Mosquito Intersects Excellent Mineralization at Cumo Hole 29 Returned +2,000 Feet Grading Greater Than 0.1% Molybdenite: Financial News

Mosquito Intersects Excellent Mineralization at Cumo Hole 29 Returned +2,000 Feet Grading Greater Than 0.1% Molybdenite
Tuesday October 16, 2007 1:12 pm ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 16, 2007 -- Mosquito Consolidated Gold Mines Ltd. (CDNX:MSQ.V - News) -

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 has updated the board on the excellent results from the first hole of the 2007 diamond drill program on the CUMO Property, Nevada. The exploration program is under the direction of Dr. Matt Ball, Ph.D., P.Geo. a Director and Senior Geologist.

Hole 29 was drilled at a bearing of 140 degrees dipping -70 degrees to a depth of 686.9 meters (2281.7 feet). The hole is designed to confirm the continuity of mineralization intercepted in the three AMAX hole numbers 10, 14 and 15 holes which are approximately 213.36 meters (700 feet) apart (figure 1). Hole 29 intersected Molybdenum bearing mineralization from 57.2m (190 feet) to 686.9 (2281.7 feet). Assay results returned include:

Hole 29-07 614.1 meters (2040.0 feet) grading 0.103% MoS2 (0.129% Mos2 Equiv.)

Including 377.2 meters (1253.0 feet) grading 0.130% MoS2 (0.150% Mos2 Equiv.)

The table below lists the location and orientation of the current drill holes. All holes are being surveyed down the hole using a Reflex survey instrument.

 

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Hole     Northing   Easting  Elevation      dip  azimuth             Length
Number       feet      feet       feet  degrees  degrees               feet
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29-07    20,016.7  20,160.3       7105      -70      140             2281.7
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30-07    19,531.6  20,796.4       7170      -90      000   1654 in progress
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31-07    19,531.6  20,796.4       7170      -70      045     2104 completed
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Full summary of the analytical results are outlined in Table 1. Mineralization consists of copper, molybdenum, silver, rhenium and gallium. As a result of the multi-element nature of the mineralization, it was decided to calculate both a copper and molybdenum equivalent for the intercepts. Both equivalents are required as the deposit is zoned as described above. 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 gold, silver, rhenium, and gallium is very significant in terms of the development of the property.

The entire 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 located on site. 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.

As with previous holes, the drilling has confirmed the presence of three distinct metal zones within the deposit. This zonation was not recognized by the previous operators. The zones consist of a copper-silver upper zone, a transitional copper-molybdenum zone and a lower molybdenum zone. Grades from the new drilling are as follows:

Copper-silver

Hole 29-07 125.0 meters (410 feet) grading 0.18% cu, 0.043% Mos2, 4.28 gms Ag/T (0.081% Mos2 Equiv.)

Copper-molybdenum zone

Hole 29-07 159.6 meters (530 feet) grading 0.13% cu, 0.069% Mos2, 2.92 gms Ag/T (0.101% MoS2 Equiv.)

Molybdenum zone

Hole 29-07 388.9 meters (1291.7 feet) grading 0.03% cu, 0.126% Mos2, 0.99 gms Ag/T (0.146% MoS2 Equiv.)

Geological logging of the hole indicates that the molybdenite bearing quartz veins are thicker and the potassic alteration increasing. This confirms the hypothesis produced from the 2006 3D Modeling of the metal zonations, which indicated the area drilled previously is located on the north side of a large system of which only a small part has been drilled. Geological logging and assay results from hole 29 have confirmed that the thickness of the higher grade molybdenum zone is increasing to the south. Figure 1 shows a plan view of the area.

Currently Mosquito has two drills on the property: hole 30-07 is being drilled 575 feet south east of hole 19 (641.9 meters (2106 feet) grading 0.102% MoS2 (1.24% Cu Equiv.) and is in Molybdenite bearing mineralization at 1821 feet with a final depth of around 2500 feet. Hole 31-07 has finished drilling from the same site as hole 29 at an azimuth of 045 dipping -70 degrees. Hole was drilled to a depth of 2104 feet and has been in molybdenite bearing mineralization since 40 feet. Core is currently been sawn and should be delivered to the assay lab later this week Drill has started hole 32 which is dipping -70 bearing 190 from the same site as Hole 28-06 (Figure 1).

The excellent results from hole 29 are extremely encouraging for Mosquito's long term drilling plans for the Cumo project. Mosquito is scheduled to drill a total of 7 holes by Dec 10, 2007 to complete this years program. These 7 holes plus the 28 other holes on the property will then be used to calculate a 43-101 compliant resource calculation that should confirm and possibly improve on the historic (1982) Amax resource calculation of 1.38 billion metric tonnes grading 0.092% MoS2. This new resource will take into account the three different zones encountered on the property: Cu-Ag; Cu-Mo, and Mo zones.

It should be noted that although the Amax resource was calculated by highly competent and professional personnel it was done prior to the implementation of NI 43-101 and an independent qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

High resolution aerial photography has been completed over the property with all targets surveyed, currently orthophotos and contour maps to be used on the project and in the 43-101 resource calculation are in the process of being produced.

Finally, The permit application for the 2008 program is proceeding well with the first round of public input and the various studies for the environmental assessment report having been completed. No significant public concerns were encountered during the initial input period. The Final Environmental assessment report is due to be completed by November 2007 with the forest service reviewing the application, if all proceeds as planned, permit is expected in the spring of 2008. This permit will allow Mosquito to work on the property for 5 years with 12.5 miles of new access road and 122 diamond drill sites (each site can have multiple holes) being approved.

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

 

Table 1 Significant Intersections for 2007 Drill program

Hole 29-07
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                                                                       MoS2
                        from      to  length    from      to  length  equiv
                        feet    feet    feet  meters  meters  meters      %
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zones averages
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copper-silver zone        40     450     410   12.19  137.16  124.97  0.081
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copper-moly zone         450     980     530  135.47  295.02  159.55  0.101
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moly zone                990  2281.7  1291.7  298.03  686.88  388.85  0.146
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averages
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overall                   40  2281.7  2241.7   12.04  686.88  674.84  0.123
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                         190    2230    2040   57.20  671.32  614.12  0.129
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including                967    2220    1253  291.11  668.31  377.20  0.150
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including               1180    1790     610  355.23  538.86  183.63  0.189
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                       MoO3
                       equiv      Cu    MoS2   MoO3       Re      Ag     Ga
                       lbs/t       %       %  lbs/t    Gms/T   Gms/T  gms/T
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zones averages
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copper-silver zone     0.081    0.18   0.043   0.77     0.01    4.28  19.46
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copper-moly zone       0.101    0.13   0.070   1.26     0.02    2.96  18.00
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moly zone              0.146    0.03   0.126   2.27     0.06    0.99  16.15
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averages
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overall                0.123    0.08   0.098   1.75     0.04    2.06  17.21
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                       0.129    0.08   0.103   1.85     0.05    2.05  17.06
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including              0.150    0.04   0.130   2.33     0.06    1.06  16.25
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including              0.189    0.04   0.169   3.03     0.08    1.20  15.85
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Notes: Molybdenite equivalent (Mos2. Equiv.) is based on the following metal prices (all in US$): Copper $2.00/lb, Molybdenum Trioxide ($25/lb), Rhenium $5.75/gram, Silver $0.32/gram and Gallium $0.425/gram. Other factors include 1% equals 20 pounds/t; 1 ppm equals 1 gm/T; 1000 ppb equals 1ppm equals 1 gm/T.

Molybdenum is sold as either ferro-molybdenite or molybdenum trioxide (MoO3). The price used is $25 per pound Molybdenum trioxide. To obtain the amount of Molybdenum trioxide 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 Trioxide) by multiplying by 1.5.

Therefore the amount of Molybdenum trioxide is pounds MoS2 times 1.5/1.6681. both an MoO3 equiv. lbs/t and MoO3 lbs per ton have been shown.

metallurgical recoveries and net smelter returns are assumed to be 100% at this time.

Formulas:

MoS2. Eq. equals ((cu x 20 x $)+((MoS2 x 20 x(1.5/1.6681) x $(MoO3))+(Re x $)+ (Ag x $)+(Ga x $))/((1.6681/1.5)x $(MoO3))

To view Figure 1 please click on the following link: http://www.ccnmatthews.com/docs/1016msq.pdf

This news release was prepared by management who takes full responsibility for its contents. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.