Copper price: four Chinese bear charts
Overcapacity and a "slow-moving property crisis" will see China continue to export its cheap copper, dragging down prices elsewhere.
Vancouver, Canada, August 31, 2011. – Mosquito Consolidated Gold Mines (TSX-V:MSQ)(US OTCQX:MQCMF – “Mosquito” or the “Company”) today announced that the U.S. Forest Service, Intermountain Region, has officially signed the Plan of Operation, the final authorization for Mosquito to begin its exploratory drilling program on National Forest land about 14 miles northwest of Idaho City, Idaho .
“We are pleased to be able to move forward with the exploration,” said Shaun Dykes, CuMo project manager. “It will provide valuable information about the nature of the mineral deposit and also create at least 50 jobs in the Boise County area throughout the summer. The Forest Service’s environmental specialists and their consultants have done a very thorough job on the Environmental Assessment. This analysis has reaffirmed that the proposed activities would have no significant impact on the environment, including water resources in the region.”
According to Mr. Dykes, “The exploration will be carried out to comply with all of the Forest Service’s protective requirements. If exploration someday leads to mine development, we intend to carry out substantial restoration work on lands that were already heavily mined in past years by other companies.”
Mosquito has previously announced that the Company’s preliminary site exploration has determined a NI43-101 resource potential of 2.03 billion tons indicated and 3.95 billion tons inferred containing molybdenum, copper, silver and tungsten (see press release April 27,2011). Table 1 below lists the results from the NI43-101 compliant calculation completed at the $2.50 cutoff (originally published in April 27 release).
TABLE 1
--------------------------------------------------------------
|Indicated|Inferred|Metal |
|------------------------------------------------------------|
|2.14 |2.34 |billion pounds of molybdenum oxide(MoO3),|
|------------------------------------------------------------|
|3.27 |5.55 |billion pounds of copper (Cu), |
|------------------------------------------------------------|
|140.7 |242.5 |million ounces of silver (Ag) and |
|------------------------------------------------------------|
|158.2 |90.9 |million pounds of tungsten(W) |
|------------------------------------------------------------|
| | | |
|------------------------------------------------------------|
|2.03 |3.95 |billion tons |
--------------------------------------------------------------
---------------------------------------------------------------------------
|Category |Cutoff|Zone |tons |Recovered|Recovered|MoS2 |Cu |Ag |W |
| | | | |MoS2 |Cu | | | | |
| | | | | | | | | | |
| |RCV | | | | | | | | |
|-------------------------------------------------------------------------|
| |grade | |millions|Equiv. |Equiv. |% |% |ppm |ppm |
| | | | |%* |%* | | | | |
|-------------------------------------------------------------------------|
|Indicated|$2.50 |All | 2,025.7|0.067 | 0.46 |0.059|0.08|2.38|39.06|
| | |zones| | | | | | | |
|-------------------------------------------------------------------------|
|Inferred |$2.50 |All | 3,946.7|0.038 | 0.26 |0.033|0.07|2.11|11.51|
| | |zones| | | | | | | |
---------------------------------------------------------------------------
This resource estimate, if confirmed by future scientific measurements through exploratory drilling, would be one of the largest concentrations of combined minerals of this type in the world.
CuMo’s exploration will begin on August 31, 2011 on approximately 2,900 acres of the Boise National Forest. This years exploration program will involve drilling of several holes including the collection of a larger (3 tonne) bulk sample that will be used to analyze the more detailed metallurgical flow sheet. This sample is three times larger than the previous sample that gave excellent recoveries.
Since the summer of 2010, when the Environmental Assessment was released for public comment, the CuMo project team has held onsite information sessions with environmental groups, conducted public hearings and established a website for project updates at www.cumoproject.com . Mosquito pledges to continue to work with community, civic and environmental groups to carry out its exploration project within the spirit and letter of the environmental laws. If the exploration proves the feasibility of a mine, the Company will continue to work with all stakeholders to develop a sustainable and potentially beneficial economic project that will bring prosperity for many years to come to the region.
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. The Company’s primary focus is developing its Idaho-based CuMo project, one of the world’s largest molybdenum deposits. For more information about the company, please visit www.mosquitogold.comand www.cumoproject.com
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.
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.
