Mosquito Consolidated Gold Mines In The News -June 8, 2010 by 24hgold

Mots clés associés : Canada | Copper | Dollar |

Mosquito Consolidated Gold Mines Limited
100-1616 W. 3rd Ave.
Vancouver B.C.
V6J 1K2
1-800-667-0873 (toll free)
604-689-7902 (office)
604-689-7816 (fax)
info@mosquitogold.com

www.mosquitogold.com

Dr. John L. Faessel
ON THE MARKET
Commentary and Insights
Faessel Publishing LLC
Dr.Faessel@onthemar.com

UPDATE re: A New Best Idea for 2010

Mosquito Consolidated Gold Mines Limited (TSX Venture: MSQ) $1.12 NASDAQ bulletin board Trading Symbol: MQCMF

One of our Nation?s Premier Research Labs* Makes Major Breakthrough in Immense Markets: Sustainable energy and Hydrogen gas / Ammonia / Fertilizer
The Discovery, with Molybdenum as the Centerpiece, could have Billion Dollar Implications
Lots of science in this discussion but ?hang-in there??

There has been a notable new discovery concerning molybdenum with relevance to sustainable energy production. Announced last week from the U.S. Department of Energy?s (DOE) Lawrence Berkeley National Laboratory (Berkeley Lab) and the University of California, Berkeley (April 30, 2010), the breakthrough discovery has far-reaching possibilities related to what could be a significant increase in the use of molybdenum.

The Berkeley Lab research team discovered that a molybdenum compound can be used as an inexpensive metal catalyst effective in generating hydrogen gas from water. The new discovery is vitally important on several levels: molybdenum is about 70 times cheaper than platinum, the metal currently used as a catalyst to split the water molecule, and it can be used with water that's dirty or even seawater. The discovery makes molybdenum a new and key element in the search for renewable energy sources.
You may know that hydrogen gas does not occur naturally and has to be produced, usually from fossil fuels/natural gas, currently the main energy source in hydrogen gas production. Unfortunately this adds huge amounts of carbon emissions to the atmosphere. Platinum, at a current price of about $1,500 an ounce, has always been prohibitive for use as the catalyst in any scenario of large-scale hydrogen gas production. Given this problem, using molybdenum, at a current cost of $16 a pound, makes terrific sense. Obviously there?s a lot of road to hoe in making this new discovery into a commercial enterprise, but the scientific community is abuzz with this new and super cheap method to split hydrogen gas from water that has molybdenum as a key ingredient.

The production of hydrogen gas is an enormous industry and it?s growing at 10% a year. Over 50 million metric tons or about 170,000,000 tons of ?oil-equivalent? were used in 2004. The primary use for hydrogen is in generating ammonia which is then used to make fertilizer. Worldwide, ammonia is one of the most highly produced inorganic chemicals and annual production is well over 100 million metric tons. Nearly as much hydrogen is used to convert heavier varieties of petroleum into lighter fractions suitable for use as fuel. So you can see the immensity of the market.

Currently, global hydrogen production is derived 48% from natural gas, 30% from oil, and 18% from coal; water electrolysis accounts for only 4%. With the cost of liquid hydrogen ranging from about $0.32 a pound to $1.40 a pound (depending on whether it?s produced on site or not), the commercial potential and the ramifications of increased molybdenum delivery to such a mega-market suggests that the progression from the laboratory to a commercial endeavor will be very much accelerated.

Molybdenum is a fascinating metal with some amazing lore attached to it. Scientists have found that molybdenum was used in the making of samurai swords going back well over 500 years?that?s long before molybdenum was ?discovered? in 1777. The metal was not widely used until WW1 when it was mixed with steel to make tank armor harder. Since then the use of molybdenum to enhance numerous qualities of steelmaking has grown unabated. Molybdenum currently trades on the London Metals Exchange.
Slash back to Mosquito and their prize asset par excellence: their wholly owned Idaho-based CUMO deposit, thought to be the world?s largest still undeveloped molybdenum deposit. Although mid-stage on the road to commercial deployment it sure is an interesting story, and fascinating for everyone with a scientific bent. And of course, over time it will likely have important implications for molybdenum: given that Mosquito?s game is largely molybdenum, there is significant added relevance to these developments..

According to a London Times article (reported by Dow Jones on 1/19/2010), Mosquito?s CUMO deposit is the largest untapped open-pit molybdenum deposit in the world. And the CUMO resource is also said to contain significant concentrations of tungsten, copper, silver and rhenium that, taken alone, would each be exceptional mining plays. Significantly, Mosquito completed the key public disclosure of information relating to mineral properties (called Ni 43-101) in Canada on Nov. 23, 2009.

Molybdenum Primer:

Molybdenum [Mo, atomic number: 42] is a refractory metallic element used principally as an alloying agent in steel, cast iron, and superalloys to enhance hardenability, strength, toughness, as well as wear and corrosion resistance. Ideal for tough environments where heat, pressure and corrosion are factors, it makes steel stronger and lighter and makes stainless steel more resistant to corrosion. Due to its low-toxicity it?s used as catalyst in energy production. Also noteworthy is that the metal is not recyclable.

* In the world of science, Lawrence Berkeley National Laboratory (Berkeley Lab) is synonymous with ?excellence.? It is unquestionably one of our top labs doing high-level research. Eleven scientists associated with Berkeley Lab have won the Nobel Prize. Fifty-seven Lab scientists are members of the National Academy of Sciences (NAS), one of the highest honors for a scientist in the United States. Thirteen of its scientists have won the National Medal of Science, our nation?s highest award for lifetime achievement in fields of scientific research. Researchers at the Berkeley Lab have discovered 16 elements, identified good and bad cholesterol, explained photosynthesis, exposed the risk of radon, redefined the causes of breast cancer, have revealed the secrets of the human genome, and much more. The Berkeley Lab has 3,900 employees and has a budget of $774 million.

I might mention that a while back my PHD son worked for several years at UC Berkeley on engineering projects connected to the Berkeley Lab?. Proud father I am.
The Berkeley Lab is a U.S. Department of Energy National Laboratory located in Berkeley, California. It conducts unclassified scientific research and is managed by the University of California. To Visit the Berkeley website: http://www..lbl.gov

I have purchased shares in Mosquito Consolidated Gold Mines on the open market.

Also Of Note: The fourth-largest primary molybdenum mine in the world, The Thompson Creek Mine, [75% owned by Thompson Creek Metals Company Inc. (TC) NYSE] is the largest mine in Idaho and is located about 60 miles from Mosquito?s CUMO asset. The market cap of (TC) is $1.17 billion.

I strongly encourage you to spend some time on Mosquito?s website, which is extremely comprehensive. The corporate presentation, fact sheet, and the CUMO interactive models are particularly informative and engaging. http://www.mosquitogold.com/s/Home.asp

For my list of Best Ideas for 2010 please send an e-mail request to:

Dr.Faessel@onthemar.com

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