Mosquito Consolidated Gold Mines Limited
TSX VENTURE : MSQ

Mosquito Consolidated Gold Mines Limited

April 16, 2008 06:00 ET

Mosquito Files CUMO NI 43-101, Announces 1.1 Billion Tons of Higher-Grade Multi-Element Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 16, 2008) - Mosquito Consolidated Gold Mines Limited (Mosquito) (TSX VENTURE:MSQ) is pleased to report receipt of the completed National Instrument 43-101 technical report on its Idaho-based CUMO molybdenum-copper project and its filing with SEDAR (www.sedar.com).

The Company is also pleased to announce that detailed examination of the 43-101 report, prepared by Giroux Consultants, an independent, internationally recognized mineral industry consultant, and of individual blocks comprising the resource has shown that the CUMO project contains over one billion tons of higher-grade open-pit accessible multi-element resources. As a result of this new information, Mosquito has decided to concentrate on expanding the higher-grade areas of the individual metal zones.

"CUMO has 1.1 Billion tons of open-pit accessible multi-element mineralization in higher-grade zones," said Mosquito President Brian McClay. "This includes 2.1 Billion pounds of 'moly' (molybdenum oxide), 1.4 Billion pounds of copper, 68 Million ounces of silver and 102 Million pounds of tungsten. CUMO is a company-maker and we expect to develop the project significantly further during 2008."

The following charts list the tonnage and grade contained in each of the higher-grade zones, with each zone assigned a different cutoff as they are thick and easily identified.



Copper-Silver zone
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Molyb- Molyb-
denum Copper denum Copper Silver Tungsten
Cutoff Tons MoS2 Cu MoS2 Cu Ag W
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Grade millions Equiv. % Equiv. % % % ppm ppm
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0.2% Cu 30.8 0.062 0.70 0.013 0.24 5.09 49.0
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Copper-Molybdenum zone
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Molyb- Molyb-
denum Copper denum Copper Silver Tungsten
Cutoff Tons MoS2 Cu MoS2 Cu Ag W
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Grade millions Equiv. % Equiv. % % % ppm ppm
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0.08% MoS2 284.3 0.146 1.64 0.107 0.115 3.35 53.0
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Molybdenum zone
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Molyb- Molyb-
denum Copper denum Copper Silver Tungsten
Cutoff Tons MoS2 Cu MoS2 Cu Ag W
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Grade millions Equiv. % Equiv. % % % ppm ppm
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0.07% MoS2 788.1 0.137 1.54 0.111 0.041 1.57 44.0
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The combined value of these three higher-grade zones is 1.103 Billion tons of material consisting of the following:

2.127 Billion pounds of molybdenum oxide (current price $33.70/lb);

1.449 Billion pounds of copper (current price $3.90/lb);

68 Million ounces of silver (current price $17/ounce);

102 Million pounds of tungsten (current price $17/lb).

Significant quantities of the valuable high-tech metals rhenium and gallium - by-product metals associated with copper and molybdenum mineralization - have also been identified. Due to the lack of historical assays, these metals have not been included in the calculations.

Mosquito is deploying five drills to the CUMO property from its wholly-owned subsidiary Kirkness Drilling with operations to commence during the first week of May. In a strategy geared to both short-term and long-term results, the Company will dedicate three drills to expanding the CUMO resource, which presently consists of just 20% of a much larger mineralized system covered by the property, and two drills to delineating the edges of the mineralized zone.

"Our main objective for additional drilling is to expand the identified resource and convert its inferred mineral resources to indicated and measured. Concurrently, we also want to determine the overall size of the CUMO resource by drilling at or near the edges of the mineralized zone," stated Shaun Dykes, Exploration Manager and Director of Mosquito.

In addition to drilling operations, Mosquito is commencing engineering studies on designated mill, waste dump and tailings sites. Economic analysis of potential open-pit scenarios is also being conducted. A metallurgical study of a one-ton sample from CUMO is currently underway with results expected by end of May.

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

Founded in 1971 and headquartered in Vancouver, Canada, Mosquito Consolidated Gold Mines Limited (www.mosquitogold.com) 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 the development of its Idaho-based CUMO deposit, recognized as one of the largest molybdenum-copper porphyry deposits in the world, and its Nevada-based Pine Tree porphyry copper-molybdenum-silver project.

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.

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 7.00/lb

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 $(copper)) + ((MoS2 x 20 x (1.5/1.6681) x $(MoO3)) + (Ag x $) + (W x $))/$(copper)

MoS2. Equiv. equals ((cu x 20 x $(copper)) + (MoS2 x 20 x (1.5/1.6681) x $(MoO3)) + (Ag x $(silver) + (W x $(tungsten)))/ ((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