02-06 North American Emerald Mine File Pt. 24

AyyhWd'S Name:
Ayyhe. f Permit No.:
Reviewer:
MINING CHECKLIST FOR ROUTING
County:
PrOjeet Name:
Rfver Basin Name:
Date Recefved:
❑ New ❑ Renewal ❑ MAftW M (inside yermft not+ndarfes)
❑ Modiffeaum (outside yermft boundartu) ❑ Transfee ❑ Release
❑ Partial Release ❑ Additional U formAtton ❑ Fee Needed: $ ❑ Fee Reeetved: $
Please route entire qphcgtfm ra4e to:
Regional Of ftCe (2 corrgsleh coyieS; attach the 'tQS Regional Ofte Mfsdng Ayyheatton Review
ckklw- to one coyy and attach both the DWQpnd DA( "Mtnin& nyyliMUM Review Form' to the other eoyy; send bath eoyiO to the Regional
Engineer)
Date: Routed RCC'd
❑ DWSfon of Water Resources Date: Routed RCC'd
❑ NC Wildlife Resources Commisstm Date: Ranted RCC'd
❑ US Ffsh & Wtldl fi servfCe Date: Routed Reed
(Only new ayyhcations and modi`i dfoa requests that add land to the yerud)
Please route first 3 gapes of the ayphCattM and my location mans to:
❑
DtVtsfon of Parks & Recreation Date:
Routed
Reed
❑
Nc Geological Survey Sedian Date:
Routed
Reed
❑
Division e f Marine Ffshtrits Date:
Routed
Reed
❑
Division of Sod & Water CONSUMnan (ylus LEA) Daft:
Routed
Reed
(Only new ayykdkns and mOoation requests that add )and to tke yermit)
❑ DfViSbX of ArCkVes & HtstOry Daft: Routed Reeld
(only new ayylfeations)
❑ other:
**sx?ense Date for Comments:
❑ Please note the Mowing:
Date: Routed Reed
(no later than 25 days from reeefyt)

Freeman Environmental nsulting, LLC
31 Cross Street, Suite 229 ENGINEERING
Spruce Pine, NC 28777
Office: 828-765-1515 DESIGN SHEET
Cell: 828-765-3571
E-mail: [e-mail]
Prep.

EM
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE Beverly Eaves Perdue, Governor
Director and State Geologist September 27, 2011 Dee Freeman, Secretary
Certified Mail
Return Receipt Requested
7008 1300 0000 1125 3940
Mr. James K. Hill, Jr.
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636-9233
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Hill:
The review has been completed on the renewal request your company submitted for the
referenced mine site. However, the following is needed to continue processing your
application:
The reclamation bond was calculated for this site using the information submitted on the
revised mine map. The reclamation bond for this site has been calculated to be $83,800.00.
The calculation worksheet is enclosed for your review and the bond or balance ($13,608.92)
will be required prior to approval of this modification renewal.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
P-lease-be-advised--that-the-renewal-request cannot be completed -until -the -new bond -
amount has been received.
As required by G.S. 74-51 (h), you are hereby advised that you have 60 days from the
date of your receipt of this letter to submit the reclamation bond. If you are unable to meet this
deadline and wish to request additional time, you must submit information, in writing, to the
Director clearly indicating why the deadline cannot be met and request that an extension of
time be granted.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • Telephone [phone] / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604 • Internet:hftp://www.dir.enr.state.nc.us/pagesAandqualitysection.html
An Equal Opportunity / Affirmative Action Employer —50% Recycled / 10% Post Consumer Paper
'�'A 6
5

E. DETERMINATION OF AFF) --.TED ACREAGE AND BOND E�� Lm 1iitY1�V
as ,off
The following bond calculation ivorksheet is to be used to establish an appropriate bond (based upon a range
oj'S500 to Sj.000 per ajjected acre).for each permitted mine site based upon the acreage approved by the
Department to be affected during the life ojthe miningpermit Please insert the approximategcreaee, for each
AFFECTED
RECLAMATION
CATEGORY
ACREAGE
COST/ACRE*
Tailings/Sediment Ponds:
'7S Ac.
X
$ /SQO`'` /Ac.
Stockpiles:
Ac.
X
$ /Ac.
Wastepiles:
Ac.
X
S L &6610 ` /Ac.
Pro �re/HRo0
�c
1073 Ac.
X
$ AQ(50 Ci u
/Ac.
f y
Mine Excavation:
9, 9 ► Ac.
X
$ =200 e` /Ac.
Other:
-'3,AAc.
X
$ %'6d0`'" /Ac.
TOTAL AFFECTED AC.:Z
910 Ac.
(TOTAL PERMITTED AC.:
Ac.)
RECLAMATION
COST
0 � 6`'
no
LkoO
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 forpositive drainage where measures will
be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage
Ac.
b) Positive Drainage ta,Y Ac.
Inflation Factor:
00
X $1,500.00 = $_ 33 9VO
SUBTOTAL COST: $ 1,0q 9 `f O
aJ I
0.02 X SUBTOTAL COST: $ X Permit Life (1 to 10 years): �
INFLATION COST:
z
TOTAL COST = SUBTOTAL COST + INFLATION COST
to the ueares
14-
�S�

Memo
To: Judy Wehner
From: Zahid Khan
CC:
Date: 9/20/2011
Re: North American Emerald Mine Permit, Alexander County, and Yadkin River Basin
Application/Permit #: 02-06
The modification of recent submittal dated September 1, 2011 and received in MRO on September 6,
2011 with suspense date for comments September 26, 2011 was reviewed. I do not have any
comments at this time.
A copy of Ryan Kormanik comments is attached for your review.
Please contact Ryan or me if you need additional information.
RECEIVE®
W 212011
LAND QUALITY SECTION

r
Khan, Zahid
From:
Kormanik, Ryan
Sent:
Wednesday, September 07, 2011 8:50 AM
To:
Khan, Zahid
Subject:
02-06 Mine Review
Zahid,
It appears that all the concerns have been addressed. The one item which there was no mention was regarding the
comment from DLQ about the reclamation bond amount. This needs to be clarified that was properly addressed.
Ryan Kormanik
Environmental Specialist
Land Quality - MRO
704.663.1699
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.
APlease consider the environment before printing this e-mail
ECEIVED
SFP 21 2011
LAND QUAUTY SECTION

FW
MINING CHECKLIST FOR ROUTING
Ayyheamt'S Name: A-� , :
Project Name: .� s i
AyyhC./Fcmdt No.: County: Date Received:
Reviewer. River Baffin SAM:
❑ New ❑ Renewal ❑ Modtficatian (tnsideyenntt boundaries)
❑ Mod$cation (ouutdcyermit boundaries) ❑ Tranf fer ❑ Release
❑ Partial Release :b AddtUN d rnformation ❑ Fee Needed: $ ❑ Fee Received: $
Please route entire applfcaffou Pacleape to:
El Regional Office (2 complete coyus; attach the °IQS Regional o�ice Minim pyylicaUN Review
checklist' to one copy and attach both the DWCZand DAQ Mining Apheation Review Farm, to the other copy; send both coyies to the Regional
Engineer)
Date: Routed Rec'd
❑ Division o f water Resources Date: Routed Rec d
❑ NC Wildlife Resources CommisSimi Date: Routed ReCd
❑ us Fish & Wildlife service Date: Routed RCC'd
(only new ayylications and mod 6cation requests that add land to theyerndH
Please route (frst 3 Popes of the application and anv location mans to:
❑
DkSfM of Parks & Recreation
Date:
Routed
Reed
❑
NC Geological survey section
Date:
Routed
Rec d
❑
Division of Marine Fisheries
Date:
Routed
Reed
❑
DtvfM of soil & Water Conservation
(yhts LEA) Date:
Routed
Recd
(only new Wheations and modi$cation
requests that add land to the yernat)
❑ Division of Archives & History
(only new ayplieatims)
❑ other:
Date: Routed Reed
Date: Routed Reed
* *SgCnse Date for Comments: (no later than 25 days from recc yt)
11 Please note the followtng:

r
0
Freeman Environmental Consulting, LLC
411 Lower Hanging Rock Road
Spruce Pine, NC 28777
Phone: [phone], Mobile [phone]
e-mail: [e-mail]
August 29, 2011
Judith Wehner,
Assistant State Mining Specialist
DENR— Land Quality Section
Division of Land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
RECEIVE®
Subject: North American Emerald Mine;
Mine Permit Renewal Application
Permit Number 02-06, Request for information
Alexander County, Yadkin River Basin
Dear Mrs. Wehner,
SEP 012011
LAND QUALITY
:ANING PROGRAM
In response to your request for information letter dated August 23, 2011 please find
below and attached the requested information by the number as specified in your
correspondence:
1. Clearly define which sediment diversions are associated with each trap
• Sediment Trap ST-9 receives runoff flow from DB-6 which then flows into DB-5
and offsite after leaving the trap
• Sediment Trap ST-1 receives runoff flow from D-3 and DB -1 which flows to SD-
1 then to DB-4 and on to SD-3. ST-1 also receives flow from D-2.
• Sediment Trap ST-2 receives runoff flow from DB-2 which flow to SD-2, then to
DB-3 and SD-4. ST-2 also receives flow from D-1.
• Sediment Trap ST-4 receives runoff flow from DB-9.
• Sediment Trap ST-3 receives runoff flow from diversions D4, D-5, C-2, D-6, D-
7, C-1, D-9, DB-7 & D-8.
• Ditch D-10 does not flow into a sediment trap but into the pit.
• Sediment Trap ST-7 receives runoff flow from the general area and is an existing
structure.
• Sediment Trap ST-8 receives runoff flow from DB-10 and DB-11.
• Sediment Trap ST-5 receives runoff flow from DB-8 and D-11.
• Sediment Trap ST 6 receives runoff flow from D-12
See attached maps MP-2 and MP-3 for more information on the diversion flows.

2. Clarify Limits of Clearing
The existing County/Town road right of way was shown as the limits of clearing in the
legend and has been relabeled in the legend on the attached maps.
3. The surface area of ST-3 should be increased due to impervious area of Parkin¢
lot. The trap should have a high C-Value and possible change to basin.
Sediment Trap ST-3 is an existing trap/basin that receives runoff flow from an area that is
stable and during a June, 2011 inspection it appeared to be functioning properly. The C-
value for the gravel, paved and roof areas used to calculate the flows in ditches D-4, 5, 6
& 7 are in the higher range and appear to be appropriate. It should also be noted that the
parking area is small and runoff flow from the west side of the parking area flows to the
north and away from the area in question.
4. Ensure that ST-7 does not discharge into ST-S
ST-7 is an existing trap/basin which discharges south from the basin and flows downhill
to the east and into a natural draw. ST-8 discharges into a wooded area to the south.
See attached trap calculation sheets with new spillway design. The summary sheet shows
the minimum length, where the calculated length was shorter.
Should you have questions or need further information, Nikki Street or I can be contacted
at 828-765-1515 during normal business hours or at 828-765-3571 (cell) anytime.
Sincerely/
� io as (Tom) Freeman CPESC
/Freeman Environmental Consulting, LLC
CC: CD, NAEM, LCE & FEC files

North American Emerald Mine
Sediment Trap
Sediment Size Surface Storage Spillway
Trap (in Ft) Drainage Area Area ftz Volume ft length ft
ST-1
65x131x3
3.84
8515
25545
20.34
ST-2
60X13OX3
3.44
7800
23400
18.51
ST-3
65X125X3
6.59
8125
24375
18.88
ST-4
18X40X3
0.59
720
2160
4.00
ST-5
37X90X3
2.81
3330
9990
7.77
ST-6
20X75X3
1.2
1500
4500
4.00
ST-7
20X6OX3
0.99
1200
3600
4.00
ST-8
23X60X3
1
1380
4140
4.00
ST-9
9X20X2
0.11
180
360
4.00
* Minimum spillway lengths shown

North American Emerald Mine
Runoff Calculations for Trap ST- 1
Descriotion
Arrpc C:-\/ah ip (..naf
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0
0.5
0
Grassland
0
0.35
0
Woodlands
0
0.2
0
Roadway ravel
3.84
0.7
2.688
0
0.95
0
Totals 3.84 2.688
C = 2.688 (coef) / 3.84 (acres) = 0.7
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.7 X 7.26 X 3.84 = 19.51488 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.7 X 5.68 X 3.84 = 15.26784 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.7 X 8.02 X 3.84 = 21.55776 cfs

Sediment Trap Trap ST-1
Trapping Effeciency
Drainage Area Acres 3.84
A = 0.01 X (Q) 19.51 = 0.1951 X 43560 = 8498.6 ft2 Required
Basin Size 131'X65'X3'(minimum)
Ft2 Surface area 8515
Ft3 Storage area 25545
Q for 25 year storm 21.56
Spillway Length 20.34 ft
Based on Q = CLH'/2 Where C=3 and H=0.5'
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Descriotion
ST- 2
Acres C-Value (:nef
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0
0.5
0
Grassland
0
0.35
0
Woodlands
0
0.2
0
Roadway ravel
3.44
0.7
2.408
Concrete, Asphalt & Buildings
0.04
0.95
0.038
Totals 3.44
C = 2.446 (coef) / 3.44 (acres) = 0.7110465
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.71105 X 7.26 X 3.44 = 17.75796 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.71105 X 5.68 X 3.44 = 13.89328 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.71105 X 8.02 X 3.44 = 19.61692 cfs
2.446

Sediment Trap Trap ST-2
Trapping Effeciency
Drainage Area Acres 3.44
A = 0.01 X (Q) 17.76 = 0.1776 X 43560 = 7736.3 ft2 Required
Basin Size 130'X60'X3'(minimum)
Ft2 Surface area 7800
Ft3 Storage area 23400
Q for 25 year storm 19.62
Spillway Length 18.51 ft
Based on Q = CLH'/2 Where C=3 and H=0.5'
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Description
ST- 3
AcraQ is Cncf
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0
0.5
0
Grassland
6.16
0.35
2.156
Woodlands
0
Roadway ravel
0.43
0.7
0.301
Roofs and Paved areas
0.04
0.95
0.038
Totals 6.59
C = 2.495 (coef) / 6.59 (acres) = 0.3786039
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.3786 X 7.26 X 6.59 = 18.1137 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.3786 X 5.68 X 6.59 = 14.1716 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.3786 X 8.02 X 6.59 = 20.0099 cfs
2.495

Sediment Trap
Trap ST-3
Trapping Effeciency
Drainage Area Acres 6.59
A = 0.01 X (Q) 18.11 =FO-1-81-1-1 X 43560
Basin Size 125'X65'X3'(minimum)
Ft2 Surface area 8125
Ft3 Storage area 24375
Q for 25 year storm 20.01
Spillway Length 18.88 ft
Based on Q = CLH'/I Where C=3 and H=0.5'
= 7888.7 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Description
ST- 4
Arrae r._Vnh io rncf
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0
0.5
0
Grassland
0.539
0.35
0.18865
Woodlands
0
0.2
0
Roadway ravel
0.051
0.7
0.0357
0
0.95
0
C = 0.2244 (coef) /
I otals
0.59 (acres) = 0.3802542
0.59 0.22435
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.38025 X 7.26 X 0.59 = 1.628781 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.38025 X 5.68 X 0.59 = 1.274308 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.38025 X 8.02 X 0.59 = 1.799287 cfs

Sediment Trap
Trap ST-4
Trapping Effeciency
Drainage Area Acres 0.59
A = 0.01 X (Q) 1.63 = F—O-01-6-3-1 X 43560
Basin Size 18'X40'X3'(minimum)
Ft2 Surface area 720
Ft3 Storage area 2160
Q for 25 year storm 1.8
Spillway Length 1.698 ft
Based on Q = CLH3/2 Where C=3 and H=0.5'
= 710.0 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Descriotion
ST- 5
Arras (:_Va I in r_naf
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0.84
0.5
0.42
Grassland
1.42
0.35
0.497
Woodlands
0.55
0.2
0.11
Roadway ravel
0
0.7
0
0
0.95
0
Totals 2.81
C = 1.027 (coef) / 2.81 (acres) = 0.3654804
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.36548 X 7.26 X 2.81 = 7.45602 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.36548 X 5.68 X 2.81 = 5.83336 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.36548 X 8.02 X 2.81 = 8.23654 cfs
1.027

Sediment Trap
Trap ST-5
Trapping Effeciency
Drainage Area Acres 2.81
A = 0.01 X (Q) 7.46 = 0.0746 X 43560
Basin Size 37X90'X3'(minimum)
Ft2 Surface area 3330
Ft3 Storage area 9990
Q for 25 year storm 8.24
Spillway Length 7.774 ft
Based on Q = CLH'/I Where C=3 and H=0.5'
= 3249.6 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Description
ST- 6
Acres C-\/nh ie Rnaf
Bare Sandy Soil level
0.1
0.45
0.045
Bare Soil (sloping)
0.35
0.5
0.175
Grassland
0.55
0.35
0.1925
Woodlands
0.2
0.2
0.04
Roadway ravel
0
0.7
0
0
0.9
0
Totals 1.2
C = 0.4525 (coef) 1 1.2 (acres) = 0.3770833
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.37708 X 7.26 X 1.2 = 3.28515 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.37708 X 5.68 X 1.2 = 2.5702 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.37708 X 8.02 X 1.2 = 3.62905 cfs
0.4525

Sediment Trap
Trap ST-6
Trapping Effeciency
Drainage Area Acres 1.2
A = 0.01 X (Q) 3.29 = 0.0329 X 43560
Basin Size 20'X75'X3'(minimum)
Ft2 Surface area 1500
Ft3 Storage area 4500
Q for 25 year storm 3.63
Spillway Length 3.425 ft
Based on Q = CLH3!2 Where C=3 and H=0.5'
1433.1 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Description
�03M
Acres C-Vahia CnPf
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0
0.5
0
Grassland
0.935
0.35
0.32725
Woodlands
0
0.2
0
Roadway ravel
0.055
0.7
0.0385
0
0.95
0
C = 0.3658 (coef) /
1 otals
0.99 (acres) = 0.3694444
0.99 0.36575
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.36944 X 7.26 X 0.99 = 2.655345 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.36944 X 5.68 X 0.99 = 2.07746 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.36944 X 8.02 X 0.99 = 2.933315 cfs

Sediment Trap
Trap ST-7
Trapping Effeciency
Drainage Area Acres 0.99
A = 0.01 X (Q) 2.66 = 0.0266 X 43560
Basin Size 20'X60'XT(minimum)
Ft2 Surface area 1200
Ft3 Storage area 3600
Q for 25 year storm 2.93
Spillway Length 2.764 ft
Based on Q = CLH'/z Where C=3 and H=0.5'
= 1158.7 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

North American Emerald Mine
Runoff Calculations for Trap
Descriotion
ST- 8
Acres C-Value Coef.
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0.5
0.5
0.25
Grassland
0.5
0.35
0.175
Woodlands
0
0.2
0
Roadway ravel
0
0.7
0
0
0.9
0
C = 0.425 (coef) /
Totals 1
1 (acres) = 0.425
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.425 X 7.26 X 1 = 3.0855 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.425 X 5.68 X 1 = 2.414 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.425 X 8.02 X 1 = 3.4085 cfs
0.425

Sediment Trap
Trap ST-8
Trapping Effeciency
Drainage Area Acres 1
A = 0.01 X (Q) 3.09 = 0.0309 X 43560
Basin Size 23'X60'X3'(minimum)
Ft2 Surface area 1380
Ft3 Storage area 4140
Q for 25 year storm 3.41
Spillway Length 3.217 ft
Based on Q = CLH'/2 Where C=3 and H=0.5'
1346.0 ft2 Required
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity.

Sediment Trap
Trap ST-9
Trapping Effeciency
Drainage Area Acres
0.11
A = 0.01 X (Q)
0.4 = 0.004 X 43560 = 174.2 ft2 Required
Basin Size 9'X20'X3'(minimum)
Ft2 Surface area
180
Ft3 Storage area
540
Q for 25 year storm
0.44
Spillway Length 0.415 ft
Based on Q = CLH'/I Where C=3 and H=0.5'
Trap to be cleaned at the piont where the basin no longer functions well or is at 50% capacity

North American Emerald Mine
Runoff Calculations for Trap
Description
ST- 9
Arras C-\/ah is rnof
Bare Sandy Soil level
0
0.45
0
Bare Soil (sloping)
0.11
0.5
0.055
Grassland
0
0.35
0
Woodlands
0
0.2
0
Roadway ravel
0
0.7
0
0
0.95
0
Totals 0.11
C = 0.055 (coef) / 0.11 (acres) = 0.5
i = Rainfall Intensity for 10 year, 1 day storm = 7.06 inches
Q = (C)(i)(A) = 0.5 X 7.26 X 0.11 = 0.3993 cfs
i = Rainfall Intensity for 2 year, 1 day storm = 5.21 inches
Q = (C)(i)(A) = 0.5 X 5.68 X 0.11 = 0.3124 cfs
i = Rainfall Intensity for 25 year, 1 day storm = 8.09 inches
Q = (C)(i)(A) = 0.5 X 8.02 X 0.11 = 0.4411 cfs
0.055

_ f
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist
August 23, 2011
Certified Mail
Return Receipt Requested
7008 1300 0000 1125
Mr. James K. Hill, Jr.
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636-9233
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Hill:
Beverly Eaves Perdue, Governor
Dee Freeman, Secretary
We have reviewed the Renewal request you/your company submitted for the referenced
mine site. However, the following information is needed to continue processing your
application:
Please clearly define which sediment diversions are associated with each trap.
Some diversions appear to by-pass the intended trap.
The limits of clearing appear to extend into the Esmeralda mine site. Please
clarify on the map.
3. The surface area of ST-3 should be increased because of the imperviousness of
the parking lot. The trap should have a high C-value and may need to be a basin
rather than a trap.
4. Ensure that ST-7 does not discharge into ST-8.
5. All spillways must be designed to pass a 25 year 24 hour storm event. Revise
the Sediment Trap Chart to reflect this.
Please note, the Land Quality Section may request additional information, not included
in this letter, as the mining application review progresses.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • Telephone [phone] / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604 - Internet:http://www.dlr.enr.state.nc,us/pages/landqualitysection.html
An Equal Opportunity! Affirmative Action Employer -50% Recycled / 10% Post Consumer Paper

Certified Mail
Mr. Hill
Page 2
The reclamation bond has been calculated using the information submitted on the
revised mine map. The reclamation bond for this site would be $83,800.00. The calculation
worksheet is enclosed for your review and the new bond or balance ($13,608.92.00) will be
required prior to approval of this renewal request.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc.. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that our review cannot be completed until all of the items listed
above have been fully addressed.
In order to complete the processing of your application, please forward two (2) copies of
the requested information and the bond to my attention at the following address:
Land Quality Section
Division of Land Resources
Department of Environment and Natural Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
As required by 15A NCAC 5B.0013, you are hereby advised that you have 180 days
from the date of your receipt of this letter to submit all of the requested information. If you are
unable to meet this deadline and wish to request additional time, you must submit information,
in writing, to the Director clearly indicating why the deadline cannot be met and request that an
extension of time be granted. If an extension of time is not granted, a decision will be made to
grant or deny the mining permit based upon the information currently in the Department's files
at the end of the 180-day period.
Though the preceding statement cites the maximum time limit for your response, we
encourage you to provide the additional information requested by this letter as soon as
possible. Your prompt response will help us to complete processing your application sooner.

Certified Mail
Mr. Hill
Page 3
Please contact me at [phone] if you have any questions.
Sincerely,
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
Enclosures: Bond Forms
Bond Calculation Worksheet
cc: Mr. Zahid Khan
Mr. Tom Freeman — via e-mail

.. _...__.._.._......... ......._....... ..........�.
r.. vr.II W1L
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
mae-m Miner
0a-o�7
The following bond calculation ivorksheet is to be used to establish an appropriate
bond (based upon a range
of 3500 to S5.000 per affected acre) for each permitted mine site based upon the ucreage approved by the
Department to be affected during the life of the mining permit. Please insert the a
roximate acreage, br each
aspect ofthe mining operation that you intend to affect during the life 01 this mininepermit
(in addition please
insert the appropriate reclamation cost/acre for each category from the Schedule of Reclamation Costs
provided with this application form) OR you can defer to the Department to calculate vour bond for you based
upon vour maps and standard reclamation costs:
AFFECTED RECLAMATION
RECLAMATION
CATEGORY ACREAGE COST/ACRE*
COST
TailingslSedimentPonds: ,�S Ac. X $ ILOo` !Ac.
= S (a a
Stockpiles: Ac. X $ /Ac.
_ $
Wastepiles: Ac. X S('GCo� /Ac.
�—
Pro c ss g Area/Haul Roads: %( %. Ac. X S A0 D" /Ac.
to 44 f 40
= S Qe
—� -
4-9 "69 +- ,
---
Mine Excavation: `i, 1 Ac. X $ 5-00' /Ac.
g O; 5a5 �
Other: A Ac. X S Imo'- /Ac.
_ $ rj 6-60°
TOTAL AFFECTED AC.: u�S r% Ac.
(TOTAL PERMITTED AC.:Ac.)
Divide the 104A1. A FEC IED AC, above into the following two categories: a) affected acres that drain into
proposed/emsting 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
Ac.
b) Positive Drainage t��q( Ac.
Inflation Factor:
0 L�
X $1,500.00
SUBTOTAL COST: S f091 vu
b0
0.02 X SUBTOTAL COST: $ 80 X Permit Life (Ito 10 years):
INFLATION COST: Lb
TOTAL COST = SUBTOTAL COST + INFLATION COST = S �j e Ono ou
Total Reclamation Bond Cost: S
14-
Oi
to the nearest
■

Wehner, J
From: Wehner, Judy
Sent: Tuesday, August 23, 2011 2:51 PM
To: 'Thomas Freeman'
Subject: NAEM Mine
Attachments: 02-06 adi 2011.pdf
Here's the letter I sent. Just a few things.
Judy Wehner
Assistant State Mining Specialist
1612 Mail Service Center
Raleigh, North Carolina 27699-1612
[phone]
[phone] fax
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.

APPLICATION FOR A MINING PERMIT
NaEM p
E. DETERMINATION OF AFFECTEDACREAGE AND BOND
IU4e-m Miner
The following band calculation ivorkshe.et is to be used to establish an appropriate
of 'S 00 to S5, 000 per affected acre) for each
bond (based upon as n ee
permitted mine site based upon the
Department to be affected during the life of the miningpermit. Please insert the
acreage approved by the
approximate acreage for each
affect olthe mining operation, that you intend to affect during the Irfe of thrs mining permit (in adduron please
insert the appropriate reclamation cost/acre or each cateoory
1,om the Schedule ot Reclamation Costs
rovided with this a lication formi OR you can defer to the De artment to calculate your bond for you based
upon vour moos and standard reclamation costs:
AFFECTED RECLAMATION
CATEGORY ACREAGE COST/ACRE*
RECLAMATION
COST
Tailings/Sediment Ponds:?5 Ac. X $ 0• /Aa
= $ y m- 0,1_
Stockpiles: Ac. X $ /Ac.
_ $
Wastepiles: 1, Ac. X $ p' =20" /Ac.
_ $ 300
Ptocfls g Area/Haul Roads: /0, 3 Ac. X $ �jQV °� /Ac
= $ W_Aoa
Mine Excavation:_ Ac. X $ �a�o ° /Ac.
Other:,Ac. X $
TOTAL AFFECTED AC.: Ac,
(TOTAL PERMITTED AC.: 31Q Ac.)
• _ �� _..� h� . auuvc uno uie 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
Ac.
b) Positive Drainage __ aai%, Ac.
Inflation Factor:
X $1,500.00 = $ 3
SUBTOTAL COST: S LQ jc 6 00
0.02 X SUBTOTAL COST: $ q oaJ X Permit Life (1 to 10 vears): /p
INFLATION COST: S-
TOTAL COST = SUBTOTAL COST + INFLATION COST = $__ �j 9,p9, c',
Total Reclamation Bond Cost: $ 9a Rob
d�
(round down to the nearest $100.00)
_,4_

Memo
To: Judy Wehner
From: Zahid Khan
CC:
Date: 8/1612011
Re: North American Emerald Mine Permit, Alexander County, and Yadkin River Basin
Application/Permit #: 02-06
The modification of recent submittal dated July 26, 2011 and received in MRO on July 28, 2011 with
suspense date for comments August 19, 2011 was reviewed. I have the following comments.
01 Please increase the surface area for St-3. The equipment /parking area should have a high
value of "C". The ST-3 should be sediment basin instead of sediment trap.
20 Please make sure ST-7 should not outlet in ST-8.
QThe spillway capacity should be designed based upon the 25 year-24 hour storm.
A copy of Ryan Kormanik comments is attached for your review.
Please contact Ryan or me if you need additional information.
RECEIVED
ails 18 2011
LAND QUALITY SECTION

Khan, Zahid
From: Kormanik, Ryan
Sent: Monday, August 01, 2011 12:54 PM
To: Khan, Zahid
Subject: North American Emerald Mine Review Comments (02-06)
Zahid,
Following are my review comments. I was at the site on April 27, 2011 for the annual inspection.
1. Flow from SD-2 appears would bypass SD-4 to send flow into ST-2, but would flow to SD-3 into ST-1. Provide
Iculations to show ST-1 can handle this Flow or provide adequate means to ensure flow from SD-2 would be directed to
ST-2.
The "Proposed Maximum Clearing Limits" extend onto the Esmeralda Exploration International site.
Page 2 of the permit application should reflect the new 'Total Permitted Acreage" as 94.36.44M
With the changes in the affected areas table, does this change the bond amount?
If you have any questions please feel free to contact me.
Ryan Kormanik
Environmental Specialist
Land Quality - MRO
704.663.1699
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.
APlease consider the environment before printing this e-mail