Mosquito Consolidated Gold Mines Limited
TSX VENTURE : MSQ

Mosquito Consolidated Gold Mines Limited

March 10, 2008 09:01 ET

Mosquito Completes NI 43-101 Resource on CUMO Deposit of 2.89 Billion Pounds of Molybdenum Oxide, 3.41 Billion Pounds of Copper and 149.8 Million Ounces of Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2008) - Mosquito Consolidated Gold Mines Limited (TSX VENTURE:MSQ) -

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., Exploration Manager and Director of Mosquito and Mosquito's qualified person under National Instrument 43-101 is pleased to report the results of a new 43-101 compliant independent mineral resource estimate for the CUMO porphyry molybdenum-copper deposit located in Idaho. Giroux Consulting, an independent, internationally recognized mineral industry consultant, calculated the estimate. Results are a significant improvement on the historic resource originally calculated in 1981 by AMAX and covers only a portion of the mineralizing system identified to date.

The NI 43-101 calculation confirms that the CUMO deposit contains:

2.89 billion pounds of molybdenum oxide(MoO3),

3.41 billion lbs of Copper (Cu),

149.8 million ounces of silver (Ag) and

185.3 million lbs of tungsten(W)

within an inferred Mineral Resource of 2.01 billion tons (1.83 billion metric tons).

The 2.01 billion ton mineral resource is divided into two components based on cutoff grades:



---------------------------------------------------------------------------
cutoff tons MoS2 Cu MoS2 Cu Ag W
zone grade millions Equiv.% Equiv.% % % ppm ppm
---------------------------------------------------------------------------
Cu-Ag 0.1% Cu 292.9 0.049 0.55 0.016 0.14 3.50 36
---------------------------------------------------------------------------
CUMO & Mo 0.04% MoS2 1,720.0 0.122 1.38 0.091 0.08 2.37 47.7
---------------------------------------------------------------------------
For calculation of Cu Equiv. and MoS2 equiv. see description at end of
Table 1.


It should be noted, Mosquito's assay results also indicate the presence of significant quantities of Rhenium and Gallium, which due to the lack of historical assays could not be estimated at this time.

Importantly, the Giroux estimate also shows the presence of higher grade resources in the main Cu-Mo and Mo zones:



---------------------------------------------------------------------------
cutoff tons MoS2 Cu MoS2 Cu Ag W
zone grade millions Equiv.% Equiv.% % % ppm ppm
---------------------------------------------------------------------------
CUMO & Mo 0.09% MoS2 757.6 0.152 1.71 0.122 0.06 2.19 47.1
---------------------------------------------------------------------------


These higher-grade resources will potentially facilitate rapid recovery of capital costs during the early years of a possible large-scale mining operation.

Giroux Consultants were chosen to complete the 43-101 compliant resource estimate at CUMO, because of their extensive work on large tonnage open pit and underground accessible primary molybdenum projects throughout the world. A technical report detailing the resource estimate will be filed on SEDAR within the next 45 days. The specific breakdown of Inferred Mineral Resources for the CUMO deposit above varying cut-off grades is tabulated in Table 1.

Giroux's estimate is based on drill core assay results from 4,959.2 meters (16,270.2 feet) of drilling in 8 holes completed by Mosquito in 2006 and 2007 and 10,980.7 meters (36,025.8 feet) in 22 diamond drill holes completed by AMAX between 1971 and 1981. Due to mineral zonation the deposit was split into three mineral zones: a Cu-Ag zone near surface grading downward into a Cu-Mo zone and finally into a Mo zone. Cu and silver were highest within the Cu-Ag and Cu-Mo Domains while MoS2 and W were highest in the Cu-Mo and Mo domains. The grade distribution for each variable was examined in each zone with erratic high grades capped. Uniform 20 ft. composites were formed that honored the boundaries of the 3 grade zones. Semi variograms were run for each variable and isotropic models were fit to the data. Grades for each variable were interpolated into 50 x 50 x 50 ft. blocks by ordinary kriging. Specific gravities were obtained from drill core and average values were applied to each domain.

Mosquito has substantiated that the CUMO resource consists of about 20% of a much larger mineralized system covered by the property (also confirmed by AMAX in 1981). This is also confirmed by Giroux's resource calculation in that the current geological block model comprising approximately 50% of the mineralizing system has a total of 264,510 blocks in the Cu-Ag zone, 255,668 in the Cu-Mo and 189,914 in the Mo zone. Giroux calculated 71,218 blocks (27%) in Cu-Ag, 106,344 blocks (42%) in Cu-Mo and 98,532 blocks (52%) in the MO zone for a total of 39% of the blocks in the geologic model or 19.5% of mineralized system. A large portion of the 2008 drill program will be focused on drilling in the areas of the uncalculated blocks (see attached figure).

To view Figure 1 "2008 43-101 Resource Calculation Area (20% of the Total Defined Mineralized Zone" please click on: http://media3.marketwire.com/docs/msq0310.jpg

CUMO is favorably located in southwestern Idaho in an extensively logged, historic gold placer and lode mining area, readily accessible from nearby major centers of Idaho City and Boise.

Mineralization consists of copper, molybdenum, silver, tungsten, rhenium and gallium. As a result of the multi-element nature of the mineralization, Mosquito decided to include both a copper and molybdenum equivalent for the resource table. Both equivalents are required as the deposit is zoned as described in previous press releases and in the resource tables. See notes below table for explanation of the calculation of copper equivalent (Cu Equiv.), MoS2 equivalent (MoS2 Equiv.). The presence of the by-product elements copper, silver, tungsten, rhenium, and gallium are very significant in terms of the development of the property.

CUMO has an excellent configuration for very low cost open-pit mining. The thick mineralization is very continuous with almost no internal waste and is persistent over a broad area measuring 2 km by 3 km. Mineralization begins right at the bedrock surface which is covered only by a thin layer of overburden and broken rock ranging from 4 to 20 meters thick, indicating the deposit will have an unusually low strip ratio. The deposit is currently 500-600 meters thick and open to the south, east and west.

Immediate plans for the CUMO deposit are, to develop the drill parameters for definition of measured and indicated resources, complete the ongoing metallurgical test work, complete the environmental assessment for the drilling permit, continue drilling to define the full extent of the deposit and expand the higher grade zone encountered in the 2007 southernmost drilling, complete a preliminary sizing/scoping study that will facilitate the start of environmental base line measurements for the mine permitting process and collect engineering data for specific mine, mill and infrastructure design.

Dr. Matt Ball, Ph.D., P.Geo., a qualified Person (NI 43-101), a Director and Senior Geologist of Mosquito is supervising the exploration program at CUMO, including the quality control and assurance program. Logging and sampling is completed at Mosquito's secure facility at Garden Valley, Idaho. The entire HQ diameter core was sampled and cut in half using a diamond saw. Half the core is sent for analysis, the other half has been kept and stored at the core facility. Following cutting the samples are delivered directly by Mosquito personnel to ALS Chemex in Elko, Nevada, a fully accredited analytical laboratory. They are first analyzed for 47 elements using a four (4) acid digestion with analysis by Inductively Coupled Argon Plasma Optical Mass Spectrometer (ICP-MS). Copper and Molybdenum bearing samples are then checked by using a larger 5 gram sample and analyzed using pressed powder pellet X-Ray Fluorescence Spectroscopy (XRF). In addition duplicates, blanks, and standards are analyzed to ensure analytical accuracy and reproducibility. All rejects are being kept for further analysis and for use in metallurgical testing.

Drill hole location maps, an outline of the CUMO deposit and mineralized zone, and a complete tabulation of significant intersections from the CUMO drill programs to date may be found on Mosquito's web site at www.mosquitogold.com.

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

This news release was prepared by management who takes full responsibility for its contents.



Table 1 2008 Inferred Resources Estimate for CUMO (after Giroux 2008)

Copper-Silver Zone (Cu-Ag)
---------------------------------------------------------------------------
Tons
greater
than Cont- Cont-
Cutoff Cont- Cont- ained ain-
Cut- (short Grade ained ained Mill- ed
off tons) greater than Cutoff Million Mill- ion Mill- MoS2 Cu
MoS2 Mill- MoS2 Cu Ag W lbs ion ozs ion Equiv Equiv
% ions % % ppm ppm MoO3 lbs Cu AG lbs W % %
---------------------------------------------------------------------------
0.10 292.9 0.016 0.14 3.50 36.0 84.3 826.0 29.93 21.11 0.049 0.55
---------------------------------------------------------------------------
0.12 173.3 0.014 0.16 3.96 38.0 43.6 568.4 20.04 13.18 0.050 0.56
---------------------------------------------------------------------------
0.14 107.3 0.014 0.19 4.36 41.0 27.0 397.0 13.66 8.81 0.054 0.60
---------------------------------------------------------------------------
0.16 71.1 0.013 0.20 4.61 43.0 16.6 290.1 9.57 6.12 0.055 0.62
---------------------------------------------------------------------------
0.18 44.5 0.013 0.23 4.91 45.0 10.4 200.3 6.38 4.01 0.059 0.66
---------------------------------------------------------------------------
0.20 30.8 0.013 0.24 5.09 49.0 7.20 149.7 4.58 3.02 0.062 0.70
---------------------------------------------------------------------------
0.22 24.0 0.013 0.25 5.12 50.0 5.60 121.0 3.59 2.40 0.064 0.71
---------------------------------------------------------------------------


Copper-Molybdenum Zone (Cu-Mo)
---------------------------------------------------------------------------
Tons
greater
than Cont- Cont-
Cutoff Cont- Cont- ained ain-
Cut- (short Grade ained ained Mill- ed
off tons) greater than Cutoff Million Mill- ion Mill- MoS2 Cu
MoS2 Mill- MoS2 Cu Ag W lbs ion ozs ion Equiv Equiv
% ions % % ppm ppm MoO3 lbs Cu AG lbs W % %
---------------------------------------------------------------------------
0.01 972.9 0.067 0.113 3.28 49.0 1.172.3 2.198.8 93.2 95.4 0.103 1.16
---------------------------------------------------------------------------
0.02 959.2 0.068 0.113 3.30 50.0 1.173.1 2.167.8 92.4 96.0 0.105 1.18
---------------------------------------------------------------------------
0.03 901.2 0.071 0.114 3.33 50.0 1.150.7 2.054.7 87.6 90.2 0.108 1.21
---------------------------------------------------------------------------
0.04 788.2 0.076 0.115 3.26 52.0 1.077.3 1.812.9 75.0 82.1 0.114 1.28
---------------------------------------------------------------------------
0.05 650.2 0.082 0.115 3.19 53.0 958.9 1.495.5 60.6 69.0 0.120 1.35
---------------------------------------------------------------------------
0.06 505.4 0.090 0.116 3.21 54.0 818.0 1.172.5 47.4 54.6 0.129 1.45
---------------------------------------------------------------------------
0.07 371.1 0.099 0.115 3.27 54.0 660.7 853.5 35.4 40.1 0.138 1.55
---------------------------------------------------------------------------
0.08 284.3 0.107 0.115 3.35 53.0 547.1 653.9 27.8 30.2 0.146 1.64
---------------------------------------------------------------------------
0.09 205.6 0.116 0.115 3.45 53.0 428.9 472.9 20.7 21.8 0.155 1.74
---------------------------------------------------------------------------
0.1 137.7 0.127 0.115 3.61 53.0 314.5 316.7 14.5 14.6 0.166 1.86
---------------------------------------------------------------------------
0.11 103.0 0.134 0.113 3.70 52.0 248.2 232.8 11.1 10.7 0.172 1.93
---------------------------------------------------------------------------
0.12 76.1 0.141 0.112 3.73 49.0 193.0 170.5 8.3 7.8 0.179 2.01
---------------------------------------------------------------------------


Molybdenum Zone (Mo)
---------------------------------------------------------------------------
Tons
greater
than Cont- Cont-
Cutoff Cont- Cont- ained ain-
Cut- (short Grade ained ained Mill- ed
off tons) greater than Cutoff Million Mill- ion Mill- MoS2 Cu
MoS2 Mill- MoS2 Cu Ag W lbs ion ozs ion Equiv Equiv
% ions % % ppm ppm MoO3 lbs Cu AG lbs W % %
---------------------------------------------------------------------------
0.01 945.5 0.102 0.042 1.61 43.0 1.734.4 794.2 44.4 81.4 0.128 1.44
---------------------------------------------------------------------------
0.02 945.4 0.102 0.042 1.61 43.0 1.734.3 794.1 44.4 81.4 0.128 1.44
---------------------------------------------------------------------------
0.03 942.4 0.102 0.042 1.61 43.0 1.728.8 791.6 44.3 81.1 0.128 1.44
---------------------------------------------------------------------------
0.04 932.1 0.103 0.042 1.61 44.0 1.726.6 783 43.8 82.1 0.129 1.45
---------------------------------------------------------------------------
0.05 913.7 0.104 0.041 1.60 44.0 1.709.0 749.2 42.7 80.5 0.130 1.46
---------------------------------------------------------------------------
0.06 868.0 0.106 0.041 1.58 44.0 1.654.7 711.8 40.0 76.5 0.132 1.49
---------------------------------------------------------------------------
0.07 788.1 0.111 0.041 1.57 44.0 1.573.3 646.2 36.1 69.4 0.137 1.54
---------------------------------------------------------------------------
0.08 659.5 0.118 0.041 1.57 44.0 1.399.6 540.8 30.2 58.1 0.144 1.62
---------------------------------------------------------------------------
0.09 552.0 0.124 0.042 1.56 45.0 1.231.0 463.7 25.1 49.7 0.151 1.70
---------------------------------------------------------------------------
0.1 444.2 0.131 0.042 1.55 46.0 1.046.5 373.1 20.1 40.9 0.158 1.78
---------------------------------------------------------------------------
0.11 366.1 0.137 0.041 1.53 46.0 902.0 300.2 16.4 33.7 0.164 1.85
---------------------------------------------------------------------------
0.12 274.4 0.145 0.042 1.55 46.0 715.6 230.5 12.4 25.3 0.172 1.94
---------------------------------------------------------------------------


CUMO CU-MO and MO Combined Zones
---------------------------------------------------------------------------
Tons
greater
than Cont- Cont-
Cutoff Cont- Cont- ained ain-
Cut- (short Grade ained ained Mill- ed
off tons) greater than Cutoff Million Mill- ion Mill- MoS2 Cu
MoS2 Mill- MoS2 Cu Ag W lbs ion ozs ion Equiv Equiv
% ions % % ppm ppm MoO3 lbs Cu AG lbs W % %
---------------------------------------------------------------------------
0.01 1.918.4 0.084 0.078 2.46 46.0 2.906.8 2993.0 137.6 176.8 0.115 1.30
---------------------------------------------------------------------------
0.02 1.904.6 0.085 0.078 2.46 46.5 2.907.3 2961.9 136.9 177.4 0.116 1.31
---------------------------------------------------------------------------
0.03 1.843.6 0.087 0.077 2.45 46.4 2.879.5 2846.4 131.9 171.3 0.118 1.33
---------------------------------------------------------------------------
0.04 1.720.3 0.091 0.075 2.37 47.7 2.804.0 2595.8 118.8 164.2 0.122 1.38
---------------------------------------------------------------------------
0.05 1.563.9 0.095 0.072 2.26 47.7 2.667.8 2244.7 103.3 149.5 0.126 1.42
---------------------------------------------------------------------------
0.06 1.373.4 0.100 0.069 2.18 47.7 2.472.8 1884.3 87.4 131.1 0.131 1.47
---------------------------------------------------------------------------
0.07 1.159.2 0.107 0.065 2.11 47.2 2.234.0 1499.8 71.6 109.5 0.138 1.55
---------------------------------------------------------------------------
0.08 943.8 0.115 0.063 2.11 46.7 1.946.7 1194.7 58.0 88.3 0.145 1.63
---------------------------------------------------------------------------
0.09 757.6 0.122 0.062 2.07 47.2 1.659.9 936.6 45.9 71.5 0.152 1.71
---------------------------------------------------------------------------
0.1 581.9 0.130 0.059 2.04 47.7 1.361.0 689.8 34.6 55.5 0.160 1.80
---------------------------------------------------------------------------
0.11 469.1 0.136 0.057 2.01 47.3 1.150.2 533.0 27.5 44.4 0.166 1.87
---------------------------------------------------------------------------
0.12 350.5 0.144 0.057 2.02 47.1 908.5 401.0 20.7 33.0 0.174 1.95
---------------------------------------------------------------------------

Notes: Copper equivalent (Cu. Equiv.) and Molybdenite Equiv. (MoS2 Equiv.)
are based on the following metal prices (all in US$):
Copper $2.00/lb, Molybdenum Oxide ($25/lb), Silver $0.32/gram and
Tungsten $0.22/gram ($14,000 per ton).
Other factors include 1% equals 20 pounds; 1 ppm equals 1 gm/T; 1000
ppb equals 1 ppm equals 1 gm/T.

Molybdenum is sold as either ferro-molybdenite or molybdenum oxide.
The price used is $25 per pound Molybdenum oxide.
To obtain the amount of Molybdenum oxide that can be produced from
MoS2, the following is required: convert MoS2 to Mo by dividing MoS2
by 1.6681 then convert to MoO3 (Molybdenum Oxide) by multiplying by
1.5.
Therefore the amount of molybdenum oxide is pounds MoS2 times 1.5 /
1.6681.

Metallurgical recoveries and net smelter returns are assumed to be
100%.

Formulas:
Cu. Equiv. equals ((cu x 20 x $) + ((MoS2 x 20 x (1.5 / 1.6681) x
$(MoO3)) + (Ag x $) + (W x $)) / $(copper)
MoS2. Equiv. equals ((cu x 20 x $) + ((MoS2 x 20 x (1.5 / 1.6681) x
$(MoO3)) + (Ag x $)+(W x $)) / ((1.6681 / 1.5) x $(MoO3))

Mineral Resources do not have demonstrated economic viability.

An Inferred Mineral Resource is that part of a mineral resource for which
quantity and grade can be estimated, on the basis of geological evidence
and limited sampling and reasonably assumed geological and grade
continuity.

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