You could have problems with the script timing out; also, sending multiple mails with mail() is extremely inefficient (create a new connection to the SMTP server, send one email, destroy the connection, create a new connection, send one email, destroy the connction...)
There are a number of SMTP classes floating around the net for PHP that will allow much more efficient use of resources (create a new connection to the SMTP server, send a whole pile of emails, close the connection).