One other method you could try is to read the file in to a variable and then use explode() to split into multiple queries using ";\n" as the delimiter.
$filename = 'blah.sql';
$fd = fopen($filename, "r");
$contents = fread($fd, filesize($filename));
$sql_array = explode(";\n", $contents);
$i = 0;
while($i < count($sql_array)) {
$sql = $sql_array[$i];
mysql_query($sql);
$i++;
}
Again, I haven't tried this but it is probably worth having a play and seeing how you get on.
Let me know how you get on 😉