Mosquito Consolidated Gold Mines Limited
TSX VENTURE : MSQ

Mosquito Consolidated Gold Mines Limited

August 11, 2008 17:01 ET

Mosquito Engages Three Engineering Firms to Take CUMO to Feasibility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2008) - Mosquito Consolidated Gold Mines Limited (TSX VENTURE:MSQ) is pleased to announce that it has engaged M3 Engineering of Tucson, Arizona, SGS Metallurgy of Vancouver, BC, and Forsgren Associates Inc. of Boise, Idaho to conduct engineering feasibility work on its Idaho-based CUMO molybdenum/copper project.

M3 Engineering has been engaged to produce scoping, pre-feasibility and feasibility studies for the CUMO project. Initial work will consist of a Scoping and Defining Study that will independently confirm the economic viability of the project and outline specific locations for the mine, mill, and waste and tailings sites. M3 will also examine the permitting process and cultural and transportation requirements for the project. Once the locations have been selected, feasibility and environmental impact statement level studies will commence. Estimated time to complete this stage is two to three months. M3 Engineering will continue to work with Mosquito's personnel while ongoing drilling and environmental studies further develop CUMO, with the aim of delivering a bankable feasibility study for the project. M3 Engineering was selected because of the firm's worldwide reputation for delivering bankable feasibility studies on time and on budget. Recent studies include General Moly's Mt. Hope project and Augusta Resources' Rosemont Copper project.

SGS Metallurgy has been engaged to produce a study entitled "A Feasibility-level Metallurgical and Environmental Testing Program on the CUMO project". The aim is to produce sufficient information addressing the geometallurgical aspects of CUMO that can be used in a bankable feasibility-level engineering study. Initially, the work will consist of a pre-feasibility stage design and analysis of a mill flow sheet including: concentrate and tailings analysis; grinds sizes; reagent usage; and flotation circuit configuration. This will then be followed by feasibility-level metallurgical testing consisting of variability studies and environmental tailings and waste analysis. A bulk sample of 3500 kilograms and one hundred individual 20 kilogram samples will be required for the testing and will be collected from existing and future drill core. SGS Metallurgy has been involved with numerous metallurgical studies of deposits throughout the world.

Forsgren Associates Inc. has been hired to perform a preliminary study of the feasibility of generating low-impact hydroelectricity in the project area, assist in the development of an Intergrated Water Management plan, and provide expertise and advice in coordinating the permitting process, including the creation of an interagency task force to aid in the permitting process. Forsgren Associates is highly respected in Idaho and has done substantial work with the various agencies involved in the permitting process. Forsgren Engineers completed similar work for the Thompson Creek Mine located 60 miles east of CUMO.

"The concurrent hiring of three top-level engineering firms, each with proven track records, combined with our aggressive drilling program, allows us to significantly accelerate the processes required for generating a bankable feasibility study and moving our CUMO project towards production," stated Shaun Dykes, Exploration Manager and Director of Mosquito.

The 2008 drilling program for CUMO is progressing well with four diamond drills currently operating, and two more scheduled in the next month. Hole 35 has been completed to a depth of 2815 feet and intersected molybdenum bearing mineralization from 100 to 2815 feet. Assays have been received from the initial 2200 feet with the remaining 600 feet currently at the assay lab. Hole 36 is currently drilling at 2160 feet with estimated depth of 2500 feet. It intersected the first molybdenum bearing mineralization at 292 feet. Hole 37 is currently drilling at 2175 feet with a target depth of 2300 feet. It intersected the first molybdenum bearing mineralization at 69 feet. Hole 38 is currently drilling at 855 feet. It intersected the first molybdenum bearing mineralization at 164 feet. Assay results for the holes will be released once all assays for an individual hole have been completed.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., Exploration Manager and Director of Mosquito is the designated qualified person for the CUMO Project, and prepared the technical information contained in this news release.

On Behalf of the Board

MOSQUITO CONSOLIDATED GOLD MINES LTD.

Brian McClay, President

About Mosquito Consolidated Gold Mines

Mosquito Consolidated Gold Mines Limited is a mining exploration and development company with a diverse portfolio of high potential precious and base metals projects, located in low political risk environments in North America and Australia. The Company's primary focus is developing its Idaho-based CUMO project, one of the world's largest molybdenum deposits, and its Nevada-based Pine Tree copper-molybdenum-silver project. For more information, please visit www.mosquitogold.com.

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS.

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding the CUMO Project. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Mosquito may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mosquito Consolidated Gold Mines Limited
    Brian McClay
    President
    (604) 689-7902
    (604) 689-7816 (FAX)
    Website: www.mosquitogold.com