20230817_Transfer_57-08

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ROY COOPER
Governor S
ELIZABETH S. BISER
Secretary
DOUGLAS R. ANSEL NORTH CAROLINA
Interim Director
Environmental Quality
August 17,2023
Certified Mail
Return Receipt Requested
7022 0410 0003 1130 6970
Matthew J. Michalik
Blue Buck Entertainment&Novelties, Inc.
131 Franklin Plaza Drive#248
Franklin,NC 28734
Re: Cherokee Ruby Mine LLC.
Mining Permit No. 57-08
Macon County
Little Tennessee River Basin
Dear Mr. Michalik:
Your request to have Mining Permit No. 57-08 transferred in its entirety from your company to Cherokee Ruby
Mine LLC. has been approved. As we have received Cherokee Ruby Mine LLC's required surety in an amount
sufficient to cover the present operation, your company is hereby released from further responsibility for this site
with respect to The Mining Act of 1971. Therefore,I am returning your$6,000.00 Assignment of Savings Account
(No.2061122)to you for your disposal.
Thank you for your cooperation in this matter.
Sincerely,
� �
� �
David Miller, PE
State Mining Engineer
DM/ap
Enclosures: ASA#2061122
cc: Ms. Shawna Riddle
Mr. Beau Thomas-DOL, Mine and Quarry Bureau
D_E Q�� North Carolina Department of Environmental Quality I Division of Energy,Mineral and Land Resources
512 North Salisbury Street 1 1612 Mail Service Center I Raleigh,North Carolina 2 76 9 9-1612
��.fMILW

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
DOUGLAS R.ANSEL NORTH CAROLINA
Interim Director Environmental Quality
August 17, 2023
Eric N. Handte
Cherokee Ruby Mine LLC
41 Cherokee Mine Rd.
Franklin,NC 28734
RE: Cherokee Ruby Mine LLC.
Mining Permit No. 57-08
Macon County
Little Tennessee River Basin
Dear Mr. Handte:
Your request to have the above referenced mining permit, issued to Blue Bucke Entertainment&b Novelties, Inc.,
has been approved and is transferred in its entirety to your company. As we have received the required surety in an
amount sufficient to cover the present operation, I am enclosing the transferred mining permit. The permit number
and mine name shall remain the same as before the transfer.
Please review the permit carefully and notify this office of any objections or questions you may have concerning
the terms of the permit. It is your responsibility to fully understand and comply with the conditions of your mining
permit.
As a reminder, your permitted acreage at this site is 7.11 acres and the amount of land you are approved to disturb
is 5.46 acres.
Again, if you should have any questions on this matter please contact Adam Parr, PE, Assistant State Mining
Specialist, at(919) 707-9220.
Sin Ely,
c
Ka,
David Miller, PE
State Mining Engineer
DM/ap
Enclosures
cc: Ms. Shawna Riddle
Mr. Beau Thomas-DOL, Mine and Quarry Bureau, w/o enclosures
D E Q North Carolina Department of Environmental Quality I Division of Energy,Mineral and Land Resources
512 North Salisbury Street 11612 Mail Service Center I Raleigh North Carolina 27699-1612
��\ r 919.707.9200

DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF ENERGY,MINERAL,AND LAND
RESOURCES
LAND QUALITY SECTION
PERMIT
For the operation of a mining activity
In accordance with the provisions of N.C.G.S. §74-46 through 68,"The
Mining Act of 1971,"Mining Permit Rule 15A NCAC 05B,and other
applicable laws,rules,and regulations
Permission is hereby granted to:
Cherokee Ruby Mine LLC.
Cherokee Ruby& Sapphire Mine
Macon County- Permit No. 57-08
for the operation of a
Gemstone Mine
Which shall provide that the usefulness,productivity and scenic values of
all lands and waters affected by this mining operation will receive the
greatest practical degree of protection and restoration.

Page 2
In accordance with the application for this mining permit, which is hereby approved by the Department of
Environmental Quality,hereinafter referred to as the Department,and in conformity with the approved Reclamation
Plan attached to and incorporated as part of this permit, provisions must be made for the protection of the
surrounding environment and for reclamation of the land and water affected by the permitted mining operation.
This permit is expressly conditioned upon compliance with all the requirements of the approved Reclamation Plan.
However,completed performance of the approved Reclamation Plan is a separable obligation,secured by the bond
or other security on file with the Department,and may survive the revocation or suspension of this permit.
This permit is not transferable by the permittee with the following exception: If another operator succeeds to the
interest of the permittee in the permitted mining operation, by virtue of a sale, lease, assignment or otherwise, the
Department may release the permittee from the duties imposed upon him by the conditions of his permit and by the
Mining Act with reference to the permitted operation, and transfer the permit to the successor operator, provided
that both operators have complied with the requirements of the Mining Act and that the successor operator agrees
to assume the duties of the permittee with reference to reclamation of the affected land and posts a suitable bond or
other security.
In the event that the Department determines that the permittee or permittee's successor is not complying with the
Reclamation PIan or other terms and conditions of this permit or is failing to achieve the purposes and requirements
of the Mining Act,the Department may give the operator written notice of its intent to modify, revoke or suspend
the permit,or its intent to modify the Reclamation Plan as incorporated in the permit. The operator shall have right
to a hearing at a designated time and place on any proposed modification, revocation, or suspension by the
Department. Alternatively,and in addition to the above,the Department may institute other enforcement procedures
authorized by law.
I. Definitions. N.C.G.S. §74-49.
Wherever used or referred to in this permit,unless the context clearly indicates otherwise,terms shall have
the same meaning as supplied by the Mining Act,N.C.G.S. §74-49.
II. Issuance and Modifications. N.C.G.S. §74-52.
October 1. 1997: This permit has been modified to add an additional 1.09 acres to the excavation area as
indicated on the mine map last revised December 16, 1996.
February 22, 2006: This permit has been transferred in its entirety from Eastern Cherokee Land, Inc. to
MacEffie Gems& Land, LLC.
November 18,2008: This permit has been modified to increase the permitted acreage to 7.11 acres and the
affected acreage at this site to 5.46 acres,as indicated on the mine map received by the Land Quality Section
on July 25, 2008. This modification includes clarification of the permitted and affected acres at this site
and expansion of the mine excavation area to the North.
December 7, 2015: This permit has been transferred in its entirety from MacEffie Gems& Land LLC to
Blue Bucket Entertainment&Novelties Inc
December 1,2017: This permit has been issued for the life of site or the duration of the lease term.
August 17, 2023: This permit has been transferred in its entirety from Blue Bucket Entertainment &
Novelties Inc.to Cherokee Ruby Mine LLC.
This permit is valid for the life of the site or life of lease, if applicable, as defined by Session Law 2017-
209 and has no expiration date. However, all provisions of N.C.G.S. §74-51 and N.C.G.S. §74-52 still
apply for new,transferred,and modified mining permits.

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III. Operating Conditions. N.C.G.S.
This Permit shall be subject to the provisions of the Mining Act, N.C.G.S. §74-46, et. seq., and to the
following conditions and limitations:
1. Wastewater and Quarry Dewatering.
A. Any wastewater processing or mine dewatering shall be in accordance with the permitting
requirements and rules promulgated by the N.C.Environmental Management Commission.
B. Any stormwater runoff from the affected areas at the site shall be in accordance with any
applicable permit requirements and regulations promulgated by the Environmental
Protection Agency and enforced by the N.C. Environmental Management Commission. It
shall be the permittee's responsibility to contact the Stormwater Program to secure any
necessary stormwater permits or other approval documents.
2. Air Quality and Dust Control.
A. Any mining process producing air contamination emissions shall be subject to the
permitting requirements and rules promulgated by the N.C. Environmental Management
Commission and enforced by the Division of Air Quality.
B. During mining operations, water trucks or other means that may be necessary shall be
utilized to prevent dust from leaving the permitted area.
3. Buffer Zones.
A. Sufficient buffer(minimum 10 foot undisturbed)shall be maintained between any affected
land and any adjoining waterway or wetland to prevent sedimentation of that waterway or
wetland from erosion of the affected land and to preserve the integrity of the natural
watercourse or wetland.
B. A minimum flow shall always remain in Caler Creek below the intake of the flume line to
prevent damage of the existing aquatic habitat downstream.
C. Any mining activity affecting waters of the State,waters of the U. S.,or wetlands shall be
in accordance with the requirements and regulations promulgated and enforced by the N.
C. Environmental Management Commission.
4. Erosion and Sediment Control.
A. Adequate mechanical barriers including but not limited to diversions, earthen dikes,
sediment check dams, sediment retarding structures, rip rap pits, or ditches shall be
provided in the initial stages of any land disturbance and maintained to prevent sediment
from discharging onto adjacent surface areas or into any lake, wetland, or natural
watercourse in proximity to the affected land.
B. All existing excavated and disturbed areas within 10 feet of Caler Creek shall be filled,
smoothed,and permanently stabilized.
C. Excess flume water,discharged prior to washing,shall be returned to Caler Creek in a non-
erosive manner(via channel or pipe).

Page 4
D. Mining activities, including the installation and maintenance of the approved sediment
basins and associated diversion channels,shall be conducted as indicated on the mine map
last received by the Land Quality Section on October 26, 2015, and the supplemental
information received by the Land Quality Section on November 20, 2007, January 14,
2008, June 5, 2008, June 12, 2008, June 19, 2008, July 25, 2008, September 16, 2008,
December 29,2021, February 22,2022,and May 4,2023.
5. Permanently Marked Boundaries.
All mining permit boundaries (7.11 acres) shall be permanently marked at the site on 100-foot
intervals unless the line of sight allows for larger spacing intervals.
6. Graded Slopes and Fills.
The angle for graded slopes and fills shall be no greater than the angle,which can be retained by
vegetative cover or other adequate erosion control measure, structure, or device. In any event,
exposed slopes or any excavated channels,the erosion of which may cause off-site damage because
of sedimentation,shall be planted,or otherwise provided with ground cover,devices,or structures
sufficient to restrain such erosion.
7. Surface Drainage.
The affected land shall be graded so as to prevent collection of pools of water that are,or likely to
become, noxious or foul. Necessary structures such as drainage ditches or conduits shall be
constructed or installed when required to prevent such conditions.
8. Blasting
No blasting activities shall occur at this site.
9. Visual Screening.
Existing vegetation or vegetated earthen berms shall be maintained between the mine and public
thoroughfares whenever practical to screen the operation from the public.
10. Buffer Between Mining Permit Boundaries and/or Right-of-ways.
Sufficient buffer(minimum 25 foot undisturbed)shall be maintained between any excavation and
any mining permit boundary to protect adjacent property.
11. Highwall Barrier
A physical barrier consisting of a fence or earthen berm, etc., shall be maintained around the
perimeter of any highwall.
12. Refuse Disposal.
A. No on-site disposal of refuse or other solid waste that is generated outside of the mining
permit area shall be allowed within the boundaries of the mining permit area unless
authorization to conduct said disposal has first been obtained from both the Division of
Waste Management and the Division of Energy,Mineral and Land Resources,Department
of Environmental Quality. The method of disposal shall be consistent with the approved
reclamation plan.

Page 5
B. Mining refuse as defined by N.C.G.S. §74-49 (14)of The Mining Act of 1971 generated
on-site and directly associated with the mining activity may be disposed of in a designated
refuse area. All other waste products must be disposed of in a disposal facility approved
by the Division of Waste Management. No petroleum products, acids, solvents or their
storage containers or any other material that may be considered hazardous shall be disposed
of within the permitted area.
C. For the purposes of this permit, the Division of Energy, Mineral and Land Resources
considers the following materials to be "mining refuse" (in addition to those specifically
listed under N.C.G.S. §74-49(14)of the N.C. Mining Act of 1971):
i. on-site generated land clearing debris.
ii. conveyor belts.
iii. wire cables.
iv. v-belts.
V. steel reinforced air hoses.
vi. drill steel.
D. If mining refuse is to be permanently disposed within the mining permit boundary, the
following information must be provided to and approved by the Division of Energy,
Mineral and Land Resources prior to commencement of such disposal:
i. the approximate boundaries and size of the refuse disposal area.
ii. a list of refuse items to be disposed.
iii. verification that a minimum of 4 feet of cover will be provided over the refuse.
iv. verification that the refuse will be disposed at least 4 feet above the seasonally
high-water table;and,
V. verification that a permanent vegetative groundcover will be established.
IV. Annual Reclamation Report and Annual Operating Fee. N.C.G.S.
An Annual Reclamation Report and Annual Operating Fee of$400.00 shall be submitted to the Department
by September 1 of each year until reclamation is completed and approved for release by the Department.
V. Prior Approval Required for Plan Modification. N.C.G.S. §74-52.
The operator shall notify the Department in writing of the desire to delete,modify or otherwise change any
part of the mining,reclamation,or erosion/sediment control plan contained in the approved application for
a mining permit or any approved revision to it. Approval to implement such changes must be obtained
from the Department prior to on-site implementation of the revisions.
VI. Bonding. N.C.G.S. §74-54.
The security, which was posted pursuant to N.C.G.S. §74-54 in the form of a $16,800.00 Assignment of
Savings Account,is sufficient to cover the operation as indicated in the approved application. This security
must remain in force for this permit to be valid. The total affected land shall not exceed the bonded acreage.

Page 6
VII. Archaeological Resources. N.C.G.S. §70-3.
1. Minimum Requirements.
A. Authorized representatives of the Division of Archives and History shall be granted access
to the site to determine the presence of significant archaeological resources.
B. Pursuant to N.C.G.S. §70-3, "The Unmarked Human Burial and Human Skeletal Remains
Protection Act,"should the operator or any person in his employ encounter human skeletal
remains, immediate notification shall be provided to the county medical examiner and the
chief archaeologist,North Carolina Division of Archives and History.
VIII. Approved Reclamation Plan. N.C.G.S. §74-53.
The Mining Permit incorporates this Reclamation Plan, the performance of which is a condition on the
continuing validity of that Mining Permit. Additionally,the Reclamation Plan is a separable obligation of
the permittee,which continues beyond the terms of the Mining Permit.
To comply with N.C.G.S. §74-53 the approved plan will provide:
1. Minimum Standards.
A. The final slopes in all excavations in soil,sand,gravel,and other unconsolidated materials
shall be at such an angle as to minimize the possibility of slides and be consistent with the
future use of the land.
B. Provisions for safety to persons and to adjoining property must be provided in all
excavations in rock.
C. All overburden and spoil shall be left in a configuration which is in accordance with
accepted conservation practices,and which is suitable for the proposed subsequent use of
the land.
D. No small pools of water shall be allowed to collect or remain on the mined area that are,or
are likely to become noxious,odious,or foul.
E. The revegetation plan shall conform to accepted and recommended agronomic and
reforestation practices as established by the North Carolina Agricultural Experiment
Station and the North Carolina Forest Service.
F. Permittee shall conduct reclamation activities pursuant to the Reclamation Plan herein
incorporated. These activities shall be conducted according to the time schedule included
in the plan,which shall to the extent feasible provide reclamation simultaneous with mining
operations and in any event, provide reclamation at the earliest practicable time after
completion or termination of mining on any segment of the permit area and shall be
completed within two years after completion or termination of mining.
2. Reclamation Conditions.
A. Provided further, and subject to the Reclamation schedule, the planned reclamation shall
be to regrade and satisfactorily revegetate any disturbed areas.
B. The specifications for surface gradient restoration to a surface suitable for the planned
future use are as follows:
i. The lake area shall be excavated to maintain a minimum water depth of four feet
measured from the low water table elevation.

Page 7
ii. The side slopes to the lake excavation shall be graded to a 3 horizontal to 1 vertical
or flatter to the water line and 2 horizontal to 1 vertical or flatter below the water
line.
iii. Any settling ponds or sediment basins shall be backfilled and stabilized or cleaned
out and made into acceptable lakes.
iv. Any areas used for waste piles,screening,stockpiling,or other processing shall be
leveled and smoothed.
V. The low areas between the flume line and Caler Creek shall be regraded to match
the existing contours and be permanently stabilized.
vi. Compacted surfaces shall be disced, subsoiled, or otherwise prepared before
revegetation.
vii. No contaminants shall be permanently disposed of at the mine site. On-site
disposal of waste shall be in accordance with Operating Condition Nos. 11 A
through 11 D.
viii. The affected land shall be graded to prevent the collection of noxious or foul water.
3. Revegetation Plan.
After site preparation,all disturbed land areas shall be revegetated as per the following:
Permanent Seeding Specifications
Dates Specie Rate, Lbs./Acre
February 15-April I Kobe Lespedeza 10
Bahiagrass 50
Redtop 1
Winter rye(grain) 15
April I-July 31 Common Bermuda 50
August 1-October 25 Lespedeza(unscarified) 30
German millet 40
October 25-February 15 Rye(grain-temporary) 120
Soil Amendments
Lime 20001bs./acre or follow recommendations from a soil test.
Fertilizer 1000 lbs./acre 8-8-8 or 10-10-10 or follow recommendations from a soil test.
Mulch All seeded areas shall be mulched using small grain straw at a rate of 2000
lbs./acre and anchored appropriately.
Whenever possible, disturbed areas should be vegetated with native warm season grasses such as
switch grass,Indian grass, bluestem,and gamma grass.
In addition,the permittee shall consult with a professional wildlife biologist with the N.C. Wildlife
Resources Commission to enhance post-project wildlife habitat at the site.

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4. Reclamation Plan.
Reclamation shall be conducted simultaneously with mining to the extent feasible. In any event,
reclamation shall be initiated as soon as feasible after completion or termination of mining of any
mine segment under permit. Final reclamation, including revegetation, shall be completed within
two years of completion or termination of mining.
IX. Issuance and Modification Summarv. N.C.G.S. §74-51 and §74-52.
This permit, issued to Eastern Cherokee Land, Inc. on June 10, 1993, modified and renewed October 1,
1997, transferred to MacEffie Gems & Land, LLC February 22, 2006, renewed and modified November
18, 2008, transferred to Blue Bucket Entertainment & Novelties Inc. December 7, 2015, and Modified
December 1, 2017, is hereby transferred in its entirety to Cherokee Ruby Mine LLC. this 17th day of
August 2023 pursuant to N.C.G.S. §74-51.
By:
Douglas R.Ansel, Interim Director
Division of Energy,Mineral,and Land Resources
By Authority of the Secretary
Of the Department of Environmental Quality

E.DETERMINATION OF AFFECTED ACREAGE AND BOND 57-08-Cherokee Ruby Mine
The following band calculation worksheet is to be used to establish an appropriate bond(based upon a range of$500 to$5,000 per affected acre)
for each permitted mine site based upon the acreage approved by the Department to be affected during the life of the mining permit. please insert
Lre approximate act for each aspect oft&f mining operation that vou burend to affect during the Me phis mining permit IL addition,mease
insert Lh appropriate reclamation co/a r for each cafe o from the Schedule o(Reclamatton Costs ron vlded with this application form)QR vou
can defer to the Department to calculate vour hand f u base d n v p and stand d r !a ati c tr
AFFECTED
CATEGORY ACREAGE RECLAMATION COST/ACRE RECLAMATION COST
Tailings/Sediment Ponds 0.12 Ac. X $ 500 /Ac. _ $ 60.00
Stockpiles 0.03 Ac. X $ 1,800 /Ac. _ $ 54.00
Wastepiles 0.02 Ac. X $ 2,000 /Ac. _ $ 40.00
Processing Area/Haul Roads 3.78 Ac. X $ 1,800 /Ac. _ $ 6,804.00
Mine Excavation 1.12 Ac. X $ 2,000 /Ac. _ $ 2,240.00
Other them) 0.30 Ac. X $ 1,500 /Ac. _ $ 450.00
TOTAL AFFECTED AC.: 537 Ac.
TOTAL PERMITTED AC.: 7.11 Ac.
Temporary&Permanent Sedimentation&Erosion Control Measures
Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into proposed/existing
excavation and/or b) affected acres that will be graded for positive drainage where measures will be needed to prevent offsite
sedimentation and sedimentation to onsite watercourses and wetlands.
a)Internal Drainage 1.59 Ac.
b)Positive Drainage 3.78 Ac. X $ 1,500.00 = $ 5,670.00
SUBTOTALCOST: S 1"18,00
Inflation Factor
0.02 X SUBTOTAL COST: $ 306.36 X Permit Life Provided by Applicant(Life of the Mining Operation or
Life of Lease from Public Entity(in Years)): 5
INFLATIONCOST: $ 1,531.80
SUBTOTAL COST+INFLATION COST: $ 16,849.80
Total Reclamation Bond Cost: S 16,800.00
(round down to the nearest$100.00)
(NOTE: The reclamation bond cannot exceed$1 million per GS 74-54)