02-06 North American Emerald Mine File Pt. 10 Redacted

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9
NOl ICE OF
MINiNGSSUgIVC OF
You have PERMIT
Inc.rtgr Gondin tha appli at onsfo expressed
an interest and/or (no. 02_06) was lining of vibes off S Permit filed by Norte listed an
North March 15 200p in Alexander Count Amescan Emerajd ng lanc
to curtest thearoling law allows decision b y Th Mines,
Administrative Hearin g asons a e mining Permit
Act (gpAi gs pursufilin Petition
aggrieved by the issuanc
Pursuant to N.C. G S 150g 2contestede ° g permit
f a minin
a petit onyx u believe that Of the Administn the Office of
or Within sixt a Contested you are an ative Procedure
case aggrieve if 60 da s of the Trailing be this in hetOffieein the
prescribed b file 9 of t notice Admeanin9 of the A,
With contested to you °f ministrativ AP
the Office N.C..C. General StPetitionpetition . a Hearings
7447• °f Administrative must be
Hearings, P 0 plae the originalriting and in the
Any O wen 27447, Petition four
of Administrative questions about filing Raleigh, N. C.
one copy
Hearings by tele petition C• 27611_
YOU must phoning (91 g be directed to
mailing a co he 09 Clerk
nral Courts 1 Of rtPetitionepo RI ent of Enviro7n 3 26 the k of the Office
Center, ROuns l C.
Meng of meat and 27699-1601.rongland Natural Re o Registered esq°ge�ts by
7 601 Mail Service
harleH G
Directorad ner
Division Land Resources
North Caroro lina Environment annt and NatuDepart
Resources rajnt of
This notice was mailed on
Susan
Pro ands
gram Secretary

,MES B. HUNTJR
r
ENVIRONMENT CAROLINA NoRrDEP
AND NAru ARTM1o., OF
DtvtstoN RAL RESOURCES
OF LAND RESOURCES
Fax
To:
Of:
Fax: BZ5- oZ7Z
Pages: 3
Da te:
-Z—o�
Comments:_
Land �—
Quality Section
Telephone: [phone]
Fax Number: [phone] or [phone]
LAMC QUALITY S
OLECTIGN (99
GEOGICAL SURY.. S1/ 733-4574 CGTIGn (9191 733-
242J FAX(919173,. 976
FAX [phone]y00

TRANSMISSION VERIFICATION REPORT'
DATE, TIME
FAX NO./NAME
DURATION
03/02 15:19
PAGE(S)
98290272
RESULT
00:00:59
MODE
03
OK
STANDARD
ECM
TIME :
NAME :
03/02,2E00 15:20
GARD JE R
FAX :
TEL :
9197J 8E01
91973:3E33

\MES B. HUNTJR
a -
�VERNOR
S "
nl :: ..- .
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
Fax
To:
Of:
Fax: 6441-Oe 7 Z
Pages: 3 Mcl di
o rnv r ch t
Date: Z-8-00
Comments:
FROM:
Land Quality Section
Telephone: [phone]
Fax Number: (919) 715-880I Or [phone]
LwHo OuwU71 5lc71aN G EOIOGICAI [phone] FAX [phone]r
50RVCY SlcnoN (,19) 733,2423 FAX (919) 733-q5i

TRANSMISSION VERIFICATION REPORT
TIME : 02/0 3, 2E 00 11: 21
NAME : GARD JE R
FAX : 9197 J 8f 01
TEL : 91973:3E33
DATE,TIME
FAX NO./NAME 02/08 11:20
DURATION 98290272
PAGE(S) 00:00:51
RESULT 03
MODE OK
STANDARD
ECM

DATE DIME
FA:: NO. /NAME
DURATION
PAGE(S)
RESULT
MODE
TRANSMISSION VERIFICATION REPORTr
01/12 08:27
88286328815
00:01:59
03
OK
STANDARD
ECM
TIME : 01/1 Z, 2000 08:29
NAME : GARD, JE R
FAX : 9197 L! 8801
TEL : 91973:3633

NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
Fax
To:
Of:
Fax:�.—
Pages: inchtclino coverer sheet
Date: /7 /a f
FROM: _(,�j 1�uj4Pr/
Land Quality Section
Telephone: [phone]
Fax Number: [phone] Or [phone]
LAND QUALITY SECTION (9191 7J9-4574 FAX 9I 91 ]JJ49]6
GEOLOGICAL SURVEY SECTION (9191 ]JJ-242J FAX (919) 7JJ-G900
f
P.O. BOX 27G9 ], RALEIGH, NORTH CAROLINA 27G1 1-7937 TELEPHONE IS 19) 73]-3(JJ3 FAX (91 9) 715-R801

M Q aMnTrON AOND Cyr (rirAT:[nLN
(basedYear mine/a
( "non 10—'�WO�gT
AfIll ffected- ea plan)
t NO.
Permittee/Applicant: A)A- �MaoP�
Mine Name:
•NA-Era:/�C
CATEGORY AFFECTED RECLAMATION
ACREAGE COST/AGAR RECI�TTCK
COST
Tailings/
Sediment Ponds
Stockpiles
wastepiles
/O Ac
00 Ac
Ac
Processing Area/
Haul Roads Ac
'Mine Excavation /7.9L Ac
Other
Ac.
TOTAL AFFECTED AC.: /q o Z 'C.
X
$ /too
/
AC
X
$ dap
/
Ac
X
$
/
Ac.
X
$
/
Ac.
X
$ Zoos
/
Ac.
X
$
/
AC.
Divide the .TOTAL iludc-lon & Er ion ontr measures:
categories: a) affected a�cresCtnat drainove ninto pr
o the following two
'excavation and/or b) affected acres that will ODosed/eed for
Positive drainage, measures will be graded for
sediment be needed to prevent offsite
a)
Internal
Drainage
Ac_
b)
Positive
Drainage /`i-o z
Ac.
_ $_ Z/, o3d
$ ye d
I�flarion F'acr r-
0.12 X SUBTOTAL COST: $ 9 76.y6 X permit life:
�o
(1 to 10 years)
INFLATION COST: $ I 76 y
X $ 1500 / Ac
SUBTOTAL COST:
TOTAL COST SUBTOTAL COST + INFLATION COST -
TOTAL RECLAMATION BOND COST: $ �8
�DlJ.u6
(round down to the nearest $100)
spy

MINE RECLAMATION BOND CALCULATION WORK HEFT
(based" -on 10-year m ne/affected i" -=a plan)
,4.4jo
Y_.r it No. a -06 �/
Permittee/Applicant: /V � �,hI'd
A,Ns
Mine Name:
CATEGORY
AFFECTED
ACREAGE
RECLAMATION
COST/ACRE
RECLAMATION
COST
Tailings/
Sediment Ponds -
/) Ac. X
$ /522y / Ac.
_ $ /So .
Stockpiles
/' vy Ac X
$ Zje! / . P_c .
_ $
Wastepiles
Ac. X
$ / Ac.
_ $
Processing Area/
Haul Roads
Ac. X
$ / :A_c .
_ $
'Mine Excavation
7 /6 Ac. X
$ Z000 / Ac.
_ $ / y, 3 Zy
Other
Ac.
Ac.,-
$
TOTAL AFFECTED AC.- 9'Z6, AC. /yoz
Temporary & Permanent Sedimantation & Ero ion on ro! Measures:
Divide the TOTAL AFFECTED AC. .above into the following two
categories: a) affected acres that drain into proposed/existin_a
-excavation and/or b) affected acres that will be Graded for
positive drainage, measures will be needed to prevent offsite
sediment
a) Internal Drainage Ac_
b) Positive Drainage 9 Z6 Ac. X $ 1500 / Ac.
$ Z 5d
SUBTOTAL COST:
Inflation Factor:
0.02 X SUBTOTAL COST: $ S 73•za X permit life: / D
(1 to 10 years)
INFLATION COST: $ % 3 Z
TOTAL COST = SUBTOTAL COST + INFLATION COST $ 3 y� 3g Z
TOTAL RECLAMATION BOND COST:
F
(round down to the nearest $100)I

North American Emerald Mines
Subject: North American Emerald Mines
Date: 'hie, 04 Jan 2000 15:21:48 -0500
From: Doug Miller <[e-mail]>
Organization: NC DENR - Mooresville Regional Office
To: Tony Sample <[e-mail]> +
2 have received 3 copies and will forward two copies of a revised mine
map for the referenced application now pending in Alexander co. The
revised plan and narrative seem to address and clarify my previous
concerns. Please process this forwarded material and if possible issue
the permit.
Doug
Doug Miller - Doug.Miller®ncmail.net
North Carolina Dept. of Environment & Natural Resources
Div. of Land Resources - Land Quality Section
919 N. Main St.
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
Doug Miller <[e-mail]>
NC DENR - Mooresville
Div. of Land Resources - Land Quality Section
441015,
9FC 1
1 of 1 01/04/2000 3:22 PM

Erosion and Sedimentation Control Plan
North American Emerald Mines
Alexander County
Narrative
The purpose of this project is to mine for minerals. The project contains about 14 acres, with
approximately 7.2 acres proposed as the first phase. Phase one may be broken down into two
parts with the project starting in part 1 and progressing westward into part 2. With reference to
the plan, phase one is planned for everything above the 960 contour, and will disturb about 6.9
acres.
Adjacent properties are lightly wooded with small pines and poplars with no serious sign of
erosion. A gravel road adjoins the project area on the East side and around on the South side.
Sulphur Spring Creek bounds the property on the West side.
The Eastern half of the property drains North to South and the western half slopes Southwest and
drains to the creek,
There are no buildings to be constructed on this site and no pavements or other impervious
improvements installed. Basically the site will be excavated over the whole site and when the
activity is exhausted, the area will be repaired, seeded and/or planted to establish a ground cover
suitable to encourage the return of local fauna.
Some of the excavated material will be used to construct dikes or berms used in the control of
erosion and runoff. Most of the material will be sold and taken from the site. If the topsoil is of
good quality and adequate amounts, some may be stored temporarily to be used in the
reclamation processes.
Initially the silt basin SBI for part 1 will be constructed and temporary diversion ditches (TD1)
pulled in. A s excavation begins and the East and West slopes start taking shape, the temporary
diversion ditches will not be needed to direct runoff in the work area, and can be moved daily or
as needed to direst run off. to the silt basin.
Similarly in Part 2, the temporary diversion ditches will be use to direct runoff.
Daily work habits including small ditch traps, berms, etc, can help slow or hold sediment from
moving to the silt basins. However the silt basins will continuously fill and sediment must be
removed periodically, when the basin is about''/Z full. The spoil material will be deposited along
the up -side of the 960 dike for dewatering.
Erosion control for the project will consist of a single dike or berm, delineating the 960 contour
and the two silt basins built into the dike. On -site diversion ditches will temporarily direct run off
to the silt basins.

A permanent undisturbed buffer zone will be observed all around the project area. On the North
side and East and West sides, a 2:1 slope will be constructed as the excavation increases to a
deeper elevation. At the toe of the slope a fairly flat grade will be used to run southward. The
North slope and the East slope will be repaired in the reclaiming process. The West slope will
move as future parts are brought into the plan.
The "960" dike and silt basins will remain during the reclaiming period until all uphill areas have a
dense and mature ground cover and show no signs of erosion. At that time the silt basins may
filled in and the areas repaired. The dike will be graded to slope back into the uphill surfaces.
This space will be repaired and seeded for an adequate ground cover.

Erosion and Sedimentation Control Plan
North American Emerald Mines
Alexander County
Construction Sequence
Obtain the certificate and letter of approval for the erosion control plan.
2. Install the temporary construction entrance.
3. Install silt basin SBI. Basically the berm exists as a slope from 970 to 960. Start with the
existing pit on North side of slope and enlarge pit to serve as silt basin. Cut through the dike to
install the rock spillway. Note that the project site is bounded by a permanent undisturbed buffer.
Inspect the buffer and repair any bare spaces and seed according to specs.
4, Cut the temporary diversion ditches TDI. These will be needed until excavation has
progressed to retain runoff in the construction area.
5. Excavation can start at the rim of the silt basin or anywhere in the limits protected by ditches
TDI. The excavated material must first be used to build the dike system across project Part 1.
The top of the dike and the down slope face shall be prepared and seeded and mulched
immediately.
6. The slope on the North side would be easier built if it was cut as part of the excavation
process. However it may be cut in bench steps with vertical risers and repaired to a 2:1 slope
with other excavated material. When the floor or toe -of -the slope is reached, this slope must be
prepared and seeded according to the specifications.
7. Since the excavation/ mining process is expected to last several months to possibly a few
Years, the side slopes will be worked continuously. However when the East side slope is
completed, Repair the surface and seed and mulch. The North slope must be stabilized as soon
as practical.
8. Part 2 of the erosion control plan may be opened concurrently with Part 1 or at the later time
after part 1 has been worked for sometime. Basically steps 3, 4 and 5 above must be repeated.
Silt basin 2 and diversion ditches TD2 must be installed prior to the beginning of mining activities.
Of course the "960" berm must have been in place before the silt basin is built.
9. When mining activities and excavations have been exhausted in some areas, these areas must
be fine graded, prepared and seeded and mulched. This may be a temporary cover of annual
grain to hold until the better planting seasons approach.
10. At the project work area diminished and more land is left unattended, these areas must be
prepared and seeded and mulched

(._
11. When the project is completed and all spaces uphill are stabilized with no signs of erosion,
then the silt basins maybe closed out, repaired and stabilized.
12. The project area should be inspected for any possible bare spots, washouts or other
disturbed areas. These mut be repaired and re -seeded and mulched. The site must have a
permanent and nature ground cover, dense enough to resist erosion.

r
EROSION AND SEDIMENTATION CONTROL PLAN
NORTH AMERICAN EMERALD MINES, INC.
ALEXANDER COUNTY
CALCULATIONS
Sly l f3ASIO I�e, i
jq = 1 3 Ac , Js sC'�a F
Q ,
i bf
1i� S =ri •� Aa , Cts %n r _ 17•e cry
�acV, SP«�u Pit = t Z vl�Da:
Stl_� gg5il3 TJo. 'L
zz
�PjS ='3.G Ace �r.VBe 14.E cFs
�ock SPi��w� = iz1-auG

North American Emerald Mines
Subject: North American Emerald Mines
Date: Tue, 04 Jan 2000 15:21:48 -0500
From: Doug Miller <[e-mail]>
Organization: NC DENR - Mooresville Regional Office
To: Tony Sample <[e-mail]>
I have received 3 copies and will forward two copies of a revised mine
map for the referenced application now pending in Alexander co. The
revised plan and narrative seem to address and clarify my previous
concerns. Please process this forwarded material and if possible issue
the permit.
Doug
Doug Miller - [e-mail]
North Carolina Dept. of Environment & Natural Resources
Div. of Land Resources - Land Quality Section
919 N. Main St.
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
Div. of Land Resources - Land Quality Section
loft
1/4/2000 4:04 PM

DATE,TIME
FAX NO./NAME
DURATION
PAGE(S)
RESULT
MODE
TRANSMISSION VERIFICATION REPOR'
09/08 13:06
98290272
00:01:00
03
OK
STANDARD
ECM
TIME
: 09/03,1999 13:07
NAME
: GARD JE R
FAX :
9197 E! 8801
TEL :
91973:3633

NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT f NATURAL RESOURCES
40
LI VISION OF LAND RESOURCES
NCDENR
yuJF `"�1 ,•�S
^.? i'
-J 0.E99. liUNT.1R, .. FAX COVER SHEET
OVERNOR
AYNE MCDEVINt Ilk
NTO:
' �: • e :'r CO:
FAX #: _F�Z9 O 0 -7 Z-
AAN,IR
s .P1Azz D R •
+'. t
. AND STATE.GEOLOOB - FROM: 0,Aoy 4
CO:-
' iV 4 i
(919)31V,i$fi01
NO. OF PAGES (including cover sheet)
ff you experience difficulty receiving this message - calf -
[phone], Administration, Division of Land Resources.
LANO QUALITY SECTION (9)9I 733-4574 FAX [phone]
GEOLOGICAL SURVEY SECTION (919, 733-2423 FAX [phone]
P.O. 8OX 27687, RALEIGN, NORTN CAROLII1A27611.7667 TELE1N11E(9191733.3833 FAX1919,715.8801
AN EQUAL OPPORTUNITY /AFFIRNATIVE ACTION EIAPLOYER - 50% RECYCLED110% POITCO"UNER FAPEP

r_
APPLICATION FOR A MINING PERMIT
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
The following bond 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.
CATEGORY
Tailings/Sediment Ponds
Stockpiles
Wastepiles
Processing Area/Haul Roads
Mine Excavation PHASE 1
AFFECTED
ACREAGE
0.10 Ac.
1.00 Ac.
Ac.
Ac.
7.16 Ac.
Other PHASE 2 6.86 Ac.
i
TOTAL AFFECTED AC.: 14.02 Ac.
(DESIGNATES ACREAGE WITHIN 14.02 ACRE
RECLAMATION RECLAMATION
COST/ACRE COST
X $ 2,500.00 /Ac. _ $ 250.00
X $ 2, 500.00 /Ac.
X $ /Ac.
X $ /Ac.
X $ 3, 700 nn /Ac.
X__. $ 1, inn on /Ac.
proposed/existing excavation and/or b) affected acres that will
be needed to prevent offsite sediment.
a) Internal Drainage 7.16 Ac. `PHASE 1
b) Positive Drainage 6.86 Ac. X
Inflation Factor:
two categories: a) affected acres that drain into
be graded for positive drainage, measures will
$1500 / Ac. = $ 10, 290.00
SUBTOTAL COST: $ 641914.00
0.02 X SUBTOTAL COST: $ 1, 298.28 X Permit Life (1 to 10 years): 12, 982. 80
INFLATION COST: $ 12;,9,&2:80
TOTAL COST = SUBTOTAL COST + INFLATION COST = $_ 77, 896.80
TOTAL RECLAMATION BOND COST: _ $ 77,900.00
(round down to the nearest $100.00)
-15-

n. _O-INTERAGENCY REVL
MINE PERMIT APPLICATIC
ft
Count
Water
1
6661,E I Do d
_l%II1!�(�il�
2. Permits: Yes No
NPDES Permit Required NPDES Existing j7- /
-"
Nondischarge Permit Required
Nondischarge Peremit Existing
NOV Issued
Civil Penalty Assessed/Injunction Requested. 4
3. Wetlands: z�•�•ti r /5 To /�,Pa< .<�C i, �� /t s !l�,�c
Wetlands Disturbed
401 Certification Required
Groundwater Issues Signed ,r-6a Datel&Aq
Well Permit Required
Well Permit Existing
Groundwater Contamination Problem
NOV Issued
Civil Penalty Assessed/Injunction Requested
furor-�
N wed' Air Permit Required
Air Permit Existing
NOV Issued
Civil Penalty Assessed/Injunction requested
Signed: Date
Copy to Raleigh LQ on f (Date)

GL Rvi c G,11;7DYXI
✓� 7i �G�

r}
DATE TO ASSISTANT ""rac �( � DATE SUSAN P f
LOGGED IN
MINING CHECKLIST FOR ROUTING
Companyroject Name!/¢ /c*. eOd, y /c
Permit No. County A1rXw;J— Date Received 7
-rf
Reviewer / "- �-'l
Please make copies of check to include with Central Office and
Field Office files and log in checks.
❑ * New ❑ Renewal ❑ Modification ❑ Transfer ❑ Release
FT�Additional Information ❑ Fee Needed
❑ Fee Received: Amount
Please route to:
❑ . f ps`,'•4-.A�--ei Field Office
❑ Wildlife Resources Commission
* ❑ Archives and History
❑ Other:
Date
Routed,
Date
Routed
Date Routed
Date Routed
Suspense Date for Comments:,`'(Date received +30 days,
not on weekend)
❑ Please note the following:
*SUSAN: Please make file and return Checklist and file to Reviewer
White Copy to Field Office Yellow and Pink Copies to File Goldenrod Copy to Susan

THE SANFORD HOLSHOUSER LAW FIRM
PLLC
ONE EXCHANGE PLAZA
SENATOR TERRY SANFORD (1917-1998)
219 FAYETTEVILLE STREET
GOVERNOR JAMES E. HOLSHOUSER, jR
SUITE 1000
WASHNGTON OFFICE
SUITE 470
RALEIGH, NORTH CAROLINA
27601
90115TH STREET N.W.
WASHNGTON, D.C. 20005
MAILING ADDRESS:
TELEPHONE [phone]
FACSIMILE 20Z1371-En
POST OFFICE BOX 2417
TELEPHONE [phone]
RALEIGH, NORTH CAROLINA 276M
FACSIMILE 919/829-0272
July 29, 1999
Q /7 1F-n
VIA HAND DELIVERY lipd JUL 3 01999
Tony L. Sample, CPESC
Assistant Mining Specialist
NCDENR, Division of Land Resources
512 North Salisbury Street, Room 519
Raleigh, NC 27604
Re: North American Emerald Mines
Mining Permit
Dear Tony:
I am sorry we keep missing each other. In an effort to conserve time, I am enclosing the
other information you previously requested:
1. Certified mail cards indicating date of receipt of public notice
2. Design and construction detail on the sedimentation basin
3. Engineering drawing of sedimentation basin
You also inquired about the location of Phase I and Phase II. Shawn Cox, one of the
engineers working on this matter, informed me that page 2of the maps previously submitted
contain a color -coded key to each Phase. If you still have questions after viewing the color -code,
please call.
Finally, for cost reasons, you suggested that NAEM obtain a mining permit for Phase I
only, and move to Phase II at a future date. This would result in a substantially smaller
reclamation bond Could you please calculate the difference in the reclamation bond amount
and call me with these figures? I will then pass the information on to my client and find out how
they wish to proceed.
I hope this sufficiently addresses your questions. If you need anything further, please do
not hesitate to call me. NAEM is anxious to get the mining permit issued so it can proceed with
its mining operations.
63946.1

THE SANFORD HOLSHOUSER LAW FIRM
PLLC
Thank you for your cooperation.
Very truly yours,
THE SANF0FDj10LSH0U8ER LAW FIRM PLLC
Laurie B. Gengo
Enc.
cc: Lynn and Jamie Hill
Reef Ivey, II
63946.1

(Fwd) North Ameriesn Emerald Mines
Subject: (Fwd) North American Emerald Mines
Date: Mon, 9 Aug 1999 12:48:31 -0400
From: "Miller, Doug"<[e-mail]>
Organization: NC DENR - Mooresville
To: [e-mail]
I tried this one time and it came back. the return address had
Samples not Sample. you may want tohave the forwarding order
checked.
------- Forwarded Message Follows -------
From: Miller, Doug <[e-mail]>
To: [e-mail]
Subject: North American Emerald Mines
Date sent: Mon, 9 Aug 1999 10:18:57 -0400
I have reviewed the subject mine application and offer the following
comments.
1) In C.l.c. no evidence is presented to indicate whether they will
go below the water table. No evidence is presented as to what the
water table is in that area.
2) In C.6.c. states 20' H x 50' W berm is to be built while map
indicates 10' H berm is to e built. Which is it? For 2:1 slopes �.�
limit of height should be 0
3) page 10 #9. states no explosives to be used but profile
indicates vertical slopes for hardrock material. What should it be?
4) This project is located in HQW waters. Map notes that is is on
Sulphur Springs creek while topo indicates creek is named
Wallace Creek.
5) The erosion control plan indicates measures but provide no
calculations for measures to indicate adequacy. Also diversions
should be indicated to basins to ensure runoff in initial stages of
clearing is going to basins. Also specific sequence should be
provided to indicate whether they are going to strip all of phase one
at once or are they going to work the area over a period of time.
Specific action on when and how the berms are to be built should
be provided -if they are clearing the total phase one area at one time
the sizing of the controls and installation of measures will be
different from if they are working this a little at a time.
b7- From our map discs the longitude should be 81 04 27 while the
latitude should be 35 54 47.
7) If the site is approved then it should be approved for phase 1 only
and require they resubmit erosion and sediment controls for phase
2.
lofI
08/09/1999 3:17 PM

n� �� c
'.� d2l
North Carolina Department of Cultural Resources
James B. Hunt Jr, Governor
Betty Ray McCain, Secretary
July 29, 1999
MEMORANDUM
TO: Tracy E. Davis
Land Quality Section
Division of Land Resources, DENR
FROM: David Brook� v dJ
Deputy State istonc Preservation Officer
SUBJECT: Application for Mining Permit
North American Emerald Mines, Inc., James King
Hill Jr., Alexander County, ER 00-7083
Division of Archives and History
Jeffrey J. crow, Director
Thank you for giving us the opportunity to review and comment on the above project
pursuant to Chapter 74, Article 7 of the North Carolina General Statutes.
Because of the location and topographic situation of the proposed project area, it is
unlikely that any archaeological sites which may be eligible for inclusion in the
National Register of Historic Places will be affected by the proposed borrowing. We,
therefore, recommend that no archaeological investigation be conducted in connection
with this project.
Thank you for your cooperation and consideration. If you have questions concerning
the above comments, please contact Ms. Renee Gledhill -Earley, Environmental Review
Coordinator, at 919/733-4763.
XCIRRr
�aL0
D-LIEL"11
109 East Jones Street • Raleigh, North Carolina 27601-2807

s
® North Carolina Wildlife Resources Commission®
512 N. Salisbury Street, Raleigh, North Carolina 27604-1188, 919-733-3391
Charles R. Fullwood, Executive Director
TO: Susan B. Edwards, Mining Program Secretary
Land Quality Section
FROM: Joe H. Mickey, Jr., Stream Mitigation Coordinator
Habitat Conservation Programme
DATE: July 9, 1999
SUBJECT: Mining Permit Application Request for North American Emerald Mines, Inc., for a
gemstone mine in Hiddenite, Alexander County.
This correspondence responds to a request by you for our review and comments on the above
referenced project. These comments are provided in accordance with certain provisions of the Mining
Act of 1971 (as amended, 1982; G.S. 74-46 through 74-% 15 NCAC 5) and the North Carolina General
Statutes (G.S. 113-131 et seq.).
The applicant proposes to mine gemstones from a 14.02 acre site. Rist Mines had previously
mined the site from 1967-1974. An undisturbed 100 foot buffer zone will be maintained along Sulphur
Springs Creek.
We are pleased that the applicant has developed a revegetation/reforestation plan that will benefit
wildlife. However, based on a recommendation by our District 7 Wildlife Biologist, the permanent
seeding guidelines for May 15a' - July 15a outlined in the reclamation plan should be modified as follows:
Big Bluestein
i lb acre
Little Bluestein
1 lb acre or all Switchgrass at 6 lb acre
Indiangrass
1 lb acre
Switchgrass
3 lb acre
It is also recommended that woody debris (slash or large trees) removed during development of the site be
placed along the outer berm construction limits in the form of brush piles and downed logs to provide
cover and nesting habitat for wildlife.
Thank you for the opportunity to review and comment on this project. If you have any questions
regarding these comments, please contact me at 33 6/3 66-2982.
cc: James K. Hill, Jr., applicant

A`WA
NCDENR
JAMES S. HUNT JR.
GOVERNOR
WAYNE MCDEVITT
SECRETARY
CHARLES H. GARDNER
P.G., P.E. DIRECTOR
AND STATE GEOLOGIST
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
July 6, 1999 DIVISION OF LAND RESOURCES
TO: Mr. Joe Mickey �1�\
Habitat Conservation Program Coordinator '�999
Wildlife Resources Commission m ��Ertr;
CV fy e�
FROM: Susan B. Edwards �s
Mining Program Secretary
Land Quality Section ���ZZIznz6��
SUBJECT: Mining Permit Application Request for North American Emerald
Mines, Inc.
North American Emerald Mines
Alexander County
Please find attached for your review a copy of the mining permit application
request for the above referenced project.
Please review this information and advise as to the probability of this operation
having unduly adverse effect on wildlife and freshwater fisheries (G.S. 74-51 (2)). Please
respond by August 6, 1999 so that we may complete our review of this request within our
statutory time limits.
As is the case in our review of all mining permit applications, renewals and
modifications, this office will carefully review all proposed erosion and sediment control
measures to ensure that they are sufficient to restrain erosion and off -site sedimentation.
However, any comments your agency can provide regarding effects on wildlife and
freshwater fisheries would be greatly appreciated. If your staff wishes to perform a site
inspection, it is recommended that they contact the person submitting this request to set
up a convenient date and time. Also, please send a copy of your comments to the person
noted in the application. RFTTiRN ALL APPLICATION MATERIALS AND MAPS
WITH YOUR RFYIFW COMMENTS TO THIS OFFICE
Your continued cooperation in the review of these type requests is greatly
appreciated. Please contact Mr. Tony Sample at [phone] if you have any
questions.
/SBE
Attachments
cc: Mr. Doug Miller
LAND QUALITY SECTION [phone] FAX [phone]
GEOLOGICAL SURVEY SECTION [phone] FAX[phone]
P.O. BOX 27687t RALEIGH, NORTH CAROLINA 2761 1-7687 TELEPHONE [phone] FAX [phone]
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER -SO% RECYCLED/10% POST -CONSUMER PAPER

Producing the
Finest Quality
neralds & Gems
North America
VO. Box 57
Jenitn, NC 28636
828.635.5718
fl28.635.5718
i
Director
State of North Carolina
Department of Environmental Resoi
Division of Land Resources
Land Quality Section
P.O. Box 27687
Raleigh, North Carolina 27611-7687
June 25, 1999
Gentlemen:
! it
DEHN
LAND QUALM(
Enclosed is the application of North American Emerald Mines, Inc. (NAEM) for a North
Carolina Mining Permit. The proposed gemstone mine is located in Hiddenite, North
Carolina.
I trust that the application, survey maps and reforestation plan will meet with your approval.
We had the consultation of Environmental Forestry Services of Taylorsville, NC and
Brushy Mountain Surveying Company of North Wilkesboro, NC.
The landowners are Sulphur Springs Properties, LLC., Lynn Hill, Managing Member. You
may reach Lynn Hill at [phone].
Advisors to NAEM on environmental, mining and corporate law are Laurie Gengo,
Attorney and Reef Ivey, Attorney of The Sanford Holshouser Firm in Raleigh. Their
telephone number is 755-1800.
Please feel free to contact us with your questions.
thank you for your consideration.
Sincerely yours,
James King Hill, Jr., President
NORTH AMERICAN EMERALD MINES, INC.
encl.

SEDIMENT TRAP CONSTRUCTION
MAINTENANCE SCHEDULE
CONSTRUCTION
1. A perimeter control burm will be constructed to direct flow to the sediment traps
2. Outlets will be left in the perimeter control burm to allow positive drainage to filter out
into the wooded area of Phase 2 of this project.
3. In addition to sediment traps S 1, S2, S3, interior excavations will be used to control
sedimentation run-off.
4. S1, S2 and S3 are designed to handle the run-off of 2.5 acres each. (SEE APPENDIX
Sediment Trap Detail)
5. Sediment traps will be constructed on a staggered basis as land disturbance occurs.
6. Sediment trap S3 and the construction Entrance ( Exit C1 will be constructed
immediately because disturbance has already occurred.
7 Sediment traps S1, S2, will be constructed as the project advances to the West, prior to
clearing.
MAINTENANCE
1. Traps will be monitored on a regular basis and cleaned out when sediment occupies
50% of capacity.
2. Sediment removed from the traps will be placed on the interior side of the perimeter
control burm.
3. Stone and filter fabric will be replaced as needed.
4. Phase 2 of the project will be maintained as a buffer zone to Sulphur Springs Creek.
This buffer from S1 is approximately 537 feet --- from S3 approximately 1077 feet.

h SEDIMENT ,
12 LAYER it
.. To
in
5 it
max
Cross section Z A,
5 x 5'} k 3.5 Filter fabric
Design
21
Set led P
if +a�•
r
111 I II
.r
by-pass
F
below —
• i�i:.:.1.1f
filial
settled.
USE
ground
a • STONE
of dam
Stone
© SEDIMENT _DETAIL
FT
1800:..5 If
Cross section 25745- (x3•.- -Futor fabric
nesiyn 21.
settled Overfill 6'
.
top min �\ f
` 1 � �15ri I for settlement
III:
\III tly 4I—jf 1.511 •4•M•tnnt lilr, -
4 _
6 if t WN2a side Emergency
slope fix
max I111 Pigs bypass
fabric 4 1:11 alee dope } 6" below
max Natural settled lop
of dam
ground
.in USE CLASS B EROSION STONE
Stone section

-ice �• IK�l'l.��S • c/:�I;i�iPs.
Gross section 75'x5'Y/ 3•5- 'Filletlabric
SIZE _
Design Yl.
modw
wo
W min ,� Urellill s•
lot wllsmeol
1.5
a R II i side
si s msz Emergency
maz Ism Filler op Uy'pers
ler S• below
lobrk i 1 clae slope "IlloE lop
gm mPr ur0l or (lam
� tOUOO
3 II USE CLASS" 6 " EA004ON STONE
Slone section

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C4°

Reclamation Plan
fc r
i ori4 .` niie1cd11 F.fierslu Aiacs fro-..
submitted by
Environmental Forestry Services Inc.
1-800-337-1551
6/10/99
GOAL;
Reclaim mine area to wildlife habitat by planting warm season grasses, wildlife tree species
and Loblolly pines for cover
GRADING & SITE PREP;
A) Place woody debris, removed during site development, on the outer berm construction
for wildlife habitat.
@) Reconstruct all vertical cuts to a 2-1 slope, using stock pile for fill. All slope fills will
be track compacted to a 3-1 or flatter
Q Establish a seedbed on mine surface with mineral soil from stockpile. A seedbed
depth of a minimum of 12" will be maintained.
SEEDING GUIDELINES;
Per Acre Rate
Permanent seeding Ma; i 5 1-1 - 44'y 1 i!11
Warm season grass
Switchgrass 6lbs
Kobe Lespedeaa 40 lbs
I3s .'reso Mi'is; 10lbs.
17• 17-17 Ftnilieer
VY' lbs.
Lime
2 tons
5tr'tc! MU101
iCQ ba1;TJ
Stra;,! Tn..ck
2) 7bs
�C+i MAJI'NT S�CO=N9
c�"roLxarS At'+cN0C0
As vc?, gEyti Gar' of
Jol
AMENn<-0 : 7, /s-g9
tf}t -., clle fs

DATE TO ASSISTAN'
LOGGED IN
0;�'-0&
Company
Permit No.
Reviewer c
DATE 1 SUSAN 77
AIIINING CHECKLIST FOR ROUTING k
'-Project
Name
/V e-d&I
County
14b,ynt.d--
Date
Received 77
Please make copies of check to include with Central Office and
Field Office files and log in checks.
* E] New ❑ Renewal ❑ Modification ❑ Transfer ❑ Release
❑ Additional Information ❑ Fee Needed
IJ Fee Received: Amounts2
Please route to:
L seB&6,dA.- Field Office
EWildlife Resources Commission
* Ll �Arrchives and History
LJ other: C? fNvk AiAw4
Date Routed
Date Routed
Date Routed
Date Routed
Suspense Date for Comments: e+P—(n 'p (Date received +30 days,
not on weekend)
❑ Please note the following:
*SUSAN: Please make file and return Checklist and file to Reviewer
White Copy to Field Office Yellow and Pink Copies to File Goldenrod Copy to Susan

DAMES S. HUNTJR.-`
CHARLES H. GARONER
RG., PE DIRECTOR
AND STATE GEOLOGIST
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
July 6, 1999
TO: Mr. Joe Mickey
Habitat Conservation Program Coordinator
Wildlife Resources Commission
FROM: Susan B. Edwards V/
Mining Program Secretary
Land Quality Section
SUBJECT: Mining Permit Application Request for North American Emerald
Mines, Inc.
North American Emerald Mines
Alexander County
Please find attached for your review a copy of the mining permit application
request for the above referenced project.
Please review this information and advise as to the probability of this operation
having unduly adverse effect on wildlife and freshwater fisheries (G.S. 74-51 (2)). Please
respond by August 6,1999 so that we may complete our review of this request within our
statutory time limits.
As is the case in our review of all mining permit applications, renewals and
modifications, this office will carefully review all proposed erosion and sediment control
measures to ensure that they are sufficient to restrain erosion and off -site sedimentation.
However, any comments your agency can provide regarding effects on wildlife and
freshwater fisheries would be greatly appreciated. If your staff wishes to perform a site
inspection, it is recommended that they contact the person submitting this request to set
up a convenient date and time. Also, please send a copy of your comments to the person
noted in the application. RETURN ALL APPLICATION MATERIALS AND MAPS
WITH YOUR REVIEW COMMRNIS TO THIS OFFICE,
Your continued cooperation in the review of these type requests is greatly
appreciated. Please contact Mr. Tony Sample at [phone] if you have any
questions.
/SBE
Attachments
cc: Mr. Doug Miller
LAND QUALITY SECTION [phone] FAX [phone]
GEOLOGICAL SURVEY SECTION [phone] FAX[phone]
P.O. BOX 27687, RALEIGH, NORTH CAROLINA 27611-7687 TELEPHONE[phone] FAX[phone]
AN EQUAL OPPORTUNITY /AFFIRMATIVE ACTION EMPLOYER - 50% RECYCLED/10% POST -CONSUMER PAPER

NORTH CAROLINA DEPARTMENT OF
AND NATURAL RESOUR(
LAND QUALITY SECTION
APPLICATION FOR A MINING
(PLEASE PRINT OR TYPE)
RECEIVED
NT DEHNR
G 1999
LAND QUALITY SECTION
1. Name of Mine NORTH AMERICAN EMERALD MINES, INC. CountyALEXANDER
2. Name of Applicant* JAMES KING HILL, JR.
3. Permanent address for receipt of official mail** P.O. BOX 57 or 1475 GOBLE ROAD
HIDDENITE. NC 28636
Telephone [phone]
4. Mine Office Address SAME AS ABOVE
Telephone [phone] [phone] (FAX)
Mine Manager JAMESKING HILL, JR.
We hereby certify that all details contained in this Permit Application are true and correct to the best
of our knowledge. We fully understand that any willful misrenrecenrar;nn „r r.. - 1e cause for
permit revocation. E
***Signature ,..--
Print Name JA ES KING �IHJR.
Title PRESIDENT/GENERAL MANAGER
* This will be the name that the mining permit will
reclamation bond (security) that corresponds to th
** The Land Quality Section must be notified of any
*** Signature of company officer required.
g-l3 "q S
ZW
igated on the
e number.
G.S. 74-51 provides that the Department shall grant U...,ny a,. application for a permit within 60 days of
receipt of a comTlete application or, if a public hearing is held, within 30 days following the hearing and the
filing of any supplemental information required by the Department. All questions must be addressed and all
required maps provided before this application can be considered complete. Attach additional sheets as
needed.

i
APPLICATION FOR A MINING PERMIT
a NOTE: All of the following questions must be thoroughly answered with regards to your mining
operation for the intended life of the mine. All responses must be clearly conveyed on a corresponding,
detailed mine map.
A. GENERAL CHARACTERISTICS OF THE MINE
Answer all of the following that apply:
a. If this is an application for a NEW permit, indicate the
by the permit (thus is the acreage that the "new permit"
1.3
total acreage at the site to be covered
fee will be based upon): 14.02
Of this acreage, how much is owned and how much is leased? Acres owned:_ Acres
leased: 14.02 Property owner if leased: r�T� -ULPHUR Spg TUD ZI TT�
If this is an application for RENEWAL of a mining permit, indicate the mining permit number
and the total (overall) acreage covered by the existing permit: Mining Permit No.:
Total permitted acreage (this is the acreage that the "renewal" fee will be
based upon):
C. If this is an application for a MODIFICATION to a mining permit, indicate the mining permit
number and the total (overall) acreage covered by the existing permit: Mining Permit
No.: Total permitted acreage:
Does the modification involve acreage within the previously approved permitted boundary?
Yes_ No If yes, indicate the acreage to be covered by this modification (this is the
acreage thaf the "major modification" fee will be based upon):
Does the modification involve acreage outside the previously approved permitted boundary?
Yes No If yes, indicate the additional acreage to be covered by this
modifcation: (NOTE: you must complete all of Section F. of this application
form entitled Notification of Adjoining Landowners).
Of this acreage to be added to the permit, will any portion of this acreage be affected (disturbed
ground cover removed) by the mining operation? Yes_ No (if no, a "minor modification"
fee of $50.00 is required, despite the undisturbed acreage to be added). If yes, indicate the
acreage to be affected within the acreage to be added to the permit (the total acreage to be added
to the permit is the acreage that the "major modification" fee will be based upon):
d. If this is an application for TRANSFER of a mining permit, indicate the mining permit number
and the total (overall) acreage ­'coveredby the existing permit: Mining Permit No..
Total permitted acreage:_
■ SEE THE FEE SCHEDULE AT THE END OF THIS FORM FOR THE PROPER FEE AMOUNT
TO BE PAID FOR THE REQUESTED PERMIT ACTION(S) AND CORRESPONDING ACREAGE
NOTED ABOVE
2. Indicate the approximate long.
site: LONGITUDE (dd-mm-;
LATITUDE (dd-nun-ss,'
3. Name of all materials mined:
ud in �rees-minutes-seconds, of the center of the mine
0 Quadrangle:9 River Basin: YA D K T N
E

APPLICATION FOR A MINING PERMIT
4. Mining method: Hydraulic Dredge NO Front-end Loader & Truck yEs Shovel & Truck yES
Dragline & Truck YES Self -loading Scraper YES Other (explain) NONE
5. a. Expected maximum depth of mine (feet) 60' Reference elevation: I000'
b. Expected average depth of mine (feet) 40'
6. Has any area(s) at this site been mined in the past? Yes No_noIf no, proceed to Question 7.
a. Acreage of previously affected land(s) at present site that has t been reclaimed:
1 acres (identify all areas on your mine map(s)).
b. When and by whom was this activity conducted? 19 6 7 -19 7 4 "R I S T MINES"
RECREATIONAL MINING
c. Acreage of previously affected land at present site that has been reclaimed: 0 acres
(identify all areas on your mine map(s)).
d. When and by whom was this activity conducted?
e. Do you wish to exclude any areas noted in 6a or c from this permit application?
Yes_ Now. If yes, how much? acres (identify all areas on your mine map(s)).
7. Present (pre -mining) use of the land (estimate acreage for each):
Cropland acres Pasture acres Forestry 11, n2acres Fish/Wildlife acres
Recreation —acres Other acres (Specify use: PROSPFCTTN('/S[iRFACE nTrrrnrr
8. Proposed land use after mining and reclamation has been completed (estimate acreage for each):
Cropland acres Pasture acres Forestry 1 .02acres Fish/Wildlife acres
Recreation acres Other acres (Specify use:
9. Number of years for which the permit is requested (10 years maximum): 10
B. MAPS
Four (4) copies of the county highway maps and four (4) copies of all mine maps and reclamation
maps shall be submitted with each permit application.
County highway maps may be obtained from:
Location Department
State Highway Commission
Raleigh, North Carolina 27602
[phone]
Clearly label and mark the location of your mining operation on the county highway maps.
-3-

APPLICATION FOR A MINING PERMIT
2. Mine maps must be accurate and appropriately scaled drawings, aerial photographs or enlarged
topographic maps of the entire mine site. All aspects of the mine site must be clearly labeled on
the maps along with their corresponding (approximate) acreage. As a reminder, mining permits
can only be issued for up to 10 years; thus, all mine and reclamation maps must only denote
those activities that are intended to be conducted during the life of the mining permit. All maps
must be of a scale sufficient (see minimum requirements listed below) to clearly illustrate the
following, at a minimum:
a. Property lines of the tract or tracts of land on which the proposed mining activity is to be located
including easements and rights -of -way.
b. Existing or proposed permit boundaries.
c. Initial and ultimate limits of clearing and grading.
d. Outline and width of all buffer zones (both undisturbed and unexcavated).
e. Outline and acreage of all pits/excavations.
f. Outline and acreage of all stockpile areas.
g. Outline and acreage of all temporary and/or permanent overburden disposal areas.
I Location and acreage of all processing plants (processing plants may be described as to location
and distance from mine if sufficiently far removed).
i. Locations and names of all streams, rivers and lakes.
j. Outline and acreage of all settling and/or processing wastewater ponds.
k. Location and acreage of all planned and existing access roads and on -site haul roads.
1. Location of planned and existing on -site buildings.
in. Location and dimensions of all proposed sediment and erosion control measures.
n. Location of 100 year floodplain limits and wetland boundaries.
o. Names of owners of record, both public and private, of all adjoining land.
p. Map legend:
1. Name of apj)licant
2. Name of mine
3. North arrow
4. County
5. Scale
6. Symbols used and corresponding names
7. Date prepared and revised
8. Name and title of person preparing map
Map scales must, at a minimum, meet the following guidelines:
PERMITTED ACREAGE MAP SCALE
0-99 Acres 1 inch = 50 feet
100-499 Acres 1 inch = 100 feet
500+ Acres 1 inch = 200 feet
-4-

APPLICATION FOR A MINING PERMIT
A table/chart must be provided on the mine map that clearly lists the approximate acreage of
tailings/sediment ponds, stockpiles, wastepiles, processing area/haul roads, mine excavation and any other
major aspect of the mining operation that is proposed to be affected/disturbed during the life of the mining
permit. A table/chart similar to the following will be acceptable:
CATEGORY
Tailings/Sediment Ponds
Stockpiles
Wastepiles
Processing Area/Haul Roads
Mine Excavation
Other
AFFECTED ACREAGE
0.10 acre
1.00 acre
7.16 Phase One
6.86 Phase Two
NOTE: IN ADDITION TO THE ABOVE, THE MAPS MUST ALSO INCLUDE ANY SITE -
SPECIFIC INFORMATION THAT IS PROVIDED IN THE ANSWERS TO THE FOLLOWING
QUESTIONS QUESTIONS/STATEMENT THTHIS ROUGHOUT CATION TIE FORK. T NOTE THE ITALICIZED
A CONSIDERED COMPLETE WITHOUT ALL RELEVANT IITEMSPBEING ADEQUATELYICATION WILL
ADDRESSED ON THE MINE MAPS.
-5-

APPLICATION FOR A MINING PERMIT
,2, PROTECTION OF NATURAL
a. Will the operation involve washing the material mined, recycling process water, or other waste
water handling? Yes_ No x If yes, briefly describe all such processes including any
chemicals to be used.
b. Will the operation involve discharging fresh or waste water from the mine or plant?
Yes No X . If yes, briefly describe the nature of the discharge and locate all
proposed discharge points (along with their method of stabilization) on your mine map(s).
c. Will any part of the proposed mine excavation(s) extend below the water table?
Yes No X . If yes, do you intend to dewater the excavation(s)? Yes No X . If yes,
what impact, if any, will mine dewatering have on neighboring wells? Locate all existing wells
on the mine map(s) that lie within 500 feet of the proposed excavation area. Provide data to
support any conclusions or statements made. Indicate whether the proposed mine locale is
served by a public water system or private wells.
d. If the mine will extend below the water table, what is the pre -mining depth (in feet) to the
seasonal high and low ground water tables? High ft. Low ft. What is the source
of this information?
e. If you answered yes to any of the above questions, provide evidence that you have applied for
or obtained the appropriate water quality permit(s) (i.e., non -discharge, NPDES, etc.) from the
Division of Water Quality, Water Quality Section.
IE

APPLICATION FOR A MINING PERMIT
2. a. Will the operation involve crushing or any other air contaminant emissions?
Yes No X . If yes, indicate evidence that you have applied for or obtained an air
quality permit issued by the Division of Air Quality or local governing body.
b. How will dust from stockpiles, haul roads, etc., be controlled?
Describe in detail the chronological sequence of land disturbing activities and reference the sequence
to the mine map(s). Attach additional sheets as needed.
PHASE 1 1999 thru 2009
Describe specific erosion control measures to be installed prior to land disturbing activities and
during mining to prevent offsite sedimentation (include specific plans for sediment and erosion
control for mine excavation(s), waste piles, access/mine roads and process areas), and give a detailed
sequence of installation and schedule for maintenance of the measures. Locate and label all sediment
and erosion control measures on the mine map(s) and provide typical cross-sections/construction
details of each measure. Engineering designs and calculations shall be required when needed to
justify the adequacy of any proposed measures.
A BERM WILL BE BUILT COMPLETELY AROUND PHASE 1 USING
OVERBURDEN. THIS BERM WILL APPROXIMATELY FOLLOW THE
960' CONTOUR AS SHOWN ON MINE MAPS.
-7-

APPLICATION FOR A MILTING PERMIT
a. How wide a buffer will be maintained between any mining activity and any adjoining permit
boundary or right-of-way? Buffers must be located within the permit boundaries. Buffers along
permit boundaries must be, at a minimum, unexcavated buffers. Show all buffer locations and
widths on the mine map(s).
50'
b. How wide a buffer will be maintained between any land disturbing activities within the permit
boundaries and any natural watercourses and wetlands? Buffers along natural watercourses and
wetlands must be undisturbed. Show all buffer locations and widths on the mine map(s).
100,
6. a. Describe methods to prevent landslide or slope instability adjacent to adjoining permit boundaries
during mining.
NO MINING WITHIN 50' OF ANY ADJOINING PROPERTY
b. Describe other methods to be taken during mining to prevent physical hazard to any neighboring
dwelling house, public road, public, commercial or industrial building from any mine
excavation. Locate all such structures on the mine map if they are within 300 feet of any
proposed excavation.
NO BUILDINGS WITHIN 500' OF MINE SITE
la

APPLICATION FOR A MINING PERMIT
c. Describe what kind of barricade will be used to prevent inadvertent public access along any high
wall area and when it will be implemented. Vegetated earthen berms, appropriate fencing and
adequate boulder barriers may be acceptable high wall barricades. A construction detail/cross-
section and location of each type of barricade to be used must be indicated on the mine map(sJ.
(FENCE CONSTRUCTION)
4-STRAND BARBED WIRE
WOODEN ANCHOR POSTS ON 50' INTERVALS
6' STEEL T-POST ON 12' INTERVALS
16' STEEL GATES ON MINE ENTRANCES & EXITS
20 H X 50 W VEGITATED EARTHEN BERMS *SEE CROSS SECTION ON MAP
d. Provide a cross-section on the mine map(s) for all fill slopes (berms, wastepiles, overburden
disposal areas, etc.), clearly indicating the intended side slope gradient, installation of any
benches and/or slope drains (with supporting design information) if needed, and the method of
final stabilization.
e. In excavation(s) of unconsolidated (non -rock) materials, specify the
including specifications for benching and sloping. Cross -sections fo
CUT SLOPES MAINTAINED 2 to 1
FILL SLOPES MAINTAINED 3 to 1
r
f. In hardrock excavations, specify proposed bench widths and heights in feet. Provide cross -
sections of the mine excavation clearly noting the angles of the cut slopes, widths of all safety
benches and mine benches, and the expected maximum depth of the excavation.
BENCH WIDTHS 12-
BENCH HEIGHTS 10
IIU
�a
7. Are acid producing minerals or soils present? Yes No X . How will acid water pollution
from the excavation, stockpiles and waste areas be controlled?
ME

APPLICATION FOR A MINING PERMIT
8. Describe specific plans (including a schedule of implementation) for screening the operation from
public view such as maintaining or planting trees, bushes or other vegetation, building berms or other
measures. Show the location of all visual screening on the mine maps) and provide cross -sections
through all proposed berms or proposed spacings, sizes and species for tree plantings.
AS OVERBURDEN IS REMOVED IT WILL BE PLACED ON PROJECT LINES
TO CONSTRUCT A VISUAL BERM THAT WILL BE ESTABLISHED WITH
PERMANENT VEGITATION DESCRIBED IN RECLAMATION SEEDING.
(SEE CROSS SECTION ON MAP FOR BERM SPECIFICATIONS)
Will explosives be used? Yes No Ifyes, specify the types of explosive(s) and describe
what precaution(s) will be used to prevent physical haezard to persons or neighboring property from
flying rocks or excessive air blasts or ground vibrations. Locate the nearest offsite occupied
structures) to the proposed excavation(s) on the mine map and indicate its approximate distance to
the proposed excavation.
10. Will fuel tanks, solvents, or other chemical reagents be stored on -site? Yes X No y If es,
describe these materials, how they will be stored and method of containment in case of spill. Indicate the locations) of all storage facilities on the mine map(s).
SMALL PORTABLE DIESEL FUEL TANK
11. Are any processing waste, overburden or other such mine wastes to be disposed of off -site?
Yes No X . If yes, describe in detail what these wastes are and how they will be disposed.
Attach a separate site map(s) showing the location(s) of the disposal area(s). Include all
specifications for erosion and sediment control.
-10-

APPLICATION FOR A MINING PERMIT
D. RECLAMATION PLAN
Describe your intended plan for the final reclamation and subsequent use of all affected lands and
indicate the general methods to be used in reclaiming this land. This information must be illustrated
on a reclamation map and must correspond directly with the information provided on the mine
map (s).
1A. ESTABLISH 2 to 1 SLOPES FROM BUFFER
B. ESTABLISH VEGETATION FOR WILDLIFE HABITAT
C. SEE SEEDING SPECIFICATIONS
2. a. Is an excavated or impounded body of water to be left as a part of the reclamation?
Yes No X . If yes, illustrate the location of the body
map and provide a scaled cross -sections through the proposed o) of water on the reclamation
average water depth must be at least 4 f et unless information is provided o indicate that more
shallow water body will be productive and beneficial at this site. Will the body(s) of water be
stocked with fish? Yes No . If yes, specify species.
b. Describe provisions for prevention of noxious, odious or foul water collecting or remaining in
mined areas. Provide details and locations of any permanent water outlets on the reclamation
�P•
NOT APPLICABLE
-11-

APPLICATION FOR A MINING PERMIT
Describe provisions for safety to persons and to adjoining roperty in all completed excavations in
rock including what kind of permanent barricade will be left. Construction details and locations of
all permanent barricades must be shown on the reclamation map.
3A. CONTROL BERM INSTALLED
B. BARBED WIRE FENCE INSTALLED. PERMANENT BARRICADE IS
BARBED WIRE FENCING.
C. STEPPED BENCHES IN ROCK AREAS ON 10' CONTOURS
Indicate the method(s) of reclamation of overburden, refuse, spoil banks or other such on -site mine
waste areas, including specifications for benching and sloping. Final cross -sections and locations
for such areas must be provided on the reclamation map.
(SEE RECLAMATION PLAN)
5. a. Describe reclamation of processing facilities, stockpile areas, and on -site roadways.
(SEE RECLAMATION PLAN)
b. Will any on -site roadways be left as part of the reclamation? Yes No X
identify such roadways on the reclamation map and provide details on permanent ditch line
stabilization.
-12-

APPLICATION FOR A MINING PERMIT
Describe the method of reclamation of settling ponds and/or sediment control basins.
SEDIMENT BASIN WILL BE FILLED WITH MINERAL SOIL AND SEEDED
WITH PERMANENT SEED MIXTURE.
7. Describe the method of control of contaminants and disposal of scrap metal, junk machinery, cables,
or other such waste products of mining. (Note definition of refuse m The Mining Act of 1971). No
off -site generated waste shall be disposed of on the mine site without prior written approval
from the NC Department of Environment and Natural Resources, Land Quality Section and
either the Division of Waste Management (DWM) or local governing body. If a disposal permit
has been issued by DWM for the site, a copy of said permit must be attached to this
application. All temporary and permanent refuse disposal areas must be clearly delineated on the
mine map(s) and reclamation map, along with a list of items to be disposed in said areas.
ALL SUCH MATERIAL WILL BE DISPOSED OF OFFSITE
Indicate the method of restoration or establishment of any permanent drainage channels to a condition
minimizing erosion, siltation and other pollution. Provide design information, including typical
cross -sections, of any permanent channels to be constructed as part of the reclamation plan. Indicate
the locations) of all permanent channels on the reclamation map.
NOT APPLICABLE
9. Provide a schedule of reclamation that indicates the sequence of reclamation and approximate time
frame. If reclamation is to be accomplished concurrently with mining, then clearly indicate on the
mine maps) and reclamation map each segment that is to be mined and reclaimed during each year
of the permit. Add drawings showing typical cross -sections and final features of the proposed
reclamation.
(SEE RECLAMATION PLAN)
-13-

APPLICATION FOR A MINING PERMIT (SEE ATTACHED PLAN)
10. Describe your plan for revegetation or other surface treatment of the affected areas. This plan must
include recommendations for year-round seeding, including the time of seeding and the amount and
type of seed, fertilizer, lime and mulch per acre. The recommendations must include general seeding
instructions for permanent revegetation and, if necessary, temporary revegetation. Revegetation
utilizing only tree plantings is not acceptable. NOTE: The Revegetation Plan must be approved
and signed by one of the following:
a. Authorized representatives of the local Soil and Water Conservation District;
b. Authorized representatives of the Division of Forest Resources, Department of Environment and
Natural Resources;
c. Authorized county representatives of the North Carolina Cooperative Extension Service,
specialists and research faculty with the Colleges of Agriculture and Life Sciences and Forest
Resources at North Carolina State University;
d. North Carolina licensed landscape architects;
e. Private consulting foresters referred by the Division of Forest Resources, Department of
Environment and Natural Resources;
f. Others as may be approved by the Department.
LIME - RATE OF APPLICATION (tons/acre)
FERTILIZER - ANALYSIS AND RATE OF APPLICATION (pounds/acre):
SEED - TYPE(S) AND RATE(S) OF APPLICATION INCLUDING YEAR-ROUND SEEDING
SCHEDULE (pounds/acre):
(SEE ATTACHED PLAN)
MULCH - TYPE AND RATE OF APPLICATION (pounds/acre) AND METHOD OF
ANCHORING:
OTHER VEGETATIVE COVERS - TYPE(S) AND RATE(S) OF APPLICATION INCLUDING
SEEDING SCHEDULE (pounds/acre, trees/acre, spacing of trees/shrubs, etc):
Revegetation gfrc�(or reforestatio approved by:
Signature C �- �,
Print Name
Title �r3��+'c 7� (�o�s�r✓wOrlig
Agency 6G5 014 — Alto C 5
-14-
Date 6 — / 11— 9

A
APPLICATION FOR A MIN1NG PERMIT
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
The following bond 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.
AFFECTED
CATEGORY
ACREAGE
Tailings/Sediment Ponds
0 ,10 Ac.
Stockpiles
1.00 Ac.
Wastepiles
Ac.
Processing Area/Haul Roads
Ac.
Mine Excavation PHASE 1
7.16 Ac.
Other PHASE 2
6.86 Ac.
TOTAL AFFECTED AC.:
14.02 Ac.
_ (DESIGNATES ACREAGE
WITHIN 14.02 A
RECLAMATION RECLAMATION
COST/ACRE COST
X $ 2,500.00 /Ac. = $ 250.00
X $ 2.500.00 /Ac. =
X $ /Ac. = $
X $ /Ac. = $
X $ 39700.00 /Ac. = $7ti /,ag nn
X $ 3, Inn nn /Ac. = $25, 382.00
Liviuc u,C IV IAJ. FLU Vr,%-liL Ate. above mto 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, measures will
be needed to prevent offsite sediment.
a) Internal Drainage 7.16 Ac. *PHASE 1
b) Positive Drainage 6.86 Ac. X $1500 / Ac. _ $ 10, 290.00
SUBTOTAL COST: $ 642914.00
Inflation Factor:
0.02 X SUBTOTAL COST: $ 1,298.28 X Permit Life (1 to 10 years): 12, 982.80
INFLATION COST: $ 12 , 98'.2 ,'10
TOTAL COST = SUBTOTAL COST + INFLATION COST = $ 77 , 896.80
TOTAL RECLAMATION BOND COST: _ $ 77,900.00
(round down to the nearest $100.00)
-15-

APPLICATION FOR A MINING PERMIT
F. NOTIFICATION OF ADJOINING LANDOWNERS
The "Notice" form, or a facsimile thereof, attached to this application must be sent certified or registered
mail to all landowners who are adjoining (contiguous to) the permit boundaries as indicated on the
mine map(s). The only exception to the above is if another means of notice is approved in advance by
the Director, Division of Land Resources.
A copy of a tax map (or other alternative acceptable to the Department) must be mailed with the completed
"Notice" form (the proposed overall permit boundaries and the names and locations of all owners
of record of land adjoining said boundaries must be clearly denoted on the tax map).
The "Affidavit of Notification" attached to this application must be completed, notarized and submitted to
the Department, with the remainder of the completed application form, before the application will be
considered complete.
NOTE: THIS SECTION MUST BE COMPLETED FOR ALL APPLICATIONS FOR NEW
MINING PERMITS AND FOR PERMIT MODIFICATIONS THAT ADD ADJACENT
LAND TO A MINING PERMIT.
■ SEE THE NEXT TWO PAGES FOR THE "NOTICE" FORM AND THE "AFFIDAVIT OF
NOTIFICATION"
-16-

NOTICE
Pursuant to provisions G.S. 74-50 of The Mining Act of 1971, Notice is hereby given that
NORTH AMERICAN EMERALD MINES, INC.
JAMES KING HILL. JR. / PRESIDENT has applied on 6/23/99
(Applicant Name) (Date)
to the Land Quality Section, Division of Land Resources, North Carolina Department of Environment
and Natural Resources, P. 0. Box 27687, Raleigh, North Carolina 27611, for (check one):
(a) a new surface mining permit X❑
(b) a modification to add adjacent land to an existing surface mining permit ❑
The applicant proposes to mine MINERALS (GEMS) on 14.02 acres located
(Mineral, Ore) (Number)
NORTH EAST of HIDDENITE, NC
(Miles) (Direction) (Nearest Town)
off/near road _ DUNCAN ROAD in AT.FXANDFP
(Road Number/Name) (Name of County)
*SEE ATTACHED MAP FOR PROPOSED PERMIT BOUNDARIES AND CORRESPONDING
ADJOINING LANDOWNER NAMES AND LOCATIONS*
In accordance with G.S. 74-50, the mine operator is required to make a reasonable effort to notify all
owners of record of land adjoining (contiguous) to the proposed mine site (permit boundaries), and to notify
the chief administrative officer of the county or municipality in which the site is located. Any person may file
written comment(s) to the Department at the above address within thirty (30) days of the issuance of this Notice
or the filing of the application for a permit, whichever is later. Should the Department determine that a
significant public interest exists relative to G.S. 74-51, a public hearing will be held within 60 days of the end
of the 30-day comment period specified above.
A copy of the permit application materials are on file and available for public review during normal
business hours at the above listed address as well as at the appropriate regional office. For further information
call [phone]. Please note that the T)enartmPnt w;rt
(Addressee's Name and Address)
Laic of issuance or tors Notice/Mailed to Addressee)
ORTH AMERICAN EMERALD MINES, INC.
JAMES KING HILL, JR./PRESTDFNT
P.O.
-17-

APPLICATION FOR A MINING PERMIT
AFFIDAVIT OF NOTIFICATION
I, mimes K: '1` �metmld UN�M �S \ r\C
,����r. Quo '1n �mec�cnian applicant, or an agent, or employee of an applicant,
for a new mining Permit, or a modification of an existing Mining Permit that adds adjacent land to the Mining
Permit, from the N.C. Department of Environment and Natural Resources, being first duly sworn, do hereby
attest that the following are known owners of record, both private and public, of the land adjoining the
proposed mining permit boundaries and that notice of the pending application has been caused to be mailed,
�\ by certified or registered mail, to said owners of record at their addresses shown below, such notice being
given on a form provided by the Department:
(Adjoining Landowner Name)
�i (Address)
u66
�sm�cc�c�p dry Attach additional list if necessary) �eNv�Ct 1or�o �40
I do also attest that the following individual is the chief administrative officer of the county or
municipality in which the proposed mining site is located and that notice of the pending application has been
caused to be mailed, by certified or registered mail, to said office at the following address:
(Chief Administrative Officer Name)
I J
The above attestation was made by me while
that a reasonable effort has been made to notify
dministrative officer of the county or municipalit
jB .0004(d). I understand that it is the responsibili
that the above notices were caused to be maile&ai
Date
If person executing A
information: (Name of applicant)
executing Affidavit)
(Address)
L o lo-uY/c n c aj-6*
under oath to provide proof satisfactory to the Department
the owners of record of the adjoining land and the chief
y in compliance with N.C.G.S.'74-50 and 15A N.C.A.C.
y of the applicant to retain the receipts of mailing showing
to provide them to the Department upon request.
agent or employee of an applicant, provide the following
09,'liNr V
4taca �u>ria(title of person
Notary Public of the County of y a^
State of North Carolina, do hereby certify that #
r
personally appeared before me this day and under oath acknowledged that the above Affidavit was
made by him/her.
Witness my hand and notarial seal, this day f 199/
Notary
✓Iy Commission expires:
M

APPLICATION FOR A M11NINt; PERMIT
G. LAND ENTRY AGREEMENT
We hereby grant to the Department or its appointed representatives the right of entry and travel upon our
lands or operation during regular business hours for the purpose of making necessary field inspections or
investigations as may be reasonably required in the administration of the Mining Act of 1971.
We further grant to the Department or its appointed representatives the right to make whatever entries
on the land as may be reasonably necessary and to take whatever actions as may be reasonably necessary in
order to carry out reclamation which the operator has failed to complete in the event a bond forfeiture is
ordered pursuant to G.S. 74-59.
APPLICANT
Signature v S.
SULPHUR SPRI PROPERTIES, LL�aC SignatureY—
Print Name: LYNN HILL
Print Name: JAMES KING HILL, JR.
Address 556 PATTERSON ROAD
Title: PRESIDENT
HIDDENITE, NC 2$636
Company: NORTH AMERICAN EMERALD MINES, IN
felephone [phone]
Mine Name:NORTH AMERICAN EMERALD MINES,I
*Signature must be the same as the individual who signed Page 1 of this application.
u =.�.�u a arouna tepartment of Environment and Natural Res ourc s�mnst be sent order
to the
nd Quality Section Central Office at the address listed on the front cover of this application form.
Inquiries regarding the status of the review of this application should be directed to the Mining program staff
at [phone].
-19-

MINING
*A nonrefundable permit application processing fee is required when filing for a new mining
)ermit, a major permit modification or a renewal permit as follows:
TYPE ACRES**
NEW PERMIT
MAJOR
RENEWAL
MODIFICATION
Clay 1 but less than 25
$500
$250
$250
25 but less than 50
1000
Soo
Soo
50 or more
1500
Soo
Soo
Sand & 1 but less than 5 150 100 100
Gravel,
Gemstone, and 5 but less than 25 250 100 100
Borrow Pits
25 but less
than 50
Soo
250
Soo
50 or more
1000
500
Soo
Quarry,
Industrial
1 but less
than 10
250
100
100
Minerals,
Dimension
10 but less
than 25
1000
250
Soo
Stone
25 but less
than 50
1500
Soo
500
50 or more
2500
Soo
Soo
Peat &
Phosphate
1 or more
2500
Soo
Soo
Gold (Heap
Leach),
Titanium &
1 or more
2500
Soo
Soo
Others
*A nonrefundable $50.00 permit application processing fee is required for minor permit modifications. Minor permit modifications include ownership transfers, name
changes, bond substitutions and permit renewals where the mine is inactive and fully stabilized. A minor permit modification also includes lands added to a permitted
area, outside of the minimum permit buffer zone requirements, where no plans for mining related disturbance of the added lands have been approved. All other
changes are considered major modifications.
**Acres for new permits and renewal permits means the total acreage at the site. Acres for major modification of permits means that area of land affected by the
modification within the permitted mine area, or any additional land that is to be disturbed and added to an existing permitted area, or both.
3/94
-20-

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-21-

SCHEDULE OF RECLAMATION COSTS
based upon range of $500 - SS 000 per affected acre) 10/97
coe Cechd.bad
COMMODITY CODES: SG = Sand and/or Gravel, GS = Gemstone,
Borrow/fill dirt, CS = Crushed Stone, DS = Dimension
Borrow =
MI
= Mica, LI =
Stone, FS = Feldspar,
Lithium, PF = Pyrophyllite, OL = Olivine,
Kyanite/Sillimanite/Andalusite, PH = Phosphate, CL = Clay/Shale,
PE Peat,
AU
= Gold, TI = Titanium, and OT
= Other
=
Type T/S Ponds
S.piles
W.Piles P.area/H.R.
Mine Excay.
SG, GS, $500/ac.(L) $1800/ac. $2000/ac. $1800/ac.
Borrow 1500(FI)
$500/ac.(L)
2000 (PD)
CS,
FS,
DS, 500(L)
MI, 1500(FI)
1800
2000 2000
500(L)
LI,
PF,
2500(PD)
OL,
KY
PH
1000(L)
2500(FI)
2500
5000 5000
2000(L)
5000(PD)
CL
1000(L)
2500(PI)
2500
5000 5000
2000(L)
3700(PD)
PE,
TI,
AU, 1000(L)
OT 2500(FI)
2500
3000 3500
2000(L)
5000(PD)
(L)
(Fj:�
= reclamation to
= reclamation by
a lake and
filling in
revegetating sideslopes
(PD)
= reclamation by
grading for
and revegetating
positive drainage and
revegetating
AS PER NCAC 15A 5B4O0031 IF YOU DISAGREE WITH THE BOND AMOUNT DETERMINED BY
THE BOND CALCULATION WORKSHEET, YOU MAY SUBMIT AN ESTIMATE OF RECLAMATION
COSTS FROM A THIRD PARTY CONTRACTOR. SAID ESTIMATE MUST BE PROVIDED WITHIN
30 DAYS TO THE FOLLOWING ADDRESS:
Mining Program
Land Quality Section
P.O. Box 27687
Raleigh, North Carolina 27611
ALL ESTIMATES MUST INCLUDE THE FOLLOWING AS A MINIMUM:
- FINAL GRADING COSTS PER ACRE
- LIME AND FERTILIZER COSTS PER ACRE
- YEAR-ROUND SEEDING MIXTURE COSTS PER ACRE (FROM APPROVED
REVEGETATION PLAN IN APPLICATION/PERMIT DOCUMENT)
- MULCH AND ANCHORING COSTS PER ACRE
- ANY OTHER RECLAMATION COSTS NECESSARY TO COMPLY WITH THE APPROVED
RECLAMATION PLAN FOR THE SITE IN QUESTION
YOU WILL BE NOTIFIED AS SOON AS POSSIBLE OF THE DIRECTOR'S FINAL BOND
DETERMINATION.
1, 000 copies of this public document were printed at a cost of $564.00 or $.56 per copy. 12197
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DMSION OF LAND RESOURCES - LAND QUAL77y SEMON
-22-

Revegetation Reforestation
Reclamation Plan
For North American Emerald Mines Inc.
Submitted By Environmental Forestry Services, Inc.
1(800) 337-1551
Date 6-10-99
Goal
Reclaim mine area to Wildlife Habitat. Habitat will be created using warm season grasses,
wildlife tree species, and Loblolly pines for cover.
Grade and Site Prep
A. Reconstruct all vertical cuts to 2-1 slope, using stock pile for fill. All slope fills will be track
compacted to 3:1 or flatter.
B. Establish a seedbed on mine surface with mineral soil from stockpile area. A seedbed depth
of a minimum of 12" will be maintained.
Seeding Guidelines
Per Acre Rate
Permanent seeding May 15th - July 15ch
Warm season Grass
Big Bluestein
1 lbs.
Indiangrass
1 lb.
Little Bluestein
1 lb.
Sideoats Grama
1 lb.
Eastern Gamagrass
2 lb.
Switchgrass
1 lbs.
KobeLespedeza
40lbs.
Dove Proso Millet
10 lb.
17-17-17- Fertilizer 6001bs.
Lime 2 tons
Straw Mulch 100 Bales
Straw Tack 20 lbs.

Permanent Establishment of Trees
November - April
Loblolly Pine 12 x 12 - 202 per acre, assorted Wildlife Tree Species, Dogwood, Hickory,
Sawtooth Oak, Persimmon, Black Cherry, and White Oak will be planted on a staggered
basis in the plantation approximately 100 per acre for a total of 302 Trees per acre.
401bs. Dove Proso Millet
40lbs. Soybean
401bs. Grain Rye or Wheat
401bs. Austrian Winter Pea
Temp Vegetation per acre
July 1" - September 1A
September I' - May 15th
Revegetatio7d or reforestation plan approved by:
Signature_ 44. , / PIu CY%L p
Print Name h !fit c C c P
Title �i5 �%ic7` �i3 Prima �/OA .57
Agency u59R - /VV g
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X
S
Producing the
Finest Quality
Emeralds & Gems
in North America
CO. Box 57
Hiddeni[e, NC 28636
BAX 828.635.5718
TEL [phone]
Lam-;e— g---fo
'7-6S— /9 d G
Director
State of North Carolina
Department of Environmental Resor
Division of Land Resources
Land Quality Section
P.O. Box 27687
Raleigh, North Carolina 27611-7687
June 25, 1999
Gentlemen:
REC " f-7
mm�
�. c a j
7
Enclosed is the application of North American Emerald Mines, Inc. (NAEM) for a North
Carolina Mining Permit. The proposed gemstone mine is located in Hiddenite, North
Carolina.
I trust that the application, survey maps and reforestation plan will meet with your approval
We had the consultation of Environmental Forestry Services of Taylorsville, NC and
Brushy Mountain Surveying Company of North Wilkesboro, NC.
The landowners are Sulphur Springs Properties, LLC., Lynn Hill, Managing Member. You
may reach Lynn Hill at [phone].
Advisors to NAEM on environmental, mining and corporate law are Laurie Gengo,
Attorney and Reef Ivey, Attorney of The Sanford Holshouser Firm in Raleigh. Their
telephone number is 755-1800.
Please feel free to contact us with your questions.
thank you for your consideration.
Sincerely yours,
James King Hill, Jr., President
NORTH AMERICAN EMERALD MINES, INC.
encl.

I
A
N
ol

444-1/

Ge�
March 15, 2000
Mr. James King Hill, Jr.
North American Emerald Mines, Inc.
P.O. Box 57
1475 Goble Road
Hiddenite, North Carolina 28636
RE: North American Emerald Mine
Alexander County
Yadkin River Basin
Dear Mr. Hill:
.s
The application for a mining permit for the above referenced mine
site has been found to meet the requirements of G.S. 74-51 of The Mining
Act of 1971. As we have received the required security to cover this
application, I am enclosing the mining permit.
The conditions of Mining Permit No. 02-06 were based primarily
upon information supplied in the application with conditions added as
necessary to insure compliance with The Mining Act of 1971 . This permit
expires on March 15, 2010. G.S. 74-65 states that the issuance of a
mining permit does not supersede local zoning regulations. The
responsibility of compliance with any applicable zoning regulations lies with
you.
As a reminder, your permitted acreage and affected acreage for this
site are both 14.02 acres, as indicated in the application and on the
Erosion and Sedimentation Control Plan last revised December 22, 1999.
Please review the permit and notify this office at (919) 733-457 of
any objection or questions concerning the terms of the permit.
Sincerely,
Tracy E. Davis, P.E.
State Mining Specialist
Land Quality Section
TED/tls
Enclosures
cc: Mr. G. Douglas Miller, P.E.
Ms. Barbara Rote-WRC, w/enclosures
Mr. Bradley Bennett-DWQ, w/enclosures

Page 3
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 Section, Division of Water Quality, to
secure any necessary stormwater permits or other approval documents.
2. 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. A. Sufficient buffer (minimum 100 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. 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. A. Adequate mechanical barriers including but not limited to diversions, earthen
dikes, silt check dams, silt 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 mining activities shall be conducted as indicated by the Erosion andd
Sedimentation Control Plan last revised December 22, 199 . V^,1
5. All mining permit boundaries (14.02 acres) shall be permanent marked at the site N' U
on 100 foot intervals unless the line of sight allows for larger pacing intervals.
6. The angle for graded slopes and fills shall be no greater th the angle which can be
retained by vegetative cover or other adequate erosion ontrol measure, structure,
or device. In any event, exposed slopes or any excav ed channels, the erosion of
which may cause off -site damage because of siltation shall be planted or otherwise
provided with ground cover, devices or structures suf icient to restrain such erosion.
rVtq7. The affected land shall be graded so as to preve collection of pools of water that
are, or likely to become, noxious or foul. Nec ssary�structures such as drainage
ditches or conduits shall be constructed or inst Iled ycihen required to prevent such nU
conditions. /
v�?� 0

A 4
RA.
NCDENR
JAMES S. HUNTJR.
GOVERNOR
WAYNE MCDEVITT
SECRETARY
I
CHARLES H. GARDNER
+ P.G., P.E. DIRECTOR
eun sTArTF-rFnl e.G,e� i
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
March 15, 2000
Mr. James King Hill, Jr.
North American Emerald Mines, Inc.
P.O. Box 57
1475 Goble Road
Hiddenite, North Carolina 28636
RE: North American Emerald Mine
Alexander County
Yadkin River Basin
Dear Mr. Hill:
The application for a mining permit for the above referenced mine site
has been found to meet the requirements of G.S. 74-51 of The Mining Act
of 1971. As we have received the required security to cover this
application, I am enclosing the mining permit.
The conditions of Mining Permit No: 02-06 were based primarily upon
information supplied in the application with conditions added as necessary
to insure compliance with The Mining Act of 1971. This permit expires on
March 15, 2010. G.S. 74-65 states that the issuance of a mining permit
does not supersede local zoning regulations. The responsibility of
compliance with any applicable zoning regulations lies with you.
As a reminder, your permitted acreage and affected acreage for this
site are both 14.02 acres, as indicated in the application and on the Erosion
and Sedimentation Control Plan last revised December 22, 1999 and the
supplemental Erosion and Sedimentation Control Narrative and design
calculations.
Please review the permit and notify this office at [phone] of
any objection or questions concerning the terms of the permit.
Sincerely,
Tracy E. Davis, P.E.
State Mining Specialist
Land Quality Section
TED/tls
Enclosures
cc: Mr. G. Douglas Miller, P.E.
WRC, w/enclosures
Mr. Bradley Bennett-DWQ, w/enclosures
LAND QUALITY SECTION [phone] FAX [phone]
GEOLOGICAL SURVEY SECTION [phone] FAX [phone]
P.O. Box 27687, RALEIGH, NORTH CAROLINA 2761 1-7687 TELEPHONE [phone] FAX [phone]
AN EQUAL OPPORTUNITY /AFFIRMATIVE ACTION EMPLOYER - 50% RECYCLED/10% POST -CONSUMER IF..—

DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
LAND QUALITY SECTION
PERMIT
for the operation of a mining activity
In accordance with the provisions of G.S. 74-46 through 68, "The Mining
Act of 1971," Mining Permit Rule 15A NCAC 5 B, and other applicable
laws, rules and regulations
Permission is hereby granted to:
North American Emerald Mines, Inc.
North American Emerald Mine
Alexander County - Permit No. 02-06
for the operation of a
Gem Stone 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.
MINING PERMIT EXPIRATION DATE: March 15 2010

r
Page 2
In accordance with the application for this mining permit, which is hereby approved by the
Department of Environment and Natural Resources, 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 expiration, 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 Plan 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.
Definitions
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.
Expiration Date
This permit shall be effective from the date of its issuance until March 15, 2010.
Conditions
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:
OPERATING CONDITIONS:
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.

Page 3
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 Section, Division of Water Quality, to secure any necessary
stormwater permits or other approval documents.
2. 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. A. Sufficient buffer (minimum 100 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. 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. A. Adequate mechanical barriers including but not limited to diversions, earthen
dikes, silt check dams, silt 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 mining activities shall be conducted as indicated by the Erosion and
Sedimentation Control Plan last revised December 22, 1999 and the
supplemental Erosion and Sedimentation Control Narrative and design
calculations.
C. No mining related activities shall be initiated in Phase II until an erosion and
sedimentation control plan has been submitted to and approved by the
Department for Phase II.
5. All mining permit boundaries (14.02 acres) shall be permanently marked at the site on
100 foot intervals unless the line of sight allows for larger spacing intervals.
6. 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 siltation, shall be planted or otherwise provided
with ground cover, devices or structures sufficient to restrain such erosion.

Page 4
7. 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.
g. Existing vegetation or vegetated earthen berms shall be maintained between the mine
and public thoroughfares whenever practical to screen the operation from the public.
9. Sufficient buffer (minimum 50 foot undisturbed) shall be maintained between any
excavation and any mining permit boundary or right-of-way to protect adjacent
property.
10. A physical barrier consisting of a fence or earthen berm, etc., shall be maintained
around the perimeter of any highwall.
1 1 . 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 Land Quality Section,
Department of Environment and Natural Resources. The method of disposal
shall be consistent with the approved reclamation plan.
B. Mining refuse as defined by 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 Land Resources considers the
following materials to be "mining refuse" (in addition to those specifically listed
under G.S. 74-49 (14) of the N.C. Mining Act of 1971):
1)
2)
3)
4)
5)
6)
on -site generated
conveyor belts
wire cables
v-belts
land clearing debris
steel reinforced air hoses
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 Land Resources prior to commencement of such disposal:

Page 5
1. the approximate boundaries and size of the refuse disposal area;
2. a list of refuse items to be disposed;
3, verification that a minimum of 4 feet of cover will be provided over the
refuse;
4. verification that the refuse will be disposed at least 4 feet above the
seasonally high water table; and
5. verification that a permanent vegetative groundcover will be established.
12. An Annual Reclamation Report shall be submitted on a form supplied by the
Department by February 1 of each year until reclamation is completed and approved.
13. A. 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 and any approved revisions to it. Approval to implement such changes
must be obtained from the Department prior to on -site implementation of the
revisions.
ll be
lowed in Phase 11
til an
on and
B. No mining sedimentation controled r plan ehas abeen alsubmitted to and napp approved the
Department.
14. The security which was posted pursuant to N.C.G.S. 74-54 in the form of a
$58,500.00 Assignment of Savings Account/CD is sufficient to cover the operation
as indicated in ication. This
permvalid. to be e The total affected approved lland shall not security force
exceed the bonded
y shall be
15. A Authorized
access tothe site to preseneof
t granted representatives
of t dtArchiveshe Division of cH'rsignificant
archaeological resources.
B. Pursuant to N. C. G. S. 70 Article 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.

Page 6
APPROVED RECLAMATION PLAN
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.
The approved plan provides:
Minimum Standards As Provided By G.S. 74-53
1 , 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.
2. Provisions for safety to persons and to adjoining property must be provided in all
excavations in rock.
t in a
on
ch is in accordance
3 accepted conservation practicAli overburden and spoil es e dfwhich s suitable lfor helproposed subsequent with
of the land.
4 No slikely o
all pools
of water noxious, be
allo o d to collect or remain on the mined area that
are,
5. 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.
6. 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.
RECLAMATION CONDITIONS:
1. Provided further, and subject to the Reclamation schedule, the planned reclamation
shall be to regrade and satisfactorily revegetate any disturbed areas.
2. The specifications for surface gradient restoration to a surface suitable for the planned
future use are as follows:
A. All sideslopes shall be graded to a 2 horizontal to 1 vertical or flatter slope.
B, Any settling ponds or sediment basins shall be backfilled and stabilized.

Page 7
C. The processing, stockpile, and other disturbed areas neighboring the mine
excavation shall be leveled and smoothed.
D. Compacted surfaces shall be disced, subsoiled or otherwise prepared before
revegetation.
rmanently
disposed of at the mine site. On -site
E.
d sposal of waste shall be in pea co dance with Operating Condition Nos. 1 1 .A
through D.
F. The affected land shall be graded to prevent the collection of noxious or foul
water.
3. Reveaetation Plan:
After site preparation, all disturbed land areas shall be revegetated as per the
Revegetation Plan approved by Mr. Dan McClure, District Conservationist with the
Natural Resources Conservation Service, on June 14, 1999.
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.
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.
Permit issued this 15th day of March, 2000.
Charles H. Gardner, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources