Mosquito Consolidated Gold Mines Limited
TSX VENTURE : MSQ

Mosquito Consolidated Gold Mines Limited

May 19, 2006 20:19 ET

Mosquito Purchases Major Molybdenum Deposit in Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 19, 2006) - The Board of Directors of Mosquito Consolidated Gold Mines Limited (TSX VENTURE:MSQ) wish to report that the Company has signed a purchase agreement for 53 patented claims on Spruce Mountain, Elko County, Nevada. The property which includes surface rights and presently owned by Shea Insurance Group Inc. of Boston; covers a large molybdenum porphyry system containing silver, rhenium and copper. The Project is situated forty miles (65 kilometers) south of the town of Wells, Nevada, 25 miles north of Currie and 8 miles east of Highway 93. Access to the property is excellent with numerous roads and 4x4 trails throughout the area. Rail lines are located within 25 miles of the property to the north, northeast and south. The outright purchase of the land consists of a total of $550,000 paid in the following installments:

1. US$75,000 on or before May 25, 2006;

2. US$100,000 on or before July 15, 2006;

3. US$100,000 on or before September 15, 2006;

4. US$125,000 on or before November 15, 2006;

5. US$150,000 on or before January 15, 2006.

Spruce Mountain has been known for many years to host significant lead-silver mineralization which was mined between 1869 and the late 1930's. In 1977, during exploration for more lead-silver mineralization, Freeport Exploration Company discovered molybdenum-silver mineralization associated with a large intrusion known as the Spence porphyry. Several significant intersections were obtained between 1977 and 1982 including a small diamond and rotary hole drilling program by Amax. However with low molybdenum prices the property was returned to the original owners. In 1984 Santa Fe mining optioned the property having become interested in the gold potential of the Pilot Shale and by the end of 1985 had drilled 25 holes totaling 10,000 feet. This exploration encountered gold bearing quartz stockwork veins up to 80 feet thick. Santa Fe however, felt the drilling had not proven up sufficient mineralization for further work and dropped the option.

Drill intersections from 1980's never properly followed up include:

Hole FDD-3 170.7 meters (560 feet) grading 0.170% MoS2.

Hole FRD-2 105.2 meters (345 feet) grading 0.l35% MoS2.

Hole 1082-3 365.8 meters (1200 feet) grading 0.050% MoS2.

Hole Ar-7 210.3 meters (690 feet) grading 0.058% MoS2.

Hole Ar-9 149.4 meters (490 feet) grading 0.103% MoS2.

Examinations of the results from previous exploration indicate that two of the recommended holes, that were never drilled, are required in order to properly understand the geometry and extent of the molybdenum bearing system. It is the Company's intention to drill these two holes as soon as possible. Then follow up additional previously discovered mineralization along a 2.4 kilometer east-west trend. Mosquito also intends to examine the lead-silver and gold potential of the property.

Mosquito is a well financed exploration and mine development company with a diverse portfolio of mining and exploration properties in the United States, Canada and Australia with special focus on gold, molybdenum and copper mineral deposits. Other projects under development include the Statlu Aggregate Deposit located east of Mission, B.C.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo. Director of Mosquito, is the designated qualified person for the Pine Tree 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.

The TSX-Venture Exchange neither approves nor disapproves of this release.

Contact Information

  • Mosquito Consolidated Gold Mines Limited
    Brian McClay
    President
    (604) 689-7902
    (604) 689-7816 (FAX)
    msq@telus.net