND FUND (QP) (A LTD PARTNERSHIP)
		CENTRAL INDEX KEY:			0001415021
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31380
		FILM NUMBER:		08864261

	BUSINESS ADDRESS:	
		STREET 1:		ONE INTERNATIONAL PLACE
		STREET 2:		2401
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
		BUSINESS PHONE:		(617) 310-5160

	MAIL ADDRESS:	
		STREET 1:		ONE INTERNATIONAL PLACE
		STREET 2:		2401
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			IBS CAPITAL LLC
		CENTRAL INDEX KEY:			0001414860

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31380
		FILM NUMBER:		08864262

	BUSINESS ADDRESS:	
		STREET 1:		ONE INTERNATIONAL PLACE
		STREET 2:		2401
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
		BUSINESS PHONE:		(617) 310-5160

	MAIL ADDRESS:	
		STREET 1:		ONE INTERNATIONAL PLACE
		STREET 2:		2401
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-05-23</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000008328</issuerCik>
        <issuerName>ATLAS MINING CO</issuerName>
        <issuerTradingSymbol>ALMIE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001414860</rptOwnerCik>
            <rptOwnerName>IBS CAPITAL LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE INTERNATIONAL PLACE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 2401</rptOwnerStreet2>
            <rptOwnerCity>BOSTON</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02110</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001415021</rptOwnerCik>
            <rptOwnerName>IBS TURNAROUND FUND (QP) (A LTD PARTNERSHIP)</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE INTERNATIONAL PLACE</rptOwnerStreet1>
            <rptOwnerStreet2>STE 2410</rptOwnerStreet2>
            <rptOwnerCity>BOSTON</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02110</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-05-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>583333</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.6</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>10272415</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note 1.</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">IBS Capital LLC is the general partner of (i) The IBS Turnaround (QP) Fund (A Limited Partnership), which holds 6,677,253 shares, and (ii) The IBS Turnaround Fund (A Limited Partnership), which holds 2,294,887 shares.  IBS Capital LLC is the Investment Manager of The IBS Opportunity Fund (BVI), Ltd., which holds 1,300,275 shares.  The 583,333 shares purchased on May 23, 2008 were purchased as follows: (i) 413,262 shares were purchased by The IBS Turnaround (QP) Fund (A Limited Partnership) and (ii) 170,071 shares were purchased by the The IBS Turnaround Fund (A Limited Partnership).</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>IBS Capital LLC, by David A. Taft, Manager</signatureName>
        <signatureDate>2008-05-28</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>IBS TURNAROUND FUND (QP) (A LTD PARTNERSHIP) By IBS Capital LLC, Its General Partner, David A. Taft, Manager</signatureName>
        <signatureDate>2008-05-28</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----