Urastar and Mosquito complete option agreement for Blackpoint Au-Ag Property in Nevada
(via Thenewswire.ca)
Vancouver, Canada, August 24, 2011. - Mosquito Consolidated Gold Mines Limited (TSX.V: MSQ; US OTC: MQCMF - "Mosquito" or the "Company") and Urastar Gold Corp. ("Urastar") (TSX.V: URS; US OTCQX: URNRF; Frankfurt: WKN: A1JFEE) wish to announce that the previously announced letter of intent (see news release dated July 15, 2011), whereby Urastar agreed to purchase a 100% interest in the BlackPoint gold-silver property located in the major Battle Mountain-Eureka Gold Trend of Nevada, has been finalized.
The definitive agreement allows Urastar to earn a 100% interest in Blackpoint by making the following payments consisting of cash and shares over a 5 year period:
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|? |? |? |
|--------------------------------------------------------------|
|Time |Cash Payments |Common Shares |
|--------------------------------------------------------------|
|On Signing LOI |$25,000.00 |Nil |
|--------------------------------------------------------------|
|At Closing |$225,000 |250,000 shares |
|--------------------------------------------------------------|
|Year 1 from Closing|$350,000 |250,000 shares |
|--------------------------------------------------------------|
|Year 2 from Closing|$ 1,000,000 |250,000 shares |
|--------------------------------------------------------------|
|Year 3 from Closing|$ 1,500,000 |250,000 shares |
|--------------------------------------------------------------|
|Year 4 from Closing|$ 2,500,000 |250,000 shares |
|--------------------------------------------------------------|
|Year 5 from Closing|$ 4,400,000 |250,000 shares |
|--------------------------------------------------------------|
|? |? |? |
|--------------------------------------------------------------|
|TOTALS |$10,000,000 CASH PAYMENTS|1,500,000 SHARES|
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Mosquito has received the first payment of $225,000.
The property has a long history dating back to 1864. Available records indicate production between 1933 and 1941, from the near surface zones on the property, grading 400 gms Ag/ton to 3,700 gms Ag/T (12 to 108 ounces per ton) was sent to a mill located at McGill, Nevada. More recent work in 1971 concentrated on surface sampling and several short drill holes looking at the continuity of the higher grade silver portions of the deposits. Table 1 lists some of the historic intersections from the 1971 drill program. These intersections are historic and the qualified person has been unable to fully verify the results and thus these results should not be relied upon.
Table 1: Historic Intersections from shallow Drilling at Blackpoint.
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|hole |hole |hole |zone |zone|zone |Ag |zone |zone |Ag |
| | | | | | | | | |grade |
|------------------------------------------------------------------------|
|name |length|length|name |top |thickness|grade|top |thickness|gms/T |
|------------------------------------------------------------------------|
|? |feet |meters|? |feet|feet |oz/t |meters|meters |gms/T |
|------------------------------------------------------------------------|
|Sl-2 |112 |34.14 |Condor|28 |84 |1.83 |8.53 |25.60 |62.74 |
|------------------------------------------------------------------------|
|SL-3 |112 |34.14 |Condor|32 |60 |2.26 |9.75 |18.29 |77.49 |
|------------------------------------------------------------------------|
|SL-7 |84 |25.60 |Condor|28 |27 |6.64 |8.53 |8.23 |227.66|
|------------------------------------------------------------------------|
|SL-6 |200 |60.96 |Condor|36 |24 |2.06 |10.97 |7.32 |70.63 |
|------------------------------------------------------------------------|
|SL-17 |88 |26.82 |Condor|0 |52 |2.04 |0.00 |15.85 |69.94 |
|------------------------------------------------------------------------|
|SL-18 |300 |91.44 |Condor|52 |24 |2.41 |15.85 |7.32 |82.63 |
|------------------------------------------------------------------------|
|SL-22 |120 |36.58 |Condor|44 |16 |1.22 |13.41 |4.88 |41.83 |
|------------------------------------------------------------------------|
|ER-7 |136 |41.45 |Eagle |12 |74 |2.13 |3.66 |22.56 |73.03 |
| | | |Ridge | | | | | | |
|------------------------------------------------------------------------|
|ER-4 |200 |60.96 |Eagle |44 |84 |1.34 |13.41 |25.60 |45.94 |
| | | |Ridge | | | | | | |
|------------------------------------------------------------------------|
|ER-16 |108 |32.92 |Eagle |40 |24 |1.14 |12.19 |7.32 |39.09 |
| | | |Ridge | | | | | | |
|------------------------------------------------------------------------|
|ER-17 |180 |54.86 |Eagle |64 |18 |1.40 |19.51 |5.49 |48.00 |
| | | |Ridge | | | | | | |
|------------------------------------------------------------------------|
|TRENCH|20 |6.10 |Eagle |0 |20 |21.00|0.00 |6.10 |720.01|
| | | |Ridge | | | | | | |
|------------------------------------------------------------------------|
|ER-9 |136 |41.45 |Dot |80 |20 |11.53|24.38 |6.10 |395.32|
|------------------------------------------------------------------------|
|ER-3 |160 |48.77 |Dot |96 |32 |1.46 |29.26 |9.75 |50.06 |
|------------------------------------------------------------------------|
|ER-11 |100 |30.48 |Dot |24 |76 |4.04 |7.32 |23.16 |138.52|
|------------------------------------------------------------------------|
|TRENCH|50 |15.24 |Dot |0 |50 |7.10 |0.00 |15.24 |243.43|
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No other assays are reported, although gold, copper, lead and zinc mineralization has been described.
Examination of the surface geology shows Blackpoint hosts a silica-sericite (or "low-sulfidation") epithermal silver-gold system with extensive silica-sericite alteration, high grade silver bearing veins, stockwork and breccia and scattered gold values. This style of mineralization is typical of that found at the active and historic mines in the area. The property is divided into two distinct halves by an east west orientated structure with the Condor zone in the north and the Eagle ridge and dot zones in the south. All the previous work was centered around the silver mineralization with no work done on looking for the gold bearing part of the system that may be located more towards the centre or at depth of the peripheral silver zones.
Geological work completed in 2007 by Mosquito Consolidated Gold Mines Ltd. determined that the property had not been properly explored, the presence of asymmetrical alteration zones, the large east-west orientated structure offsetting the mineralized zone and the presence of fall out breccias to the southwest, all indicate an unrecognized southwest plunge to the system. Additional detailed mapping confirmed a significant increase in the intensity and thickness of the silicification toward the central area. This resulted in the previous drill programs failing to explore the main exploration targets beneath the exposed silica breccia zone.
Urastar will begin an aggressive exploration program of detailed surface mapping, sampling and drilling to define and test these highly prospective, previously unexplored exploration targets, concentrating on finding the gold bearing portion of the system at depth, while continue to develop the near surface silver mineralization. Drilling is expected to begin in the next two months.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., is a designated Qualified Person pursuant to National Instrument 43-101 and prepared the technical information contained in this news release.
On Behalf of the Board
MOSQUITO CONSOLIDATED GOLD MINES LTD.
Brian McClay
President
On Behalf of the Board
URASTAR GOLD CORP.
Tom Kennedy
President and CEO
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.com and www.cumoproject.com
About Urastar Gold Corp.
Urastar Gold Corp. is a junior mining exploration and development company focusing on gold exploration in Mexico's Sierra Madre gold belt targeting areas containing former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries. For more information, please visit www.urastargold.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.
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